The global pouches market size was valued at $35 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. Rising demand for packaged food and beverages coupled with the convenience of use and cost-effectiveness of pouches as compared to rigid packaging products is principally driving the demand for the product across the world.
Pouches occupy lesser space in vehicles owing to their compactness, besides lightweight of the pouches significantly reduces the cost associated with transportation, as compared to rigid packaging solutions such as metal cans and glass bottles.
Also, the availability of multiple closure options in pouches such as spout, zipper, and tear notch, aids the easy opening and closing of the packaging, which in turn, attracting the consumers towards the packaging format.
Pouches are commonly employed for the packaging of various food products, including dairy, snacks, confectionery, smoothies, and baby foods, as the products can be easily carried for on the go consumption due to its lightweight and ease of resealability.
The global packaged food market has been significantly growing from the past few years owing to changing lifestyles and innovations in food processing techniques, which in turn is expected to fuel the demand over the forecast period.
Flexible packaging products demand significantly lesser material for their manufacturing; on average rigid packaging costs three to four times higher than that of flexible packaging.
Therefore, the flexible packs reduce the overall cost associated with the product packaging and improve the profit margin of the end-use companies. As a result, end-user companies are increasingly adopting flexible packaging format, which in turn, is expected to benefit the industry over the forecast period.
Furthermore, pouches utilize lesser material, energy, and water while manufacturing and occupies lower space in landfills after disposable, which improves their sustainability profile as compared to rigid packaging products such as plastic bowls, trays, and containers.
The increasing preference for sustainable packaging solutions by the end-use companies owing to the rising regulatory pressure and growing sustainable awareness among consumers is expected to advance the demand in the coming years.
Pouches occupy lesser space on the retail shelf as the flat pouches can be easily stacked upon each other.
Furthermore, standup pouches also act as a marketing tool as the packaging has a higher surface on which high-quality graphics are printed that entice consumers towards the product, especially in the supermarkets where the consumer makes a quicker purchase decision.
This factor has also been appealing to end-user companies towards the packaging format.
In terms of value, the plastic material segment dominated the market with a share of 65.2% in 2019. Plastic pouches keep packed products fresher for a longer duration as they offer strong resistance to moisture, dust, oxygen, and UV light; this factor mainly attributed to the highest share of plastic material segment in 2019.
Low cost and durability of plastic make it a favored material choice for the manufacturing of pouches. However, increasing environmental concern due to the non-degradability of the plastic is expected to hinder the segmental growth over the forecast period.
The bioplastic material segment is anticipated to witness the highest CAGR from 2020 to 2027 in the industry.
The material exhibits similar properties to that of plastic material and is completely degradable. Furthermore, the growing stringent regulations on the use of plastic packaging and rising sustainable awareness among the consumers are expected to augment growth to the bioplastics material segment in the coming years.
Standard treatment type dominated the market, accounting for a revenue share of 59.9% in 2019 on account of its widespread use across end-use segments. Standard treatment pouches are used across the food and beverage as well as personal care and cosmetics segments owing to its lower cost as well as higher durability.
The aseptic treatment type is expected to witness the highest CAGR of 6.4% from 2020 to 2027. Aseptic treatment ensures that the packaged product is safe from bacteria, and the treatment type also eliminates the need for refrigeration during the product transportation, due to which, end-use companies are increasingly utilizing the aseptic treatment for the packaging of their products.
In the aseptic treatment process, food products such as milk, soup, tomatoes pudding, non-carbonated beverages, and pharmaceuticals are sterilized separately from packaging, and further, under the sterile condition, the products are inserted into the packaging. Paper and plastic-based composite material are mainly utilized for aseptic packaging.
The aseptic treatment process is preferred over the traditional canning or bottling process as the latter demand longer periods of heating and cooling to sterilize both product and package, resulting in loss of aroma, texture, and nutrients. On the other hand, aseptic treatment prevents the loss of aroma and nutrients as the process is significantly faster and efficient.
The flat type segment dominated the industry accounting for 69.6% share in 2019. Various CPG products such as snacks, confectionery, dry fruits, detergents, fabric care, and medical equipment are predominantly packed in flat pouches due to their low cost and convenience of storage.
The stand-up pouch type segment is expected to witness the highest CAGR in the pouches market in the coming years. Food products packed in stand-up pouches such as salad dressing, soup, yogurt, and baby food can be consumed away from home. This portability, coupled with easy to open closures incorporated in product format, is majorly attributing to the high growth of the segment.
Furthermore, stand-up pouches allow consumers to empty the package effortlessly in contrast to rigid packaging products such as metal cans and glass jars, which further results in lesser food wastage through the pouches. Also, the high product to packaging ratio in stand-up pouches is attracting end-use companies towards the packaging format.
The food and beverage end-use segment dominated the market, accounting for 55.3% share in 2019 and the segment is expected to witness significant growth over the forecast period. Increasing the use of the product for the packaging of alcoholic beverages due to their lightweight, sustainability, and non-fragile nature is mainly contributing to the growth of the segment.
Furthermore, standup pouches are increasingly utilized for the packaging of baby food products owing to their portability, lightweight, and safety from contamination. The global baby food market has been witnessing considerable growth on account of the growing population of working women, which in turn, expected to drive the demand in the food and beverage end-use segment over the forecast period.
Snacks are commonly packaged in pouches due to their low cost, and the snack manufacturer can easily fill nitrogen in them, which preserves the color, flavor, and texture of the packed food product. Nitrogen filling is significantly expensive in other packaging formats such as cardboard boxes and plastic jars. The increasing snackification trend wherein multiple snacks are preferred over a complete meal due to the busy lifestyle and convenience of consumption is expected to offer considerable opportunities to the pouch manufacturers in the coming years.
In the personal care and cosmetic segment, pouches are majorly utilized for the packaging of hair care and skin care products. The segment is expected to witness a significant CAGR of 6.1% from 2020 to 2027. The convenience offered by the product, especially during traveling coupled with the expanding personal care and cosmetics industry owing to raising awareness about personal grooming, is a key factor attributing the growth to the segment.
Asia Pacific accounted for the largest share of 37.4% in 2019, and the region is also estimated to account for a CAGR of 6.5% from 2020 to 2027. Factors such as the increasing demand for the packaging format due to its low cost and high aesthetic appeal on retail shelves coupled with rising penetration of organized retail are primarily augmenting market growth in the region.
Furthermore, the growing spending power of the consumers, especially in countries such as China, India, Vietnam, is boosting the demand for packaged food products, which in turn, is expected to propel market growth. Moreover, the growing consumption of packaged beverages and high preference for the small-sized packs due to its low cost and convenience of use are expected to fuel the demand for pouches in the region.
North America region is expected to observe the steady growth in the market over the forecast period. Increasing preference for pouches by the CPG manufacturers due to their low cost and marketing advantages is expected to favor the product demand over the forecast period.
Also, growing consumer preference for the pouches owing to their functionality, portability, and convenience of use is anticipated to increase the penetration of the product in end-use industries.