The analysts forecast the global stand-up pouches market to grow at a CAGR of 8.78% during the period 2016-2020.
Stand-up pouches are gaining popularity in the market as they are lightweight and use less material, which reduces transportation costs. In addition, these pouches can make a product stand out through high-quality graphics and extra space provided for vendor to give specifics about the product.
One trend which is helping to boost market growth is the increased demand from the non-food and beverages sector. Non-food manufacturers are increasingly using stand-up pouches for agriculture-based products, like plant fertilizers. They are also used for medicines, cosmetics, and detergents. These pouches are strong and have high barrier properties, ensuring product safety.
For instance, Glenroy and Lube-Tech introduced stand-up pouches to package Arctic Cat's high-performance synthetic oil blend, entering the power sports industry in the US. Paints are also packaged in stand-up pouches fitted with handles so that the paint can be poured safely. An instance of this is Coldec's Paletto Mix & Shake bag.
According to the report, a key growth driver is the increased demand for processed and packaged food. One of the major drivers in the stand-up pouches market is the increase in the demand for packaged food and beverages from consumers across various developed and developing countries.
The global packaged food market is expected to reach about $3 billion, growing at a CAGR of around 5% during the forecast period. With economic conditions improving in many developed countries and with consumers' disposable income increasing in developing countries such as China, India, Brazil, and Saudi Arabia, the demand for packaged food and beverages has been increasing. This has increased demand for packaging solutions and products.
Further, the report states that one challenge that could restrict market growth is increased competition from rigid packaging.