High-Margin Niche Markets: Why Many Brands are Turning to Pouches

Posted by Ashton Stegman on Aug 7, 2019 11:48:07 AM

A standcap inverted pouch: it’s basically just a fancier name for squeezable packaging without the hassle of battling hard plastic. Not only does this new packaging trend bring consumers convenience, but it also presents a new niche market to capitalize on in the world of converters.

Although brands can be wary of change when it comes to their packaging, pouches may be the catalyst that sparks a packaging evolution, whether brands are ready or not.

And the numbers don’t lie: as the Washington Post reported, after shifting a product to be packaged as a squeezable pouch instead of a hard plastic bottle, a brand - Daisy - experienced “a 69.7 percent increase in sales (despite charging about 25 percent more per ounce than for the traditional tubs). Other companies took notice.” With pouches taking the stage over hard plastic, it is hard to ignore how this flexible packaging evolution came about and what this high-margin application means for converters.

High-Margin Niche Markets_ Pouches

In addition to this type of packaging becoming popular on the basis of convenience, it is also better at reducing spoilage of the products. Therefore, it’s a more sustainable option for consumers. Beyond this type of packaging being applauded by consumers, it’s also a more sustainable option for companies due to the capability of the packaging being stored flat. With pouches gaining steam with both companies and consumers, print houses need to evaluate the possibility of adding pouches to their book of business to capture an expanding channel of revenue.

Before pouches, converters could easily print labels needed for hard plastics on simpler presses. Depending on the look and embellishment of the label, these were straightforward productions for most converters. As packaging continues to diversify into more consumer- and eco-friendly options- converters have the opportunity to capitalize on the niche markets of pouches.

Increasing product offering allows converters to future-proof their business threefold:

1. By preventing customer leakage of those interested in moving jobs to pouches
2. Capturing new pouch business
3. Having the ability to upsell existing label business.

MUESLI_BAG_POUCH-1

Being able to produce this special type of packaging will put your business ahead, and allows customers to have the opportunity to finally give their packaging the update it needs.

Of course, the right OEM technology is necessary to get started. The Mark Andy P9E is the perfect solution for narrow- to mid-web flexible packaging, including pouches. Supporting the widest array of applications and substrates, the P9E is a smart investment to elevate your business by expanding to additional high-margin niche markets.

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About the Author

Ashton Stegman is the 2019 Marketing Intern at Mark Andy’s global headquarters in St. Louis, MO. She is studying strategic communication at the University of Missouri and is interested in content creation, social media, and expanding her knowledge of the printing industry. You can also find Ashton on LinkedIn.

Topics: Flexo, Flexible Packaging

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