The market for water-soluble packaging is estimated to generate a market size of USD 3,913.1 million in 2025 and would increase to USD 7,345.4 million by 2035. It is expected to increase its sales at a CAGR of 6.5% over the forecast period 2025 to 2035. Revenue generated from water-soluble packaging in 2024 was USD 3,674.3 million.
The industrial segment proves to be the predominant segment and end user with half of the market shares of such water-soluble packing materials, for which the majority of applications are chemical-based, agricultural, pharmaceutical, and water treatment.
Agribusiness uses water-soluble films primarily in fertilizers and pesticides to enable the introduction of the appropriate quantity of such agents so that safe handling prevents such toxic agents from being released or exposed accidentally or to misuse. In drugs, single-dose packaging enhances compliance and lessens the chances of contamination.
The water treatment and textile industries employ such packaging for the pre-weighing of chemicals as well as for dissolving chemicals. Elevating worker safety, environmental restrictions, and waste reduction should also contribute to increasing demand for industrial-grade water-soluble packaging.
Global Water-soluble Packaging Industry Forecast
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 3,913.1 Million |
| Industry Value (2035F) | USD 7,345.4 Million |
| CAGR (2025 to 2035) | 6.5% |
In food and pharmaceuticals, agriculture, and detergents industries, among others, there has been a growing need for sustainable and biodegradable products. This has seen the expansion of the water-soluble packing market, which is dissolvable in water, hence reducing plastic waste and the environmental effects; some of the materials include polyvinyl alcohol (PVA) used in packaging.
The market is triggered by increasing sustainability regulations, consumer consciousness, and prohibitions on single-use plastics. Water-soluble packaging is still discovering an increasingly large application globally.
The water-soluble packaging market will expand with lucrative opportunities during the forecast period, as it is estimated to provide an incremental opportunity of USD 3,671.1 million and will increase 2 times the current value by 2035.
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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 | 6.4% (2024 to 2034) |
| H2 | 6.6% (2024 to 2034) |
| H1 | 5.9% (2025 to 2035) |
| H2 | 7.1% (2025 to 2035) |
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.
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.
| Key Investment Area | Why It’s Critical for Future Growth |
|---|---|
| Sustainability & Eco-Friendly Materials | Investing in non-toxic and biodegradable water-soluble films will minimize plastic waste and accommodate international environmental standards. |
| High-Performance & Solubility Efficiency | Improving dissolution rate, thermal stability, and barrier properties against moisture will enhance functionality in different applications. |
| Customization & Industry-Specific Applications | Creating customized formulations for pharmaceuticals, agrochemicals, detergents, and food packaging will fuel market growth. |
| Affordable & Scalable Production | Streamlining production processes and sourcing materials from alternative sources will minimize costs and enhance accessibility. |
| Smart & Functional Packaging Innovations | Features such as controlled dissolution rates, single-dose accuracy, and anti-counterfeiting features will increase functionality and consumer safety. |
The global water-soluble packaging market achieved a CAGR of 5.3% in the historical period of 2020 to 2024. Overall, the water-soluble packaging market performed well since it grew positively and reached USD 3,674.3 million in 2024 from USD 2,954.8 million in 2020.
Water-soluble packaging market witness a consistent growth from 2020 to 2024 according to the growing adoption of eco-friendly and biodegradable packages by different industries such as food & beverages, pharmaceutical applications, agriculture matters, and home-care-related issues. In addition, the invention of polyvinyl alcohol films-edible wrapping-and soluble pods further enhanced the use of the water-soluble package market.
| Market Aspect | 2020 to 2024 (Past Trends) |
|---|---|
| Market Growth | Rising demand on account of increased environmental awareness, single-use plastic bans, and rising adoption in the detergent and agrochemical markets. |
| Material Trends | Mainly polyvinyl alcohol (PVA) films-based for detergent capsules, agrochemical sachets, and medical packaging. |
| Regulatory Environment | Single-use plastic bans, composability regulations, and incentives for biodegradable packaging solutions. |
| Consumer Demand | Strong demand from household cleaning goods, agriculture, and healthcare industries. |
| Technological Developments | High-barrier, moisture-resistant, and fast-dissolving films development for diverse applications. |
| Market Aspect | 2025 to 2035 (Future Projections) |
|---|---|
| Market Growth | Strong growth propelled by expansion into food packaging, pharma, and e-commerce markets seeking eco-friendly solutions. |
| Material Trends | Trend towards bio-based, non-toxic, and edible water-soluble films composed of seaweed, starch, and cellulose derivatives. |
| Regulatory Environment | Tighter worldwide sustainability regulations for compostable, micro plastic -free, and zero-waste packaging materials. |
| Consumer Demand | Growing trend towards edible packaging in food & beverage, pharmaceutical dose packaging, and zero-waste e-commerce packaging. |
| Technological Developments | Temperature-controlled solubility innovations, multi-layered water-soluble films, and printable intelligent packaging solutions. |
| Factor | Consumer Priorities (2020 to 2024) & (2025 to 2035) |
|---|---|
| Product Availability & Convenience |
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| Sustainability |
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| Cost & Pricing |
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| Performance (Dissolvability, Strength, Shelf Life) |
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| Regulatory Compliance & Safety |
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| Innovation & Smart Applications |
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| Factor | Manufacturer Priorities (2020 to 2024) & (2025 to 2035) |
|---|---|
| Product Availability & Convenience |
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| Sustainability |
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| Cost & Pricing |
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| Performance (Dissolvability, Strength, Shelf Life) |
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| Regulatory Compliance & Safety |
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| Innovation & Smart Applications |
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Between 2025 and 2035, the volume of demand for water-soluble packaging would increase due to their contribution towards the rising efforts towards a circular economy, increasing bans on single-use plastics, and improvement in smart biodegradable material technology.
Improvements in water-soluble films' barrier properties, temperature-controlled dissolvable packaging, and uses in industrial and medical fields would be some of the other developments that are anticipated to push the market. Expansion of zero-waste packaging ideas, reusable product offerings, creation of compostable material, and similar market enhancements would further accelerate the demand with sustainability, convenience, and regulatory alignment in view.
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.
Region-Wise Trends: Past Analysis (2020 to 2024) and Future Projections (2025 to 2035)
| Region | 2020 to 2024 (Past Trends) |
|---|---|
| North America | Growing demand in detergent, pharmaceutical, and food packaging sectors. |
| Latin America | Moderate adoption due to cost concerns, but rising interest in eco-friendly packaging. |
| Europe | Leading market due to strict plastic reduction policies and high sustainability focus. |
| Middle East & Africa | Emerging market with growing interest in sustainable solutions for hygiene products. |
| Asia Pacific | Fastest-growing market due to bans on single-use plastics and growth in e-commerce. |
| Region | 2025 to 2035 (Future Projections) |
|---|---|
| North America | Expansion driven by sustainability regulations and innovations in biodegradable films. |
| Latin America | Increased demand from agriculture and industrial applications for waste reduction. |
| Europe | Greater investment in compostable and water-soluble biopolymers for packaging. |
| Middle East & Africa | Expansion fueled by urbanization, waste management policies, and industrial demand. |
| Asia Pacific | Large-scale adoption in pharmaceuticals, cosmetics, and food sectors for eco-friendly packaging. |
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.
| Country | 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 section contains information about the leading segments in the industry. In terms of raw material type, polymer is being estimated to account for a share of 73% by 2025. By design, plate format is projected to dominate by holding a share above 59% by the end 2025.
| Raw Material Type | Market Share (2025) |
|---|---|
| Polymers | 73% |
Polymers category of compounds forms a considerable portion of water-soluble packaging because of their biodegradability, structural versatility, and water solubility without harmful effluents. Polyvinyl alcohol (PVA) is the most popular polymer from this category because of their good film-forming property, non-toxicity, and water solubility.
PVA films have extensive applications in detergent capsules, agrochemical packaging, and pharmaceutical applications. Plastic prohibition, waste reduction issues, and rigorous environmental regulations boost the demand for eco-friendly water-soluble polymers and render them heavily sought after in industry.
| Design | Market Share (2025) |
|---|---|
| Plate Format | 59% |
Structural strength and flexibility, along with improved protection, have clearly rendered the plate format the biggest-marked design. The design is finding significant uses in producing detergent capsules, one-time use pharmaceutical packs, and pouches of industrial chemicals.
Accurate dosing with minimum wastage and convenient handling render plate-based packaging suitable for consumer as well as industrial use. Prevention of spillage, reduced human handling of dangerous chemicals, and preservation of product integrity drive its widespread adoption. Moreover, plate form water-soluble packaging is also compatible with automated filling machines, making it a highly viable option for high-volume manufacturing lines.
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.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Kuraray Co., Ltd. | 18-22% |
| Aicello Corporation | 12-18% |
| Mitsubishi Chemical Corporation | 10-15% |
| Sekisui Chemical Co., Ltd. | 8-12% |
| Cortec Corporation | 5-8% |
| Company Name | Key Offerings/Activities |
|---|---|
| Kuraray Co., Ltd. | A global leader in polyvinyl alcohol (PVA)-based water-soluble films, catering to detergents, agrochemicals, and pharmaceuticals. |
| Aicello Corporation | Specializes in high-performance biodegradable water-soluble films for packaging detergents, chemicals, and food ingredients. |
| Mitsubishi Chemical Corporation | Develops sustainable water-soluble packaging solutions, focusing on biodegradability and industrial applications. |
| Sekisui Chemical Co., Ltd. | Manufactures water-soluble PVA-based films used in agriculture, pharmaceuticals, and single-use packaging. |
| Cortec Corporation | Provides eco-friendly water-soluble packaging with an emphasis on biodegradability and corrosion protection. |
Key Company Insights
Kuraray Co., Ltd. (18%-22%)
Kuraray holds a monopoly in the water-soluble packaging business, supplying PVA-based films for detergents, agrochemicals, pharmaceuticals, and food packaging. The firm specializes in high-performing, eco-friendly solutions catering to worldwide environmental objectives.
Aicello Corporation (12%-18%)
Aicello is a top company for biodegradable water-soluble films, which are mainly supplied for detergents, industrial chemicals, and crop protection. The company has considerable investment in R&D for strong, dissolvable films.
Mitsubishi Chemical Corporation (10%-15%)
Mitsubishi Chemical formulates water-soluble packaging materials for industrial and consumer use, emphasizing sustainability, compostability, and improved solubility.
Sekisui Chemical Co., Ltd. (8%-12%)
Sekisui Chemical is a leading manufacturer of PVA-based water-soluble films that dissolve in water, serving industries like agriculture, pharmaceuticals, and packaging for personal care products.
Cortec Corporation (5%-8%)
Cortec provides innovative, environmentally friendly water-soluble packaging solutions, with a major emphasis on biodegradability, corrosion protection, and sustainability.
Other Key Players (30-40% Combined)
Some new and already established companies assist in market innovation through the innovation of advanced water-soluble materials, increase in durability, and broadened application fields:
Key Developments in Water-soluble Packaging Market:
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 3,674.3 million in 2024.
Global water-soluble packaging industry is anticipated to reach USD 7,345.4 million 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.
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.
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