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The outlook of the US pouch market. (Source: The Freedonia Group)
The outlook of the US pouch market. (Source: The Freedonia Group)

Demand for pouches used in candy and snack food packaging is forecast to increase 3.8% annually through 2022 to US$3.4 billion, according to the new study “Pouches in the US, 8th Edition” from The Freedonia Group.

As said, the fastest gains are expected for smaller segments such as nuts and dried fruit, which are benefiting from trends toward smaller packages and healthy snacking.

Meanwhile, the large candy and confections segment will grow below average through 2022 due to brand owners of these products being early adopters of stand-up pouches, although growth opportunities still exist.

Nearly 75% of demand is generated by pillow pouches, based on their prevalence in savory snacks and cookie and cracker packaging. Pillow pouches are also extensively used to package candy and confections, where they replaced more traditional cellophane, paper, and foil wrappers due to their more updated appearance and better tamper evidence.

Demand for pouches in all applications is forecast to increase 3.9% annually to US$10.5 billion in 2022. Convenience and the popularity of snacking will continue to drive conversions from rigid containers to more lightweight pouches with value-added features such as spouts, zippers, and handles.

Savings from reduced material usage, along with associated sustainability benefits, will support brand owners’ transition toward pouches. Pouch prices will increase as raw material costs rise, although price competition will limit further gains, concludes The Freedonia Group.

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