Global Pouch Tapes Market - 2023-2030

Overview

Global Pouch Tapes Market reached US$ 955.2 million in 2022 and is expected to reach US$ 1,200.2 million by 2030, growing with a CAGR of 2.9% during the forecast period 2023-2030.

The global food and beverage sector is experiencing major growth, especially in emerging economies. It will be a key factor in driving the growth of the global pouch tapes market during the forecast period. F&B brands are constantly entering into new markets and have adopted aggressive marketing strategies targeting the rising middle class to drive sales.

Current geopolitical developments such as the Israel-Hamas war and the attacks on ships in the Red sea have injected fresh uncertainty in the global market and are likely to lead to supply chain disruptions and commodity price volatilities. However, these developments are unlikely to affect the long-term growth of the global pouch tapes market.

Dynamics

Expansion of Global E-Commerce

The emerging regions of Asia-Pacific, Africa and Middle East have experienced strong growth in e-commerce over the past decade. The advent of cheap mobile data plans and proliferation of budget smartphones have been key factors in driving this growth. The business magazine Forbes, expects global e-commerce sales to rise by 10.4% in 2023. Furthermore, an analysis by the Boston Consulting Group (BCG) forecasted that e-commerce will account for nearly 41% of all global retail sales by 2027, compared to just 18% from a decade ago.

The main application of pouch tapes in e-commerce is for attaching and protecting documents and invoice labels during shipping. E-commerce companies are constantly expanding their logistical networks in a bid to expand their market share. Therefore, it will generate stable, long-term demand for pouch tapes from the e-commerce industry.

New Free Trade Agreements

The aftermath of the COVID-19 pandemic and the crisis caused by the ongoing Russia-Ukraine war led many analysts to predict an end to an era of globalization. Instead, the world is witnessing a shift from western-led globalization to the one led by emerging economies such as India and China. The growth of free trade agreements led by these two countries is a key indicator of the ongoing shift.

For instance, India has signed comprehensive free trade agreements with Australia and UAE and is currently negotiating free trade agreements with UK and the EU. Furthermore, on October 17th 2023, China and Serbia signed a free trade agreement. China is also exploring a free trade agreement with Ecuador.

The rise of free trade agreements between emerging economies will provide a major boost to global trade through the removal of tariffs and other barriers. It will give a significant leg up to international commerce and thus augment demand for pouch tapes in the shipping and logistics industry.

Slow Pace of Innovation

The global pouch tape market has not witnessed major innovation over the past decade. Apart from incremental improvements in material durability and advances in dispensing technologies, there has been a total lack of new breakthrough innovations in the segment. Companies have been unable to translate the invention of new materials into meaningful applications for pouch tapes.

Given the fact that the packaging industry fundamentally relies on innovations and advances in material science to generate value-driven growth, a slow pace of innovation hampers the ability of the pouch tapes market to offer new value to existing customers and expand into new customer bases.

Segment Analysis

The global pouch tapes market is segmented based on material, width, end-user and region.

Polypropylene is the Most Widely Used Material for Pouch Tapes

The material properties of polypropylene along with its cheap cost and ease of production make it ideal for pouch tape manufacturing. Polypropylene (PP) is almost universally available and can be easily shaped into different forms as per requirements. It also offers good chemical, heat and fatigue resistance, allowing pouch tapes to be used even in adverse weather conditions.

Another advantageous property of polypropylene is its recyclability. Companies are looking to use recycled polypropylene for manufacturing pouch tapes. Although the costs are currently prohibitively high, it is expected that with new innovations and economics of scale, recycled polypropylene will become the material of choice for pouch tapes manufacturing.

Geographical Penetration

Surge in Merchandise Exports to Propel Market Growth in Asia-Pacific

Asia-Pacific is expected to have the largest market share over the forecast period. The region has become the engine of global economic growth and is making rapid advances in many emerging technologies. India and China. Along with other smaller nations such as Vietnam, Indonesia and Thailand are generating major demand for pouch tapes.

The nature of the Asia-Pacific pouch tape market is highly fragmented and various small, medium and large pouch tapes manufacturers are active in the region. The fragmentation is particularly pronounced in India and China, were small and medium enterprises generally fulfill the bulk of pouch tapes demand and their presence has made it tough for multinational companies to thrive and gain a foothold in Asia-Pacific.

The surge in Indian merchandise exports is also likely to further boost the demand for pouch tapes. Indian merchandise exports surged by 6.3% in the third quarter of FY24 over the previous year to nearly US$ 111.2 billion, according to preliminary data from the Import-Export Bank of India.

COVID-19 Impact Analysis:

The COVID-19 pandemic created various challenges and opportunities for the global pouch tapes market. The pandemic disrupted many global supply chains, thereby affecting the production and distribution of pouch tapes. Many manufacturers, especially those in emerging countries struggled with business continuity, mainly due to skilled labor shortages resulting from pandemic lockdowns and restrictions.

Pouch tapes purchase dynamics also witnessed a major change during the course of the pandemic, with essential consumer goods distributed through e-commerce channels witnessing the fastest increase in demand. Furthermore, pouch tape demand for healthcare and pharmaceutical supplies also witnessed an upsurge due to the prevailing pandemic situation. However, supply chain volatilities meant that most manufacturers were unable to scale up production to take advantage of a rise in demand.

Pouch tapes manufacturers were buoyed by the rapid recovery in many developed markets during the post pandemic period. However, the overall recovery of the global market is likely to witness significant disruption over the short and medium term.

Russia-Ukraine War Impact Analysis

The ongoing war between Ukraine and Russia will continue to influence the demand dynamics of the global pouch tapes market over the medium term. Stringent economic sanctions imposed on Russia due for the war have caused western pouch tapes brands to exit the Russian market. The gap in the Russian market has been filled by lower quality Chinese imports. Western pouch tapes brands are available at higher than market prices through parallel imports in the local grey market.

The sanctions on Russia have led to high energy costs for nations of the European Union (EU). High energy prices have led to consumers to cutback on non-essential expenses, thus curtailing the sales of pouch tapess in various European market over the short and medium term. The prolongation of the war could led to a permanent increase in European energy prices, thus affecting residential furance sales over the long term.

By Material

• Polypropylene (PP)
• Polyethylene (PE)
• Low Density Polyethylene (LDPE)
• High Density Polyethylene (HDPE)

By Width

• Less than 5"
• 5" to 6"
• More than 6"

By End-User

• Shipping & Logistics
• E-Commerce
• Food & Beverages
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2017, Avery Dennison, a major U.S.-based packaging solutions company, acquired China's Yongle Tape Company Ltd in a deal worth US$ 190 million. The acquisition is expected to strengthen the company's footprint in Asia-Pacific.

Competitive Landscape

The major global players in the market include: 3M, Irplast S.p.A, Lynx Polythene Ltd, Flexopack SA, Test Valley Packaging, BGR, Thomco, Uline, RAJA S.A and John Kilby and Son Ltd.

Why Purchase the Report?

• To visualize the global pouch tapes market segmentation based on material, width, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global pouch tapes market report would provide approximately 57 tables, 59 figures and 194 Pages.

Target Audience 2023

• Pouch Tape Manufacturers
• Logistics Companies/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies