Flexible Plastic Pouches Market – Global Forecasts to 2026

The global flexible plastic pouches market size is estimated at USD 53.7 billion in 2021 and is projected to reach USD 73.5 billion by 2026, at a CAGR of 6.5%. The flexible plastic pouches market is witnessing high growth owing to the increase in demand for lightweight, convenient, and cost-effective packaging products & solutions for food and beverage applications. The aesthetic appeal, increased shelf life of product, rising demand from end-use sectors, and increasing e-commerce sales are key factors driving the demand for flexible plastic pouches during the forecast period.

The demand for various flexible plastic pouch types has increased during the lockdown and created more demand for the future. The pandemic has also increased the use of single-use plastics in terms of pouches; this has created more demand for the market. Consumer behavior has changed owing to the safety concerns due to the pandemic. Consumers, right now, prefer to buy packed food & beverage rather than going to restaurants. E-commerce has also witnessed a positive impact due to the pandemic. Consumers are opting for online shopping for products instead of buying from brick & mortar stores, which is preferred for the purchase of a small number of products or rapid fulfillment of the same. Moreover, consumers are buying one-time usable plastic pouches owing to hygiene issues. An increase in demand for FMCG products due to the pandemic is attributed to the growth of flexible plastic pouches.

Flexible Plastic Pouches Market: Market Dynamics

Driver: Rising demand for packaged food and beverages

Increasing health awareness and growing per capita income has resulted in the rise in demand for packaged food and beverages, which, in turn, drives the demand for pouches. According to ASSOCHAM (The Associated Chambers of Commerce & Industry of India), an annual increase of 22.5% has been witnessed from 2010 to 2015 in the packaged food annual spending in India. The Growing westernization, along with an increase in the standard of living and preference for convenience food products, contributes toward the rise in demand for packaged food products. The rise in demand for packaged food subsequently drives the demand for pouches.

Restraint: Stringent government regulations

Pouches are one of the fastest-growing segments of the flexible packaging industry. However, stringent regulations imposed regarding flexible plastic packaging may pose a restraint to the market. Compliance with regulations is necessary as the smallest defect in packaging may contaminate the product; it may also affect the manufacturers’ profit. Packaging for food & beverage, personal care, and healthcare products requires properties such as moisture resistance, barrier against light, and ease of transport. Regulatory bodies for flexible plastic packaging include the Food and Drug Administration (FDA), the European Commission, and the US Environmental Protection Agency (EPA).

Opportunity: Growing popularity of pouches in alcohol packaging

Alcohol packaging in pouches has recently started to gain popularity. Pouches are flexible, compact, lightweight, and cost-effective; they also contribute to aesthetic appeal and have the ability to preserve flavor & quality, which contribute to their increasing adoption in alcohol packaging. Furthermore, they also have oxygen & contamination barrier properties, which play a vital role in extending the freshness of the product. Currently, pouches are increasingly used for the packaging of wine, spirits, and beer. This packaging format for alcohol is largely used in the US, Australia, and South Africa.

Challenges:  Availability of substitutes

The substitutes for pouches in the packaging industry include rigid containers and poly bags. Rigid containers include bottles, jars, cans, and containers and find wide application in the food & beverages, personal care, and pharmaceutical industries. The impact strength, high robustness, and barrier properties of rigid containers have contributed to its popularity across industries. Rigid containers are the most widely used and popular form of packaging in the food & beverages industry.

Polyethylene is the largest material segment of the flexible plastic pouches market

The flexible plastic pouches market is segmented on the basis of material into polyethylene, polypropylene, and others. The polyethylene material segment accounted for a larger market share. This is attributed to its unique flow properties such as propensity to stretch when strained, low production costs, high clarity, heat seal-ability, high elongation, and softness make it suitable for pouch packaging. Polypropylene is projected to be the fastest-growing material segment. This is attributed to its good resistance to almost all types of chemicals, including strong acids, alkalis, and most organic materials, and its high melting point makes it a superior material for boilable packages and sterilizable products.

Flat pouches is the largest type segment of the flexible plastic pouches market

The flexible plastic pouches market is segmented on the basis of type into flat pouches and stand-up pouches. The flat pouches segment led the market in terms of both value and volume. Its cost-effectiveness and aesthetic display in stores contribute toward its leading share in the flexible plastic pouches market.

Food is the largest application segment of the flexible plastic pouches market

The flexible plastic pouches market is segmented on the basis of application into food, beverage, and others. Food application segment accounts for the largest market share in the market. Its malleability and low weight, along with the protection that it offers against contaminants make pouches an ideal packaging solution for food packaging products, leading to its large market share.

APAC is the largest market for flexible plastic pouches market

The APAC region is projected to be the largest market and to grow at the highest CAGR during the forecast period. Growth in APAC is backed by the increase in disposable income of people in countries such as China and India, growing middle-class population, rise in demand for packaged food, and the growth of the food & beverage industry. Moreover, the growth of the flexible plastic pouches market in the APAC region is attributed to the higher consumer spending and manufacturing of packaging materials in developing economies, such as China and India. China is projected to be the fastest-growing market across the globe during the forecast period. This is attributed to the population growth in the country, along with the high availability of packaging material coupled with technological development. This directly affects the growth of the flexible plastic pouches market in the APAC region.

Berry Global Inc. (US), Mondi (UK), Huhtamaki (Finland), Sealed Air Corp. (US), Sonoco Products Company (US), Smurfit Kappa (Ireland), Amcor Plc (Switzerland), Gogllio SpA (Italy), Constantia Flexibles (Austria), and ProAmpac (US) are key players in flexible plastic pouches market.