Water Soluble Packaging Market Size, Share & Trends Analysis Report By Material (Polymers, Fibers, Surfactants), By Product (Bags, Pouches), By Solubility Type, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global water soluble packaging market size was estimated at USD 3.14 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. This packaging is designed to dissolve in water, making it a sustainable alternative to traditional packaging materials such as plastic, glass, and metal. The growth of the water-soluble packaging market is attributed to rising environmental concerns and a shift in consumer demand for sustainable packaging solutions. This packaging is convenient to use for consumers, easily dissolvable, and does not contribute to pollution. The U.S. federal government has implemented several regulations on plastic packaging, which is creating growth opportunities in the market for water soluble packaging.

For instance, the U.S. Environmental Protection Agency (EPA) has established regulations for the disposal of plastic waste, and the Food and Drug Administration (FDA) has established regulations regarding the use of plastics in consumer goods, which further fuels the market growth for water-soluble packaging solutions.

The U.S. market houses a significant number of water soluble packaging manufacturers such as MonoSol (a Kuraray Division), U.S. Non Wovens, Mondi, and SmartSolve Industries, which supports the water soluble packaging demand in the country. Growing awareness regarding the benefits offered by water soluble packaging solutions is driving their adoption by end-users in the U.S. For instance, Saie, a health and beauty brand, uses water soluble packaging for its products.

Stringent government regulations on plastic ban have also positively impacted the water-soluble packaging market growth. For instance, the draft European Union regulation published by the U.K. government has set a target to achieve zero avoidable plastic waste by 2042. This initiative by the government has further led to increased demand for sustainable packaging solutions such as water-soluble packaging.

Material Insights

Based on materials, water-soluble packaging is segmented into polymers, surfactants, and fibers. Among these, the polymer segment dominated the market in 2022 and accounted for over 65.0% of the revenue share. Polyvinyl alcohol is popularly used as a water-soluble packaging material due to its strong film-forming properties and excellent water solubility. These polymers are compatible with a wider range of product ingredients, including aggressive chemicals, enzymes, and other active ingredients having applications in household, medical, agriculture, and personal care sectors.

The fiber segment is expected to advance at a substantial CAGR of 4.9% during the forecast period. Natural fiber materials are derived from plant sources such as wood pulp, and synthetic fibers are derived from grains such as corn and wheat, which are further used in the production of fiber-based water-soluble packaging solutions. An example of a fiber-based packaging product is water-dissolvable paper. It significantly lowers the environmental impact compared to conventional plastic packaging solutions, which further drives its demand in the water soluble packaging market.

Product Insights

Based on products, the water-soluble packaging market is segmented into bags, pouches, and pods & capsules. Among these, the bags segment accounted for the highest market share of 45.68% in 2022 and is expected to maintain its attractiveness during the forecast period. This is due to its extensive adoption in the medical packaging sector, especially for infected laundry bags. The convenience and easy application of water-soluble bags make them a popular choice for both manufacturers and consumers.

On the other hand, the pods & capsules product segment is expected to progress at a CAGR of 4.7% during the forecast period. Water-soluble pods and capsules are primarily used in the packaging of single-use products such as dishwasher and laundry detergent pods, oven cleaner pods, drain cleaner pods, dishwasher capsules, fabric softener capsules, and other cleaning products. Their widespread usage is expected to drive segment growth in the coming years.

Solubility Type Insights

The demand for hot water solubility accounted for a higher market share of over 58.0% in 2022. The ability to dissolve the packaging quickly and easily in hot water temperatures ranging typically between 60°C to 80°C eliminates the need for measuring, handling, and disposing of traditional packaging materials. This is a major factor driving the demand for this segment. For instance, in April 2021, Plus Products Inc. launched paper sheets for body wash, making the brand a zero-waste company. These paper sheets are dissolved in hot water and eliminate the wastage of plastic bottles.

The cold-water solubility type is more energy efficient as it dissolves the packaging rapidly without the need for hot or warm water at temperatures typically below 20°C. With increasing environmental concerns and the need for sustainable packaging solutions, the demand for water-soluble packaging is expected to increase in the coming years, which will further boost the demand for cold-water-soluble packaging.

End-use Insights

The demand from the household products segment accounted for the largest market share of almost 22.0% in 2022, owing to the wide application of water-soluble packaging in laundry detergent pods and other household cleaning products, such as drain cleaner pods, glass cleaner pods, and toilet blocks.

For instance, Unimasses Group is a global household cleaning products manufacturer, offering a wide range of laundry detergent pods. Water-soluble packaging provides a convenient and efficient way of dispensing cleaning products without the need for measuring or handling bulky containers, which is fueling the demand for this segment.

The consumption of water soluble packaging in the agriculture industry is expected to expand at a fast CAGR of 6.1% during the forecast period of 2023 to 2030, owing to its extensive application in the industry. For instance, these packaging solutions are used in packaging fertilizers and pesticides, which further helps to reduce waste and minimize its environmental impact.

Furthermore, water-soluble packaging is widely used in the medical sector in the form of laundry bags. In hospitals, healthcare centers, and nursing homes, these water-soluble laundry bags are used to wash the contaminated and infected laundry of patients without the risk of getting infected, as these bags are dissolvable in water when they are put together in a washing machine along with laundry.

In the retail sector, water-soluble packaging is used in garment bags, grocery bags, and other consumer goods packaging. The personal care industry is adopting this packaging solution to eliminate plastic packaging usage due to stringent government regulations on plastic ban and plastic waste management. For instance, in January 2021, the government of Canada announced a ban on plastic packaging solutions such as plastic bags, and such initiatives can have a positive impact on the water-soluble packaging market.

The chemical industry is expected to expand at a significant rate during the forecast period, on account of the fast-growing trend of fabric dyeing. Dye pods have gained popularity among the younger generation due to their convenience and ease of use. These pods are simply dropped in water along with the fabric and they dissolve and release the color into the water, eliminating the packaging waste.

Regional Insights

North America accounted for the largest market share of over 31.0% in 2022 in the water-soluble packaging market. This is owing to the increasing demand for these packaging solutions from various regional end-user industries such as household products, and food & beverages. In addition, the stringent government regulations and the rising awareness among consumers about the negative environmental impact of traditional packaging materials are driving the demand for such packaging solutions in North America.

The U.S. market is one of the largest contributors to the North American region with a revenue share of over 65.0% in 2022. This is attributed to the growing demand from the household sector for cleaning pods and capsules, particularly for laundry and dishwashers. The convenience & ease of use of these products with no harmful chemicals having the risk of skin contact is driving the market in the country. Moreover, the rising demand for dishwashers and washing machines has given rise to the market for detergents and dishwasher pods.

Asia Pacific is poised to expand at the fastest CAGR through 2030 in the market for water-soluble packaging, owing to the rising demand for sustainable packaging solutions in the region. Countries such as China, India, South Korea, and Japan are major contributors to the market growth, owing to the high demand for laundry detergents and personal care products. Moreover, the ban on plastic packaging in various countries is fueling regional market growth. For instance, in July 2022, the Indian government banned the use of single-use plastics in the country to reduce plastic pollution and landfills.

China accounted for the largest market share in 2022 in the Asia Pacific region. This is attributed to the rapidly growing end-user industries and increased consumer awareness about sustainable packaging solutions. The Chinese government has been implementing certain regulations to reduce plastic packaging usage in the country, which further can positively impact the demand for sustainable packaging solutions. For instance, China's National Development and Reform Commission has set targets to reduce single-use plastic consumption in the country.

Europe accounted for a significant market share in 2022 due to the increased product demand from the household segment. The trend of independent living in the region has led to hectic and busy schedules of consumers, giving rise to an increased demand for products that are convenient and easy to use. The trend of buying such products has a positive impact on the water-soluble packaging market due to the growing demand for cleaning pods.

Moreover, strict government regulations on the plastic ban and a growing emphasis on sustainable packaging drive the market demand for these solutions in the region. For instance, starting in January 2019, the Italian government began imposing taxes on plastic packaging items that were non-recyclable, which led to manufacturers such asECOMAVI Srl adopting sustainable solutions such as water-soluble packaging.

Key Companies & Market Share Insights

Major companies in this space resort to mergers and acquisitions in a bid to gain market share in a particular region. In some cases, companies build technological collaborations to produce an advanced product with superior performance characteristics to drive revenue. For instance, in July 2o22, Aquapak announced its partnership with Industrial Physics, a global inspecting company for packaging, material, and products. This partnership is expected to help Aquapak advance its Hydropol water-soluble sustainable packaging product range. Some prominent players in the global water soluble packaging market include:

• Kuraray

• Lithey Inc.

• Mondi Group

• SEKISUI CHEMICAL CO., LTD.

• Mitsubishi Chemical Corporation

• Soltec Development

• Soluble Technology Limited

• Aquapak Polymers Ltd.

• Rovi Packaging, S.A.

• INVISIBLE COMPANY

• AICELLO CORPORATION

• Medanos Claros HK Limited

• Cortec Corporation

• Acedag Ltd

• Changzhou Haoteng Environmental Protection New Material Technology Co., Ltd.

• Green Master Packaging

• Guangdong Proudly New Material Technology Corp.

• Solupak

• EOS Plast Srl

• Solubag

Water Soluble Packaging Market Report Scope

Global Water Soluble Packaging Market Report Segmentation

This report forecasts revenue growth at the global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global water soluble packaging market report based on material, product, solubility type, end-use, and region:

• Material Outlook (Revenue, USD Billion, 2018 - 2030)

  • Polymers

  • Surfactants

  • Fibers

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Bags

  • Pouches

  • Pods & Capsules

• Solubility Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cold Water

  • Hot Water

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Household Products

  • Agriculture

  • Medical

  • Retail

  • Chemicals

  • Water Treatment

  • Animal Waste

  • Fishing

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Southeast Asia

  • Central & South America

    • Brazil

    • Chile

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates

    • South Africa