Pouches Market Size, Share & Trends Analysis Report By Material (Plastic, Bioplastics), By Treatment Type (Aseptic, Standard), By Product (Flat, Stand-up), By End-use (Food & Beverage, Healthcare), And Segment Forecasts, 2020 - 2028

Report Overview

The global pouches market size was valued at USD 36.44 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2028. Rising demand for packaged food and beverages coupled with the convenience of use and cost-effectiveness of pouches are primary factors driving the market growth. Pouches occupy lesser space in transport vehicles owing to their compactness. Moreover, they are lightweight, which significantly reduces the cost associated with transportation. In addition, the availability of multiple closure options in pouches, such as spout, zipper, and tear notch, is fueling the demand. The U.S. is a highly significant and lucrative market due to the presence of major players in the food & beverage industry.

The main driver for pouch-based packaging solutions is the high market penetration of Ready-to-Eat (RTE) meals in the country owing to the busy lifestyle and a high number of working individuals. Pouches are commonly used for the packaging of various food products, including dairy, snacks, smoothies, and others. The global packaged food market has been significantly growing owing to the changing lifestyles and innovations in food processing techniques, which is expected to favor the growth of the market during the forecast period. Flexible packaging products, such as pouches, require significantly lesser raw materials and reduce the overall cost associated with the product packaging while improving the profit margin of the end-use companies. As a result, end-use companies are increasingly adopting flexible packaging formats, which, in turn, is boosting market growth.

The increasing preference for sustainable packaging solutions by the end-use companies owing to the rising regulatory pressure and rising awareness about sustainability among consumers is expected to augment the product demand in the coming years. The manufacturing of pouches requires lesser material, energy, and water. Moreover, such products help reduce landfills after disposable, which improves their sustainability profile. Standup pouches act as a marketing tool as it has a higher surface on which graphics are printed to attract consumers, especially in the supermarkets where the consumer makes a quicker purchase decision. This factor has also been appealing end-use companies towards such packaging format.

With the outbreak of COVID-19, a sharp drop in sales of electronics and personal care products was observed. The disruption of the supply chain affected product sales during the initial stage of the pandemic. The shutdown in China, which is one of the key raw material producers, impacted packaging manufacturers globally. However, a significant surge in the consumption of packaged food products was witnessed. A considerable proportion of the population preferred packaged food products, such as ready-to-eat, ready-to-cook, and packaged food ingredients. This strong demand globally mitigated the negative impact of COVID-19 on the market.

Material Insights

The plastics material segment dominated the market with a revenue share of more than 64% in 2020. Plastic pouches keep packaged products fresh for a longer duration as they offer strong resistance to moisture, dust, oxygen, and UV light; this factor is mainly attributed to the highest share of the segment. Polyethylene (PE), Polypropylene (PP), and Polyethylene Terephthalate (PET) are commonly used plastic resins for the manufacturing of plastic pouches.

The low cost and durability of plastic make it the most preferred material. The bioplastic material segment is anticipated to witness the fastest CAGR from 2020 to 2028. 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 awareness about sustainable packaging solutions among consumers are expected to augment the growth of the bioplastics material segment in the coming years.

Treatment Type Insights

The standard treatment type segment dominated the market with a revenue share of more than 59% in 2020. The growth is credited to the widespread use of standard treatment pouches across the food & beverage, personal care, and cosmetics end-use sectors owing to their lower cost as well as higher durability. The aseptic treatment type is expected to witness the fastest CAGR from 2020 to 2028. Aseptic treatment ensures that the packaged product is safe from bacteria while eliminating the need for refrigeration during transportation, due to which, end-use companies are increasingly utilizing the treatment for the packaging of their products.

In the aseptic treatment process, food products, such as milk, soup, 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 materials are mainly utilized for aseptic packaging. The aseptic treatment process is preferred over the traditional canning or bottling process as the latter requires longer periods of heating and cooling to sterilize the product and package, resulting in loss of aroma and nutrients. Aseptic treatment prevents the loss of aroma and nutrients, with the process being efficient and faster.

Product Insights

The flat product segment dominated the industry accounting for a 65.8% revenue share in 2020. 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 fastest CAGR over the forecast 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, attributes to the growth of this segment. Stand-up pouches also allow consumers to empty the package effortlessly in contrast to rigid packaging products, such as metal cans, which further results in lesser food wastage through the pouches. In addition, the high product-to-packaging ratio in stand-up pouches is attracting end-use companies towards the packaging format.

Closure Type Insights

Spout closure pouches are used as a substitute for plastic bottles as they are highly sustainable. Thus, with increasing demand for sustainable alternatives, the spout closure type is expected to witness the fastest CAGR of 5.7% during the forecast period. The tear notch closure type segment accounted for the second-highest revenue share in 2020. Tear notch closure provides a proper indication of where the bag should be cut, assuring the consumers of professional-level packaging done by the company and eliminating the possibility of a duplicate product.

Zipper closure type packaging protects the products, such as pancake mixes, dog treats, and nuts, from excess moisture while retaining their freshness for a long time even when used more than once. Zipper pouches are becoming a popular choice in emerging economies where consumers are shifting toward packaged foods for daily consumption. Resealable packaging makes the product compact and more appealing to consumers due to the added benefit of storage. Thus, zipper pouches are also becoming increasingly popular in the cosmetics industry.

End-use Insights

The food & beverage end-use segment dominated the market accounting for a revenue share of more than 55.1% in 2020. Increasing product usage for the packaging of alcoholic beverages, due to its low weight, high sustainability, and non-fragile nature, is contributing to the growth of the segment. Furthermore, standup pouches are increasingly utilized for the packaging of baby food products. The global baby food market has been witnessing considerable growth on account of the growing population.

The popular 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. Snacks are commonly packaged in pouches due to their low cost and easy filling of nitrogen to preserves the color, flavor, and texture of the packed food products. The convenience offered by the pouches, especially during traveling coupled with the growing personal care and cosmetics industry is a key factor driving the growth of the personal care and cosmetic segment.

Regional Insights

Asia Pacific accounted for the largest revenue share of more than 37% in 2020 and is estimated to register the fastest CAGR from 2020 to 2028. Factors, such as the increasing product demand due to its low cost and high aesthetic appeal on retail shelves and the rapid growth of the organized retail sector in the region are expected to further drive the market.

Furthermore, the growing spending power of the consumers, especially in countries, such as China, India, and 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 small-sized packs due to their low cost and convenience of use are expected to fuel the demand for pouches in the region.

North America is expected to have a steady growth over the forecast period. Increasing preference for pouches by the CPG manufacturers due to marketing advantages is expected to favor the product demand. In addition, growing consumer preference for the pouches owing to their portability and convenience of use is anticipated to boost the regional market growth.

Key Companies & Market Share Insights

The industry is highly fragmented due to the presence of domestic as well as global players. Key companies in the industry mainly offer customized packaging products and are adopting strategies, such as mergers & acquisitions and new product developments, to gain a competitive advantage over others. Amcor plc is one of the leading companies in the industry; the company caters to all end-use industries and mainly focuses on acquisitions and new product launches to strengthen its leading position in the market. For instance, in September 2020, the company developed flexible retort pouches, which are made using its AmLite HeatFlex Recyclable solution. Some of the prominent players in the global pouches market include:

• Amcor Plc

• Mondi

• Sealed Air

• Constantia

• Coveris

• Goglio SpA

• ProAmpac

• Gualapack SpA

• Huhtamaki Group

• Smurfit Kappa

Pouches Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global pouches market report on the basis of material, treatment type, product, end-use, closure type, and region:

• Material Outlook (Revenue, USD Million, 2017 - 2028)

  • Plastic

  • Metal

  • Paper

  • Bioplastics

• Treatment Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Standard

  • Aseptic

  • Retort

  • Hot-fill

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Flat

  • Stand-up

• End-use Outlook (Revenue, USD Million, 2017 - 2028)

  • Food & Beverages

  • Healthcare

  • Personal Care & Cosmetics

  • Homecare

  • Others

• Closure Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Tear Notch

  • Zipper

  • Spout

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa