The water-soluble packaging market is projected to grow from USD 3.9 billion in 2025 to USD 7.3 billion by 2035, registering a CAGR of 6.5% during the forecast period. Sales in 2024 reached USD 3.6 billion, indicating a robust demand trajectory driven by sustainability goals, single-dose convenience, and regulatory pressure on plastic waste.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 3.9 billion |
| Industry Value (2035F) | USD 7.3 billion |
| CAGR (2025 to 2035) | 6.5% |
Water-soluble packaging accounts for approximately 2.2% of the global sustainable packaging market (valued at USD 165 billion in 2024), and nearly 0.9% of the broader flexible packaging market (USD 410 billion). Within the biodegradable packaging segment (USD 23 billion), it holds a share of nearly 15.6%, highlighting its growing relevance as a dissolvable, zero-waste solution. It also represents around 0.24% of the global packaging industry (USD 1.3 trillion), and about 1.3% of the specialty packaging market (USD 275 billion), reflecting its niche but high-growth appeal across homecare, agrochemicals, and personal care applications.
This growth has been attributed to the increasing demand for sustainable and biodegradable packaging solutions across various sectors, including agriculture, pharmaceuticals, and consumer goods. The rise in environmental awareness and the need for eco-friendly alternatives to traditional plastic packaging have further propelled the adoption of water-soluble packaging. Advancements in material science have enhanced the functionality and efficiency of these packaging solutions, aligning with the evolving needs of manufacturers and consumers alike.
In 2023, Mondi, a global leader in sustainable packaging and paper, is introducing SolmixBag, a water-soluble bag for the construction industry. SolmixBag is a one-ply paper bag created to store and transport dry construction materials such as cement and dry mix mortar products. “We are closely collaborating with our partners in the building material industry to eliminate waste disposal and dust, which benefits both the environment and the workers on site. The launch of SolmixBag with Baumit is an important step to make a real difference to the sustainability of the whole industry” says Ferdinand Muck, International Key Account Manager, Mondi.
Technological developments in polyvinyl alcohol film (PVOH) formulations have supported higher tensile strength and durability, without compromising solubility. Manufacturers have adopted solvent-free casting and improved drying processes to meet regulatory and end-user demands. Compliance with composability standards like EN13432 and ASTM D6400 has encouraged market adoption in sensitive verticals such as food and pharma. Customizability for cold- or hot-water solubility is being pursued to expand seasonal and geographic applications. R&D has centered on increasing transparency and reducing production energy intensity.
The market is expected to benefit from regulatory frameworks banning single-use plastics, especially across the EU and Asia-Pacific regions. Global chemical manufacturers and FMCG companies have integrated water-soluble formats into sustainability roadmaps, creating demand for scalable and high-quality PVOH solutions. Strategic collaborations between film producers and detergent brands have set precedents for future product launches. Competitive differentiation is being pursued via patented formulations and proprietary additive technologies. Long-term potential lies in pharmaceutical dosing systems and water-soluble seed coatings.
The below table presents the expected CAGR for the global water-soluble packaging market over several semi-annual periods spanning from 2024 to 2034.
| Particular | Value CAGR |
|---|---|
| H1(2024 to 2034) | 6.4% |
| H2(2024 to 2034) | 6.6% |
| H1(2025 to 2035) | 5.9% |
| H2(2025 to 2035) | 7.1% |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 6.4%, followed by a slightly higher growth rate of 6.6% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 5.9% in the first half and remain relatively moderate at 7.1% in the second half. In the first half (H1) the market witnessed a decrease of 50 BPS while in the second half (H2), the market witnessed an increase of 50 BPS.
The market is segmented based on raw material, packaging, end-user industry, and region. By raw material, the market includes polyvinyl alcohol, biodegradable blends, and others, with emphasis on eco-friendly formulations and water-soluble characteristics. These materials offer solubility, safety, and minimal residue ideal for single-dose applications.
By packaging, segmentation covers pouches/pods, film wraps, and sachets/bags, tailored for specific dispensing formats and automation compatibility. End-user industries include home & personal care, food & beverage, pharmaceuticals, agriculture, industrial & institutional sectors, and water treatment, driving demand due to sustainability mandates and dosing precision. The regional landscape encompasses North America, Latin America, East Asia, South Asia & Pacific, Eastern Europe, Western Europe, Oceania, and Middle East & Africa.
Pods have been projected to hold a 52.4% share of the water-soluble packaging market in 2025, driven by precision dosing and ease of use. These formats have been widely deployed for unit-dose applications, minimizing contact and overuse. Polyvinyl alcohol (PVA) films have been used to deliver strong solubility and barrier protection.
Liquids and powders alike have been efficiently enclosed using these versatile formats. Production systems have been adapted to accommodate high-speed filling of water-soluble pouches. Multi-layered films have been applied to enhance moisture resistance and strength. Outer wrapping materials have been minimized to support waste reduction goals. Custom branding and printing have also been integrated without compromising solubility performance.
Refill and subscription models have been promoted using pod-based packaging for concentrated products. Packaging logistics have been streamlined as bulky containers have been replaced with compact pods. Compatibility with automated dispensers has increased adoption in institutional and retail segments. Consumer preference for low-mess, dissolvable packaging has remained strong.
Innovations in sealing and formulation protection have been implemented to meet safety standards. Pouches have been optimized for moisture-sensitive environments using advanced closure systems. Recyclable sleeves have been added in select formats to further enhance sustainability appeal. As demand for high-performance, sustainable single-use packaging rises, pods and pouches are expected to remain dominant.
Home and personal care applications have been forecasted to account for 47.9% of the water-soluble packaging market in 2025, led by eco-conscious consumers and refillable product models. Cleaning agents, toiletries, and laundry detergents have increasingly been packaged in pods and sachets. Water activation has eliminated the need for bulky plastic containers at the point of use.
Product development has been centered on dissolvable formats compatible with home routines. PVA-based soluble films have been engineered for rapid dissolution under domestic water conditions. Subscriptions for concentrated refills have been introduced by several leading brands. Moisture resistance and child safety features have been embedded into secondary packaging. Brand messaging has focused on zero-waste, convenience, and safety.
Market growth has been further supported by bans on single-use plastics and increased retailer focus on circular economy practices. Refillable dispensers compatible with pod refills have been launched in select markets. Compact soluble sachets have been integrated into bathroom, kitchen, and laundry products. Outer sleeves have been standardized for compostable or recyclable options.
Product performance has been optimized through stable film chemistry, controlled disintegration, and load-specific active ingredients. PH buffering and fragrance retention have been tested across multiple water types. Research partnerships have been established to improve packaging efficiency. As brand and regulatory focus intensifies, water-soluble formats are expected to remain central to sustainable homecare packaging.
Growing Usage in the Medical and Pharmaceutical Industries Accelerate the Market Growth
The demand for hygienic and safe drug delivery systems has spurred the use of water-soluble films in unit-dose packaging of drugs, disinfectants, and supplements. The packaging serves to enable precise dosing, reduce the risk of contamination, and improve patient safety by the elimination of direct contact with the drug.
These same water-soluble bags are used in hospitals and health care facilities for biomedical waste disposal based on the reason that they can easily be dissolved in water and reduce manual handling of toxic waste. Further, the increasingly biodegradable packaging solutions of drugs pose an agenda to the drug manufacturing industries to look for alternative materials that will be suitable according to the relevant norms and environmental needs.
The need for innovative healthcare packaging materials, from now onwards, shall be the death knell for market prospects for growth, as water-soluble packaging emerges as a modern force in pharmaceutical solutions.
Renewable Packaging and Growing Demand
The water-soluble packaging market is growing very quickly as a result of the need for sustainable packaging solutions. The overall perception of plastic pollution and the environment is being transferred to the biodegradable or compostable cultural notion. Water-soluble packaging, founded on the one hand on polyvinyl alcohol and likely on some other biodegradable material, breaks down in water without leaving behind any poisonous residue.
It has been used in product packaging in industries such as detergents, personal care, agrochemicals, and food packaging where waste is to be reduced. Government regulations and prohibitions on single-use plastics in most countries have also pushed and encouraged businesses to offer their customers products introduced in environment-friendly packaging.
Customers, too, are opting for sustainable alternatives, thus increasing the demand for market goods. With dumbs on the innovation side in biodegradable films and other packaging materials, water-soluble packaging stands ready to be an option of choice for firms willing to reduce their carbon footprint as well as adhere to sustainability requirements.
Excessive Production Costs and Incompatibility with Some Products
Water-soluble bags have much to offer but is marred by high-cost production and low compatibility with some products. Water-soluble materials such as polyvinyl alcohol (PVA) and biodegradable plastics are costlier than traditional plastics, thus making water-soluble packaging less economical for most products across different industries.
Specialized machinery for producing all these processes adds to the cost involved in production. Protection against such limitations compels companies to spend money on improved formulations or protective coatings. As long as there are no cost-effective, long-lasting solutions on the production line, the water-soluble packaging has little chances against its competitors in most markets.
Tier 1 companies comprise market leaders capturing significant market share in global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Lithey Inc., Mondi Group, Sekisui Chemicals, Kuraray Co. Ltd.
Tier 2 companies include mid-size players having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include Mitsubishi Chemicals Holdings, Aquapak Polymers Ltd, Lactips, Cortec Corporation, Acedag Ltd., MSD Corporation, Prodotti Solutions, JRF Technology LLC, Amtopak Inc.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the future forecast for the water-soluble packaging market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is expected to account for a CAGR of 5.4% through 2035. In Europe, Spain is projected to witness a CAGR of 6.1% by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| USA | 5.4% |
| Germany | 5.0% |
| China | 7.4% |
| UK | 4.9% |
| Spain | 6.1% |
| India | 7.6% |
| Canada | 5.2% |
The USA water-soluble packaging market is thriving as a result of stringent regulation prohibiting the use of plastic waste. On account of increased concern regarding marine contamination and landfill spills, the state and federal governments are imposing single-use plastic bans and encouraging eco-friendly packaging materials.
Regulatory bodies such as the Plastic Waste Reduction Act and by-state legislation in states like New York, Washington, and California encourage biodegradable and compostable materials. Some of America's biggest consumer goods manufacturers now are entering the water-soluble equivalent market to address sustainability goals under extended producer responsibility (EPR) legislation.
The move toward dissolvable packaging for detergent, personal-care, and medicine is being propelled full-speed ahead by the new consumer who thinks of himself or herself as green. Thus, as notions of growing regulation persist, water-dispersible packing becomes the go-to option of companies that want to contain their environmental impact while staying in line.
As online space and food delivery e-commerce have been on the increase in the UK, the momentum is changing as far as water-soluble packaging demand is concerned. As this has seen the massive rise in takeaway meals, grocery delivery, subscription boxes, the need for plastic waste-free biodegradable packing solutions is growing day by day. Water-soluble films and pouches are a simple, eco-friendly solution for one-time use packaging, which also guarantees product safety and hygiene.
UK's leading e-commerce companies and supermarkets, like Tesco, Sainsbury's, or even Amazon UK, already on board are adopting sustainable packaging as a solution to achieving carbon neutrality and abiding by the UK Plastic Packaging Tax. This, in its turn, spurs investments into innovative biodegradable water-soluble packaging materials and films.
With such a shift towards eco-friendly solutions for delivery, it is expected that water-soluble packaging will lead the way in transforming the UK packaging industry.
The Water-soluble Packaging Market is experiencing significant growth due to the rising demand for eco-friendly, biodegradable, and sustainable packaging solutions. This packaging dissolves in water, leaving no harmful residue, making it an ideal alternative to traditional plastic packaging.
The market is primarily driven by stringent environmental regulations, increasing awareness of plastic pollution, and a shift toward sustainable packaging in industries such as food & beverage, pharmaceuticals, agriculture, and home care products.
Key trends include the growing adoption of polyvinyl alcohol (PVA)-based water-soluble films, the development of innovative bio-based materials, and increased R&D investments to enhance the solubility, strength, and durability of packaging materials. However, challenges such as higher production costs, limited heat resistance, and restricted use for certain applications may hinder market expansion.
| Report Attributes | Details |
|---|---|
| Market Size (2024) | USD 3.6 billion |
| Current Total Market Size (2025) | USD 3.9 billion |
| Projected Market Size (2035) | USD 7.3 billion |
| CAGR (2025 to 2035) | 6.5% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value and million units for volume |
| Raw Material Types Analyzed (Segment 1) | Polymers, Others |
| Designs Analyzed (Segment 2) | Plate Format, Others |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East & Africa |
| Countries Covered | United States, Canada, Mexico, Brazil, Argentina, Germany, France, United Kingdom, Italy, Spain, Netherlands, China, India, Japan, South Korea, ANZ, GCC Countries, South Africa |
| Key Players Influencing the Water-Soluble Packaging Market | Lithey Inc., Mondi Group, Sekisui Chemicals, Kuraray Co.Ltd, Mitsubishi Chemicals Holdings, Aquapak Polymers Ltd, Lactips, Cortec Corporation, Acedag Ltd., MSD Corporation, Prodotti Solutions, JRF Technology LLC, Amtopak Inc. |
| Additional Attributes | Sustainability trends favoring polymer materials, Adoption of plate format for flexibility and strength, Application growth in pharmaceuticals and consumer goods, Regional expansion of biodegradable and water-soluble packaging technologies |
| Customization and Pricing | Customization and Pricing Available on Request |
The water-soluble packaging market is segmented based on raw materials, including polymers, surfactants, and fibers.
Water-soluble packaging is available in different designs, primarily categorized into plate and tubular formats.
This market serves various end-user industries, including industrial, food and beverages, pharmaceuticals, agriculture, chemical, water treatment, and residential sectors.
Key Countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa are covered.
The global water-soluble packaging industry is projected to witness CAGR of 6.5% between 2025 and 2035.
The global water-soluble packaging industry stood at USD 3.6 billion in 2024.
Global water-soluble packaging industry is anticipated to reach USD 7.3 billion by 2035 end.
East Asia is set to record a CAGR of 7.6% in assessment period.
The key players operating in the global water-soluble packaging industry include Lithey Inc., Mondi Group, Sekisui Chemicals, Kuraray Co. Ltd.
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Water-soluble Packaging Market
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