Water Soluble Packaging Market Summary
The market for water-soluble packaging was valued at USD 3.44 billion in 2024 and is expected to increase at a compound annual growth rate (CAGR) of 5.5% from 2025 to 2030, reaching USD 4.70 billion. A sustainable substitute for conventional packaging materials, including plastic, glass, and metal, soluble packaging is made to dissolve in water.
Key Market Trends & Insights
- North America accounted for the largest market share of over 32.3%, in 2024 in the water-soluble packaging market.
- The U.S. market is the largest contributor to the North American region in 2024.
- By material, the polymer segment dominated the market in 2024 and accounted for 65.8% of the revenue share.
- By product, the bags segment accounted for the largest market share in 2024.
- By solubility, the demand for hot water solubility accounted for a higher market share in 2024.
Market Size & Forecast
- 2024 Market SizeUSD 3.44 Billion
- 2030 Projected Market SizeUSD 4.70 Billion
- CAGR (2025-2030)5.5%
- North AmericaLargest market in 2024
- Asia PacificFastest growing market
Growing environmental concerns and a change in customer demand for sustainable packaging solutions are the main drivers of the water-soluble packaging market's expansion. Customers can use this package with ease; it dissolves readily, and it produces very little pollution. Numerous laws pertaining to plastic packaging have been put into place by the US federal government, which is opening up new markets for the water-soluble packaging sector. The market expansion for water-soluble packaging solutions is further fueled by regulations set by the Food and Drug Administration (FDA) and the U.S. Environmental Protection Agency (EPA) for the disposal of plastic waste and the use of plastics in consumer goods, respectively.
The demand for water-soluble packaging in the United States is met by a large variety of manufacturers, including U.S. Non Wovens, Mondi, Smart Solve Industries, and MonoSol (a Kuraray Division). End users in the United States are adopting water-soluble packaging solutions at an increasing rate due to growing understanding of their advantages. For example, the health and beauty company Saie packages its goods in water-soluble materials.
The rise of the water-soluble packaging business has also benefited from strict government rules banning plastic. To achieve zero avoidable plastic waste by 2042, for example, is the goal of the UK government's draft European Union rule. The government's initiative has also raised demand for environmentally friendly packaging options, including water-soluble packaging.
Market Concentration & Characteristics
Several businesses contribute to the total market share and product innovation in the moderately concentrated water-soluble packaging market. Numerous small-scale start-ups are another feature of the market that promotes more innovation in product creation. The market is growing at a steady pace. Over the coming decades, it is anticipated to increase at a faster rate.
Innovation in the market for water-soluble packaging has been increasing, particularly in the use of sustainable materials such as fibers from natural sources, polymers, and surfactants. Companies are creating extremely soluble and extra-strong packaging for a range of uses, such as in the chemical, retail, and medical sectors. Improvements in water-soluble packaging also show continuous innovation and steady R&D expenditures.
Environmental restrictions greatly impact water-soluble packaging solutions and responsible material procurement. Governments in North America and Europe have enacted restrictions on single-use plastics and requirements for recycled content. These restrictions are compelling brands to adopt compostable and water-soluble alternatives. Compliance is becoming a major factor in product positioning and R&D. The significant regulatory effect continues to shape future market offerings.
Manufacturers of water-soluble packaging are aggressively growing their product ranges to solve the waste problems associated with conventional packaging. Compostable and water-soluble packaging are examples of eco-friendly substitutes that are becoming more popular. Additionally, businesses are providing specialized packaging solutions for a range of end-use industries. Demands from consumers and the environment are driving healthy product expansion.
Water-soluble packaging is being used by businesses from various sectors as part of their sustainability initiatives. For its homecare products, such as detergents, shampoos, bath soaps, and gels, brands including Procter & Gamble, Unilever, and Reckitt Benckiser Group use water-soluble pods. Additionally, businesses are forming strategic partnerships to create and modify product packaging.
Report Coverage & Deliverables
The PDF report & online dashboard will help you understand
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Material Insights
Water-soluble packaging is divided into three categories based on the materials usedfibers, polymers, and surfactants. Of these, the polymer sector held a 65.8% revenue share in 2024, dominating the market. Because of its exceptional water solubility and potent film-forming capabilities, polyvinyl alcohol is frequently utilized as a water-soluble packaging material. These polymers are compatible with a broader variety of product constituents, including aggressive chemicals, enzymes, and other active components used in the home, medical, agricultural, and personal care industries.
Over the course of the projection period, the fiber segment is anticipated to grow at a significant CAGR of 5.2%. While synthetic fibers come from cereals like corn and wheat and are then utilized to make fiber-based water-soluble packaging solutions, natural fiber materials come from plant sources like wood pulp. An example of a fiber-based packing material that reduces environmental effects in comparison to traditional plastic packaging options is water-soluble paper. These goods contribute to the growth of the market for fiber-based, water-soluble packaging.
Product Insights
We divide the market for water-soluble packaging into three product categoriesbags, pouches, and pods & capsules. The bags category held the most market share among these in 2024 and is anticipated to continue to dominate the market for the duration of the projection. The medical packaging industry widely uses it, especially for disposable products and contaminated laundry bags. Both manufacturers and consumers choose water-soluble bags because of their ease of use and convenience. A research study conducted in April 2024, for example, found that more than 92% of hospital laundry employees had come into contact with tainted linen, highlighting the high danger of infection in healthcare environments. Water-soluble laundry bags, which can be put straight into washing machines, have been used by several hospitals to lessen the amount of time that soiled linens are handled directly and to improve infection control procedures. Additionally, the growing regulatory emphasis on hospital hygiene requirements is driving the need for safer and more environmentally friendly packaging solutions. Therefore, we anticipate continued growth in the demand for water-soluble medical bags, particularly in hospitals, assisted living facilities, and emergency rooms.
We expect the pouches segment to grow at a significant CAGR over the projection period. Single-dose packaging of products, including laundry detergents, industrial cleaning agents, agricultural chemicals, and personal care items like bath additives, is a typical usage for water-soluble pouches. Because they dissolve entirely in water without producing waste, they serve as a sustainable and convenient alternative to traditional plastic packaging. The growing need for pre-measured, biodegradable packaging in sectors including personal care, home care, and agriculture is anticipated to support this market's sustained expansion in the upcoming years.
Solubility Insights
The need for hot water solubility drove a larger market share in 2024. Traditional packaging materials no longer need to be measured, handled, or disposed of because the packaging dissolves fast and readily in hot water that is normally between 60°C and 80°C. This capability is one of the main factors influencing this segment's demand.
Because cold-water-soluble packaging dissolves rapidly at temperatures lower than 20°C and does not require hot or warm water, it provides increased energy efficiency. The market for cold-water-soluble packaging is anticipated to be stimulated by the growing demand for water-soluble packaging due to growing environmental consciousness and the drive for eco-friendly packaging solutions. For example, Emballator debuted hard PVOH containers that dissolve in cold water in 2021. These containers offer a creative and environmentally friendly way to package dry goods while lowering plastic waste because they can be customized to match the demands of individual customers.
End-use Insights
The demand from the household products segment accounted for the largest market share in 2024, owing to the wide application of water-soluble packaging in laundry detergent pods and other household cleaning products, such as drain cleaner pods, glass cleaner pods, and toilet blocks. Many companies started to provide household products in such water-soluble packaging. For instance, Unilever Group, a global household cleaning products manufacturer, offers a wide range of laundry detergent in Water-soluble packaging. Such packaging provides a convenient and efficient way of dispensing cleaning products without the need for measuring or handling bulky containers. Such innovations in household product packaging are fueling the demand for this segment.
The consumption of water-soluble packaging in the agriculture industry is expected to grow the fastest during the forecast period of 2025 to 2030. Fertilizers and pesticides use water-soluble packaging solutions to reduce waste and minimize its environmental impact. Furthermore, hospitals, healthcare centers, and nursing homes widely use water-soluble packaging in the form of laundry bags. These water-soluble laundry bags are used to wash the contaminated and infected laundry of patients without the risk of infection, as these bags are dissolvable in water when they are put together in a washing machine along with laundry.
In the retail sector, water-soluble packaging is used in garment bags, grocery bags, and other consumer goods packaging. The personal care industry is adopting this packaging solution to eliminate plastic packaging usage due to stringent government regulations on plastic ban and plastic waste management For instance, the Government of Canada introduced the Single-Use Plastics Prohibition Regulations, which came into effect in December 2022. These regulations aim to eliminate specific categories of single-use plastic items such as checkout bags, cutlery, stirring sticks, and food service ware by regulating their manufacture, import, and sale. This measure is part of Canada’s broader strategy to achieve zero plastic waste by 2030. Such proactive government initiatives are encouraging industries to adopt sustainable alternatives, including water-soluble packaging.
The chemical industry is expected to expand at a significant rate during the forecast period on account of the fast-growing trend of fabric dyeing. Dye pods have gained popularity among the younger generation due to their convenience and ease of use. These pods are simply dropped in water along with the fabric, and they dissolve and release the color into the water, eliminating the packaging waste.
Regional Insights
North America accounted for the largest market share of over 32.3%, in 2024 in the water-soluble packaging market. This is owing to the increasing demand for environmentally friendly packaging solutions from various regional end-user industries, including household products, healthcare, and food & beverages. In addition, the stringent government regulations and the rising awareness among consumers about the negative environmental impact of traditional packaging materials are driving the demand for such packaging solutions in North America.
U.S. Water Soluble Packaging Market Trends
The U.S. market is the largest contributor to the North American region in 2024. Rising household sector demand for cleaning pods and capsules, particularly for laundry and dishwashers, primarily drives this growth. These products offer convenience and safety, with formulations designed to minimize skin contact with harmful chemicals. Additionally, the increasing adoption of dishwashers and washing machines has bolstered the market for water-soluble detergents and dishwasher pods.
Beyond household use, the expanding U.S. healthcare sector is also fueling demand. For instance, in 2023, National Health Expenditure (NHE) grew by 7.5% to $4.9 trillion, accounting for 17.6% of the country’s GDP, with spending reaching $14,570 per person. Medicare spending rose by 8.1% to $1,029.8 billion (21% of total NHE), while Medicaid spending increased by 7.9% to $871.7 billion (18% of total NHE). This substantial growth in healthcare spending drives the demand for hygienic, sustainable packaging solutions—such as water-soluble laundry bags used in hospitals and care facilities to safely handle contaminated materials without direct contact. As a result, the healthcare sector is a significant contributor to the rising demand for water-soluble packaging in the U.S.
Europe Water Soluble Packaging Market Trends
Europe accounted for a significant market share in 2024 due to the increased product demand from the household segment and stringent government regulation pertaining to environmental protection. The trend toward independent living in the region has led to hectic and busy schedules among consumers, giving rise to an increased demand for products that are convenient and easy to use. Consumer buying such products has a positive impact on the water-soluble packaging market due to the growing demand for cleaning pods. Moreover, stringent government regulations on plastic bans and a growing emphasis on sustainable packaging are driving the market demand for these solutions in the region. For instance, in December 2024, the European Council approved the Packaging and Packaging Waste Regulation, which mandates that all packaging must be recyclable or reusable by 2030. This regulation is pushing industries to adopt innovative, eco-friendly materials, such as water-soluble films, further accelerating market growth.
Asia Pacific Water Soluble Packaging Market Trends
Asia Pacific is poised to expand at the fastest CAGR of 6.4% through 2030 in the market for water-soluble packaging, owing to the rising demand for sustainable packaging solutions in the region. Countries such as China, India, South Korea, and Japan are major contributors to the market growth, owing to the high demand for laundry detergents and personal care products. Moreover, the ban on plastic packaging in various countries is fueling regional market growth.
In 2024, China will account for the largest market share in the Asia-Pacific region. The rapidly growing end-user industries and increased consumer awareness about sustainable packaging solutions are responsible for this. The Chinese government has been implementing certain regulations to reduce plastic packaging usage in the country, which is positively impacting the demand for sustainable packaging solutions. For instance, China's National Development and Reform Commission (NDRC), in collaboration with the Ministry of Ecology and Environment, has outlined a comprehensive plan to reduce single-use plastic consumption by 2025. This initiative is part of the 14th Five-Year Plan (2021-2025) aimed at controlling plastic pollution.
Key Water Soluble Packaging Company Insights
Key players in the Water Soluble Packaging Market include 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., Changzhou Haoteng Environmental Protection New Material Technology Co., Ltd., Green Master Packaging, Guangdong Proudly New Material Technology Corp., Solupak, EOS Plast Srl, and Solubag.
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Kuraray Co., Ltd. is a global leader in water-soluble films under the brand "Eval and Poval," known for their high-quality polyvinyl alcohol (PVA) materials used in packaging detergents, agrochemicals, and pharmaceuticals. The company focuses on innovation and sustainability in polymer science.
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SEKISUI CHEMICAL CO., LTD. manufactures water-soluble and biodegradable films used in various household and industrial applications. The company is recognized for its environmental stewardship and consistent R&D in advanced functional materials.
Key Water-Soluble Packaging Companies
The following are the leading companies in the water-soluble packaging market. These companies collectively hold the largest market share and dictate industry trends.
- 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
- Changzhou Haoteng Environmental Protection New Material Technology Co., Ltd.
- Green Master Packaging
- Guangdong Proudly New Material Technology Corp.
- Solupak
- EOS Plast Srl
- Solubag
Recent Developments
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In October 2024, Solubag secured Series A funding worth USD 4.5 million led by Exit Ventures, with participation from Between the Coasts Ventures, Landon Ainge, and others. This investment was made with an aim to accelerate the development and commercialization of Solubag's patented water-soluble materials designed to replace single-use plastics.
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In October 2024, British packaging firm Mondi plc announced the €634 million acquisition of Schumacher Packaging’s assets in Germany, Benelux, and the UK.
Water Soluble Packaging Market Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 3.60 billion |
|
Revenue Forecast in 2030 |
USD 4.70 billion |
|
Growth Rate |
CAGR of 5.5% from 2025 to 2030 |
|
Base year for estimation |
2024 |
|
Historical data |
2018-2023 |
|
Forecast period |
2024-2030 |
|
Report updated |
June 2024 |
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Quantitative units |
The report presents the revenue in USD million and the compound annual growth rate (CAGR) from 2024 to 2030. |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Material, product, solubility, end use, and region |
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Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
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Country scope |
U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Spain; China; India; Japan; South Korea; Australia; Southeast Asia; Brazil; Chile; Saudi Arabia; UAE; South Africa |
|
Key companies profiled |
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; Changzhou Haoteng Environmental Protection New Material Technology Co., Ltd.; Green Master Packaging; Guangdong Proudly New Material Technology Corp.; Solupak; EOS Plast Srl; Solubag |
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Customization scope |
Free report customization (equivalent to up to 8 analysts' working days) with purchase. Changes or additions to the scope of the country, region, and segment are possible. |
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Pricing and purchase options |
Avail yourself of customized purchase options to meet your exact research needs. Explore purchase options |
Global Water Soluble Packaging Market Report Segmentation
This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, MIR has segmented the global water-soluble packaging Market report based on material, product, solubility type, end-use, and region
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Material Outlook (Revenue, USD Million, 2018-2030)
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Polymers
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Surfactants
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Fibers
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Product Outlook (Revenue, USD Million, 2018-2030)
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Bags
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Pouches
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Pods & Capsules
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Solubility Type Outlook (Revenue, USD Million, 2018-2030)
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Cold Water
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Hot Water
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End-use Outlook (Revenue, USD Million, 2018-2030)
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Household Products
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Agriculture
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Medical
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Retail
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Chemicals
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Water Treatment
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Animal Waste
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Fishing
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Others
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Regional Outlook (Revenue, USD Million, 2018-2030)
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North America
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U.S.
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Canada
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Mexico
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Europe
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U.K.
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Germany
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France
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Spain
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Italy
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Asia Pacific
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China
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Japan
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India
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South Korea
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Australia
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Southeast Asia
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Central & South America
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Brazil
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Chile
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Middle East & Africa
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Saudi Arabia
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United Arab Emirates
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South Africa
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