SOURCE: Freedonia Group, Inc.

August 24, 2006 09:43 ET

U.S. Pouch Demand to Reach $6.5 Billion in 2010

CLEVELAND, OH -- (MARKET WIRE) -- August 24, 2006 -- Demand for pouches in the U.S. is forecast to rise 6.3 percent annually through 2010 to $6.5 billion, spurred by continued expansion of the stand-up pouch segment and healthy gains for flat pouches in certain markets. Pouches, particularly stand-up types, will benefit from increasing incorporation of such value-added features and properties as spouts, zippers, retortability and microwaveability. The fastest-growing markets for stand-up pouches will be cheese, processed foods, and consumer and industrial products, while strong growth for flat pouches will be registered in such markets as fresh produce, medical and pharmaceutical products, and consumer items. These and other trends including market share, market leaders, market size and company profiles are presented in "Pouches," a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Stand-up pouch demand will be driven by aesthetic appeal, reclosability, freshness protection and ability to differentiate products on store shelves. Innovations such as retortable zippers and sleeve-in-pouch designs will also stimulate demand and expand the number of applications for stand-ups. Additionally, the relatively novel position of stand-up pouches as a packaging format will bolster gains as product manufacturers look to update the packaging of mature lines in order to boost sales and consumer interest.

Flat pouches will maintain their position as the dominant pouch type through 2010. Side seal pouches will post above-average gains due to healthy growth in such markets as cheese, yogurt, pudding and pharmaceuticals. Demand for side seal pouches will also be buoyed by technical innovations that make the incorporation of reclosable zippers using existing form/fill/seal machinery more cost-effective than in the past. Pillow pouches will remain the largest flat pouch category based on their extensive use in large markets like snack foods.

In food and beverage markets, pouch demand is projected to increase 6.1 percent annually through 2010 to $5.2 billion, with above-average opportunities present in beverages, processed foods, pet food, fresh and frozen meats and seafood, and fresh produce. Nonfood pouch demand will climb 6.9 percent per year to $1.3 billion, supported by increasing use of pouches in the packaging of pharmaceuticals and consumer products like lawn and garden consumables.

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