The document summarizes the growth of standup pouch packaging from 1998 to 2006, especially for beverages, food, and pet food. It describes how standup pouches provide marketing opportunities for companies by differentiating products and adding convenience. While standup pouches have been successful, further reducing material costs and improving packaging machinery will be important for their continued growth.

1. STANDUP-POUCH PACKAGING
Providing Form, Function,
Convenience and Success
to re►invent your
[Brand ▪ Product ▪ Package]
Prepared by:
Dennis Calamusa
ALLIEDFLEX™ TECHNOLOGIES, INC.
Sarasota, Florida USA www.standup-pouch.com

2. In recent years, Standup-Pouch packaging
has created an interesting marketing
opportunity for many consumer product
companies. Both new and traditional
products have been introduced in a wide
range of categories including single serve
beverages, processed foods, cookies,
snacks, breakfast cereals, confectioneries,
pet treats & pet foods, in addition to a wide range of value added product
applications. These product categories and other emerging markets will increase
the magnitude of this package style in the market for many years to come.
GLOBAL GROWTH 1998 thru 2006
8
7
6
Billion Pouches
5
4 1998
3 2006
2
1
0
Beve rage Food Pe t Food Non Food
North America Growth 2001 thru 2006
4
3.5
3
Billion Pouches
2.5
2 2001
1.5 2006
1
0.5
0
Beverage Food Pet Food Non Food

3. Key Standup-Pouch Markets
Beverage/Liquid Non-Food Food Pet Food
Frozen Food
Fruit Flavored Agri-Chem Prepared Foods Retort Pet Foods
Drinks Sauces & “wet”
Health & Beauty Condiments
Water Powdered Pet Treats
Detergents Beverages
Isotonic Dried Fruit, Salty Dry Pet Foods
Automotive Snacks & Biscuit
Confectionery
Dry Mixes
Retort Foods
The trend toward Standup-Pouch packaging has been mainly driven by
companies looking for ways to differentiate their products from the competition,
add consumer convenience through improved methods of reclosability and in
general provide an innovative marketing approach to stimulate the sales of a
stagnant brand or increase the acceptance and success of a new product
introduction.
Well it worked! We continue to see a dramatic
proliferation of Standup-Pouch introductions in
the market, not just for niche or
new product introductions, but
we have started seeing the cross
over of mainstream products and
in some cases, the shift of
complete product categories to
the Standup-Pouch.
This type of marketing momentum toward a packaging format has
not been experienced in decades.
Today, all packaging is getting more innovative and we can expect to see
continued trending toward the “re- thinking” of consumer convenience with a
renewed focus on the “product’s point of use”.

4. Based on new development efforts underway we will see the further reach of the
Standup-Pouch packaging format into many more product categories including
processed foods, condiments, detergents, health and beauty products and other
household product applications.
The Standup-Pouch has successfully demonstrated the unique ability to
accommodate both dry and liquid applications. Now with the possibility to add not
only zipper for reclosability, but spouts and dispensing features we can expect to
see a new realm of exciting product introductions.
As success grows and we begin transitioning a broader
range of products into the Standup-Pouch package format
there becomes a greater
awareness as to the total cost of
producing the package as it is
brought to market.
Many in the field believe that if the
SUP is going to continue to be embraced we will need to
reduce material cost and continue to enhance SUP
packaging machinery technology to run more productively
and efficiently, in order to reduce the total cost of the
package.
As mentioned earlier the Standup-Pouch has been primarily market and
consumer driven, however the Standup Pouch as a packaging format offers
many more benefits to the packager including opportunities of material cost
reduction as compared to some other more traditional methods. Logistics can
have a major impact on cost particularly when compared to rigid methods of
packaging including bottles, can, jars, composite or spiral cans.

5. The transport, material handling, warehousing and shipping of these rigid
package containers can
dramatically add to the
total cost picture. Many
astute packagers are
beginning to take these logistical costs previously regarded as “fixed costs” into
consideration when selecting new or future packaging alternatives. This is good
for the flexible packaging industry and all parties concerned.
The mere magnitude of a shift from rigid to flexible can be overwhelming to some,
particularly those who have utilized a particular method of packaging for decades,
but this need not be the case as the magic formula to success thus far has been
not necessarily to replace, but rather partner your existing packaging format.
The new Standup-Pouch alternative can
grow market share, adds value and provide
the all important consumer with “choice”.
This implementation process will enable
packagers to perform a gradual transition to
the future as opposed to a blind leap into the
unknown.
Now that the SUP is being commonly
implemented for mainstream and higher
volume product applications, output and
productivity are becoming a more important
focus in the packaging system selection process. Multiple slower machines,
traditionally the only solution, take up valuable floor space, require more support
infrastructure, labor and in total result in higher operating costs.
Companies are more than ever, comparing Standup-Pouch capital investments
and packaging material costs to “continuous motion” high speed bottling, canning
and bag in box packaging lines and the present day economics of labeled bottles,
cans and printed cartons. The packaging machinery technologies for handling
these rigid formats and the economics of these packages have evolved over the
last 50 + years along with the markets they serve.
The flexible packaging industry has not been given the luxury to “evolve” its
technologies over many years, but instead we are being driven by the needs and
the urgency of the market, as it rapidly transitions to innovative flexible packaging
alternatives.

6. The machinery industry is answering back with the continued movement toward
the development of high-speed machinery solutions for both dry, liquid and retort
applications.
Standup-Pouch machinery
builders and packaging material
converters are being pushed by
their customers and the market
to increase productivity and reduce packaging material costs.
In the North American region a growing
infrastructure of Contract Packagers have played
an important role in growing the Standup-Pouch
market and providing consumer product
companies with the opportunity to introduce a SUP
and other innovative flexible packaging solutions
with minimal risk and improved speed to market.
Contract packers can offer that “special expertise”
that only comes from personal experience. This benefit allows you to quickly
“ramp up” reducing your overall cost of implementation and immediately adds to
your quality performance ratio.
Production relates to Economics, Distribution to Product Protection and
Marketing to Form, Function and Graphics. The contract packer can support
all of these vital ingredients to a product….packaging success formula. These
factors are particularly important during a new product / package introduction.
We expect that the contract packaging sector will continue to support the
dramatic growth of the Standup-Pouch as they provide their services and
expertise to their customers that represent a growing diversity of industries.
As these co-packers continue to gain important experience in the flexible
packaging category we expect them to expand and diversify their capabilities,
offering a growing opportunity for all those interested in transitioning to the future
as painlessly as possible.

7. Other innovative pouch styles that are gaining popularity and interest in the
market include:
As all styles of flexible pouch packaging continue to penetrate the market we can
be sure that we will see a “continuous effort” on behalf of the flexible packaging
industry to provide innovate solutions that will support the end users goals of
streamlining their production capability, reduce cost and provide creative ways to
support the market as we move to the next generation of flexible pouch
packaging alternatives.