Market Trends of Snack Flexible Packaging Industry
Pouches and Bags Holds Major Market Share
- Pouch packaging, crafted from barrier film or foil and often featuring spouts and caps, offers a flexible solution for product storage. This packaging method is increasingly favored because it is specifically designed to preserve the freshness of various snacks.
- Snacking items have experienced sustained demand driven by shifting consumer preferences due to an increasing interest in new, flavorful, and healthier snacking options offered by manufacturers. According to the Federal Ministry of Food and Agriculture (BEML), per capita consumption of potato products in Germany rose significantly, from 33.1 Kg in 2016-2017 to 37.9 Kg in 2022-2023. As snack products predominantly utilize composite packaging bags, OPP film, PET film, aluminized film, and LDPE film will raise the demand for flexible packaging-based pouches and bags in the market.
- Brands increasingly opt for pouch and bag packaging, drawn by the advantages these solutions offer over traditional alternatives. These modern packaging methods cater to new brand developments and revitalize existing packaging strategies.
- In March 2024, SÜDPACK and SN Maschinenbau collaborated to develop a recyclable film solution for stand-up pouches equipped with spouts. These spouts are reclosable, making them ideal for liquid or pasty foods, including fruit purees, hot-filling, and pasteurization. According to SÜDPACK, pouches utilize films derived from polypropylene polymers, classifying them as recyclable. The PP spouts, featuring MENSHEN LoTUS technology, can be seamlessly attached to the pouches by precisely coordinating heat distribution and conductivity.
Europe Holds Significant Market Share
- Europe has witnessed a considerable rise in the export of potato chips during the pandemic, and after a drop in 2021, it is gaining momentum. According to the HM Revenue and Customs, after a significant decline in 2021, the export value of potato chips from the United Kingdom has been gradually increasing. In 2023, exports were valued at GBP 62.7 million (USD 82.82 million), up approximately 11% compared to 2021. This growth has driven the country's demand for flexible packaging.
- To address the increasing demand for snacks, manufacturers are forming partnerships with packaging solution providers. In May 2023, TNA Solutions collaborated with Burts Snacks Ltd, a premium snack manufacturer, to enhance production capacity at Burts' Plymouth, UK facility. With the implementation of TNA's high-speed seasoning and packaging system, Burts is capable of meeting the growing demand for locally sourced potato crisps with the highest quality.
- The key manufacturers of snacks in the country are adopting new packaging for snacks, focusing on sustainability initiatives. For instance, in April 2024, PepsiCo. launched new paper outer bags for all Snack A Jacks multipacks. This new packaging is recyclable in home recycling bins and can be collected at kerbside alongside other paper packaging. It will be made available for Snack A Jacks Salt & Vinegar, Sour Cream & Chive, and BBQ flavors starting May 2024.
- In September 2023, PepsiCo. started using new multipack packaging for its Snack A Jacks range. Packs on shelves in Tesco stores across the United Kingdom will now use 86% less plastic on their outer packaging than the previous multipack design. Such initiatives are encouraging snack manufacturers to adopt new packaging to achieve sustainability, branding, and convenience in their offerings, supporting market growth.