Sachet Packaging Market Report Scope & Overview:

The Sachet Packaging Market size was USD 8.65 billion in 2023 and is expected to Reach USD 13.27 billion by 2031 and grow at a CAGR of 5.5% over the forecast period of 2024-2031.

Sachets are aseptic packing solutions which offer the convenience of handling. Sachets are composed of various materials which do not require the use of packaging material, but they need less storage space in order to reduce transport costs. The sachets come in a flat shape and are sealed on three or four sides. The value of the sachets market is increasing as a result of growing demand for convenient and portable packaging solutions. Another significant factor stimulating growth on the sachet packaging market is growing demand from food and beverage industries, as a result of an overall economic development and further expansion in the sector. Another important indirect market growth factor is the increasing use of sachet packs for marketing and advertising campaigns by companies, as well as rising personal disposable income. Another factor supporting market growth is a growing emphasis on sachet packaging by manufacturers because of its low cost.

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Nevertheless, the rapid growth of sachet packaging market is going to be greatly challenged by alternatives available on the market which are rigid or flexible. Another market growth restraint is the sharp rise in raw material prices, coupled with strict government rules on plastic use.

MARKET DYNAMICS

KEY DRIVERS:

• Increasing demand for smaller, more convenient packaging is emerging as the main driver of market growth.

In today's busy lifestyle, consumers are looking for packaging solutions that are easy to use, portability and portion control. Small and convenient packaging, such as individual packs and units, perfectly meet this need, providing consumers with mobility solutions and reducing waste.

The food and beverage industry in particular has seen an increase in demand for single-serve products, with consumers increasingly favoring ready-to-eat and ready-to-drink options. The small package size allows for easy consumption, making it ideal for busy city dwellers, travelers, and those looking for quick, hassle-free meal options. Furthermore, it responds to the growing trend towards health consciousness and portion control, as products are measured in advance, thus avoiding overconsumption. In the pharmaceutical sector, the need for small packaging is evident in the growing demand for single-dose drugs. Packaging offers an efficient way to distribute pharmaceutical products, especially in developing countries and for over-the-counter medicines. The convenience of small packaging also improves patient compliance with prescribed medications, contributing to improved health outcomes.

• The demand for small, compact and convenient packaging has also increased as a result of the growth of e commerce.

RESTRAIN:

• The main barriers to growth in the Sachet packaging market are lack of supply and rapid price increases for raw materials.

When supplies of raw materials are scarce, the gap between supply and demand can cause prices to rise, resulting in higher production costs for packaging companies. As a result, manufacturers may find it difficult to keep prices competitive, which affects their profit margins and can ultimately pass on increased costs to consumers.

Rapidly rising raw material costs can exacerbate these challenges, making it difficult for companies to budget and ensure a stable supply chain. This cost volatility can also lead to uncertainty for investors and discourage new entrants into the market.

OPPORTUNITY:

• Opportunities for sachet packaging are presented by the rapid growth of e commerce.

To reduce shipping costs and improve consumer happiness, e. commerce platforms need packaging that's lighter, space efficient but also protective.

• There are also opportunities in pharmaceuticals & healthcare area due to growing demand for over-the-counter medicines and nutraceuticals.

CHALLENGES:

• Management of packaging waste

Even though smaller packages reduce material use, the larger volume of packaging waste resulting from a higher number of units used may also cause an increase in total volumes. In that context, the essential challenge is to manage and recycle properly.

IMPACT OF RUSSIAN UKRAINE WAR

Due to the conflict, different industries are having a negative impact on their business. The sachet packaging market was also affected by the war. The main problem faced by the sachet packaging industry is the supply of raw materials in the form of plastic, polyethylene or other materials including metals.

Rising oil and gas prices drive up production costs in the eurozone. Oil prices rise to $120/barrel in March 2022. The price of natural gas increased to 270 euros/MWh. This reduced the production and led to increase in the cost of the final product. Russia is the major exporter of the natural gas to the European region.

Metal prices rise in wartime like aluminum. Aluminum prices rose to $4,100/ton, the highest ever. This affects production worldwide. Aluminum is very much required in the sachet packaging. Due to the price hike manufacturers shifted to the conventional method of packaging.

IMPACT OF ONGOING RECESSION

Consumers around the world have been adjusting their shopping habits in response to the financial crisis. Spending in the United States increased by 40%. The price increase of materials is driven by panic buying, coupled with the closure of production plants and a global shortage of paperboard and polymers. The cost of operating and workers' salaries has also risen, as well as food prices have skyrocketed.

The decrease of 13 % in research and development investment by companies during the financial crisis will lead to a delaying of technology developments for new products. The growth in the general market will be restricted. The market is given a boost by new innovations and developments in all sectors. Hence, the growth rate of the market is reduced or significantly increased during a recession. Also, the people tend to buy less packaged FMCG goods due to less source of income.

KEY MARKET SEGMENTS

By Material

• Plastic

• Non-Plastic

By Size

• 1 ml-10 ml

• 11 ml- 20 ml

• 21 ml-30 ml

• Above 30 ml

By Packaging Machinery

• Vertical Form fill seal machines

• Horizontal form fill seal machines

By End Use

• Food

• Pharmaceuticals

• Cosmetic & Personal Care

• Others

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REGIONAL ANALYSIS

Asia Pacific is the leading region with the highest market share for Sachet Packaging Market. This is due to the increasing demand for FMCG which is driving the market. FMCG includes products from households, personal care, food & beverages which are contributing to the growth of market in this region. China holds the largest market share in this region followed by India which is growing with the fastest CAGR.

North American market for sachet packaging is the second largest. The growth in this region is attributed to increasing demand from end-use industries. US holds the largest market in this region and market in Canada is growing at the fastest rate.

Europe’s Sachet Packaging market will show a significant growth over the forecast period. This region has the presence of cosmetic industries which is expanding the growth of the market in this region. Germany is leading the market in this region which highest market share followed by UK which is growing at the fastest CAGR.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America  

   Key Players

Some major key players in the Sachet Packaging market are Amcor PLC, ProAmpac, Mondi Group, Sonoco Products Company, Constantia Flexibles, Sealed Air, Huhtamaki Group, Clondalkin Group, Coveris, Synetegon Technology GmbH and other players.

ProAmpac-Company Financial Analysis

RECENT DEVELOPMENT

• Packaging startup Notpla has introduced a pack of environmentally friendly clothing cleaners in partnership with MACK, the detergent and household cleaning company.

• VshapeS sachets are introduced into Visett's packaging mix, which is a market leader in the provision of branded and white label cosmetics and body care products.