Water-Soluble Films Market Expected to Reach $644.7 Million by 2030

According to a new report published by Allied Market Research, titled, "Water-Soluble Films Market by Product Type, Dissolution Rate, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030," the global water-soluble films market size was valued at $352.0 million in 2020, and is projected to reach $644.7 million by 2030, growing at a CAGR of 6.3% from 2021 to 2030.

Water soluble films, also known as polyvinyl alcohol (PVA/PVOH) film is a colorless and odorless synthetic polymer that is manufactured from polyvinyl alcohol. It is soluble in water and possesses flexibility, high tensile strength, adhesive and non-toxic properties.  

The growing population has increased the demand for crop production. For instance, according to a report published by the Economic Survey of India, the total food grain production in the country was 296.65 million tons in 2020 that is 11.4 million tons more as compared with 285.21 million tons in 2019. Moreover, technological advancements in agricultural sectors have led to a rapid shift from traditional farming methods to advanced farming methods where water soluble films are widely used for packaging of fertilizers and pesticides bags owing to their unique physical property and biodegradability. In addition, increasing use of water-soluble films for packaging of powdered chemicals is anticipated to augment the demand of the global water-soluble films market.

However, the manufacturing process of water-soluble films involves several stages such as preparation of resin mixture, heating & melting, and extrusion. In addition, it requires skilled professional and highly sophisticated machines for manufacturing of these films. This makes the end product relatively expensive as compared to other substitute products such as high-density polyethylene (HDPE) films and plastic films available in the market. This factor is anticipated to restrain the market growth.

Development of consumable water-soluble films is anticipated to offer new opportunity. The applications of water-soluble films have widened attributed to the emergence of edible water-soluble films that can be used for packaging of food items ready for direct intake. It is produced from water soluble cellulose polymer that can be converted into bags and wrappers on conventional machines. It finds it applications in packaging of flavors, enzymes, vitamin fortifiers, conditioners, yeast and drink mixes, and other food & beverage items. In addition, the increasing penetration of sustainable food packaging in the food sector of both developed and developing economies is also predicted to offer growth opportunities to the global water-soluble films market.

The water-soluble films market analysis is done on the basis of product type, dissolution rate, end-use, and region.

By product type, the market is segregated into hot water-soluble film and cold water-soluble film. The cold water-soluble film type dominated the global market in terms of revenue in 2020, with over 54.6% of the total share. The increasing severity of diseases has led the pharmaceutical sector to witness a significant growth where cold water-soluble films are widely used for packaging applications. For instance, according to a report published by National Investment Promotion & Facilitation Agency, the Indian pharmaceutical sector is expected to reach $65 million by 2024 and $120-$130 million by 2030. This is anticipated to increase the sales of hot water-soluble films; thus, creating lucrative opportunities for the market.

By dissolution rate, the market is segregated into fast soluble film, medium soluble film, and slow soluble film. The medium soluble film type dominated the global market in terms of revenue in 2020, with over 41.8% of the total share. The increasing trends for sustainability have surged the utilization of fast soluble films in the packaging of agrochemical products owing to their biodegradability and high dissolution rates.

This may foster the growth of the water-soluble films market. In addition, the emergence of edible soluble films is gaining interest as an alternative to dissolving tablets. This may open up new opportunities for the water-soluble films market with moderate dissolution rates.

By end use, the market is fragmented into textile, pharmaceutical & healthcare, agriculture, consumer goods, and others. The consumer goods segment dominated the global market, with over 37.3% of the total share in 2020. The increasing demand for various household and personal care products such as detergent packets, laundry and dishwasher packs are witnessing continuous growth. Nowadays, these products are available in the market in packs that are encapsulated with water soluble films. This helps reduce the task of pouring and measuring powders or liquids.

Region-wise, the water-soluble films market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific water-soluble films market is projected to witness growth at the highest CAGR during the forecast period, the increased penetration of organized retail and rising income level have surged the growth of the textiles sector in India where water soluble films are used as a proximal cloth for embroidery applications in textiles. This may propel the growth of the water-soluble films market in the region. In addition, the rise in residential and commercial building & construction projects in countries such as India and Australia, where water soluble films are widely used for packaging of cement and additives, dyes, and fibers.

Key players operating in the global water-soluble films market include Mitsubishi Chemical Corporation, KURARAY Co. Ltd., Sekisui Specialty Chemicals, AICELLO Corporation, Arrow GreenTech Ltd., Cortec Corporation, Soluble Technology Limited, ACEDAG Ltd., Jiangmen Cinch Packaging Materials Co., Ltd., and Joyforce Chemical Industrial Co., Ltd.

The global market analysis covers in-depth information of the major water-soluble film industry participants.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The major end-users of water-soluble films such as textile, consumer goods, agriculture, food & beverages, packaging, and others have been negatively impacted due to the ongoing pandemic outbreak. The ongoing health crisis has increased the supply-demand gap, hampering the global water-soluble film supply chain. According to a report published by Molecular Diversity Preservation International (MDPI), the South African food and non-alcoholic beverage sector have gone through a moderate decline of the flow of income by -10% to -30%, whereas the alcoholic beverages have experienced a bigger impact of -60% in 2020. This in turn has decreased the demand for water soluble film in the food & beverages sector amid the COVID-19 period. Also, more than 100 countries have locked their international borders for transportation and non-essential trade activities, which in turn have reduced the consumption of water-soluble films among the packaging sectors. Furthermore, the temporary shutdown textile manufacturing sectors amid the COVID-19 period has reduced the consumption of water-soluble films for the packaging of contaminated textiles products. This has resulted in decreased consumption of water-soluble film in the textile industry.

However, the water-soluble films market is expected to recover rapidly post COVID-19 situation, due to its increased dependency over healthcare & pharmaceutical, e-commerce, industrial packaging, and other sectors. For instance, according to an article published by Business Standard, the COVID-19 second wave has pushed the Indian pharmaceutical sector to grow by around 59% in April 2021. In addition, as the restrictions imposed due to lockdowns are being lifted, the water-soluble films market is expected to recover soon owing to increasing demand for water soluble industrial packaging products among several end use sectors. This is expected to enhance the performance of the water-soluble films market post-COVID-19 scenario.

Key findings of the study

• The cold-water soluble film product type segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.5% from 2021 to 2030.
• The medium dissolution rate segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.7% from 2021 to 2030.
• The pharmaceutical & healthcare end-use is anticipated to register the highest CAGR of 6.8% during the forecast period.
• North America accounted for 38.1% of water-soluble films market share in 2020, in terms of revenue, growing at a CAGR of 6.4