Asia Pacific Retort Pouch Market Size, Share & Trends Analysis Report By Material (Polypropylene, Polyethylene, Polyamide, PET, Aluminum Foil, Others), By Packaging Type (Stand-up Pouches, Flat Pouches), By Closure Type (Tear Notch, Zipper, Spout), By Application  (Food , Beverage, Pet Food, Others) and By Country(China, Korea, Japan, India, Australia, Taiwan, South East Asia, Rest of Asia-Pacific) Forecasts, 2022-2030

Market Overview

In 2021, the Asia Pacific retort pouch market was anticipated to be worth USD 1,511.6 million, with a CAGR of 8.2% expected during the forecast period.

Retort packaging is food packaging made from a lamination of flexible plastic and metal foils. It's used as an alternative to traditional industrial canning processes, and it enables for the sterile packing of a wide range of foods and beverages. Meals, Ready-to-Eat (MREs), which can be consumed cold, warmed by submerging in hot water, or heated using a flameless ration heater, were first deployed by the military in 1992. Field rations, space food, fish products, camping meals, fast noodles, and companies like Capri Sun and Tasty Bite all use retort packaging.

Due to the increased penetration of ready-to-eat meals in the region, the market is expected to reach USD 3080 million USD in 2030 at a CAGR of 8.2 %.

Market Dynamics

Key market drivers

• Longer Shelf-Life Requirements: Most canned foods and staple foods have a much longer shelf life. However, flavours, tastes, and odours have changed in products that have been used after their designated shelf life. Temperature limits are typically included in refrigerators to protect food from deteriorating. When packaged food must be delivered to areas remote from industrial centres, a high level of dependency is typically imposed. As a result, for packaged food manufacturers, improved shelf life is a primary concern. Packaged goods in metal cans are becoming more sustainable as a result of retort pouches. Because retort packaging does not require freezing or refrigeration by consumers, retailers, or packers, the packaged food items often have a longer shelf life. These goods can also be stored in a little amount of space. Beyond reduced product returns and waste, having a longer shelf life has benefits. They can also be used to store vital materials in the event of an emergency. The market share of North American retort pouches will increase since canned items have a longer shelf life.

• People preferring packaging that can retain nutrients: Consumers are increasingly expecting ready-to-eat foods with superior organoleptic and nutritional qualities. In Asia Pacific Region, there are two major trends: first, consumers are increasingly selecting foods that are easy to prepare; second, the number of people who are overweight is rising, and more consumers are paying close attention to product ingredients and nutritional value in order to balance the amount of food they consume per day.

Key market restraints

• Initial machinery costs and process complexity: It necessitates sophisticated filling, heat treatment, and tensile strength testing equipment. These machines are both expensive to buy and to keep running. Another potential stumbling block is production complexity. Manufacturers must consider various factors when heat-treating sealed pouches, including residual air and package thickness.

• The Retort Pouches' Unsustainability: Single-use plastics are considered to be harmful as they often lead to landfills. Rising consumer awareness coupled with various government initiatives often highlight the issues faced by the non-degradability of plastics. Many manufacturers opt for adopting recyclable plastics or recyclable plastic packaging solutions that can resolve the issue to some extent. Retort pouches cannot be recycled easily as they lack specific layers of laminate materials that cannot be easily broken down on a mass scale. Lack of accessibility to recycling facilities and lower penetration of recycling infrastructure further add to the factors that drive the value of the global retort pouch market towards a downward trend. Additionally, retort packaging also consumes more energy and resources than traditional packaging solutions when it comes to manufacturing in large capital investment for machinery. This is due to additional steps such as thermal processes needed to be incorporated during the manufacturing cycle. The overall cost of plastic materials used for transporting retort pouches further adds to the unsustainability. These will further decrease the chance of adopting retort pouches during the forecast period.

Key market opportunities

• Eco-friendly and lightweight packaging is becoming trendy: Due to their eco-friendly and lightweight properties, retort pouches are becoming increasingly popular among consumers, particularly in the food and beverage industry. Small pillow pouches made by manufacturers, for example, were once the industry norm, but manufacturers are now favouring an efficient retort process and beautiful pouches. Retort pouches require less packaging material and sterilise at a lower temperature than aluminium trays and cans, making them more environmentally friendly.

Regional Analysis

In 2021, the Asia Pacific retort pouch market was anticipated to be worth USD 1,511.6 million, with a CAGR of 8.2% expected during the forecast period. Due to the increased penetration of ready-to-eat meals in the region, the market is expected to reach USD 3,080 million USD in 2030 at a CAGR of 8.2 %. Convenience meals will emerge as the consumer population's habits change. Consumers' increasing disposable cash will pave the way for more alternative foods and beverages. These factors are projected to expand the market for retort pouches, as consumers' preference for them over traditional packaging grows. With a market value of USD 1,534.7 million in 2030, China is the largest contributor to the Asia-Pacific market volume. The Asia-Pacific retort packaging market is dominated by China. Increased need for retort packaging by food and drinks is expected to enhance demand in this region.

India has boundless demand, something many other countries lack. It doesn't matter what product or service you develop; if it meets a need, there will always be a demand for it, regardless of how many competitors enter the market. Retort pouch production is one of the many sectors blooming in that large country. With over 7.3 million employees, the food and beverage industry contribute for 3% of India's GDP and is the country's single largest employment and the demand is continuing to grow at a good pace and hence the demand for retort packaging is increasing is India and the trend is expected to remain same in near future.

Segmental Analysis

The market uses polypropylene, polyethylene, polyamide, PET, aluminium foil, and other materials. Polypropylene will be the fastest-growing sector in 2021, with a market value of USD 1,690.8 million. With an annual growth rate of 8.1%, it will reach a market value of USD 3,015.8 million in 2030. Extreme temperature and chemical resistance, as well as rising applications in automotive, packaging, healthcare, electronics, and building and construction, will all help to drive market growth. The segment's value will be enhanced by higher tensile strength, greater barrier, and lower cost. PET will have the second-largest market share in 2030, with a projected value of USD 1,453.8 million.

There are two types of packaging on the market: stand-up pouches and flat pouches. Stand-up pouches will have the largest market share in 2021, with a market value of USD 2,482.2 million. It will reach a value of USD 4,573.9 million in 2030, with a CAGR of 7.9% over the forecast period. The segment's growth will be aided by sustainability, lightweight, and increased printability and seal ability availability. Flat pouches are predicted to reach USD 3,693.4 million in 2030, thanks to their ease of use and availability in a variety of materials and seals.

There are three types of closures on the market: tear notch, zipper, and spout. The zipper segment will have the largest market share during the forecast period, with a market value of USD 1,828 million in 2021. It is expected to be worth USD 3,245.1 million in 2030. The CAGR is predicted to be 7.3% due to the ability to be accessed multiple times due to its utility and increased use of e-commerce and on-the-go applications. The tear-notch industry will account for the second-largest market share in 2030, with an estimated market value of USD 3,137.9 million.

Based on application, the market may be segmented into food, beverages, pet food, and other categories. Food will hold the largest market share over the forecast period, with a market value of USD 2,499.6 million in 2021. It is predicted to grow at a rate of 7.1% every year. According to estimations, the market will be worth USD 4,123.2 million in 2030. Factors like greater temperature resistance and the ability to be integrated as ready-to-eat packaging will help the segment flourish. In 2030, pet food will have the second-largest market share, valued at USD 1,701.3 million.

Impact of covid-19

COVID Impact: During COVID-19, supply chain interruptions hampered the trade, causing a lack of raw materials for producers and a delay in delivering finished items in the form of blind bolts to customers. As official prohibitions around the world have been lifted, demand for blind bolts has already begun to rebound to pre-pandemic levels.

Recent Developments

• In April 2022, Berry Global Inc. announced that all of its food service manufacturing locations in North America have achieved the International Sustainability and Carbon Certification (ISCC) PLUS designation to support its growing North America-based customer demand for more sustainable packaging. This certification helped in enhancing the product portfolio of the company.

• In January 2022, Floeter prioritizes sustainability; the company refine its process and pouches to have a reduced carbon footprint and be more energy efficient. With retort pouches, Floeter offers businesses improved carbon neutrality in the packaging when compared to other alternatives. This development will help in strengthening packaging and also earnings. Further expands the company’s packaging portfolio.