Market Trends of Nordic Pouch Packaging Industry
The Demand for Convenient and Easy Packaging is Rising
- The rising demand for pouch packaging is propelled by the expanding consumer base of fresh food, ready-to-eat meals, pet food, and coffee, all of which favor convenient packaging. This surge is further fueled by a broader industry shift from rigid to flexible packaging. According to Eurostat, prepared meals and dishes in Norway in 2018 were valued at USD 379.85 million, which increased to USD 488.45 million in 2023. Such a rise in ready meals might boost the growth of the country's pouch packaging market.
- This transition can be attributed to convenience and the evolving lifestyles of consumers, including the rise of smaller households increasingly seeking single-serve options. According to Statistics Norway, in 2023, the most common type of family in Norway was one-person families; nearly 1.3 million people accounted for such families that year.
- The emphasis on flexible packaging, particularly pouches, is more than a passing trend. Both consumers and manufacturers recognize its inherent convenience, making flexible packaging a cornerstone in fostering brand loyalty. Consumers appreciate the space-saving nature of flexible packages, often enjoying the tactile experience of squeezing out products. Additionally, resealing these packages allows consumers to control their product consumption at their own pace.
- The Nordic Council and the Nordic Council of Ministers reported that the Nordic Region is home to 27.8 million residents. Since 2000, the region has seen a notable 13% population increase, equating to 3.6 million more inhabitants. Notably, the Nordic cities stand out as vibrant economic and creative centers. Population surges are particularly pronounced in the capital cities. Among these, Stockholm leads the pack with a population of 2.2 million, closely followed by Copenhagen at 1.3 million.
- Today's lifestyle is marked by on-the-go consumption, a rise in smaller households, and an apparent tilt toward convenience. According to Statistics Sweden, the number of employed people in 2022 was 5,197 thousand, and it is expected to increase in 2024. Over the past decade, the rise in employee numbers can be attributed, in part, to a concurrent increase in the working-age population.
- Flexible packaging offers lightweight, portable, and resealable solutions that perfectly align with these modern demands. Single-serve and portion-controlled packaging formats are gaining significant traction, resonating well with consumers who value convenience and precise portioning.
The Food Industry in the Region is Anticipated to Witness Growth
- Confectionery manufacturers are increasingly seeking lightweight, protective, visually appealing, and high-barrier packaging. The sensory appeal of confectionery packaging plays a pivotal role in driving impulse purchases, thereby bolstering the market.
- Flexible pouches, in particular, are gaining traction for their convenience, especially among consumers and producers of baked goods and snacks. Over the last decade, factors like hectic lifestyles, a rising female workforce, and increasing industrialization have further fueled the global demand for ready-to-eat packaged snacks.
- In November 2023, one of Norway's largest grocery retailers, NorgesGruppen, selected Manhattan Active Warehouse Management (Manhattan Active WM) from Manhattan Associates Inc. to enhance its delivery capabilities for its premium supermarket brand, MENY NorgesGruppen. MENY NorgesGruppen's portfolio features renowned Norwegian brands like Kiwi, Meny, Spar, and Joker, catering to a diverse spectrum of grocery retail, from discount and convenience stores to upscale supermarkets.
- According to Statistics Sweden, the value of dairy products and bird eggs imported into the country in 2023 was SEK 15,375 million (USD 1,458 million), up from SEK 11,097 million (USD 1,052 million) in 2020. Imports of dairy products into the country might increase consumption, increasing the demand for pouch packaging.
- According to the Canadian government, a few years back, Denmark ranked as the ninth-largest market globally for organic packaged foods, measured by retail sales. Danes stood out as the leading consumer of organic products, with a notable surge in veganism, especially among the youth. Such an increase in the demand for organic or fresh produce is expected to drive the demand for pouch packaging.