Sachet Packaging Market

Sachet Packaging Market: 1 ml – 2ml Segment by Pack Size to Nearly Double in Value Terms over the Forecast Period: Global Industry Analysis 2012 – 2016 and Opportunity Assessment 2017 - 2027

  • REP-GB-4469
  • 2017-07-25
  • Category: Packaging
  • 385 Pages
  • Format: pdf

Affordable price point aids penetration in emerging markets

Over the years, sachets have been used by large brands for sampling, to facilitate the penetration of their products in different markets and especially for targeting economically underprivileged societies in emerging economies. Sachet packaging is a marketing strategy designed to cater to the economic underclass in emerging economies as they represent a significant fraction of the population. The fact that sachets are affordable for all sections help in rapid market penetration. According to different studies, sachet packaging has witnessed the peak of success in countries such as India and other Southeast Asian countries, where they account for more than 95% of industry sales in terms of volume and 60% in terms of value. In countries such as India, sachets are cheaper than bottles, leading to more people indulging in product trials using single use sachets.

In western countries however, the situation is the opposite. Sachets cost more than bottles, per ml, a phenomenon that is referred to as negative price-pack curve. Sachets are used as small quantity sampling packages, usually containing 3-5 ml of the product. The idea is for the consumer to try the product and move on to bottles or bigger pack sizes if the product is found satisfactory. However, in countries such as India, the prices are kept low by brands to increase penetration and to appeal to all classes of consumers. Low cost helps sachets account for a major share of the market and also ensure high penetration in countries such as India, with a primarily price-sensitive population. In addition, sachets present an airtight environment, which enables manufacturers to offer more natural and high quality fresh products and reduce the use of preservatives.

Stick packs as an alternative to sachets hampering market growth

The global sachet packaging market might potentially be challenged by the growth of alternative flexible packaging solutions that come in small pack sizes. Growth in the global flexible packaging industry has paved way for growth in demand for small pack sizes to suit consumer preferences for convenience packaging. In western countries, the growth outlook of the sachet packaging market is slower as sachets are used for a different purpose in developed nations. Barring India and a few other South East Asian countries, most other countries have higher per ml cost of sachets as compared to larger pack sizes. This results in lower CAGR. Apart from this, growth in demand for alternative packaging solutions such as stick packs is also high. There is high competition between stick packs and sachets. The competitive edge that stick packs have over sachets is lower material cost. It costs more to pack a sachet than a stick pack. Stick packs have also emerged as one of the ideal unit-dose packaging solutions that mainly target the millennial population.

Similar to sachets, stick packs have also found applications in a variety of industries such as the food and pharmaceutical industries. Another advantage that stick packs have over sachets is the relatively low material requirement, which according to some studies, has been estimated to be around 40% less than the amount of material required to pack sachets for the same fill capacity. As the demand for flexible packaging continues to increase, the competition between sachets and stick packs is expected to become more intense, further hampering optimum growth of the sachet packaging market. However, this also presents an opportunity for sachet manufacturers to identify consumer needs and innovate accordingly to stay ahead of the competition.

Global Sachet Packaging Market Analysis by Pack Size

Globally, the 1 ml – 10 ml segment is anticipated to dominate the sachet packaging market by pack size. The most used standard size for sachet sampling and single use is 7.5 ml, which falls in the 1 ml – 10 ml range, making it the most attractive market sub-segment by pack size. The 1 ml – 10 ml sub-segment is anticipated to witness unprecedented growth over the forecast period, with a sharp rise by 350 basis points. The decline in the other segments can mainly be attributed to their size. Sachets have been largely considered for single dose applications. Larger sizes decrease that utility and therefore have been estimated to lose basis points.

Global Sachet Packaging Market Forecast

The global sachet packaging market is estimated to be valued at over US$ 7,000 Mn in 2017, and is forecasted to be valued at more than US$ 12,000 Mn by the end of 2027. This represents a CAGR of 5.8% during the forecast period of 2017-2027.

Asia Pacific region to demonstrate a strong showing in the sachet packaging market by the first half of the next decade

North America leads the sachet packaging market in terms of value and volume, owing to a highly saturated market and a large retail sector. However, APEJ region is anticipated to overtake North America and emerge as the market leader by the first half of the next decade. The global sachet packaging market is expected to witness sizeable demand mainly from emerging economies over the forecast period.

The rise in demand for single-dose packages in the pharmaceutical industry has fuelled the demand for sachets across the globe. In emerging economies, sachets are marketed to aid maximum penetration among all classes, mainly targeting the middle class. For instance, in India, shampoo sachet penetration is 95% by volume. In addition, by pack size, 1 ml – 10 ml quantity has been identified as the pack size with maximum usage across the globe. In regions such as North America and Western Europe, sachets are not used for the purpose of maximum penetration, but rather as a solution to cater to the demand for single-dose pack sizes or for product sampling purposes. 

The APEJ region is anticipated to witness unprecedented growth in terms of both value and volume over the forecast period, clocking a market value CAGR of a stunning 9.1% and market volume CAGR of 8.6%. The APEJ market is estimated to grow 2.3x its current volume, outdoing the other regions. It is therefore expected that the industry outlook for the global sachet packaging market will remain largely positive over the forecast period.

The report ‘Sachet Packaging Market: Global Industry Analysis 2012 – 2016 and Opportunity Assessment 2017 – 2027’, is a comprehensive take on the sachet packaging  market and elaborates the various types of sachets based on their pack size, material type, application and packaging machinery type. Sachets are small single-use flexible containers made of either paper or plastic. They find application in various markets such as the personal care industry, food industry, pharmaceutical industry, and other industrial applications.

Sachets have different layers of material that protect the product. The innermost layer is usually made up of a foil layer. The foil layer is non porous and helps preserve the product inside. This is especially beneficial in the case of shampoos. The second layer is that of plastic films, usually polyethylene, or polyethylene terephthalate. A layer of PET provides strength to the plastic pouch, and also works as an adhesive that keeps the foil attached to the outer layer. The outer layers usually contain the logo of the brand and other information printed on its surface for consumer convenience, followed by an additional layer of lamination.

Report Inclusions

This report is divided into four distinct parts. In the introduction, the pertinent market numbers of the sachet packaging market and the market numbers of the most lucrative region and segment have been covered. This part also contains an executive summary of the report, which is valuable for the report audience to have a cursory glance at this vast market. Besides the executive summary, the introduction also contains a detailed definition regarding what exactly sachets and their uses are. In addition, a valuable subsection of this report contains two case studies that demonstrate the marketing potential of sachets and the strategies adopted to garner a higher percentage of consumers of a particular product by using sachets. Besides this, market viewpoints of key market participants and experts are also given in this subsection of the report. An overview of the global packaging industry is also given in the introduction. In addition, the global drivers, restraints and trends applicable to the sachet packaging market are also discussed in the introduction. Also, global sachet packaging market value chain analysis is presented here.

The second part of this report contains the global sachet packaging market analysis by pack size, by material type, by application, by packaging machinery type and by region. This section of the report contains important information about the market such as BPS analysis, year-on-year growth rates, absolute dollar opportunity and market attractiveness index. The third part of the report contains a region wise analysis and forecast of the global sachet packaging market. This section of the report depicts the regional market dynamics of the global sachet packaging market and indicates the drivers that encourage the growth of this market and the restraints that hamper the growth of this market. Besides the drivers and restraints, the various opportunities and trends that the global sachet packaging market offers are also discussed. Besides this, a list of regional sachet packaging market key representative market participants is also given in this section.

The last part of the report contains the competitive landscape of the sachet packaging market. This part constitutes information on the leading companies operating in the global sachet packaging market. This competition landscape gives a dashboard view of the key companies operating in the global sachet packaging market along with their important information and broad strategy adopted to stay as leaders in the global sachet packaging market. Each of the leading companies is also profiled individually and important information about the company such as company details, company description, product portfolio along with key developments concerning the company and strategic analysis is presented.

Why should you buy this report?

This report is a treasure trove of the competitive intelligence you may require for a successful stint in the global sachet packaging market. This report gives enough information about the key market players and their main strategies that enable them to retain their pole position in this highly competitive market. Besides, this report highlights key industry trends, opportunities and restraints that have a bearing on the global sachet packaging market.

Our proven research methodology

Overall market size has been analysed through historical data, primary responses, and public domain data. Revenue of companies in the sachet packaging market has been benchmarked to ascertain the market size for the base year. Macroeconomic indicators such as GDP and industry growth have been considered to forecast the market size over the forecast period. The historical growth trend of end-use industries, market participants’ performance, as well as the present macro-economic outlook has been taken into consideration for estimating the overall market trend forecast. This data is then validated using the triangulation method and is extensively scrutinised using advanced tools to garner quantitative and qualitative insights into the global sachet packaging market.

Market Taxonomy

Pack Size

Material Type

Application

Packaging Machinery

Region

  • 1 ml-10 ml

  • 11 ml – 20 ml

  • 21 ml – 30 ml

  • Others

  • Plastic

    • PE

    • PP

    • PET

    • PA

    • Others

  • Paper

  • Aluminium Foil

  • Others

 

  • Food

    • Sauces & Jams

    • Spices & Condiments

    • Tea & Coffee

    • Others

  • Personal Care & Cosmetics

    • Shampoos & Conditioners

    • Face Packs & Gel

    • Hair Oil

  • Pharmaceuticals (Cream & Ointments)

  • Industrial

    • Sealants & Adhesives

    • Lubricants & Solvents

  • Others

  • VFFS

  • HFFS

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • Asia Pacific excluding Japan

  • Middle East and Africa

  • Japan