The research by PCI Films Consulting said factors such as increasing consumer acceptance of the format and recognition by packaging manufacturers and retailers of their functional advantages should fuel its continued surge.
The group predicted huge growth in the sector as European brand owners adopted SUPs in increasing numbers, with possible take up by the non-carbonated soft drinks industry offering significant expansion potential.
Growth
While the SUP enjoyed uninterrupted growth rates in the five years leading up to 2008 of between 10 and 15 per cent per annum, the segment dipped in 2009 as the recession took hold, said the study. Market value for SUPs last year was €575m.
But report author, Paul Gaster, told FoodProductionDaily.com, that the setback was more a case of a slow-down in growth rather than a demand slump.
“The effects of the recession, which began in September 2008, really hit home in the first half of 2009, when there was a reduction in demand and a trend towards short ordering,” he said.
But he added that in general: “The SUP sector is growing by leaps and bounds and is exhibiting the fastest growth of any flexible packaging format.”
This has been fuelled by a change in attitude towards the format in recent years as “retailers and consumers recognise the attractions of this format as a cost-effective, convenient and environmentally superior alternative to rigid packaging”, he said.
In 2009, nearly 19bn SUPs were estimated to have been supplied, accounting for around fiver per cent of all flexible packaging used in Europe. Around 975 million square metres of laminate was used to make pouches, of which 65 per cent was used to make pre-made pouches, with the balance supplied as reels to packers for use on form-fill-seal machines. One third of all supply is used in wet pet foods.
SUP Trends
Potential take up by the soft drink sector could fuel significant future growth, said Gaster.
“A number of multinational soft drink beverage companies are looking at the potential of SUPs for their products, which would have a significant impact” he added.
Growth in SUP demand was being seen across the board although it was noticeable that there were particular national variations – with, for example, significant uptake of SUPs in Russia and Ukraine for the ketchup and mayonnaise, he noted.
“In Western Europe ketchup and mayonnaise supplier have used squeezy bottles and have therefore invested in the filling equipment for this,” said Gaster. “But these Eastern European countries haven’t made this capital investment and have gone straight to pouches because of this.”
Advantages and disadvantage
Advances in new packing machinery that have delivered higher production and filling speeds, as well as improvements in sealing efficiencies, would help boost growth. Functionality and heat and puncture resistance of the laminate material were also technological developments that would aid sector expansion, said the report.
But it acknowledged the format is not without its drawbacks such as filling speeds. Gaster said much future investment was needed to bring the entire process up to the higher packing line speeds of the more conventional rigid packaging formats.
But despite such challenges development sin the sector were ongoing with “significant progress” already made.
“The market fundamentals are in place and we see real and rapid growth in SUPs over the next few years,” he said. “It is a very good format that offers huge lightweighting and therefore supply chain cost savings.
The 'European Market for Stand-Up Pouches 2010', is available from PCI Films Consulting priced €2,750