Freedonia Market Research Analyzes Pouches Industry

Demand for pouches in the US is forecast to climb 6.1 percent per year to $7.9 billion in 2012, stimulated by robust growth for stand-up pouches and healthy gains for flat pouches in a number of markets.  Unit demand is expected to increase 4.6 percent yearly to 89 billion.  Pouches, especially stand-up types, will continue to expand their presence over many other types of packaging based on superior qualities, including aesthetic appeal, reclosable components, portability, light weight and reduced material use. These and other trends, including company profiles and market share, are presented in US Pouches, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Stand-up pouch demand is expected to increase almost ten percent annually through 2012.  Though now fairly common, stand-up pouches remain distinctive in appearance, and demand will benefit from the presence of convenience features and the emergence of new applications and product types, such as flat-bottomed, side-gusseted pouches.  Moreover, growth will be fueled by advantages that make stand-up pouches an economical and environmentally-friendly packaging alternative, namely lower production costs and substantially reduced shipping costs.

Demand for flat pouches will be led by above-average gains for four-side-seal pouches in medical and pharmaceutical markets and food applications.  Flat pouch advances will also be supported by a rapidly expanding market for stick pouches (small tube-shaped pouches) with single-portion packages of products such as drink mixes, candy and sweeteners.  Stick pouches offer product differentiation and are increasingly used to refresh mature product lines.  Improvements in pouch manufacturing technology -- such as machinery with increased line speeds -- will continue to lower production costs, thereby making pouches more competitive with other forms of packaging like cartons and cans.

Food and beverage markets, which accounted for 78 percent of demand in 2007, will post healthy growth through 2012, the result of solid gains for stand-up pouches in nearly all markets as consumers continue to be drawn to products that offer such advantages as reclosability, better portability, microwaveability, longer shelf life and minimal preparation time.  Faster growth for pouches in nonfood markets will be the result of opportunities in medical and pharmaceutical markets fueled by the increased prevalence of unit-dose pharmaceutical packaging and unit-of-use packaging of small- to medium-sized medical supplies and devices. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.