Pouch Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Pouch Packaging Market size is estimated at USD 43.36 billion in 2024, and is expected to reach USD 58.46 billion by 2029, growing at a CAGR of 6.16% during the forecast period (2024-2029).

Key Highlights

• Pouches are among the most widely used packaging products in the food and beverage industry, including pet food, baby food, and liquid packaging (tea, coffee, and juices) owing to their different features, including an easy opening (like a tear notch and laser perforation), easy to use (with zippers and shapes) and being reclosable. Moreover, as they are chemically inert, they are widely used in different industries, such as pharmaceuticals, pet food, and cosmetics.
• The growth of the frozen packaged industry across European and American countries is expected to impact the market positively. For instance, according to Frozen Food Europe, Germany, France, and the United Kingdom account for more than 50% of the frozen food market in Europe. The government-mandated lockdown due to the COVID-19 pandemic aided the sales of frozen foods in many regions and impacted the market positively.
• The key market expansion drivers include increased demand for packaged foods and beverages, expanding interest in ready-to-eat (RTE) food, ease of use, and affordability of pouches. In addition, the rise in the demand for on-the-go snacks led to the need for re-closable stand-up pouches as they offer convenience to consumers. The changing lifestyle and food preferences among consumers and changing food technology also boost the market demand.
• However, the growing consumer awareness about environmental concerns, dynamic regulatory standards, the ongoing drive for sustainability that includes replacing plastic-based packaging products with biodegradable materials, and poor recycling rate due to the lack of advanced recycling facilities are some factors challenging the market's growth.
• Pouch packing is significantly less expensive and lower in weight than rigid packaging for transportation. According to the Flexible Packaging Association (FPA), advancements in manufacturing methods and material innovation have reduced the weight of some flexible packaging by nearly 50%. Furthermore, pouch packaging allows for space savings, which implies that large quantities of products can be shipped with less fuel and energy.
• The COVID-19 pandemic had a mixed influence on pouch packaging sales. Due to the outbreak, pouch packaging manufacturers faced supply chain disruptions and decreased manufacturing in many parts of the world. However, the increasing demand for medical and healthcare supplies was expected to positively affect the pouch packaging market.

Pouch Packaging Market Trends

Increasing Demand for Convenience and Ready-to-eat Food

• Meeting consumer demands for convenience is a significant driver for existing and new packaging technologies. The packaging industry has been experiencing fundamental shifts focused on brand experience. Demand for comfort is also a key driver of change. There is a considerable push for flexible packaging, especially pouches, owing to its convenience for consumers and manufacturers. Therefore, flexible packaging formats are recognized as an asset in building brand loyalty. Consumers like the ability to squish or squeeze out products from a flexible package to save space and prefer resealing products to regulate product consumption at their own pace.
• The general trend of shifting from rigid to flexible packaging to avail the benefits of convenience packaging and fit the changing lifestyles, along with the growing number of smaller households, is increasing the need for single-serve options. In line with the growth in the number of single-person households, most consumers (especially the youth) are inclined to frequent shopping for groceries in smaller quantities as they can carry their favorite products with them wherever they move to convenience. Party-size bags of food items have been an old norm as smaller or individual-sized pouches allow consumers to feel more likely in control of portion sizes.
• The changing lifestyle of the consumer in the American and European regions also increased demand for ready-to-eat foods. The need for ready-to-eat food is at an all-time high. With the new age working population working round the clock and the gen-z looking for everything handy, ready-to-eat foods have emerged as the best solution.
• The increasing rate of urbanization worldwide has resulted in a higher focus on convenience and sustainability in packaging. The healthy growth of end users, such as fresh food, ready-to-eat food, ready-to-food, and coffee that require convenient packaging, is projected to drive the need for producing pouch packaging. According to the Office of Economic Adviser (India), during the fiscal year 2022, India's Wholesale Price Index of processed ready-to-eat meals exceeded 137. Since the past decade, the country has witnessed an overall increase in the price index.
• Convenience meals such as snacks, meat products, quick noodles, rice, and other items are in high demand. Higher food and beverage expenditure, more awareness of healthier foods, changes in meal patterns and eating habits, and shifting social and economic variables are all contributing causes to the increased desire for quick foods. According to the South Korean Ministry of Trade, Industry, and Energy, the year-on-year growth of processed instant food sales at convenience stores each month in South Korea increased by 14.6% in January 2023 compared to the previous month.

Asia-Pacific to Witness the Fastest Growth

• The market is being driven by Chinese customers' growing preference for mostly retort-packed goods to maintain their shelf stability, including fish, meat, and vegetables. Additionally, the nation's customers are becoming increasingly accustomed to ready-made meals.
• China will likely experience a considerable demand for flexible packaging goods during the forecast period due to the rapid development in demand from end-user sectors like food, pharmaceutical and medical, personal care, and domestic care. Despite the country having a sizable basis for packaging, flexible packaging had the quickest and most significant growth among all forms of packaging due to its low cost and numerous product benefits.
• Moreover, India made a significant contribution to the dairy industry. Due to strict limits on single-use plastics, market players have considerable potential to develop biodegradable and reusable pouches. Reusable materials such as polyethylene made from bioethanol, polylactic acid, micro-fibrillated cellulose, and biodegradable materials are also included in sustainable packaging.
• Flexible pouches, particularly stand-up pouches, are the packaging types expanding rapidly in the expanding food business in the country. Customers and suppliers alike love this kind of packaging right away. Consumers nowadays who lead hectic lives seek simple, lightweight snack packaging that is portable. Because of this, trends in food packaging show that more compact, smaller package sizes are popular right away, especially when they have recloseable features like zippers.
• A rise in the use of alternative packaging options for pouch packaging is constraining the market's expansion of products. Due to the rapidly increasing demand for packaged food goods, an increase in disposable income, and the number of working women in the country, India is predicted to hold a significant share of the Asia-Pacific packing industry.
• In August 2022, the India Youth For Society (IYFS), a committed group raising awareness about plastic waste's dangers, launched a new initiative to collect milk pouches. At Dr. V.S. Krishna Degree College, a particular push to collect these pouches got underway. According to the organization, the group gathers pouch bags for recycling. In collaboration with the Greater Visakhapatnam Municipal Corporation, the IYFS set up a recycling operation at the dump. The IYFS office is convenient for disposing of unwanted milk pouches and plastic.

Pouch Packaging Industry Overview

The Pouch Packaging market is fragmented due to the presence of several market players globally. Some major players are Bischof + Klein SE & Co. KG, Amcor Limited, Aluflexpack Group, ProAmpac Intermediate, and Constantia Flexibles Group GmbH. The market players are expected to leverage the opportunity posed by the growth of several end-user verticals and are innovating to expand their market presence.

In September 2022, Amcor announced a strategic investment of USD 45 million in the digitally-based ePacFlexible Packaging (manufacturers of stand-up pouches, lay flat pouches, and roll stock, with a self-claimed advantage in print technology) to increase its minority shareholding in ePacHoldings LLC.

In July 2022, Mondi announced an investment to expand sustainable pet food packaging solutions. Mondi announced plans to invest nearly EUR 65 million (USD 71.42 million) in three consumer flexible packaging plants in Europe to increase production capacity and meet customer demand for sustainable pet food packaging solutions.

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