Top three trends influencing liquid pouch packaging industry outlook: An in-depth analysis of the global industry expansion
Published Date: August 4, 2017 Author: Satarupa De
Increased versatility in marketing techniques in the retail space is leading to a dynamic shift in liquid pouch packaging industry pertaining to the impact that distribution channels are creating on this business landscape. Technology has made a strong imprint in the overall packaging space, which is evident from the broad portfolio of numerous packaging formats including stand up pouches, pillow pouches, spout pouches, quad seal block bottom pouches, etc. Besides leaving an unprecedented impact on packaging innovations, technology has also left a mark on the diet preferences of consumers, which has, of late taken a turn toward liquid diet trends. In fact, statistics claim that the global consumer spending on energy drinks in yesteryear was almost around USD 40 billion. Viewed on a global scale, environmental stewardship and sustainability are the key driving factors stimulating liquid pouch packaging market dynamics. As consumers have become increasingly health conscious, it is imperative that they seek to choose sustainability and convenience in packaging solutions as well.
Appreciating the humungous change that has taken place in the liquid pouch packaging market with regard to product design, extensive R&D activities, and strategic collaborations, it would be prudent to note the three major megatrends that are underlining this massive expansion.
An affluence in the middle-class population with increasing disposable incomes
Global middle-class population is forecast to exceed 3 billion by 2020, out of which Asia Pacific procures a significant chunk, covering almost 66% of the global middle-class population. Changing demographic trends and significant economic development has increased the consumption of packaged foods, subsequently impelling liquid pouch packaging industry demand.
Sustainability and Environmental concerns
Recyclability and reusability of packaging are the major trends driving the demand for liquid pouch packaging market. Globally, consumers have been checking drink ingredient compositions, thereby ensuring the brand’s commitment toward the environment. As per a report from Nielsen survey in 2014, more than 55% of the people of around 60 countries across the world are even ready to pay more for products that have a strong environmental profile.
Health and wellness awareness
From stand-up pouches to four seal block pouches, there has been a notable increase in the deployment of clear films in the liquid pouch packaging industry to showcase the quality and the authenticity of the food products. Growing preferences toward matte finished, natural looking uncoated papers as packaging solutions are quite an evidence to the changing trends.
Statistics claim this industry to have held a valuation of USD 5.5 billion in 2016, which in itself is a testimony of the massive revolution it has brought to the global packaging industry. The growth scale not only projects the remarkable contribution of liquid pouch packaging market in the overall packaging sector, but also leads to an influx of industry players willing to exploit the untapped potential of the anticipated 10-billion-dollar industry over the coming seven years. The business space is highly diversified with numerous small, medium, and largely sized manufacturers, while globally, Europe, Asia Pacific, and North America observe a strong foothold over the overall liquid pouch packaging industry. As per industry experts, some of the common grounds that have favored the expansion of these regional markets are steady economic growth, extensive research investments, and expanded distribution networks.
North America liquid pouch packaging market
North America is one of the most outpacing regions having a significant contribution toward the global industry share. Liquid pouch packaging has always been a part of packing solutions in North America market. Although some domains have yet not incorporated these packaging solutions, their acceptance across many other sectors has led to liquid pouch packaging market gaining tremendous traction in North America. In fact, market experts claim U.S. to be the at the growth front of the regional liquid pouch packaging industry, given the nation’s strong regulatory framework related to food safety:
- The United States food packaging regulation enforced by FDA regarding consumption of packaging materials that are deemed to be environmentally viable.
- California Packaging regulations encompass several strict guidelines for the liquid pouch packaging industry to ensure environmental sustainability and consumer safety. Among the list of regulations that it includes, the area of focus is the reduction of rigid plastic packaging.
- Consumers packaging and labelling Act is another regulatory statute, which mandates the requirement of providing the meaningful labelling of the in-depth specification of the product.
Considering the technological privilege and the stringent regulatory structure, U.S. liquid pouch packaging industry is forecast to witness a CAGR of 5.5% over 2017-2024. On the product front, stand up liquid pouch packaging market has really gained popularity in the continent over the past few years, subject to its space efficiency and enhanced barrier protection. Regional players involved in liquid pouch packaging industry are actively investing in research activities to bring forth some of the innovative packaging solutions that support the changing lifestyles of consumers.
Europe liquid pouch packaging market
As per recent estimates, Europe liquid pouch packaging market is forecast to record an appreciable growth rate of 5.6% over 2017-2024. Pouches have become a staple form of packaging in Europe’s retail environment, with zippers and press-to-close packaging models being extensively deployed for fruit juices. A few years back, transparent packaging, with advanced features such as moisture retention, safety, and barrier protection had been aggressively adopted by a few regional players. However, over the years, consumer demand has reached a very high level, owing to which the proliferation of spout packaging for dairy products has become a norm in European countries. In fact, the food and beverage sector is the leading domain driving the regional liquid pouch packaging market demand. It is also noteworthy to mention that the developing lifestyles of Europeans have significantly upscaled packaged food consumption, which can be majorly credited for the augmentation of liquid pouch packaging industry.
Asia Pacific liquid pouch packaging market
Forecast to be the most profitable region, Asia Pacific represented 35% of the overall liquid pouch packaging industry share in 2016. Throughout the APAC belt, the packaging industry has evolved remarkably over the past few years, with regional players incorporating unique liquid pouch packaging in their product portfolio to sustain their existence in the competitive landscape. Consumers in these regions are readily drawn to packaging solutions that are easy to use with improved features like safety, moisture retention, and environmental viability. The growing middle-class population is the major driving force fueling the regional liquid pouch packaging industry driven by the rural population migrating toward more concentrated areas of growth, indeed at a fast pace. Stand up pouches, pillow pouches, and spout pouches are the leading product domains observing a notable penetration in the APAC industry.
A universal trend toward minimization of environmental hazards has been lately observed across the global packaging industry, sourcing technological integration and advanced business models across the value chain. This trend is leaving a proportional impact on liquid pouch packaging industry dynamics as well. High costs associated with the manufacturing process is a major challenge that the industry participants are dealing with, as the cost burden is hindering the market penetration in some of the untapped geographies. Nonetheless, industry players have been unprecedently investing in research activities to come up with bio based packaging products. Liquid pouch packaging industry has already established its footprints across major geographies across the globe. With further expansion of its application palate and product differentiation, it is no more a supposition that liquid pouch packaging market is on its way to becoming one of the most profitable businesses in the years to come.
Global Market Insights, Inc. has a report titled “Liquid Pouch Packaging Market Size By Packaging (Rigid, Flexible), By Material (Polyester, Polyethylene, Polystyrene, Polypropylene, Aluminum, Fitments, Tubes, & Spouts), By Product (Pillow Pouches, Stand-up Pouches, Four Side Seal Pouches, Spout Pouches), By Application (Food & Beverages [Infant food, Liquid, Viscous, Pasty], Industrial [Lubricants, Fluids, Paints & Coatings], Personal Care [Liquid Soap, Shampoo], Homecare [Liquid Detergent, Softener], Pharmaceuticals [Creams & Gels, Syrups]), By Technique (Blow Molding, Form Fill Seal, Aseptic), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Russia, Spain, China, India, Japan, Australia, South Korea, Malaysia, Indonesia, Thailand, Mexico, Brazil, Argentina, Saudi Arabia, UAE, South Africa), Price Trend, Competitive Market Share & Forecast, 2017 – 2024 ” available at https://www.gminsights.com/industry-analysis/liquid-pouch-packaging-market