Sales of Pouches Used in Candy and Snack Food Packaging to Reach $3.4 Billion

Demand for pouches used in candy and snack food packaging is forecast to increase 3.8% annually through 2022 to $3.4 billion. 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. 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. These and other trends are presented in Pouches in the US, 8th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.

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 applicationsis forecast to increase 3.9% annually to $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.

Pouches in the US, 8th Edition (published 09/2018, 199 pages) is available for $5500 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email cgangloff@freedoniagroup.com.