North America 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(US, Canada) Forecasts, 2022-2030

Market Overview

 The North America Retort Pouch Market is expected to grow at a significant rate with a CAGR of 6.4% to a total value of 1906 million USD in 2030.

A retort pouch, also known as a retort able pouch, is a type of food packaging constructed of flexible plastic and metal foil laminate. It is utilized as an alternative to standard industrial canning methods for the sterile packing of a wide variety of food and drink handled by aseptic processing. Packaged foods range from water to fully cooked, thermo-stabilized (heat-treated), high-calorie (1,300 kcal on average) meals like Meals, Ready-to-Eat (MREs), which can be eaten cold, warmed by submerging in hot water, or heated with a flameless ration heater.

North America is expected to have a large share of the market. Increased urbanization, hectic work lives, rising single-household populations, and rising consumer spending power have fuelled the expansion of pre-packaged products, which are typically packaged in stand-up retort pouches, hence acting as significant drivers for the retort pouch sector.

Market Dynamics

Key market drivers

• Convenient Meal Consumption is on the Rise: During the anticipated period, consumption of convenience meals increased in developing and emerging economies and in most of the countries of North America. This tendency is being observed as a result of important causes such as the changing lifestyle of working people who have a hectic schedule. The vast majority of these people are looking for ready-to-eat meals. The integration of additive-free and minimally processed food, which are frequently made available in retort pouches, will enhance demand for convenience meals. For increased efficiency, these products frequently have a longer shelf life

• Requirements for Longer Shelf-Life: The shelf life of most canned foods and staple foods is considerably longer. However, products that have been utilised after their recommended shelf life have changed in flavour, taste, and odour. Refrigerators frequently include temperature limitations to prevent food from spoiling. When packaged food must be distributed to regions far from manufacturing centres, heavy reliance is frequently regulated. As a result, increased shelf life is a top priority for packaged food manufacturers. Because to retort pouches, packaged foods in metal cans are becoming more sustainable. The packed food items frequently have a longer shelf life because retort packaging does not require freezing or refrigeration by consumers, retailers, or packers. Furthermore, these items can be stored in a little space. Extended shelf life has advantages beyond reduced product returns and waste. They also enable for the storage of important items in case of an emergency. By incorporating the longer shelf life provided by canned goods, the North American retort pouch market share will grow.

Key market restraints

• Concerns for health and hygienic food: Added sugar, salt, and fat are frequently found in packaged and heavily processed foods. These substances enhance the flavour of our food, but too much of them can lead to major health problems such as obesity, heart disease, high blood pressure, and diabetes. This is a significant factor which can restrict the growth of the retort pouch market in the coming times.

• Plastic packaging items are prohibited in the North American Market: Due to an increase in environmental concerns in some locations, the government has adopted strong measures to prohibit the sale of single-use plastic products and non-biodegradable packaging. This is due to the fact that plastic products take longer to disintegrate and are harmful to both aquatic and terrestrial species. For example, According to Natural Environment, 100,000 sea turtles and other marine animals die each year as a result of being strangled in bags or mistaking them for food.

Key market opportunities

• Increasing demand of lightweight and handy packaging material: For beverages, especially pouches, lightweight packaging material is necessary. Pouch designs have improved in recent years, encouraging more customers to buy fruit drinks, nutraceuticals, meal replacement shakes, fibre supplements, and cold-pressed juices and this is the opportunity for the players to acquire the market.

Regional Analysis

North America Retort Pouch Market is Expected to Hold a Significant Market Share because for the following reasons:

• Increased urbanization, hectic work lives, rising single-household populations, and rising consumer spending power have fuelled the expansion of pre-packaged products, which are typically packaged in stand-up retort pouches, hence acting as significant drivers for the retort pouch sector.

• As it is a highly convenient and portable packaging solution, retort packaging is rapidly gaining favour. Many consumers in the country prefer flexible, stand-up pouches than rigid packaging. Whether for snack food, beverage, baby food, or industrial oils and lubricants, consumers have increased demand for stand-up pouches tremendously over the last decade.

• Food, pharmaceutical, and nutraceutical goods ingested by humans and animals are regulated by the Department of Health and Human Services in the United States. The Food and Drug Administration (FDA) or the US Department of Agriculture is in charge of this (USDA). Under the highest temperatures, the retort package regulation is fairly strict, requiring the contents and processes to be listed under FDA rule 21 CFR 177.1390.

• The use of retort pouches in Canada is growing as more industries employ flexible packaging techniques, such as retail, pharmaceuticals, food & beverage, and pet food.

• Approximately 75% of the country's food supply is made up of packaged, processed foods. There has also been a shift in eating patterns, with an increase in the intake of ultra-processed, ready-to-eat meals, which are often energy-dense and rich in fat, sugar, and sodium. These foods are generally packed in retort pouches since they are an efficient method of packaging food with a long shelf life. So, North America currently dominates the retort packaging industry and is expected to be the fastest-growing region. The market's dominance is attributed to expanding infrastructure, and commercial, and packaging industrial advancements in emerging countries such as the United States, Canada, and Mexico. Due to the leading alternative replacements for conventional packaging, the United States dominates the North American area.

Segmental Analysis

Polypropylene, polyethylene, polyamide, PET, aluminium foil, and other materials are used in the market. With an expected market value of USD 1,690.8 million in 2021, polypropylene will be the fastest-growing sector. It will reach a market value of USD 3,015.8 million in 2030, with an annual growth rate of 8.1%. Extreme temperature and chemical resistance, as well as expanding usage in automotive, packaging, healthcare, electronics, and building and construction, will all contribute to market expansion. Higher tensile strength, superior barrier, and cheaper cost will all contribute to the segment's value. With an expected value of USD 1,453.8 million in 2030, the PET sector will have the second-largest market share.

The market can be separated into two types of packaging: stand-up pouches and flat pouches. With a market value of USD 2,482.2 million in 2021, stand-up pouches will have the biggest market share. With a CAGR of 7.9% during the forecast period, it will reach a value of about USD 4,573.9 million in 2030. Sustainability, lightweight, and increasing printability and seal ability availability will all contribute to the segment's growth. Due to its simplicity and availability in a wide range of materials and seals, the flat pouches market is expected to reach USD 3,693.4 million in 2030.

The market can be divided into three types of closures: tear notch, zipper, and spout. With a market value of USD 1,828 million in 2021, the zipper segment will have the biggest market share during the projected period. In 2030, it will have a market value of USD 3,245.1 million. Due to the possibility to be accessed several times due to its usefulness and increased utilisation of e-commerce and on-the-go applications, the CAGR is expected to be 7.3%. With an expected market value of USD 3,137.9 million in 2030, the tear notch sector will account for the second-largest market share.

The market can be divided into food, drinks, pet food, and other categories based on application. With a market value of USD 2,499.6 million in 2021, food will hold the biggest market share over the projected period. It is expected to expand at a CAGR of 7.1%. The market will be worth USD 4,123.2 million in 2030, according to estimates. The segment's growth will be aided by factors such as increased temperature resistance and the capacity to be integrated as ready-to-eat packaging. Pet food will have the second-largest market share in 2030, with an estimated value of USD 1,701.3 million.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• SEE Ventures, SEE's initiative for investing in disruptive technologies and business models to accelerate growth, announced the acquisition of Fox Pak Flexibles Ltd. (Fox Pak) in February 2021. To empower its customers' brands, Fox Pak has used digital printing capabilities to print directly on their flexible packaging materials. Their solutions may be scaled up or down fast to meet the manufacturing needs of any size customer. This purchase will help to improve cash flow and earnings. Expands the packaging portfolio of the organization.

• Sonoco acquired Ball Metal pack in December 2021. Sonoco's largest consumer packaging franchise is complemented by this acquisition. Ball Metal pack is the largest aerosol maker in North America and a prominent developer of sustainable metal packaging for food and household products. This purchase will help to improve cash flow and earnings. Expands the packaging portfolio of the organization.