Water-Soluble Packaging Market Size & Growth Report to 2030

Key Findings:

• The market size was valued at ~ US$ 3.5 Bn in 2023 and experiencing a significant CAGR of over 5% by 2030
• By material, the polymers sub-category dominated the market in 2023 with the largest revenue share of around 2/3 of market share
• Geographically, North America accounted to hold the largest market share of around 1/3 market in 2023

The global water-soluble packaging market size was valued at around USD 3.5 billion in 2023 and projected to grow at a significant CAGR of over 5% during the forecast period from 2024 to 2030. The market expansion is fueled by increasing demand for sustainable and eco-friendly packaging solutions, particularly in industries such as food and beverages, pharmaceuticals, agriculture, and chemicals. Water-soluble packaging is primarily made from biodegradable materials like polyvinyl alcohol (PVA), which dissolve in water, offering an environmentally friendly alternative to traditional plastics. Governments worldwide are implementing stringent regulations to minimize plastic waste, further bolstering the adoption of water-soluble packaging solutions​.

Regionally, the Asia-Pacific region dominates the market, accounting for over 35% of the global share, driven by rapid industrialization, rising awareness of sustainable practices, and favorable government policies. North America follows, with significant contributions attributed to strict environmental standards and advancements in packaging technologies. Key market players, including Kuraray, Aquapak Polymers, and AICELLO Corporation, are investing heavily in R&D to innovate products tailored to diverse applications. The market segmentation includes categories by material, solubility type, and end-user industries, ensuring widespread applicability across sectors​.

Market Snapshot:

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Market Drivers:

The growth of the global water-soluble packaging market is driven primarily by increasing environmental awareness and the global shift toward sustainable packaging solutions. Governments worldwide are enacting stricter regulations to reduce plastic waste and encourage biodegradable alternatives, creating a favorable environment for water-soluble packaging. These solutions, primarily made from polyvinyl alcohol (PVA), offer eco-friendly benefits as they dissolve in water, leaving no toxic residues. Additionally, industries such as food and beverages, pharmaceuticals, and agriculture are adopting these materials for their convenience, safety, and alignment with sustainability goals​.

Consumer demand for environmentally friendly products is another significant driver, especially in regions like North America and Europe, where environmental consciousness is high. Technological advancements in packaging, including innovations to enhance the durability and solubility of materials, are further propelling market growth. The Asia-Pacific region leads the market, supported by rising industrialization and government incentives promoting green practices. Increasing investments by key players in research and development to tailor solutions for diverse applications also contribute to the market’s expansion.

Market Trends:

Rising Demand for Sustainable Solutions: Growing awareness about environmental issues and the harmful impacts of single-use plastics is pushing industries to adopt sustainable alternatives. Water-soluble packaging, primarily made from biodegradable materials like polyvinyl alcohol (PVA), dissolves completely in water without leaving harmful residues. This feature makes it an ideal solution for reducing plastic pollution. Industries such as food and beverages, pharmaceuticals, and agriculture are increasingly integrating these materials to meet sustainability goals and consumer preferences for eco-friendly products.

Technological Advancements: Continuous innovation in packaging technologies is enhancing the performance and application range of water-soluble materials. Manufacturers are addressing challenges like moisture sensitivity and durability by developing advanced water-soluble films with better solubility control and strength. These advancements make water-soluble packaging suitable for various industries, including chemicals, detergents, and healthcare, where packaging needs to withstand different environmental conditions while maintaining its functional properties.

Focus on Consumer Convenience: The rise of single-use and portion-controlled packaging in sectors like detergents, personal care, and pharmaceuticals has increased the demand for water-soluble packaging. These products offer convenience for consumers by eliminating the need for measuring or handling potentially hazardous materials. For example, pre-measured detergent pods wrapped in water-soluble films simplify household tasks while ensuring precise dosages. Such consumer-centric innovations are driving the adoption of water-soluble packaging in everyday applications.

Supportive Government Policies: Governments worldwide are playing a critical role in fostering the adoption of water-soluble packaging through regulations and incentives. Policies banning or limiting the use of non-biodegradable plastics and promoting sustainable alternatives have created a favorable market environment. In regions like Europe and North America, strict environmental laws and green initiatives are compelling businesses to adopt biodegradable solutions, giving water-soluble packaging a significant boost.

Expansion in Asia-Pacific: The Asia-Pacific region leads the market, driven by rapid industrial growth, rising awareness of environmental sustainability, and supportive government initiatives. Countries like China, India, and Japan are witnessing increasing adoption of water-soluble packaging in sectors like agriculture, food, and industrial chemicals. This growth is further supported by lower production costs and a strong push toward eco-friendly practices. The region’s dominance highlights the opportunities for manufacturers to expand their presence and cater to a growing demand base.

Market Opportunities:

The global water-soluble packaging market presents significant opportunities driven by the global focus on sustainability and the demand for eco-friendly solutions. One major opportunity lies in the expansion of single-use packaging applications, particularly in industries like detergents, personal care, and pharmaceuticals. With consumers increasingly prioritizing convenience and environmental responsibility, companies can capitalize on this trend by offering innovative, water-soluble solutions that simplify usage while reducing waste. For instance, pre-portioned detergent pods and dissolvable packaging for agrochemicals offer practical and environmentally sound alternatives to traditional plastic packaging, making them highly attractive in both developed and emerging markets.

Another key opportunity is in regional market penetration and product innovation. While the Asia-Pacific region dominates the market, there remains untapped potential in Latin America, Africa, and the Middle East, where sustainability initiatives are gaining momentum. Additionally, advancements in water-soluble materials, such as improved durability and controlled solubility, open doors for applications in high-performance industries like healthcare and industrial chemicals. Companies investing in R&D and collaborating with regulatory bodies to develop industry-specific solutions can gain a competitive edge, addressing both environmental regulations and the diverse needs of end-users across the globe.

Market Restraints:

The growth of the global water-soluble packaging market is constrained by several factors, with high production costs being a primary challenge. Materials like polyvinyl alcohol (PVA), which are commonly used for water-soluble packaging, are significantly more expensive than traditional plastics, making them less accessible for cost-sensitive industries and regions. Additionally, limited durability in humid conditions and sensitivity to moisture can restrict their applicability in certain environments, posing logistical challenges for storage and transportation. Furthermore, lack of awareness and infrastructure for adopting sustainable packaging in developing economies hinders widespread adoption. These barriers necessitate continued innovation and investment to overcome technical limitations and reduce production costs, ensuring broader market penetration.

Market Insights:

The global water-soluble packaging market is bifurcated into material, product, solubility type, end-use, and geography. On the basis of material, the polymers segment dominated the market with the largest market share of around 2/3 of the market, particularly polyvinyl alcohol (PVA), which holds a significant market share. PVA is widely preferred due to its excellent solubility in water, biodegradability, and ability to form films with desirable properties such as strength and flexibility. These characteristics make PVA-based polymers the material of choice in industries such as detergents, pharmaceuticals, agrochemicals, and food packaging. As sustainability concerns grow, PVA-based packaging provides a compelling alternative to conventional plastic packaging, which is often non-biodegradable and contributes significantly to environmental pollution. Additionally, the ability of PVA to dissolve in water without leaving harmful residues aligns with global movements toward reducing plastic waste, making it a leading material in eco-friendly packaging solutions.

The demand for polymer-based water-soluble packaging has been further driven by regulatory support and consumer preference for environmentally responsible products. Government regulations in regions like Europe and North America are tightening the use of single-use plastics, providing a strong push for alternative materials like PVA. Moreover, advancements in polymer technology have enhanced the durability and solubility of PVA films, allowing them to perform effectively in a wider range of conditions and applications. While other materials such as surfactants and fibers are gaining attention, polymers, especially PVA, remain the dominant segment due to their established manufacturing processes, cost-effectiveness, and superior performance across diverse sectors. This dominance is expected to continue as innovation in polymer formulations progresses, making them even more efficient and cost-competitive.

Market Trends for Polymers Sub-category:

• Sustainability and Eco-Friendly Solutions: One of the most prominent trends driving the demand for polymer-based water-soluble packaging is the growing focus on sustainability. Consumers and businesses alike are increasingly seeking alternatives to single-use plastics due to environmental concerns. Polymers like polyvinyl alcohol (PVA) offer a biodegradable solution, dissolving completely in water without leaving harmful residues. This aligns with global initiatives to reduce plastic pollution and adopt more sustainable practices across industries, making PVA-based polymers highly attractive for manufacturers of detergents, personal care products, and agrochemicals.
• Technological Advancements and Innovation: Ongoing advancements in polymer chemistry are improving the performance of water-soluble packaging materials. Innovations are being made to enhance solubility, mechanical strength, and moisture resistance, which address some of the limitations of traditional PVA films. These improvements are enabling polymers to be used in a broader range of applications, from industrial chemicals to food and beverage packaging. Additionally, new formulations of polymers are being developed to improve their cost-effectiveness, which could make water-soluble packaging more affordable and accessible to a wider range of industries and regions.

Market Opportunities for Polymers Sub-category:

• Expansion in Emerging Markets: As environmental awareness grows, emerging markets in Latin America, Asia-Pacific, and Africa present significant opportunities for the polymer-based water-soluble packaging segment. These regions are witnessing rapid industrialization, population growth, and a shift toward eco-friendly alternatives in consumer goods. By entering these markets with cost-effective, biodegradable polymer solutions, companies can tap into the rising demand for sustainable packaging, especially in industries like cleaning products, personal care, and pharmaceuticals.
• Food and Beverage Packaging Innovation: The food and beverage sector offers considerable opportunities for polymer-based water-soluble packaging, particularly for single-serve and portion-controlled applications. Water-soluble polymers can be used for sachets, capsules, and packaging that dissolves when added to water, reducing waste and improving convenience for consumers. As demand for sustainable packaging in this industry increases, polymers like PVA will likely see broader adoption in food products, including ready-to-eat meals, beverages, and snacks, further expanding the market for these materials.

The water soluble packaging market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2024 to 2030.

Historical & Forecast Period

• 2020-22 – Historical Year
• 2023 – Base Year
• 2024-2030 – Forecast Period

Market Segmentation:

By Material:

• Spray-tray Type Deaeration
• Spray Type Deaeration
• Vacuum Type Deaeration

By Product:

• Oxygen Removal

By Solubility Type:

• Oxygen Removal
• Water Heating
• Aroma & Flavor Retention
• Others

By End-Use:

• Food
• Beverage
• Beauty and Cosmetics
• Healthcare
• Chemicals
• Consumer Goods
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the North America is the dominant region in the global water-soluble packaging market, holding a substantial market share of around one-third. This dominance can be attributed to several factors, including the region’s strong regulatory framework that favors sustainability and eco-friendly alternatives. The United States and Canada, in particular, have been proactive in implementing environmental regulations that limit the use of traditional plastics, thereby encouraging the adoption of water-soluble packaging solutions. For instance, various states in the U.S. have introduced bans on single-use plastics and are promoting biodegradable packaging materials like polyvinyl alcohol (PVA). These regulations, coupled with growing consumer awareness and demand for sustainable products, have significantly contributed to North America’s leading position in the market.

Moreover, North America is home to several key players in the packaging industry who are heavily investing in the research and development of water-soluble materials. The region’s advanced manufacturing infrastructure and strong consumer base for personal care, pharmaceuticals, and household products further drive the demand for water-soluble packaging solutions. The increasing adoption of single-dose products in these sectors, such as laundry detergent pods and pre-measured pharmaceutical doses, is a significant growth driver. With robust support from regulatory bodies, increasing environmental awareness, and a well-developed market for eco-friendly products, North America is expected to maintain its leadership in the water-soluble packaging sector.

Competitive Landscape:

Some of the prominent market players operating in the global water-soluble packaging market are Kuraray, Lithey Inc., Mondi Group, SEKISUI CHEMICAL CO., LTD., Mitsubishi Chemical Corporation, and Soltec Development. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In February 2022, Bioplastic International introduced a water-soluble PVA alternative to plastics, aimed at reducing plastic pollution in beaches and oceans. The new material, PVO, is non-toxic to animals, allowing it to be safely ingested by fish, birds, and marine life, passing through their digestive systems without causing harm.
• In 2021, Avient Corporation acquired Clariant’s Masterbatch business, which produces water-soluble polymer compounds. This acquisition is expected to enhance Avient’s product portfolio and strengthen its presence in the water-soluble packaging market.
• In 2019, Kuraray Co. Ltd. acquired MonoSol LLC, a leading U.S.-based water-soluble film manufacturer. This acquisition enabled Kuraray to expand its product offerings and solidify its position in the water-soluble packaging sector.

Key Companies:

• Kuraray
• Lithey Inc.
• Mondi Group
• SEKISUI CHEMICAL CO., LTD.
• Mitsubishi Chemical Corporation
• Soltec Development
• Soluble Technology Limited
• Aquapak Polymers Ltd.
• Rovi Packaging, S.A.
• INVISIBLE COMPANY
• AICELLO CORPORATION
• Medanos Claros HK Limited
• Cortec Corporation
• Acedag Ltd.

Key Questions Answered by Water Soluble Packaging Market Report

• Global water-soluble packaging market forecasts from 2024-2030
• Regional market forecasts from 2024-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2024-2030 covering 15 major countries from the regions as mentioned above
• Water soluble packaging submarket forecasts from 2024-2030 covering the market by type, application, end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level water soluble packaging markets from 2024-2030
• Competitive Landscape and market positioning of top 10 players operating in the market