SACHET PACKAGING MARKET ANALYSIS

Sachet Packaging Market Size and Trends

The global sachet packaging market is estimated to be valued at US$ 9.22 Bn in 2024 and is expected to reach US$ 13.32 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

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Sachet packaging is witnessing high demand across various industries such as food, beverage, personal care, and home care. Adaptability and convenience offered by sachet packaging makes them suitable for small quantity packaging. Sachets perfectly align with the need for affordable and measurable units required by consumers with low purchasing power across developing regions. Ease of disposal and recyclability also drives the uptake of sachet packaging. The growing usage of sachets for pharmaceutical drugs and cosmetic samples is further propelling the market growth. However, concerns over plastic waste from sachet packaging is prompting manufacturers to develop eco-friendly alternatives using materials like paper which can present new opportunities for players in the coming years.

 Increasing demand from emerging economies

One of the key drivers propelling growth in the global sachet packaging market is the increasing demand from emerging economies. Sachet packaging has been a boon for these developing markets as they provide affordable packaging solutions, especially for consumer goods. With growing incomes and changing lifestyles, consumers in countries such as India, China, Indonesia, and other Asian nations increasingly prefer packaged food, cosmetics, and personal care products over their unpackaged equivalents. Sachet packaging helps manufacturers address this burgeoning demand from price-sensitive customers by offering small quantity packs of products at affordable prices. Take for example the packaged food industry. In many smaller towns and villages across Asia, packaged staples like rice, flour, sugar, and spices have begun replacing their loose variants as people's tastes evolve with urbanization. However, unit-level pricing of full-sized packs remains unviable for a large subsection of low-income consumers. This is where sachets have played a pivotal role, providing customers quantities sufficient for a single or few uses at low price points. Similar demand drivers exist across other industries as well. As living standards continue rising across emerging nations, sachet packaging allows brand owners to capitalize on this new consumer segment. By marketing affordable trial packs, companies can foster brand discovery, familiarize users with new products and expand the total addressable market. Over time, as incomes climb higher and markets mature, a portion of these very customers will graduate to larger stock-keeping units. But sachets will remain crucial in serving the needs of those at the bottom of the economic pyramid for the foreseeable future, serving as a gateway to usher in masses of new customers. This sustained necessity ensures robust demand from developing economies remains a primary factor propelling the global sachet packaging industry.

The Expanding Product Portfolio is a key factor fueling the rise of the Global Sachet Packaging Market. As consumer lifestyles and preferences evolve rapidly, companies are innovating and diversifying their product offerings to cater to diverse demographics and needs. Sachet packaging, with its appeal as an affordable and portable solution, allows them to effectively roll-out product trials and introductions. Many fast moving consumer goods categories have witnessed a proliferation of sub-categories and variants tailored for different occasions and target segments. For instance, the beverage industry has launched various flavored drinks, wellness beverages with essential vitamins and minerals, smaller packaging for on-the-go consumption etc. This has boosted the application of sachets for sample sized packages as well as individual servings of these niche products. Similarly, the food industry has come up with different seasonings, ready-to-cook mixes and snacks targeting health-conscious consumers. Sachet packs for condiments and spices further aid recipe experiments. Going forward, the personal care and cosmetics segments are expected to drive significant demand. With consumers looking to frequently try new brands and formulas before bulk purchase, sachets/pods packaged with travel sized hygiene and skincare products will see heightened uptake. This allows companies to promote their diversifying ranges while reducing product wastage. According to UN Comtrade data, global exports of beauty and skincare preparations grew by 11% annually between 2018 to 2021, showcasing a rising trend of personalized self-care routines supporting the market growth.