Water Soluble Packaging Market Size, Share & Industry Analysis, By Material (Polymers {Polyvinyl Acetate and Polyvinyl Alcohol}, Surfactants, and Fibers), By Product Type (Bags, Pouches, Sachets, Films, and Pods & Capsules), By Temperature (Cold Water and Hot Water), By End-use Industry (Food, Healthcare, Agriculture, Household, Water Treatment, Building & Construction, Others), and Regional Forecast, 2024-2032

The global water soluble packaging market was valued at USD 3.61 billion in 2023 and is projected to grow from USD 3.78 billion in 2024 to USD 5.65 billion by 2032, exhibiting a CAGR of 5.13% during the forecast period. Moreover, the water-soluble packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.12 billion by 2032, driven by the increasing demand for convenience, safety, and technological advancement in packaging.

Water soluble packaging is a technology that makes packages biodegradable. These materials dissolve in water and leave no residue, contributing to eco-friendliness and development of the market. The increasing demand for water-soluble packaging in numerous industries, such as water treatment, food, agriculture, and healthcare, is driving the market growth. The growing environmental and sustainability concerns led to a surge in demand for biodegradable packaging. Growing demand for sustainable packaging, government limits on plastic waste, and rising consumer awareness of environmental issues further drive the market's growth.

Moreover, water-soluble packaging solutions offer an eco-friendly solution by mitigating pollution. Traditional packaging materials such as plastic can decompose for hundreds of years and often pollute oceans and landfill habitats. Water-soluble packaging dissolves harmlessly in water, significantly reducing environmental impact and boosting market growth.

The market growth was negatively affected by the COVID-19 pandemic, which caused reduced demand for soluble packaging across different industries due to disruptions in the production and distribution of goods. However, due to the packaging's sustainable properties, the market is expected to grow significantly during the forecast period.

Water Soluble Packaging Market Trends

Increasing use of Biodegradable Materials and the Development in the End-use Industry are Emerging as New Trend

The water-soluble packaging market is experiencing a notable transition toward the adoption of biodegradable and compostable materials, responding to heightened environmental consciousness. The manufacturers are actively exploring innovative packaging materials such as polysaccharide protein-based film, aligning with eco-friendly principles and meeting evolving consumer preferences for sustainable packaging solutions. Water-soluble packaging is gaining importance in agriculture, notably in agrochemicals and fertilizers, where the packaging dissolves upon application, mitigating the environmental footprint linked to conventional packaging. Adopting such innovative solutions reflects a commitment to sustainable practices within the agriculture sector. Additionally, packaging is increasingly used in the healthcare sector, propelled by the imperative for secure packaging disposal in healthcare settings. The development of multiple end-use industries is expected to play a significant role in the growth of the market during the forecast period.

Water Soluble Packaging Market Growth Factors

Surge in Demand for Water Soluble Films With Sustainable Factors is Notably Driving Market Growth

Due to growing environmental concerns, green packaging has gained traction in most countries. The growing demand for waste-soluble films and increasing utilization of eco-friendly and sustainable packaging is driving the growth of the market. The user-friendly features of these solutions make them appealing for manufacturers to adopt in the workplace. It allows detergent manufacturers to offer single-use packs, which help prevent wastage, overdosing, and spillage by end users. The water-soluble films help protect industrial workers from coming into direct contact with hazardous material.

Water-soluble packaging has emerged as a revolutionary solution to reduce plastic pollution and waste significantly. Crafted from biodegradable polymers or other natural materials, these films are designed to break down harmlessly when exposed to water or moisture, presenting a powerful solution to environmental challenges posed by traditional packaging materials. Hence, such factors are driving the water soluble packaging market growth.  

Demand for Convenience, Safety, and Technological Advancement in Packaging is Driving the Market Growth

Water-soluble packaging offers convenience by eradicating the need to handle and measure potentially hazardous substances. The single-use detergent pod capsules, encapsulated in water-soluble packaging, provide a mess-free and hassle-free experience. Additionally, water-soluble packaging enhances safety by reducing the risk of accidental exposure to harmful or toxic substances. The aspect is particularly crucial in industries such as healthcare, where water-soluble packaging is used for medication packaging, reducing the potential for dosage errors and improving patient safety.

Continuous innovations in material science and packaging technology have led to product development with enhanced properties. These advancements have addressed challenges related to strength, heat resistance, barrier properties, and overall performance of water-soluble packaging. Thus, the combination of convenience and safety attributes makes water soluble packaging appealing, with technological progressions continue to propel market growth.

RESTRAINING FACTORS

Regulatory Standards and the High Cost of Products are restraining the Market Growth 

The lack of regulatory standards governing the use of water-soluble packaging in less developed countries, coupled with limited awareness in emerging nations, will limit the growth of the water-soluble packaging market. The high cost of water-soluble packaging is another major factor limiting the market growth, mainly attributed to fluctuation in raw materials prices.

The wide availability of traditional packaging, offering low-cost alternative solutions to sustainable packaging is a major factor hampering market growth. Such aspects are anticipated to restrain the development of the market.

Water Soluble Packaging Market Segmentation Analysis

By Material Analysis

Polymer Segment Leads due to Strong film-forming properties and Excellent Water Solubility of the Material

Based on material, the market is segmented into polymers {Polyvinyl Acetate, Polyvinyl Alcohol}, surfactants, and fibers.

Polymers hold the largest share in the material segment of the water-soluble packaging market due to their strong film-forming properties and excellent water solubility. These polymers are compatible with a wider range of product ingredients, including enzymes, aggressive chemicals, and other active ingredients, driving segment growth.

The fiber segment holds the second-largest share of the segment. Fiber materials are derived from plant sources such as wood pulp and synthetic fiber from grains, which are used in the production of packaging products. It significantly lowers the environmental impact compared to conventional plastic packaging solutions.

By Product Type Analysis

Films Segment Secures the Largest Share due to Rising Need for Handling Harmful Substances

Based on product type, the market is segmented into bags, pouches, sachets, films, and pods & capsules.

Films hold the largest share in the product type of the water-soluble packaging market. Films crafted from biodegradable polymers or other natural materials are ingeniously designed to break down harmlessly when exposed to water or moisture. Single-use products, such as laundry or dishwasher pods, are packaged in water-soluble films, eliminating the need to handle potentially harmful substances and driving the segment’s growth.

Bags hold the second-largest share of the segment. This is due to its extensive adoption in the medical packaging sector, especially for infected laundry bags. The ease and convenience of water-soluble bags make them a favored choice for both consumers and manufacturers.

By Temperature Analysis

Wide Applications of Hot Water Among Customers is Boosting the Segment Growth

Based on temperature, the market is segmented into cold water and hot water.

Hot water holds the largest share in the temperature segment of the water-soluble packaging market. Hot water soluble packaging is used widely for laundry detergents, cleaning agents, and dishwashing detergents. Consumers conveniently dissolve the packaging in hot water, eliminating the need to handle and dispose of packaging products and boosting the segment’s growth.

Cold water holds the second-largest share of the segment. Cold water soluble packaging is beneficial in hospitality industry, where single-use amenities such as conditioners, shampoos, and soaps can be packaged in water soluble materials.

By End-use Industry Analysis

Versatility and Availability of Material to Drive the Household Segment Growth

Based on end-use industry, the market is segmented into food, healthcare, agriculture, household, water treatment, building & construction, and others.

Households hold the largest share in the end-use industry segment of the water-soluble packaging market due to the wide application of water-soluble packaging in laundry detergent pods and household cleaning products such as drain cleaner pods, toilet blocks, and glass cleaner pods.

The agriculture segment holds the second largest share owing to the utilization of packaging solutions for pesticides and fertilizers, which helps in waste reduction and minimizes environmental impact.

REGIONAL INSIGHTS

Based on geography, the market is analyzed across North America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific dominates the global water soluble packaging market share, driven by the high demand for laundry detergents and home care products. Government regulations aimed at reducing plastic packaging usage in the region further positively impacts the demand for sustainable packaging solutions.

North America is the second dominant region of the global market, witnessing increased demand from regional end users and industries. Stringent government rules and rising awareness among consumers about the harmful environmental impact of traditional packaging material are driving the product demand in the region.

Europe is anticipated to have significant growth in the region, fueled by the trend of independent living and busy consumer schedules, which drives the demand for convenient and easy-to-use products. The trend of purchasing such products has a progressive impact on the market.

Latin America is expected to have moderate growth in the region due to the ease of use of these products, with no harmful chemicals having the risk of skin contact, boosting the market. Moreover, the increasing demand for dishwashers has given rise to the market.

List of Key Companies in Water Soluble Packaging Market

Key Participants in the Market Witnessing Significant Growth Opportunities Owing to Innovative Packaging

The global water soluble packaging market is highly fragmented and competitive. Regarding market share, the few major players dominate the market by offering innovative packaging in the packaging industry. These major players in the market are constantly focusing on expanding their customer base across the regions and innovation.

Major players in the market include Mondi, Sekisui Chemicals, Kuraray Co. Ltd., Cortec Corporation, Arrow Greentech Ltd., Shandong Huazhilin Pharmaceutical Technology Co., Ltd., MSD Corporation, Green Master Packaging, Arrow Greentech Ltd., Green Cycles, and others. Numerous other players operating in the industry are focused on delivering advanced packaging solutions.

List of Key Companies Profiled

• Mondi (U.K.)


• Sekisui Chemicals (Japan)


• Kuraray Co. Ltd. (Japan)


• Cortec Corporation (U.S.)


• Arrow Greentech Ltd. (India)


• Shandong Huazhilin Pharmaceutical Technology Co., Ltd. (China)


• MSD Corporation (China)


• Green Master Packaging (Australia)


• Rovi Packaging (Spain)


• Green Cycles (Spain)

KEY INDUSTRY DEVELOPMENTS

• July 2023 – Notpla partnered with home care and detergent MACK and launched a sustainable clothes detergent sachet, marking Notpla’s first commercial application of its film material in a refill cleaning product line. The product is designed for laundry and homeware products; the packaging solutions dissolve in water and naturally biodegrade without leaving microplastic residue.


• July 2022 –  Hero Packaging launched the first ever 100% water soluble bags, Aquahero. The Australian company created a transparent reusable garment bag that looks and functions like the plastic version in its strength and transparency but is completely dissolved in boiling water in 30 seconds.


• February 2022 –  Bioplastic International Launched a water-soluble PVA replacement for plastics, targeting to reduce plastics plastic pollution in beaches and oceans. The PVO is non-toxic to animals; it can be eaten by fish, birds, and marine life, passing through their digestive systems without harm.


• July 2021 –  India’s DRDO launched biodegradable packaging products. The launch comes amid India’s decision to ban single use plastics. India’s Defence Research and Development Organisation launched environmentally friendly packaging products manufactured by using natural and plant-based food-grade materials that are biodegradable.


• July 2021 –  Health and beauty brand Saie launched water-soluble packaging in collaboration with SmartSolves, aiming for a cleaner, more sustainable packaging approach. SmartSolve board stock, an engineered composite with a 100% organic construction. The fiber has an interlocking mechanism that can unlocked with water. Once exposed to water, the locks dissolve, allowing the fibers to disperse.

REPORT COVERAGE

The report provides detailed market analysis and focuses on key aspects such as leading companies, competitive landscape, product/service types, porters five forces analysis, market shares, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the above factors, the report encompasses several factors that contributed to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION