Asia Pacific Water Soluble Packaging Market Forecast to 2027 - COVID-19 Impact and Regional Analysis by Raw Material; Product Type; Solubility Type; Application

The Asia Pacific market was valued at US$ 639.9 million in 2018 and is projected to reach US$ 1,022.3 million by 2027; it is expected to grow at a CAGR of 5.3% from 2019 to 2027.

Water soluble packaging refers to the type of packaging made from biodegradable materials that dissolve in water leaving behind harmless and non-toxic aqueous solution. It is best suited for water owing to its better solubility in water with minimum residue and good impact resistance. However, Water soluble packaging is manufactured in different grades, including cold water and hot water soluble PVA grades. Water soluble packaging products such as films, bags and pouches are manufactured using polyvinyl alcohol (PVOH), which is a synthetic polymer highly soluble in water. Water soluble packaging is mainly used in the packaging of dyes, detergents, agrochemicals, and other industrial chemicals. Additionally, they are used in the manufacture of disposal bags, laundry bags, and shopping bags. Water-soluble packaging is considered to be an environment friendly alternative over single-use plastic. The growth in various industries and factories has increased the demand for a sustainable packaging solution over the past few years. As the packaging industry has the biggest impact on the environment, the demand for eco-friendly packaging solutions drives the growth of water soluble packaging market.

Based on raw material, the Asia Pacific water soluble packaging market has been segmented into polymers, fibers, and surfactants. In 2018, the polymers segment held the largest share of the Asia Pacific water soluble packaging market; however, the fibers segment is expected to grow at the highest CAGR during the forecast period. Water soluble polymers are environmentally biodegradable and thus help in effective waste management and environmental protection. Polymers are extensively used in the production of water soluble packaging products such as bags, pouches, pods, and films. For instance, polyvinyl alcohol (PVA or PVOH) is used in manufacturing water soluble bags and films, as it dissolves fast when it comes into contact with water. Furthermore, its biodegradable and non-toxic properties propel its usage in the water soluble packaging production. Fiber-based packaging utilizes reusable, renewable, and biodegradable materials in the process of production. Fibers such as seaweed and collagen are used as a raw material in the production of water soluble packaging. Surfactants are one of the key raw materials used in the production of water soluble packaging products such as films, bags, and pouches. Surfactants provide smooth process ability in the production of water soluble films. It provides ease of separation of the formed film from the metal surface of the drum and also acts as an anti-blocking agent. Two types of surfactants are added during the production of water soluble packaging which includes anionic and non-ionic surfactants. More than 2% of surfactant leaches out of the surface of the water soluble film and acts to cause blocking, which leads to deterioration in handling properties of the water soluble film.

Geographically, the Asia Pacific water soluble packaging market has been segmented into China, India, Japan, South Korea, and Rest of APAC. In 2018, China accounted for the largest share of the Asia Pacific water soluble packaging market. Japan is expected to grow at the highest CAGR during the forecast period. With excellent heat-sealing property and printability, the water soluble packaging films are ideal for use as a packing material, widely used as materials for pesticides and detergent packing, and also as base materials of embroidery and water transfer printing. These factors are propelling the market growth of the water-soluble packaging market in China. Bearing different grade-specific application parameter requirements of dissolution times, strength, stiffness, companies supply customized plain film and embossed films, to meet diverse needs consumer needs in China. Rising consumer awareness about the benefits offered by the water-soluble packaging, growing environmental concern, and multi-functional usage in the pharmaceutical, agrochemical, and plastic industries are acting as a major driver for the Japanese market. Water soluble packaging is used in the manufacture of disposal bags, laundry bags, and shopping bags. The water soluble packaging films have found many industrial applications due to its gas barrier protection and resistance to oil & organic solvents. These factors are influencing the market growth for water-soluble packaging in Japan. Development of biodegradable, water-soluble films drives the growth of the water-soluble packaging market. Furthermore, the flexibility in packaging offered by these films fuels their demand, thereby supplementing the market growth for water-soluble packaging in Japan. The consumers in India are quite concerned about environmental pollution happening due to the excessive use of plastic. By using water-soluble packaging, this pollution can be reduced; which in turn is creating demand for water-soluble films. The FDA clearance for the use of polymers - PVOH (Polyvinyl alcohol) - is estimated to support the growth of the South Korea Water Soluble Packaging market. There is an increasing demand for water-soluble packaging in the South Korean industries where the workers have to handle chemicals. This is the primary reason propelling the growth of water-soluble packaging products in the industrial chemical category in South Korea. The Rest of APAC includes Australia, Singapore, Malaysia, Taiwan, and Vietnam. Developed and developing countries like Australia, Singapore, and Malaysia have adopted the new technique of using water-soluble packaging for these chemicals. The key principle in using this new type of environment protection water-soluble packaging material is to separate bulk packaging into smaller ones. The water soluble films are used for industrial and commercial applications, including aviation sanitizers, industrial floor cleaners, and commercial laundry detergents. These factors are influencing the market growth for water-soluble packaging in the rest of the Asia-Pacific region.

Cortec Corporation, Harke group, Smart Solve Industries, Kuraray Co., Ltd, Sekisui Chemical Co., Ltd, Mitsubishi Chemical Corporation, Jiangmen Cinch Packaging Materials Co., Ltd., Changzhou Kelin PVA Water Soluble Films Co., Ltd. and Mondi Group are among the major players in the Asia Pacific water soluble packaging market.

Overall size of the Asia Pacific water soluble packaging market has been derived in accordance to both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Additionally, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Asia Pacific water soluble market.

Wuhan (China) was the first city to be caused by COVID-19 in December 2019 and since then it has spread at a fast pace across the world. China, Italy, Iran, Spain, republic of Korea, France, Germany, and the US are some of the worst affected countries in terms of positive cases and reported deaths as per the data of March 2020. The COVID-19 outbreak has been affecting economies and industries in various industries in different countries due to lockdowns, travel bans, and business shutdowns. The chemical & materials industry is one of the major industries facing serious disruptions such as supply chain breaks, technology events cancellations, and office shutdowns as a result of this outbreak. The lockdown of various plants and factories in the Asia Pacific is affecting the global supply chains and negatively impacting the manufacturing, delivery schedules, and sales of various goods and services. Besides, the chemical, pharmaceutical, food & beverage, and other industries are affected in a negative manner and thus act as restraining factor for the growth of various markets related to this industry in the coming months. The COVID-19 is anticipated to cause a loss of more than 3 Billion in the Asia Pacific region. The consequence and impact can be even worse and totally depends on the spread of the virus. The government of Asia Pacific is taking possible steps to reduce its effects by announcing lockdown, and thus impacting the revenue generated by the market. As per the Airports Council International (ACI) Asia-Pacific, extended COVID-19 outbreak would drastically impact the region's airports' connectivity and economic sustainability, thereby restricting Asia Pacific region from achieving the desired growth prospects. The market growth will be negatively impacted by such closures in the coming period. At present, China has the highest number of COVID-19 confirmed cases. Due to the COVID-19 outbreak, the supply chain is likely to get affected, which in turn will affect the economy of Asia Pacific region.

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