by Water soluble films are used mainly in pharmaceutical, food, and agrochemical industries. They are used for water soluble packaging of various pharmaceutical and food products. Water soluble films provides stability to a wide range of actives and preserves the efficacy of drugs and vitamins. The global pharmaceutical industry is expected to witness robust growth over the coming years due increasing demand for generic and over the counter medicines. Growing geriatric population worldwide and increasing chronic diseases is fueling the demand for pharmaceutical products. According to Coherent Market Insights, the global pharmaceutical market is estimated to witness a CAGR of 7.4% during 2022-2030. With rising demand for pharmaceutical products, demand for water soluble packaging such as water soluble films is also estimated to rise significantly over the coming years.
The global water soluble films market is estimated to be valued at US$ 408.14 Mn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Rising Demand from Pharmaceutical Industry
As mentioned in the heading, rising demand for pharmaceutical products globally is one of the major drivers propelling growth of the water soluble films market. Various pharmaceutical products such as capsules, tablets require water soluble packaging for improved stability and efficacy during transportation and storage. Water soluble films provides protection from moisture and prevents degradation of actives. Thus, growing pharmaceutical industry is fueling utilization of water soluble films.
Increasing Need for Environment Friendly Packaging
Another important driver for the market growth is increasing need for sustainable and environment friendly packaging solutions. Plastics pose major environmental challenge with issues of dumping in oceans and landsfills. Water soluble films offers bio-degradable and recyclable packaging solution. They dissolve in water leaving no toxic residues. Thus, strict environmental regulations regarding use of plastics and awareness about sustainability is pushing adoption of water soluble films across various end use industries.
Segment Analysis
The water soluble films market is dominated by the packaging segment which accounts for over 40% of the market share. Water soluble films are widely used in food packaging applications such as wrapping candies, tablets and packaging nuts, seeds among others. Within the packaging segment, the food packaging sub-segment dominates due to the rise in demand for convenient and sustainable packaging from the food industry. Water soluble films break down completely in water, thereby reducing plastic waste.
PEST Analysis
Political: Environment friendly regulations promoting use of biodegradable plastics in packaging will support market growth. However, stringent FDA regulations for food contact packaging may increase compliance costs.
Economic: Growing economies and rising disposable incomes are increasing demand for packaged and processed food and beverages, driving market growth. However, high raw material prices remain a challenge.
Social: Rising health awareness and focus on environment sustainability are increasing preference for water soluble packaging versus conventional plastic packaging.
Technological: Advances in water soluble film production technologies allow customization of film properties for diverse applications. Investments in R&D are helping widen the scope of applications.
Key Takeaways
The Global Water Soluble Films Market Size is expected to witness high growth over the forecast period supported by the expanding packaged food industry across regions. The global water soluble films market is estimated to be valued at US$ 408.14 Mn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market and is expected to maintain its lead position during the forecast period. Growth in the region can be attributed to high availability of raw materials, favorable policies, and high demand for packaging from emerging economies like India, China and others.
Some of the key players operating in the water soluble films market are Chattanooga International, Humares , Prime Pacific Health. Key players are focusing on new product innovation, expanding production capacities and global footprint through acquisitions and collaborations to gain market share. Sustainability is a key trend gaining prominence in the market as manufacturers look to develop bio-based and compostable films in order to increase marketability. R&D investments to widen the scope of applications will further support market revenues.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
