Study #: 4007 | Published: 11/2020 | Pages: 75 | Individual User License: US$ 2,900

US demand for pouches used in candy and snack food applications is forecast to rise 2.7% per year to $3.4 billion equivalent to 29.9 billion units in 2024. Pouch sales will be supported by:

  • the many functional advantages of pouches, including their excellent graphics capabilities and ability to incorporate features such as resealability and vacuum sealing
  • the ability of pouches – particularly stand-up types – to boost shelf appeal and improve product differentiation
  • their light weight, low package-to-product ratio, and ability to be shipped flat – increasingly important for reducing shipping costs and in light of retailer initiatives to meet certain sustainability guidelines
  • the perception of pouches as a more environmentally friendly packaging option due to the significantly lower volume of raw materials required for pouch production compared to rigid containers

Stand-Up Pouches Continue to Outperform Pillow & Side Seal Types

Candy and snack products saw some of the earliest conversions to pouches due to their high visual appeal, resealability, portability, and ability to package multiserving snacks. Despite already high penetration of pouches, growth opportunities remain, particularly with healthier food options such as fruit and vegetable chips and meat snacks:

  • Pillow pouches are expected to continue to dominate the candy and snack pouch market and account for the largest share (48%) of demand gains through 2024 due to their wide use in the leading savory snack market.
  • Nevertheless, stand-up pouches will see the faster growth and account for 44% of gains as adoption expands in emerging applications.

Nuts & Dried Fruit to See Strongest Advances Among Candy & Snack Applications

Growth opportunities are expected for pouches in nuts and dried fruit, bakery snacks, and candy and confection applications, particularly among premium brands. Stand-up pouches – due to advantages such as a premium image and enhanced convenience – are expected to further increase their share against flat pouches in nut and dried fruit applications, despite already high penetration of this market. In savory snack and candy and confection markets, flat pouches will remain the dominant type, despite increased competition from, and significant inroads by, stand-up pouches.

Candy & Snack Brand Conversions to Pouches

A growing number of candy and snack brands are employing pouches instead of rigid packaging formats:

  • In 2018, Mars Wrigley introduced stand-up pouches for its Sharing Size M&M’s, as part of its “stand-up pouch aisle transformation” strategy to display the candies in a more prominent manner.
  • In 2018, 34 Degrees replaced its traditional cracker box and ParmCrisps replaced tubs with resealable stand-up pouches.
  • In 2020, Kellogg’s released its Jumbo Snax versions of Froot Loops, Apple Jacks, Corn Pops, and Tiger Paws, which are available in multipacks of pillow pouches, as well as 6-ounce resealable stand-up pouches.

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