Market Trends of United States Flexible Plastic Packaging Industry
Increasing Demand for Pouch Packaging among Various End-user Industries
- Pouches play a pivotal role in the food and beverages, cosmetics, baby food, pharmaceuticals, and energy drinks segments in the United States. Driven by a growing consumer preference for convenience and their adoption by small and medium enterprises, the flexible plastic packaging market, especially pouches, is set for significant growth. The demand for pouch packaging has surged across various industries, buoyed by technological advancements and evolving consumer tastes.
- The US food and beverage segment, encompassing fast food chains, organic foods, soft drinks, health supplements, and confectionaries, is a primary driver of the nation's plastic pouch packaging. According to the National Confectioners Association report, confectionary sales in the United States hit USD 48 billion in 2023, with projections soaring to USD 61 billion by 2028.
- Convenience and protection are essential drivers for pouch packaging's popularity. Their versatility in size, from small to large, makes them ideal for the cosmetic industry, especially for products tailored to the travel and tourism markets. Additionally, with 92% of United States consumers prioritizing freshness in their purchases, stand-up pouches with explicit films are gaining significant traction, as highlighted by polymer packaging.
- Also, innovations and product developments are reshaping the pouch packaging landscape. With time-starved consumers favoring microwave-friendly options for quick meals, manufacturers are responding by introducing pouches with advanced functional attributes. A prime example is Kraft Heinz's 2023 launch of a pouch that crisps up a microwaved grilled cheese. This move, featuring their patented 360Crisp technology, showcases the company's commitment to pioneering innovations in its product lineup.
- The United States is seeing a rise in demand for sustainable packaging driven by consumers and manufacturers. Manufacturers are increasingly moving toward circular economic models, boosting the growth of eco-friendly pouch packaging. This shift is helping eco-friendly pouches and affecting the broader flexible plastic packaging market.
- Amcor Group GmbH, a leading sustainable packaging manufacturer, teamed up with Stonyfield Organic, a top organic yogurt producer, and Cheer Pack North America, known for its spouted pouches. They created the first all-polyethylene (PE) spouted pouch. This new design replaces Stonyfield Organic's old multilayered packaging and is now used for its YoBaby refrigerated yogurt, marking a significant step toward sustainability.
Understand The Key Trends Shaping This Market
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Flexible Plastic Packaging Demand Surges as Consumer Lifestyle Shifts
- Consumer products, from food to cosmetics, are increasingly turning to flexible packaging, driven by a demand for convenient, portable solutions. This shift is mainly due to the rising popularity of packaging that aligns with the fast-paced urban lifestyle.
- As consumers seek lightweight, easy-to-use packaging, vendors are pivoting to innovative solutions to stay competitive in the evolving retail landscape. Embracing materials like flexible pouches meet these demands and offer significant energy-saving advantages.
- Also, the trend toward smaller, microwavable portions is gaining traction, especially as single-person households become more prevalent. This shift has bolstered convenience store retailing and heightened the need for more convenient packaging solutions.
- Supermarkets and hypermarkets, recognizing the demand for convenience in today's fast-paced world, increasingly offer easily transportable options. In the food industry, ready-to-eat meals, often housed in plastic pouches, are witnessing remarkable growth. These pouches cater to various products, from fully cooked meals to those that can be reheated with hot water, a heater, or even enjoyed cold.
- Highlighting this trend, data from the US Census Bureau reveals a notable increase in supermarket and grocery store sales, reaching USD 846.38 billion in 2023, up from USD 823.68 billion in 2022. Such robust sales underscore the growing appetite for flexible packaging in the nation.
- Illustrating this market momentum, in January 2024, Accredo Packaging Inc., a leading sustainable packaging manufacturer, completed its fourth expansion at its Texas headquarters, investing a substantial USD 10 million. Adding 83,000 square feet of office space, this expansion underscores the company's commitment to producing recyclable, compostable, and sustainable packaging materials, catering to diverse markets like snacks, confectionery, and baked goods.
