Market Trends of Canada Pouch Packaging Industry
The Increasing Demand for Convenient Packaging
- The increasing trend of consumer products, such as food, beverages, and consumer products, is anticipated to propel the demand for flexible packaging. The growing need is attributed to the rising packaging solutions that are convenient and portable. Pouch packaging combines the advantages of plastic and paper without compromising the product's printability, barrier protection, freshness, or ease of use.
- The growing urban lifestyle of consumers in the region has driven the demand for convenient packaging. Consumers are looking for easy-to-use and lightweight packaging, and vendors are designing innovative packaging solutions to remain competitive in the growing organized retail market and meet customers' changing demands. Shifting to an alternative lighter material, such as flexible pouches, provides more significant energy-saving benefits.
- Supermarkets and hypermarkets offer easy-to-carry convenience suited for increasingly busy and on-the-go lifestyles. Ready-to-eat meals are the fastest-growing channel in the food industry. According to a study published by StatCan in September 2023, the industry revenue of supermarkets and other grocery stores in Canada was USD 69.34 billion in 2019. It is expected to reach USD 74.89 billion in 2024. Such increased sales from supermarkets would drive the demand for flexible packaging in the country.
- Further, according to the Flexible Packaging Association, plastic pouches' popularity endures, driven by their attributes: shareability, convenience, resealability, and portion control. This versatility in size and growth potential spans various product categories. Across product categories, pack sizes are projected to maintain a balance with a mix of smaller, convenient, prominent, and cost-effective packages. Canadians prioritize convenience, a sentiment echoed in their packaging preferences and retail choices.
- The trend of FMCG packaging products is expected to increase the demand for packaging in the region. As environmental concerns become more widely known, businesses and consumers increasingly choose eco-friendly packaging solutions, such as biodegradable pouch packaging. The rise in eco-friendly pouch packaging is expected to witness growth in the country.
Understand The Key Trends Shaping This Market
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The Food Segment is Expected to Robust Growth
- The Canadian food packaging industry is pivotal in the nation's food supply chain, offering vital packaging services to food producers, sellers, and distributors across the country. According to Netpak, in recent years, the Canadian wholesale food packaging sector has seen a surge of trends and innovations geared toward bolstering sustainability, efficiency, and product preservation.
- Key trends shaping the industry include responding to heightened consumer eco-awareness, wholesalers pivoting toward sustainable materials, like biodegradable plastics, compostable packaging, and recyclable options, and technological strides have birthed innovative packaging, integrating features like temperature tracking, freshness indicators, and QR codes for enhanced traceability.
- According to Statistics Canada, in February 2023, of all aspects of the recent surge in inflation in Canada, the country witnessed a rise in food prices. Food is an essential commodity, and average grocery prices have increased 11% in the last year. Moreover, the demand for pet food in Canada, driven by the large number of households owning pets, particularly dogs and cats, creates a substantial market for packaging solutions.
- According to a statement from an article released by Hepper (a company specializing in pet blogs) in February 2024, over half of Canadian households (60%) have at least one dog or cat as pets. According to the Agriculture and Agri-Food Canada, dog food sales reached around CAD 2.17 billion (USD 1.60 billion) in 2020 and are forecast to reach over CAD 3.46 billion (USD 2.56 billion) by 2025. In comparison, cat food retail sales are expected to reach just over CAD 1.7 billion (USD 1.25 billion) in 2025.
- Further, with higher retail sales of baked goods, there will be a greater volume of products requiring packaging. Pouch packaging is well-suited for packaging various baked goods, including cookies, as it is lightweight and versatile. According to the Agriculture and Agri-Food Canada, retail sales of baked goods amounted to approximately USD 6.8 billion in 2022 and are forecasted to reach USD 7.78 billion by 2026.
