Stick Packaging Market Size Expected to Be Reach $2.1 Billion by 2027

Stick Packaging Market
Rising Demand For Packaged Food Due To Its Health Benefits And Busy Lifestyle For Consumers Who Prefer Packaged Products Are Some Of The Other Factors Expected To Drive The Growth Of The Global Stick Packaging Market

Stick Packaging Market Overview

Stick Packaging Market is forecast to reach US$2.1 billion by 2027, after growing at a CAGR of 5.6% during 2022-2027. Globally, the increasing need for accurate dosing and portion control in the pharmaceutical industry is the critical factor estimated to fuel the demand for stick packaging over the forecast period. In addition, the growing need for biaxially oriented polypropylene, metalized polyester, polyethylene, and other packaging material for the packaging of standup pouch will further drive the market growth. Rising demand for packaged food due to its health benefits and busy lifestyle for consumers who prefer packaged products are some of the other factors expected to drive the growth of the global stick packaging market. Moreover, the shift in consumer preference from rigid to flexible packaging is estimated to boost the revenue growth of the target market over the forecast period.

COVID – 19 Impact:

The Covid-19 pandemic situation positively impacted the growth of the stick packaging industry. Increasing preference towards hygiene food products derive the demand for packaged food which uplifted the development of the market. Also, the rapidly rising demand for packaged drugs raised the need for stick packaging due to its excellent barrier protection properties in 2020. However, the pandemic slightly affected the industry’s growth, as most countries issued “stay at home guidance,” i.e., lockdown.

Stick Packaging Market Segment Analysis – By Material

Plastic material held the largest share in the stick packaging market and is expected to continue its dominance over 2022-2027. Plastic packaging material derived from biaxially oriented polypropylene (BOPP) is likely to tower over other materials. Their growing popularity is attributed to reduced weight, minimal damage during transit, the prevention of moisture accumulation, and environmental friendliness. BOPP films also have a lower electrostatic charge owing to which it is increasingly preferred for stick packaging. At the same time, Ethylene-vinyl alcohol (EVOH) packaging is gaining considerable transition. Most packaging requires a barrier layer to protect against oxygen. Thus, ethylene-vinyl alcohol (EVOH) is popular as it is more efficient in preventing oxygen than PET, polyethylene, or nylon. Several end-use industries such as food & beverage, pharmaceuticals, and other cosmetic industries are incorporating plastic-based packaging solutions, further driving the growth of the stick packaging industry.

Stick Packaging Market Segment Analysis – By Application

The pharmaceutical sector dominated the stick packaging market in 2021 and is projected to grow at a CAGR of 5.9% during 2022-2027. Stick packaging is ideal for the pharmaceutical industry because it has excellent barrier qualities, uniform usage, and self-explanatory dosing. In the pharmaceutical industry, stick packaging is used as the primary packaging for oral liquids, syrups, powders, and granules drugs. These packaging types even allow safe storage and protection of delicate active pharmaceutical ingredients and secure supply networks across all locations until they are used. The increasing use of aluminum, paper, metalized polyester, and other materials for drug packaging is estimated to surge the market’s growth. Recently various product launches related to stick packaging in the pharmaceutical industry have also uplifted the market’s growth. For instance, in October 2018, Pylote announced that it had entered into a partnership with Amcor to launch stick pack which laminates liquid pharmaceuticals and combines a high barrier with antimicrobial preservation properties and can be processed on standard stick-pack filler. Thus, the rising usage of stick packaging in the pharmaceutical sector is further anticipated to drive the market.

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Stick Packaging Market Segment Analysis – By Geography

North America region dominated the stick packaging market with 37% in 2021. The growing working population in the region, coupled with their busy lifestyles, has given rise to the need for on-the-go consumable products, enabling people with travel accessibility and ease of consumption. The market in the region is also witnessing strategic expansions, thus offering companies lucrative opportunities to increase their production capacity and, in turn, to stimulate market growth. For instance, in February 2019, Cascata Packaging announced the completion of its multi-million-dollar plant expansion to triple its tear-top operation and launch its proprietary hot-fill, lap-seal, vertical stick filling line. In addition, market players are entering the region with the launch of new products, thus it is expected to boost the demand for stick packs in the region over the forecast period.

Stick Packaging Market Drivers

Increasing Demand for Stick Packaging across Food Industry will Drive the Growth of the Market.

Increased online food transactions have necessitated the need for flexible, durable, and secure packaging options, enhancing stick packaging’s long-term growth prospects. Stick packaging is used for products such as ready-mixed spice mixtures, single-serve drinks, including coffee, tea, sugar, milk, drink mixtures, and much more, due to its ability to keep the products fresh thus providing a longer shelf life. Rising product launches and the increasing need for stick packaging across various food sectors have raised the market growth. For instance, Drink Nutrient, a start-up located in the United States, unveiled a line of nutritional drinks in its home market in October 2019. The offerings include Liquid Nutrient, Vitamin Booster+, and Vitamin Coffee in stick packs. Similarly, in August 2018, Celsius Holdings, Inc. launched two new SKU brand flavors, both packaged in convenient on-the-go powdered sticks. The two new flavors combine the clinically proven, functional CELSIUS formula that enhances the company’s stick pack offering. The rising trend for instant healthy food and beverage options such as bottled water blends provides excellent convenience has also raised the demand for stick packaging. As a result, consumers are increasingly turning to products that are packed in stick packs. Thus, it is anticipated that the rising need for stick packaging across the food industry will surge the market’s growth in upcoming years.

Product Safety and Lower Stick Packaging Costs will Boost the Market Growth.

A series of factors provide maximum product safety in primary and secondary packaging using the stick-pack option. Most significantly, when a stick-pack is produced, filled, and sealed in an environment with controlled temperature, low relative humidity, and controlled residual oxygen, the product is protected against contamination. Fill and seal integrity are ensured at fast speeds with the use of cutting-edge stick-pack equipment, as well as a high degree of fill accuracy per dose. These safeguards, when combined, allow content preservation with a shelf life of up to 24 months. Moreover, stick-pack packaging simplifies the formulation process because there is no need for compression or more complex formulae to bind all ingredients. The reduction in paper and foil usage and waste volume is both a financial and an environmental gain because stick-packs use up to 40% less material. Because of the slender, compact nature of stick-packs, cartooning and secondary packaging are efficient and cost-effective, resulting in significant overall cost reductions. Thus, the demand for stick packaging is estimated to rise over the forecast period due to the aforementioned factors.

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Stick Packaging Market Challenges

Volatility in Raw Material Prices

According to the World Economic Forum, at least 8 million tonnes of plastic leak into the ocean every year, equivalent to spilling one garbage truck’s contents into the sea every minute. This is expected to increase to two every minute by 2030 and four per minute by 2050, potentially devastating the environment. Plastic makes up nearly 90% of all waste found in the oceans. As a result, recycling has become a significant issue in the stick packaging industry, as it provides re-use value while also reducing waste. Furthermore, various rules promoting green packagings, such as the European Union’s Packaging and Packaging Waste Directive (94/62/EC) and the Federal Trade Commission’s (FTC) 16 CFR Section 260, are restricting demand for plastic packaging. Thus, these issues are impeding the overall market expansion.

Stick Packaging Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the stick packaging market. Major players in the stick packaging market include:

Bemis company

Amcor Corporation

Bosch Packaging Technology

Reynolds Group

Smurfit Kappa Group

Berry Plastics

Exair Corporation

Rpc Group

Sanofi-aventis SpA

Coveris Rexam, and others.

Key Takeaways

The Asia-Pacific region dominated the stick packaging market due to the rising growth of the pharmaceutical, food and beverage, personal care, and cosmetic industries. For instance, according to the International Trade Administration in Indonesia, the beauty and personal care product market revenues are expected to reach US$ 7.5 billion in 2021 and expand at a 6.5% compound annual growth rate through 2025.

An increase in demand for flexible packaging, which is considered more cost-effective and efficient than any other type of packaging, is one of the primary factors driving the growth of the stick packaging market.

In the foreseeable future, advancements and innovations in packaging solutions to improve product safety is expected to boost stick packages adoption over the forecast period.

Furthermore, a gradual shift in customer preference towards stick packs due to their portable and convenient quality and increasing demand for small packet sizes of food and beverage goods will drive the demand for stick packaging.

Acquisitions/Product Launches:

In January 2020 – Sanofi-aventis SpA installed a new stick packaging line that can produce 800 stick packaging per minute.

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