In 2025, The Flexible Packaging Association (FPA) partnered with John Dunham & Associates, a leading economic consulting firm, to analyze the economic contributions of the U.S. flexible packaging industry. The result is a recently released comprehensive impact study that illustrates how vital our industry is to the American economy.
Using standardized economic models developed by the U.S. Forest Service and maintained by IMPLAN Group LLC, the study draws from a range of sources—including FPA data, government publications, industry reports, and proprietary business data from Data Axle®, a data-based solutions company. The findings paint a clear picture: flexible packaging is a critical part of the nation’s economy and a major contributor to jobs, wages, output, and tax revenues across the United States.
What Is Flexible Packaging?
The study defines the flexible packaging industry as businesses involved in manufacturing packaging materials made from paper, plastic, foil, coated or metalized film, or any combination thereof—the shape of which can be readily changed when filled. These products include:
- Paper and plastic bags and pouches;
- Coated paper and foil bags;
- Plastic packaging films and sheets;
- Foils and laminated wraps; and
- Foils and metalized or coated papers and films.
Flexible packaging is used across nearly every industry sector—from food and beverage to pharmaceuticals, personal care, industrial goods, and more. The diversity of its applications reflects the industry’s broad reach and importance.
Total Economic Impact
In 2025, the flexible packaging industry is projected to generate approximately $151 billion in total U.S. economic output, including $51.5 billion directly from flexible packaging manufacturers. The total represents approximately 0.5% of the nation’s gross domestic product (GDP). While that percentage may seem modest, the numbers behind it are substantial.
The industry supports approximately 398,780 full-time equivalent (FTE) jobs, either directly through manufacturing (more than 98,000 FTEs) and distribution or indirectly through its extensive network of suppliers and service providers. These workers earned more than $33.4 billion in wages and benefits—making flexible packaging not just a provider of protective packaging, but a driver of employment.
Supplier and Indirect Impacts
The ripple effects of the flexible packaging industry are far-reaching. One of the study’s key areas of focus is the economic linkages between flexible packaging manufacturers and other sectors.
Companies in the flexible packaging space rely on a vast network of supplier firms. These include producers of raw materials like resins and paper, as well as companies that supply equipment, maintenance services, logistics, transportation, warehousing, and more.
In 2025, supplier-related activities generated 155,520 FTE jobs and $68.7 billion in economic output.
These figures reflect how deeply intertwined flexible packaging is with sectors ranging from transportation and utilities to engineering, consulting, and financial services.
The induced impact—often referred to as the “multiplier effect”—captures additional economic activity generated when employees (both in the industry and its suppliers) spend their earnings in the broader economy. This includes spending on housing, groceries, healthcare, education, entertainment, etc.
The study estimates that this induced activity contributes 144,840 FTE jobs and nearly $31.1 billion in economic output.
Tax Revenue Contributions
A critical aspect of any industry economic impact study is understanding how it contributes to public finances. The U.S. flexible packaging industry and its employees are responsible for paying significant taxes at the federal, state, and local levels.
In 2025, the industry contributed approximately $13.3 billion in direct taxes. This includes federal income taxes, business income taxes, payroll taxes (FICA), and unemployment insurance. At the state and local levels, the industry pays property taxes, licensing fees, gross receipt taxes, and other levies.
Importantly, this figure does not include sales taxes collected on the purchase of flexible packaging products themselves—suggesting the actual tax revenue impact is even greater.
A National Economic Powerhouse
Flexible packaging is more than just a segment of the packaging market—it is a national economic powerhouse. Its impacts are not limited to traditional manufacturing hubs or major urban centers. Because of the layered relationships between manufacturers, suppliers, and service providers, the industry generates jobs and tax revenue in many states and congressional districts.
Its influence is especially notable in industries that depend on efficient, protective, and sustainable packaging solutions—from agriculture and food processing to healthcare and e-commerce. These industries rely on flexible packaging not only for product integrity and shelf life but also for supply chain efficiency.
Why This Matters
Understanding the economic footprint of flexible packaging offers valuable insight into the industry. In a time of growing focus on domestic manufacturing, job creation, and sustainable business practices, flexible packaging stands out as:
- A source of high-paying, full-time jobs;
- A driver of innovation in materials and sustainability;
- A major contributor to public tax revenues; and
- A partner to countless U.S. industries.
As policymakers, industry stakeholders, and the public look to strengthen U.S. manufacturing and supply chains, the role of flexible packaging deserves recognition—and investment.
The 2025 economic impact analysis reveals that the flexible packaging industry contributes over $151 billion to the U.S. economy, supports nearly 400,000 jobs, and plays a crucial role in national and local public finances.
With strong links to a wide range of other industries and significant multiplier effects, flexible packaging proves itself as a key driver of economic resilience and growth.
To learn more about the new study and to access federal and state-specific economic impact data, visit flexpack.org/economic-impact.
Dani Diehlmann is FPA vice president, communications.