Market Overview:

The global water-soluble packaging market was valued at USD 3.62 billion in 2024 and is projected to grow from USD 3.80 billion in 2025 to USD 5.67 billion by 2034, exhibiting a CAGR of 6.13% during the forecast period. Water-soluble packaging, designed to dissolve in water, serves as a sustainable alternative to traditional materials like plastic, glass, and metal.

Market growth is driven by increasing environmental concerns and a growing shift in consumer preferences toward eco-friendly packaging solutions. This type of packaging offers the dual benefits of convenience and sustainability, as it dissolves easily and does not contribute to environmental pollution.

Additionally, regulations introduced by the U.S. federal government to limit plastic packaging are fostering significant opportunities for the adoption of water-soluble packaging in various industries.

The U.S. Environmental Protection Agency (EPA) has implemented regulations governing the disposal of plastic waste, while the Food and Drug Administration (FDA) has established guidelines for the use of plastics in consumer goods. These measures are driving the growth of the water-soluble packaging market by encouraging the adoption of sustainable alternatives.

The U.S. market is home to key players in the water-soluble packaging industry, including MonoSol (a Kuraray Division), U.S. Non-Woven, Mondi Group, and SmartSolve Industries, which bolster the demand for such solutions in the region. Increasing awareness about the environmental benefits of water-soluble packaging is further accelerating its adoption among end-users. For example, Saia, a health and beauty brand, utilizes water-soluble packaging for its products, reflecting the growing trend toward eco-friendly practices.

Stringent government policies, such as plastic ban, are also positively influencing the market. For instance, the U.K. government’s draft European Union regulation aims to achieve zero avoidable plastic waste by 2042. This initiative has significantly boosted demand for sustainable packaging options, including water-soluble packaging, across various sectors.

Regional Outlook - 

In 2022, North America dominated the water-soluble packaging market, accounting for over 31.0% of the global market share. This leadership is attributed to the growing demand for water-soluble packaging across key regional industries, including household products and food & beverages.

Additionally, stringent government regulations and increasing consumer awareness about the environmental harm caused by traditional packaging materials are significantly boosting the adoption of water-soluble packaging solutions in the region.

The U.S. market emerged as the largest contributor to North America's water-soluble packaging sector in 2022, holding a revenue share of over 64.0%. This growth is primarily driven by the household sector's increasing demand for cleaning pods and capsules, particularly for laundry and dishwashing applications. The convenience and ease of use of these products, combined with their minimal risk of skin contact due to the absence of harmful chemicals, are fueling market expansion. Additionally, the rising adoption of dishwashers and washing machines has spurred the demand for detergents and dishwasher pods.

In the Asia Pacific, the water-soluble packaging market is projected to grow at the fastest CAGR through 2034, supported by rising demand for sustainable packaging solutions. Countries like China, India, South Korea, and Japan are key contributors due to the high consumption of laundry detergents and personal care products. Regional growth is further bolstered by plastic bans implemented by several governments. For example, in July 2022, the Indian government banned single-use plastics to combat plastic pollution and reduce landfill waste.

China held the largest market share in the Asia Pacific region in 2022, driven by the rapid expansion of end-user industries and heightened consumer awareness of sustainable packaging. The Chinese government has introduced regulations to limit plastic packaging use, such as the National Development and Reform Commission's targets to reduce single-use plastic consumption, further promoting demand for eco-friendly packaging solutions.

In Europe, the water-soluble packaging market captured a significant share in 2022, largely due to increased demand from the household sector. The rising trend of independent living and busy lifestyles has amplified consumer demand for convenient and easy-to-use products, driving interest in cleaning pods and similar solutions.

Strict government regulations and an emphasis on sustainability are also key drivers in the region. For instance, since January 2019, the Italian government has imposed taxes on non-recyclable plastic packaging, prompting manufacturers like ECOMAVI Srl to adopt sustainable alternatives such as water-soluble packaging. These regulatory measures, coupled with growing consumer preferences for eco-friendly products, continue to propel market growth across Europe.

Leading Companies and Market Share Analysis

Leading companies in the water-soluble packaging market often pursue mergers and acquisitions to strengthen their market presence in specific regions. Additionally, many engage in technological collaborations to develop advanced products with enhanced performance features, driving revenue growth.

For example, in July 2022, Aquapak announced a partnership with Industrial Physics, a global inspection company specializing in packaging, materials, and products. This collaboration aims to enhance Aquapak’s Hydropol range of water-soluble sustainable packaging solutions, demonstrating the industry’s focus on innovation and sustainability.

Some prominent players in the global water-soluble packaging market include:

Acedag Ltd

AICELLO CORPORATION

Aquapak Polymers Ltd.

Changzhou Haoteng Environmental Protection New Material Technology Co., Ltd.

Cortec Corporation

EOS Plast Srl

Green Master Packaging

Guangdong Proudly New Material Technology Corp.

INVISIBLE COMPANY

Kuraray

Lithey Inc.

Medanos Claros HK Limited

Mitsubishi Chemical Corporation

Mondi Group

Rovi Packaging, S.A.

SEKISUI CHEMICAL CO., LTD.

Soltec Development

Solubag

Soluble Technology Limited

Solupak

Global Water-Soluble Packaging Market Report Segmentation

This report provides revenue forecasts at the global, regional, and country levels, along with an analysis of the latest industry trends across various sub-segments from 2020 to 2034. For this analysis, Grand View Research has segmented the global water-soluble packaging market based on material, product, solubility type, end-use, and region:

• Material Outlook (Revenue, USD Billion, 2020 - 2034)
  • Polymers
  • Surfactants
  • Fibers
• Product Outlook (Revenue, USD Billion, 2020 - 2034)
  • Bags
  • Pouches
  • Pods & Capsules
• Solubility Type Outlook (Revenue, USD Billion, 2020 - 2034)
  • Cold Water
  • Hot Water
• End-use Outlook (Revenue, USD Billion, 2020 - 2034)
  • Household Products
  • Agriculture
  • Medical
  • Retail
  • Chemicals
  • Water Treatment
  • Animal Waste
  • Fishing
  • Others
• Regional Outlook (Revenue, USD Billion, 2020 - 2034)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • France
    • Spain
    • Italy
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Southeast Asia
  • Central & South America
    • Brazil
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • United Arab Emirates
    • South Africa