Sachet packaging market is estimated to be valued at USD 9.22 Bn in 2024, growing at a CAGR of 5.4% over the forecast period (2024-2031). The market is driven by the growing demand for convenient packaging from end-use industries such as food & beverage, pharmaceuticals, and personal care and cosmetics. Furthermore, sachet packaging allows for affordable unit pricing which increases their adoption, especially in emerging economies.
Increasing demand for convenient packaging
Sachet packaging provides lightweight, affordable, and easy to use packaging solutions. The small volume decreases transportation and storage costs. Moreover, sachets can be easily transported, stored, distributed, and handled, offering maximum convenience to producers, distributors as well as end users.
Rising disposable incomes in emerging economies
With rising disposable incomes, people in developing countries are opting for branded and packaged goods. Sachets allow low-income people to try new products at affordable prices. This increases the sales of consumer products in price-sensitive markets, thereby propelling the demand for sachet packaging.
Increasing Demand for Packaged and Convenience Food Drives the Global Sachet Packaging Market
The global demand for packaged and convenience food has seen significant growth over the past few decades. With rising incomes and changing lifestyles, more people are opting for food products that can be prepared and consumed quickly. Sachet packaging has emerged as a popular option for various food and beverage products like sauces, ketchup, condiments, cereal, dairy, etc. due to advantages like affordable pricing, single-use convenience, and portion control. Market research shows that sachets currently account for over 30% of the global sauce market. This growing demand for ready-to-eat packaged foods is a major driver propelling the sachet packaging industry forward.
Rise of FMCG Industry Bolsters the Demand for Small-Format Flexible Packaging
The fast-moving consumer goods (FMCG) sector has expanded rapidly across both developed and developing nations. Increasing urbanization and growing middle-class populations are leading to a higher demand for personal care products, snacks, beauty items, and other daily use goods. Sachet packaging has become a go-to format for brand owners to target price-sensitive customers in tier 2 and tier 3 cities. Its small, flexible format allows products to be sold affordably in single-use quantities. The surging FMCG industry worldwide constitutes a key market driver as it spurs greater uptake of sachet packs for various categories like shampoo, soap, toothpaste, snacks, etc.
Stringent Regulations on Plastic Waste Generation Hamper the Market Growth
A major challenge faced by the sachet packaging industry is the growing environmental concerns associated with plastic waste. Most sachets currently utilize materials like polyethylene (PE), polypropylene (PP), and aluminum which are not easily recyclable. Once used, these lightweight plastic pouches tend to clog drainage systems and end up in landfills or as litter. In response, several countries have enacted stringent regulations banning certain types of plastic packaging. For example, countries in the European Union have imposed levies on plastic bags and packaging not made of recyclable material. Such legislations pose a restraint on the market by making plastic sachets less viable from an environmental standpoint.
High Production and Logistics Costs Deter Manufacturers
Producing sachet packs on a large scale requires sophisticated packaging machinery to automate the processes of forming, filling and sealing individual pouches. The small format of sachets also incurs higher transportation and warehousing costs relative to bulk packages. Additionally, sachet packs generate more waste in terms of plastic scrap during production. All these factors increase the cost of goods for manufacturers. Especially in price-sensitive emerging markets, high production costs can deter some companies from adopting sachet packaging or force them to pass on the expenses to customers. This price sensitivity among consumers acts as a key restraint on the global sachet packaging industry.
Growing Demand in Emerging Economies Opens New Avenues
Most of the future growth opportunities for the sachet packaging market will emanate from developing regions in Asia Pacific, Latin America, Middle East, and Africa. As economies in these parts of the world continue to progress, their populations are acquiring new consumption patterns closely resembling the developed West. Sachet packs provide an ideal solution to introduce new brands and products to cost-conscious customers in low-income nations. Segments like food, beverages, personal care, and home care show strong future potential across Asia Pacific, Africa, and Latin America. Expanding industries, rising affluence levels, and growing product penetration into rural areas open new geographic markets for sachet packaging.
Sustainability Initiatives Create Room for Innovation
With environmental regulations becoming more stringent globally, packaging manufacturers are compelled to develop sustainable solutions. This necessity presents an important market opportunity for players to introduce innovative sachet designs utilizing recyclable, compostable and biodegradable materials. Examples include packs made from paper, bioplastics, algae, and plant-based resins. Advanced technologies facilitating automated sorting and recycling are also opening new avenues. Collaborating with FMCG brands on sustainable packaging goals provides a competitive edge. Progressive manufacturers investing in R&D for eco-friendly sachets will be well-poised to tap into the future growth potentials of this dynamic market.
*Link: https://www.coherentmarketinsights.com/market-insight/sachet-packaging-market-1045
Key Developments
- In February 2024, Amcor collaborated with Stony field Organic and Cheer Pack North America to launch first all-PE spouted pouch
- In February 2024, Amcor to launched first all-PE spouted pouch
- In February 2023, ProAmpac, a company that deals in flexible packaging and material science, released ProActive recyclable paper-1000, the first product in a series of new paper-based packaging solutions. This product is heat-sealable and has a good moisture barrier.
- In April 2021, Constantia Flexibles acquired a leading player in the European packaging industry, Propak. The acquisition generates strong synergy potentials and proves to be a significant step in the film packaging presence of the company for the rapidly growing market segment.
Key Players
ProAmpac LLC, RCP Ranstadt GmbH, Glenroy Inc., Sealed Air Corporation, AE Adams (Henfield) Ltd., Constantia Flexibles Group GmbH, Paharpur 3P, Syntegon Technology GmbH, Amcor Plc, Clondalkin Group, Bemis Company, UNICO ITC dba, Sharp Packaging Services, Huhtamaki Oyj, Coveris, Paharpur 3P, Sonoco, Pouch Makers, Packman , and Paras Printpack
