Plastic to Remain the Most-Preferred Material for Sachet Packaging

Despite the intolerance by many for the use of plastic, plastic is still the most preferred material type used for all types of sachet packaging, according to a study conducted by ESOMAR-certified consulting firm Future Market Insights (FMI).

Overall, the global sachet packaging market is poised to total US$ 8.7 billion by the end of 2021.

With rising demand for convenient and small-sized packaging solutions across the globe, FMI says the market for sachet packaging is set to see 5.4 percent year-over-year growth in 2021.

Between 2016 and 2020, the market grew at a CAGR of 5 percent, according to FMI.

Driven by low cost, recyclable, customizable and portability features, sachet packaging is gaining immense traction in food and beverage and other vertical markets. Propelled by this, the sachet packing market is estimated to exhibit a healthy CAGR of 5.8 percent over the forecasted period of 2021 to 2031.

FMI notes that rapidly growing trends such as single-serve dose packaging and “buying less, more often” among customers for products – such as tea, coffee, cream and others – plastic sachet packaging is expected to create lucrative sales opportunities for market players. Also, due to it being cost-effective, flexible and because of its durability characteristics, plastic sachet packing is currently highly accepted among manufacturers for a wide range of applications.

“While scrutiny on the industry-wide applications of plastic for packaging continues to influence expansion strategies of manufacturers, some of the market players are shifting their focus to other, non-plastic, bio-degradable and recyclable raw materials…” says FMI.

Takeaways from FMI’s Recent Sachet Packing Market Analysis

  • The U.S. is estimated to contribute maximum sales in the North America market, driving the regional growth at a CAGR of 3.7 percent during the assessment period.
  • In Europe’s sachet packing market, the U.K. is forecasted to account for a subsequent share, due to the high presence of established players in the country.
  • China is anticipated to emerge as the most ruminative market, supported by increasing disposable income and the presence of significant consumer base.
  • The market in India is projected to witness rapid growth in the forecasted period, on the back of increasing demand for one-serve products.
  • South Korea and Japan are predicted to account for 8 percent and 15 percent of the market share value of East Asia, respectively.

Key Drivers

  • Surging demand for small-sized and convenient packaging solutions is fueling the sales of sachet packing.
  • Increasing application across end use industries is fueling the demand for sachet packing.
  • Rising trend of single serve and growing disposable income among middle-class consumer is driving the overall market growth.

Competitive Landscape

Per FMI, the sachet packaging is highly fragmented and competitive in nature due to the presence of a large number of players in the landscape. The company notes that the top five players are likely to account for about 10 to 15 percent of the global market share in 2021.

Leading companies in market are also emphasizing the adoption of organic growth strategies, such as product launches and product approvals. Some of the players are also engaging in collaborations and mergers and acquisitions to gain a competitive edge over other players. For instance:

  • In July 2021, Unilever, a British multinational consumer goods company, announced collaboration with a British multinational packaging and paper group Mondi to develop aluminum-free, recyclable paper-based packaging for various products.
  • In June 2021, Amcor, a leading packaging company, announced a high barrier plastic sachet for packaging in Columbia. It is specially designed to reduce carbon footprint and protect the product from ambient humidity.

Leading Players

Some of the leading players operating in the sachet packaging market, as profiled by FMI, include:

  • 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
  • Mondi Plc
  • Clondalkin Group Holdings B.V.
  • Printpack Inc.
  • Lindopharm GmbH
  • American Packaging Corporation

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