In the fast-paced world of consumables, where convenience and cost-effectiveness are key, the Stand-Up Pouch market has emerged as a leading player. This trend is fueled by rapidly shifting consumer lifestyles and preferences, along with developments in food technology. The demand for on-the-go snacks is escalating and with it, the requirement for easy-to-handle, re-closable stand-up pouches.
One of the greatest advantages of switching to pouch packaging is its cost-saving potential. Stand-up pouches, in particular, have been established as a far more economical choice compared to other rigid packaging solutions. Even so, the market faces certain challenges such as growing environmental awareness and the push towards sustainability. This has motivated vendors to lean towards recyclable and sustainable pouch designs, further stimulating capital investment in product innovation.
Moreover, with considerable advancements in the industry, more and more manufacturers are introducing sustainable solutions that cater to evolving customer and market needs. Factors that contribute significantly to market growth encompass the convenience, affordability, and versatility of stand-up pouches, not to mention their rising popularity within the packaged food and beverage sectors.
- The rise in the demand for on-the-go snacks has led to the need for re-closable stand-up pouches as they offer convenience to consumers. In addition, the changing lifestyle and food preferences among consumers, coupled with changing food technology, further create demand in the market.
- Switching to pouch packaging, especially stand-up pouches, helps reduce the cost of materials. According to Emmerson Packaging, rigid packaging costs three to six times more per unit compared to flexible packaging. Printed folding cartons cost nearly twice as much as flexible packaging. Hence, selecting stand-up pouches over a rigid alternative indicates positive growth for the market.
- However, growing consumer awareness about environmental concerns, dynamic regulatory standards, the ongoing drive for sustainability which includes replacing plastic-based packaging products with biodegradable materials, and poor recycling rate due to the lack of advanced recycling facilities are some factors challenging the market growth.
- The growing concern over sustainability further pushes the vendors towards recyclable and sustainable pouches. Thus, the market is projected to witness capital investments in sustainable product innovation and the growth of new recycling industries.
- Moreover, the COVID-19 pandemic has had a mixed impact on stand-up pouch packaging. Due to the pandemic outbreak, manufacturers are facing supply chain disruption and decreasing manufacturing in many parts of the world. However, increasing demand for medical and healthcare supplies is expected to affect the market positively. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.
Stand-Up Pouches Market Trends
Food & Beverage Segment is Expected to Drive Market Growth
- Lifestyle changes and easy access to information on health and nutrition are increasing the demand for indulgent yet healthy foods, convenience foods, and single-serve options. These rapid changes in the food and beverage landscape are creating demand for convenient packaging options like Stand-Up Pouches.
- Moreover, many consumers now consider stand-up pouches a signifier of quality, making them a necessity for vendors to communicate premiumization through this form of packaging. Additionally, Stand-Up pouches help protect foods by keeping outside elements like moisture, light, air, and bacteria away.
- The market has seen considerable innovation in the stand-up pouches used in the food packaging industry. Last year, Coveris, a sustainable packaging company, and Northern Ireland-based poultry meat producer Moy Park partnered to introduce a new recyclable stand-up pouch. The research and development (R&D) network of Coveris created the MonoFlexBE stand-up pouch for Tesco's cooked chicken product. The new packaging includes a recyclable mono-laminate barrier that reduces plastic weight by 55%.
- In addition, several manufacturers in the industry are focusing on introducing sustainable solutions and have constantly been working on customer and market needs. For instance, earlier this year, Shako Flexipack Pvt. Ltd. introduced a Jumbo 5-liter Stand-up pouch for food and Non-food applications, which offers better shelf life, is more environmentally friendly due to lesser weight, and is cost-effective.
- The main factors propelling market expansion are convenience, affordability of pouches, and increasing demand for packaged food and beverages. Stand-up pouches are usually made with lightweight materials, which significantly lowers the cost of transportation. The demand is also fueled by the fact that pouches come with various closure options, including a spout, zipper, and tear notch.
Asia - Pacific is Expected to be the Fastest Growing Market for Stand-Up Pouches
- The rise of food processing, increasing health care expenditures, and expansion of the retail sector are driving the demand for Stand Up Pouches in food packaging in Asia-pacific. According to the US Department of Agriculture, in 2021, China accounted for more than half of global food and beverage revenue, and the production volume from the food processing and manufacturing industry increased by 6.3% in 2021 despite the continued COVID-19 outbreak.
- The changing consumption habits to include more quick-serve and processed foods and pandemic impacts have led consumers to focus more on nutritional and safety products. With strict COVID-19 control measures enforced across the region, consumer demand for shelf-stable products has grown, for which stand-up pouches are significantly being used for packaging.
- As a larger exporter of products like coffee, tea, sauces, and liquid detergents in Southeast Asia, being packed in this format in the region. This has led players like Mespack, a subsidiary of Duravant, to focus on this segment of their portfolio in the region.
- Moreover, rapid economic growth and urbanization are transforming the retail food sector in the developing economies of the Asia-Pacific region. The growing number of supermarkets, hypermarkets, discount and club stores, and chain convenience stores are offering consumers lower prices, greater convenience, and safer food products due to highly efficient procurement and distribution systems to cater to increasing demand are the center of the development of the retail food sector in the urban market.
Stand-Up Pouches Market Competitor AnalysisThe market is fragmented, with many large players operating in the market, constituting considerable market share. The leading market players are constantly upgrading their product portfolios and adopting various organic and inorganic strategies such as mergers, partnerships, new product launches, collaborations, mergers, and acquisitions to dominate the market.
- August 2022 - Flexible Pouches, a California-based packaging business, developed clear stand-up pouches to preserve food quality and show products most appealingly. The transparent stand-up pouches from Flexible Pouches are cost-effective and environmentally friendly. The solution offers a full view of the content from all sides for secure eating and straightforward access.
- August 2022 - SCG Chemicals Public Company Limited developed a monome stand-up pouch of a complete polyethylene structure, making it easier to continue with the recycling process than current multi-material packaging consisting of inseparable layers of different materials. This packaging solution is environmentally friendly, performs well when required, and is available in two options: monome and monome+ high barrier.
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Table of Contents
1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the Market
5.1.1 Rising Demand for Packaged Food and Beverage
5.1.2 Increasing Demand for Convenience and Ready-to-eat Food
5.2 Market Restraints
5.2.1 Stringent Government Regulations
6.1.1 PET (Polyethylene Terephthalate)
6.1.2 PE (Polyethylene)
6.1.3 PP (Polypropylene)
6.1.4 EVOH (Ethylene-vinyl Alcohol)
6.1.5 Other Material
6.2 By Application
6.2.1 Food & Beverage
6.2.2 Home Care
6.2.3 Health Care
6.2.4 Pet Care
6.2.5 Other Applications
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Middle East and Africa
6.3.5 Latin America
7.1.1 Amcor plc
7.1.2 Mondi plc
7.1.3 Sonoco Products Company
7.1.4 Smurfit Kappa Group plc
7.1.5 ProAmpac LLC
7.1.6 Swiss PAC USA
7.1.7 Winpak Ltd.
7.1.8 Uflex Limited
7.1.9 Glenroy, Inc.
7.1.10 FLAIR Flexible Packaging Corporation
A selection of companies mentioned in this report includes:
- Amcor plc
- Mondi plc
- Sonoco Products Company
- Smurfit Kappa Group plc
- ProAmpac LLC
- Swiss PAC USA
- Winpak Ltd.
- Uflex Limited
- Glenroy, Inc.
- FLAIR Flexible Packaging Corporation