Market Trends of Germany Pouch Packaging Industry
Stand-up Pouches to Witness Growth Across Food Industries
- Rising demand for packaged food and beverages and the convenience and affordability of stand-up pouches drive their expansion. Their compactness and light weight make them space-efficient and reduce transportation costs. Moreover, stand-up pouches require less material for manufacturing and cut packaging costs, thereby boosting profit margins for end-use companies.
- Stand-up pouches come with a variety of closure options, like zippers and tear notches, which add to their appeal and fuel the market's growth. With changing lifestyles and advancements in food processing, the appetite for packaged food is on a steady incline.
- Major players operating in the country are focused on innovating new solutions as part of their business expansion. For instance, in April 2023, SÜDPACK, a film manufacturer, and SN Maschinenbau, a packaging machine manufacturer, partnered to unveil an innovative and sustainable concept for crafting stand-up pouches. The industry is witnessing a pronounced shift toward pouch packaging. SÜDPACK stands out with its diverse product and service lineup, tailored to meet the evolving demands of processors, retailers, and eco-conscious consumers.
- Stand-up pouches are used for packaging baby food, snacks, pet food, and more. According to Statistisches Bundesamt, snack production in Germany for nut mix reached 136.19 thousand metric tons in 2023 from 130.83 thousand metric tons in 2022, while cookies and savory biscuits reached 39.01 thousand metric tons in 2023 from 37.34 thousand metric tons in 2022. A rise in snack production in the country might leverage the need for stand-up pouches over the forecast period.
- Stand-up pouches enhance food preservation, boasting superior barrier properties against external factors. They utilize puncture-resistant films for secure product transportation, while specialty variants provide added defense against moisture, UV rays, and contaminants. Notably, stand-up pouches yield substantial distribution cost savings. Their lightweight nature reduces fuel costs and allows for more significant product storage efficiency, minimizing both space requirements and labor for handling.
Understand The Key Trends Shaping This Market
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Food Industry is Expected to Witness Robust Growth
- The rise in processed and packaged food across the country is witnessing growth. In-store bakeries and bakery chains are poised for sustained growth, presenting lucrative opportunities for premix and dough manufacturers. Emerging trends encompass a rising demand for wholegrain items, premium pastries, global delicacies, and health-conscious snacks. Additionally, the market is eyeing significant potential in Mediterranean and gluten-free offerings, alongside the expanding demand for convenient, ready-to-eat baked goods, spanning sandwiches, wraps, and bagels.
- According to a German Trade & Invest study, Germany's 16 companies dominate the industry as prominent confectionery and snacks sector players. With many brands, this diverse landscape shifts the power dynamic away from consumers. Germany has been one of the world's top confectionery exporters for 43 consecutive years. Noteworthy growth areas span from delicate pastries to savory snacks. Moreover, the industry is witnessing a surge in demand for health-centric offerings, such as fat-free and low-sugar confectionery, which is in line with the prevailing health and wellness trend.
- Furthermore, owning and caring for pets is a very urban phenomenon and is gradually increasing in the country. According to a recent report by the Central Association of Zoological Specialist Companies (ZZF), in 2023, 34.3 million dogs, cats, small animals, and pet birds lived in German households.
- The major factors driving the demand for pet food included growing pet ownership, rising per capita disposable income, and increasing nuclear families, particularly in urban areas. According to Statistisches Bundesamt, the industry revenue for the manufacture of prepared pet foods in Germany was USD 4.680 billion in 2020, and it was expected to reach USD 5.032 billion in 2023. As the popularity of instant pet food grows, convenience will play an essential role in developing this industry.
- Pouch packaging is witnessing a surge in favor in Germany, driven by perceived value for money and cost-effectiveness compared to counterparts. However, the market's landscape is competitive and fragmented, with a mix of international, regional, and local players vying to meet the surging demand and heightened health consciousness.
