The global sachet packaging market is expected to attain a valuation of US$ 9,814.3 million in 2023. From 2023 to 2033, this demand is further projected to reach US$ 17,381.9 million, registering a CAGR of 5.9%.
Increasing demand for lightweight and compact packaging in various sectors, such as food & beverages and pharmaceuticals is expected to drive growth in sachet packaging market. A rise in demand for ready-to-eat meals, packaged food, or instant drinks due to changing lifestyles of consumers is further anticipated to foster growth in the market.
An increasing number of retail industries and investments by the key players for the development of eco-friendly & recyclable packaging material is expected to generate new growth opportunities for the market.
The demand outlook is further anticipated to be shaped by rising industrialization and growing demand for single-serve packaging. The use of sachet packaging by various end-user verticals like food & beverages industry is estimated to positively influence market growth.
Burgeoning demand for portable and convenient packaging solutions is further expected to induce growth in the market. There is a massive demand for sachet packaging solutions in food & beverages industries due to rapid expansion of this industry. This is expected to propel product demand in the coming years.
Which are Some Prominent Drivers Spearheading the Sachet Packaging Market?
· Shifting Consumer Preference towards Convenience to Drive Market Growth
The demand for quick and convenient packaging such as sachet packaging is expected to fuel its sales in the coming years. The end user’s desire for a wide range of innovative packaging alternatives is expected to have a favorable impact on sales of sachet packaging solutions.
Increasing discretionary money among middle class and poor is estimated to boost sales of sachet packaging. The consumer’s need for efficiency, convenience, and safety packing, are also anticipated fuel product demand. Because it produces less waste, sachet packing is proving to be far more cost-effective in both packaging and delivery. Due to thriving growth in the fast-moving consumer goods (FMCG) and allied sectors, sachet packaging has a bright future.
Since the outbreak of the pandemic, demand for hand sanitizers has upsurged to enforce hygiene measures. The bulk of these sanitizers are packaged in sachets and packages, which is expected to boost product sales in the post-pandemic period as well. Additionally, the simplicity with which different commodities may be transported across virtual platforms is presenting potential opportunities for market expansion.
Due to changing consumer wants and tastes, companies are on the lookout for a more convenient option in terms of price and quality. There is a strong emphasis on functionality of packed products like instant drinks, medications, and food among others.
Small packaging product sizes, like sachets, are being developed to meet this demand. Unlike oval or round cross shapes, sachets feature a flat shape with three or four sides of sealing. This is expected to drive market growth by offering more convenience to consumers as well as to manufacturers.
Shifting consumer preferences for pack-type adjustments is further anticipated to fuel product sales. Customers today are concerned with convenience and the ability to carry and consume food while traveling. Moreover, rising number of single-family households has reduced the need for bulk packaging. This is expected to foster growth in the market.
Region-Wise Insights
What are the Growth Prospects in North America?
North America accounted for 30.7% of revenue share in 2022, in the sachet packaging market. The region is estimated to accumulate a 31.2% market share by the end of 2023. The market in this region is projected to grow with a CAGR of 5.7% during the forecast period.
Increasing adoption of sachet packaging in the food & beverage industry, especially for fast food and takeaways is expected to fuel growth in the region. The United States alone accounted for a global revenue share of 27.9% in 2022. Among the economies that spent heavily spend on eating out, the United States was the highest spender with over 60% of the regional market share in 2022.
The trend is most likely to continue in the forecast period as well. Juices, Ketchup, and pickles come in sachets in most of the fast-food joints and restaurants where food products witness substantial expenditure. This is anticipated to propel market growth during the forecast period. In addition, due to changing lifestyles and presence of vending machines in work and public places in the United States, the demand for sachet packaging solutions is expected to rise.
What is the Growth Outlook in China?
China is expected to grow with a CAGR of 9.9% in sachet packaging market during the forecast period. The growth is attributed to rising industrialization, globalization, urbanization, and expansion of packaging industry. Growing applications of sachet packaging by various end-use industries are further anticipated to drive growth wheels in the region.
Inflating disposable income of consumers and rising need for convenient packaging in traveling are further driving the demand for sachet packaging in the country. There is a huge consumer base in this region as a result of increased investments by companies operating in the manufacturing and distribution of global sachet packaging. As sachets are cheaper than bottles in China, more people are extensively using single-use sachets. A sizeable market share is expected due to low cost of these sachets. This is attributed to the presence of a middle-income class and price-sensitive population in the region.
Start-ups in Sachet Packaging Market
Start-ups help in predicting future growth opportunities in any market. New entities have the potential to generate high returns which directly benefits the expansion of any industry. These start-ups are generally more productive at transforming inputs into outputs with more flexibility and adaptability, ability to adopt volatile market conditions. Some of the start-ups that will propel the expansion of sachet packaging market are:
Merion is a contract manufacturer of nutraceuticals and pharmaceuticals. The company manufactures tablets, hard capsules, sachet packaging, solid beverages, powder, granules, and soft gels, along with dietary supplement export. The company owns a GMP-certified facility. It was founded in El Monte, United States in 2007. It received a total funding of USD 5.24 million in its latest funding round.
· Superseven is a manufacturer of sustainable packaging solutions. Product offerings include starch-based, cellulose-based bags, etc. It is also a developer, designer, and provider of packaging accessories to customers. It also offers bags, bags with handle holes, bottle fold bags, bag-on-roll, daypack, flat bags, labels, center-folded film, a flat film on the reel, flow packs, sealed standup pouches, side gusset bags, stick packs, wicketed bag, and other sachets. This startup also provides consultation services, design & development, certification, and production. It was founded in Wentorf bei Hamburg, Germany in 2017.
· BioDelta is a contract producer of food supplements. This startup focuses on the manufacturing of tea packaging solutions, custom designs, and print packaging. It also creates packaging for nutritional powders, vitamins and mineral tablets, and protein powders. It was founded in 2004, in Capetown, South Africa. It received investments from Anuva Investments.
Market Competition
The sachet packaging market is extremely competitive and consists of various key industry players. These players are heavily investing in manufacturing sachet packaging solutions.
The key industry players are: Glenroy Inc., Amcor Plc, Constantia Flexibles Group GmbH, Huhtamaki Oyj, ProAmpac LLC, AE Adams (Henfield) Ltd, Paharpur 3P, RCP Ranstadt GmbH, Sharp Packaging Services, Sealed Air Corporation.
Some recent developments in the market are:
Key industry players are leveraging on organic growth strategies like acquisition, mergers, partnerships, and collaboration in order to enhance their product portfolio. This is expected to fuel the global sachet packaging market.
- In May 2021, Amcor introduced a high-barrier plastic sheet sachet for packaging powdered chocolate in Columbia. The 25-gram sachet, when recycled, reduces carbon emissions by 50% and water consumption by 83%.
- In April 2021, Constantia Flexibles acquired Propak, a leading player in the European packaging industry. This merger is generating strong market potentials and is proving to be a huge step in the film packaging for company presence in the rapidly expanding market segment.
- In July 2022, Unilever, a United Kingdom-based multinational consumer goods company, cooperated with another British multinational packaging and paper group, Mondi. The collaboration was aimed at creating aluminum-free, recyclable paper-based packaging for Colman’s sauces and meal maker range.
These insights are based on a report by Ismail Sutaria Sachet Packaging Market by Future Market Insights.