Global pouch demand is expected to rise by 6.2% per year to USD 37.3 bn in 2018, up from USD 27.6 bn last year, a new study by market research group Freedonia (Cleveland, Ohio / USA; www.freedoniagroup.com) predicts. Growth will be driven by consumer and producer preferences for stand-up pouches over rigid packaging and rising demand in developing nations.

Stand-up pouches will see the highest growth rates in the lead-up to 2018, the study – titled “World Pouches” – found even if flat pouches will continue to take up the largest market share. “Consumers are drawn to the aesthetic appeal and convenience of stand-up pouches with value added features such as spouts, zippers, or handles,” report author Emily Park said. Contrary to rigid packaging, stand-up pouches not only have a lighter weight and require less material, they are also cheaper to ship. As for flat pouches, the study predicts that four-side-seal pouches will see the fastest gains, in particular in developing countries.

In regional terms, the largest gains will be seen in Asia-Pacific thanks to a rise in the output of packaged food and beverages, pharmaceuticals and consumer goods, coupled with a greater emphasis on both convenient and eye-catching packaging. Regional demand is expected to rise from USD 9.3 bn in 2013 to USD 13.8 bn by 2018, the equivalent of 8.2% per year. Breaking growth down to the country level, it is not the more affluent states of Japan and South Korea that will spearhead the gains, Freedonia found, but rather more developing countries like China, Thailand and India. Growth in other developing regions – such as central and Latin America, eastern Europe as well as Africa and the Middle East – is also expected to outpace that of western Europe and North America, Freedonia predicts.

While growth rates are expected to be lower in the latter two regions – estimates peg North American annual growth at 4.8% in the lead-up to 2018, while that of western Europe is expected to reach 4.1% per year – gains in these regions will be driven by the adoption of pouches with higher value features, including stand-up pouches.