Flexible packaging materials: minor price declines in Q3 of 2025

Market Overview

The flexible packaging industry continues to navigate a challenging environment.
Energy prices for electricity and gas remain high and volatile, while European industry is becoming increasingly import-dependent. Demand growth is slowing as many consumer goods categories underperform, limiting overall market momentum.

Raw Material Price Developments

Plastic Films

Alexander Tkachenko, Wood Mackenzie, commented:

“BOPET film prices have come down slowly in Q3, by around 5 c/kg.
Price reductions have mostly come from offshore suppliers, while European producers largely rolled over existing prices.

BOPP film prices have fallen by 8 c/kg due to lower resin costs, and BOPA film prices are down by 10 c/kg this quarter.
Lower prices are partly the result of falling PA6 resin costs.”

Aluminium Foil and Paper

“Aluminium foil prices have decreased by 17 c/kg, mainly due to lower conversion costs — down by around 10 c/kg.
In addition, the LME ingot price dropped by 5 c/kg.

Paper prices remain unchanged, while short-fibre pulp prices have decreased by EUR 166/t, mostly due to higher inventory levels.”

Polyethylene (PE) Market Insights

Kaushik Mitra, Chemical Market Analytics by OPIS (a Dow Jones Company), noted:

“Markets were less unstable this quarter, but overall sentiment was weaker.
July and August are traditionally the weakest months due to the summer lull, and this year the drop in demand was more pronounced than usual.

The typical recovery seen in September has not yet materialised, as end markets struggle with macroeconomic slowdown and increased imports from China that have dampened local demand.”

Trade Developments

“The most significant development this quarter was on the trade front, with the EU and US finally signing a trade deal.
A specific provision is drawing attention — the proposed EU duty waiver for US polyethylene exports into the region.

Although the final HS code list for duty-free items has yet to be published, the broad scope of the proposal leaves the door open.
If tariffs are waived, US PE resins could flood the European market, further weakening the already struggling production base.

While some market players warn of possible anti-dumping implications, buyers welcome the duty waiver as it could make PE resins more affordable.”

Market Outlook

Guido Aufdemkamp, Executive Director of Flexible Packaging Europe (FPE), concluded:

“Raw material markets in the third quarter were characterised by broad-based price declines.
While this offers short-term relief for converters, demand in key consumer sectors remains weak.

Added to this are uncertainties related to geopolitical and trade developments — particularly the debate around possible tariff waivers for US polyethylene.

For the second half of 2025, we expect market conditions to remain challenging, while the industry hopes for a stable upward trend in private consumption to support flexible packaging demand.”