Stand-ups to lead demand in US pouch market

- Stand-up pouches to lead growth in US with highest AGR

 

Demand for pouches in the US is projected to increase 5.1 percent per year to US$8.8 billion in 2016, driven by faster gains for stand-up pouches stemming from sustainability, functional and marketing advantages over alternative packaging media.

 

Market research group Freedonia’s Pouches report predicts unit demand will expand three percent yearly to 90 billion. Burgeoning consumer acceptance of pouches as an alternative to rigid containers will buoy demand, as will such advantages as superior aesthetic appeal, portability, light weight, reduced material use and significantly lower shipping costs than rigid containers.

 

In addition, heightened use of reclosing and dispensing components will increase the competitiveness of pouches against rigid containers.

 

Stand-up pouch demand is forecast to expand 7.2 percent annually to US$2 billion in 2016. Advances will be well above those of the overall packaging industry, reflecting heightened interest among packaged goods companies resulting from savings achieved in shipping costs due to the benefits of lighter weight and lower material use compared to rigid containers.

 

Also supporting gains will be attributes of product differentiation: aesthetics; the presence of convenience features, such as zippers and spouts; and the perception, especially among younger consumers, of pouches being a more contemporary packaging format than cans, bottles and cartons.

 

In figures, pouch demand will grow from US$5.2 billion in 2006 and US$6.8 billion in 2011, to US$8.8 billion in 2016. This represented annual growth of 5.7 percent between 2006 and 2011, and 5.1 percent to 2016.

 

Stand-up pouch demand has risen from US$938 million in 2006 to US$1.4 billion in 2011, an annual growth rate of nine percent. The continued growth to US$2 billion by 2016 represents a lower annual growth rate of 7.2 percent, although leading growth in the pouch market.

 

Smurfit Kappa recently said its Pouch-Up stand-up pouch product has the potential to alter the beverage packaging market by offering a viable alternative to glass for wine, and other drinks.

 

Read more Freedonia findings here

Read more on pouches here

Read more on North America here