Food Packaging Market: Overview
The market size for Food Packaging was USD 327.5 billion in 2021, projected to grow at a CAGR of 5.3 percent during the forecast period. Growing consumer demand for packaged goods due to changing dietary preferences and altering lifestyles may have a critical impact on the market. Due to their high barrier qualities, shelf lives, and consumer safety, products will be in greater demand as the population and per capita income rise. The convenience food market is anticipated to develop due to increased demand for ready-to-eat snacks from sedentary lifestyles. Most consumers are shifting too quickly to consumable foods, fueling market growth for food packaging.
The expanding trend of clean labeling significantly contributes to the overall market expansion since consumers are becoming more concerned with simple and fewer synthetic chemicals on product labels. Clean labels do not list unhealthy substances, such as chemical formulas of synthetic compounds. Clean-label products such as starch, natural sweeteners, fruits, vegetables, and colors and flavors were sold for $38.8 billion in 2021. As a result, during the projection period, the market for food packaging will be driven by the rising trend of clean-label products.
The food packaging industry is dispersed. Businesses are offering significant product customization to grow their market share and boost their profitability. To comply with shifting government rules, they are trying to swap out current products for biodegradable ones. The market is highly competitive as a result of the existence of numerous firms. Leading packaging manufacturers are carefully improving their positions to seize possible possibilities in the expanding food packaging sector. For instance, in May 2021, Coveris Group purchased the flexible packaging company Four04 Packaging from the UK. To preserve the quality of fresh food and bakery goods, Four04 Packaging was inventing creative solutions.
Food Packaging Market: COVID-19 Impact
Since the food business is considered crucial by all nations, the impact of COVID-19 on the global market is lower than in other manufacturing industries. Flexible packaging companies supplying industries such as packaged foods are projected to fare well during the continuing pandemic. Changing consumer demand patterns, government policies, and hoarding drive demand for packaged foods. Because of the increased food safety crisis during the pandemic, many customers in developing nations such as India have altered their choice from unpackaged food to packed food. Additionally, the development in e-commerce retail during the pandemic contributed to the growth of domestic packaged food sales and flexible Packaging for packaged foods. However, trade barriers and supply chain disruptions are constraining global market expansion. Packaging providers' mitigation methods and regional government relief packages to help the economy recover are expected to increase the market growth.
Food Packaging Market: Drivers
Growing Demands for Food Shelf-Life Improvement to Drive Market Growth
Food that has been packaged takes some time to get to consumers worldwide. Before it reaches the consumer, the packaged food may not be fresh and may have lost its flavor and scent. Food spoilage before it reaches the consumer is becoming a greater risk because it would mean losing the money invested in the packing. To combat this, the food processing industry invests in novel packaging methods and technologies, including intelligent packaging and engineering science, which lengthens the product's shelf life. Businesses emphasize customer happiness from profits because it affects their reputation and market worth. According to a Consumer Action survey of Americans, in July 2019, 34% of adults knew that cardboard, followed by plastic 26%, glass 21%, and metal 8%, was the most recyclable food packaging material. Consumer preference for packaged goods with a longer shelf life is being influenced by rising health consciousness and understanding of the importance of eating fresh food. Therefore, the market expansion is driven by the increased demand for items with a longer shelf life in nations like the United States.
Packaging Innovation in Food Industry to Drive Market Growth
Rising packaging innovations offer a chance for market expansion. Plastic Packaging is great for developing creative product solutions. Plastic cling film is one of the many types of plastic Packaging that is still used today. The market is shaped by the trend toward environmentally friendly Packaging and cutting-edge advances in cling film packaging. This innovation offers a variety of packaging possibilities, including edible/biodegradable Packaging, active Packaging, nanocomposites, intelligent Packaging, and many packaging design options. These packaging options support increased market accessibility, inventory management, consumer education, improved shelf life, and the assurance of the food product's safety and quality.
Food Packaging Market: Restraints
Rapid Changing Technologies and Rising Cost of Raw Materials to Hamper Market Growth
One of the primary raw materials for food packaging is plastic. Synthetic polymers like polypropylene and polyethylene produced from natural resources are used to make plastic Packaging. The packaging industry is impacted by the shifting cost of various raw materials. The price of these raw materials is also rising due to laws the government and groups have set around resource conservation, preventing the market from expanding. The lack of readily available raw materials is a barrier to technological innovation in packaging solutions. Many novel packaging technologies are becoming unaffordable due to high raw material costs, and businesses are forced to rely on conventional Packaging, which negatively impacts the economy and the environment.
Food Packaging Market: Segment Overview
Paper & Board Segment to Dominate Market Due to its Recyclable and Eco-Friendly Nature
Based on materials, the material is segmented into paper & board, metal, rigid plastic, flexible plastic, glass and others (wood and textile). Paper & board have the largest market share due to their recyclable and eco-friendly nature, adaptability, and lower carbon emissions, making them suitable for food packaging. The key driver driving the market is the increased use of paper in packaging various rapidly eatable foods, fresh vegetables, and drinks. Glass is commonly used for long-term preservation and Packaging of food products or reusable items. glass is a widely used material that is GRAS-certified by the US FDA since it is 100% recyclable. glass is a widely used material that is GRAS-certified by the US FDA since it is 100% recyclable.
Rigid Category to Dominate Market Owing to its Increased Use in Vegetables and Fruits
The market is segmented based on types: rigid, semi-rigid and flexible. Rigid Packaging has the largest market share among these options, owing to its increased use in vegetables, fruits, and other easily crushable food goods. Consumer lifestyle changes and increased consumption of bread, sausages, and other snacks will drive industry demand, particularly in China, India, Germany, and the United Kingdom. The growing number of food retail outlets with novel product introductions may drive the market size. However, semi-rigid Packaging is made of plastics and cardboard and is mostly used to preserve food from humidity, rot, and severe environments. These materials are lightweight, non-corrodible, shock-resistant, heat-sealable, and mostly used for microwaveable applications.
Furthermore, flexible Packaging is becoming increasingly popular due to technical innovation and inventive product packaging solutions. Flexible Packaging utilizes substantially less material than rigid containers and requires significantly less energy during product production. Furthermore, the production process of flexible Packaging emits fewer greenhouse gas emissions, resulting in a cleaner environment.
Food Packaging Market: Regional Landscape
Asia Pacific to Dominate Market due to Raising Standard of Living for Locals
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. The region's customers' discretionary income has grown significantly, raising their ability to spend and raising the standard of living for locals. The need for food packaging in this region is rising due to China and India's expanding urban populations. India and China made up more than 70% of the Asia-Pacific market in 2018. The market is expanding due to the rising exports of fruits and vegetables to the Asia-Pacific region. Fruit and vegetable imports worldwide have climbed by 17.6%, while those in the Asia Pacific region have increased by an astounding 51.6%. Additionally, in a nation like India, where the need for online meal ordering is rising, packaged food boxes are becoming more and more popular in the food packaging industry.
The North American market is anticipated to experience stable revenue growth throughout the forecast period, ascribed to a rise in the use of packaged foods. The eating habits of consumers are also changing from fast food to packaged foods that are healthier and of higher quality. To protect the environment, people prefer eco-friendly packaging options, including biodegradable Packaging and sustainable packaging solutions. In July 2021, the Indian Defense Research and Development Organization (DRDO) introduced biodegradable food-grade materials with the aid of Ecolastic and Acharya Nagarjuna University. Over the forecast period of 2022–2027, such variables aid the segment's growth.
Global Food Packaging Market: Competitive Landscape
In July 2021, ProAmpac, a flexible Packaging and material science pioneer, purchased Ultimate Packaging. Ultimate Packaging is one of the biggest independent flexible packaging producers in the UK. ProAmpac will be able to strengthen its position in the market with the support of Ultimate, which specializes in creative packaging solutions that increase product shelf life, convenience, and recyclable product range. Similarly, in July 2020, Mondi collaborated with Hütthaler, an Austrian meat producer, to develop a 100% recyclable thermoforming film consisting of a single material for their meat and sausage products. The film is constructed of a single substance that can be recycled and acts as a barrier to preserve the food and extend its shelf life.
A few players in the Food Packaging Market include Amcor Ltd. (Australia), Rock-Tenn Company (U.S.), Sealed Air Corp. (U.S.), Nuconic Packaging LLC (U.S.), Tetra Pak International S.A. (Switzerland), and Crown Holdings, Inc. (U.S.).
Regional Classification of the Global Food Packaging Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Food Packaging Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.View Methodology