Ceepackaging

Analysis

Demand for pouches rising

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 are presented in 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, sidegusseted
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 smallto
medium-sized medical supplies and devices.