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The food contact paper market is estimated to grow by USD 63.99 billion at a CAGR (Compound Annual Growth Rate) of 9.23% between 2022 and 2027. The global demand for food contact paper stems from its eco-friendly nature compared to plastic and aluminum counterparts, addressing environmental concerns and waste generation. Paper boxes, made from durable paper, offer sustainable packaging solutions with high recyclability. Many companies prioritize reusable, compostable, and recyclable packaging in response to global issues like ocean waste. Mondi, for instance, offers a range of such products, sourced from recycled materials and sustainable forests, contributing to environmental sustainability and driving growth in the food contact paper market.
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The growing sales of food products on e-commerce platforms are notably driving market growth, although factors such as the easy availability of substitutes may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing sales of food products on e-commerce platforms are notably driving the market growth. Food products, apart from being sold in retail outlets and shops, have entered the e-commerce platform. Hence, having durable primary packaging that retains quality and freshness is imperative. Improper packaging causes damage, ultimately affecting the brand's reputation and resulting in financial losses. Therefore, this increases the demand for primary packaging. Food contact papers are predominantly used in the packaging of food products.
Grocery sales are increasing, with online grocery sales. Large companies such as Amazon.com provide online grocery delivery services like Amazon Fresh's next-day delivery, Amazon subscribe and save, and Amazon dash button. The demand for retail e-commerce packaging is expected to increase across all developed economies. This is because of the convenience and wide selection of goods available online. The largest demographic of online shoppers, the millennials, is expected to drive the e-commerce market. This is because of the ease of viewing and comparing products on mobile devices. The food and beverage segment is expected to emerge as the most promising area for e-commerce packaging solutions during the forecast period. It will likely serve as an uptick in demand for food contact paper across the world, which will drive the growth of the global market during the forecast period.
Increasing use of recycled fibers is an emerging trend in the market. The use of recycled fibers can significantly cut back energy consumption in pulp and paper production. The rise in awareness of the reduce, reuse, and recycle (3R) principle increases page recycling. Recovered papers are used in pulp production because they consume significantly low energy. Moreover, manufacturing pulp from recovered sheets is an easy and economical alternative to mechanical and chemical pulp manufacturing.
Recovered paper pulp can be used either exclusively or in combination with various types of virgin pulps to produce food contact page products. Recycling one ton of newspaper and printing and writing sheets can save approximately one to two tons of wood. In addition, the kraft pulping process requires more wood than the mechanical pulping process. This is because it eliminates lignin to manufacture high-quality fibers. Thus, increased consumption of recovered paper pulp is likely to encourage the growth of the global market trends during the forecast period.
The easy availability of substitutes is a major challenge impeding market growth. The market witnesses high competition because of alternative forms of packaging such as plastics, glass, and aluminum. Due to the demand for convenience, consumers prefer lighter forms of packaging. Plastic packaging and other forms of aluminum film packaging have become increasingly popular because of their lightweight.
Plastic is an easy solution for most packaging requirements, especially for packaging food and beverages. It is lightweight, economical, and offers benefits such as robustness, chemical resistance, and non-porosity. Owing to these factors, food and beverage manufacturers prefer plastic over other packaging materials. The various types of flexible plastic include bags, pouches, liners, wraps, sachets, and other flexible products. The flexible plastic packaging segment is expected to grow due to its many advantages over other types of packaging materials. Thus, the presence of numerous substitutes can become a major challenge for the growth of the global market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Detmold Group - The company operates under one segment. The company offers products under the brand names Detpak and Paperpak. The key offerings of the company include food contact paper solutions.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market share growth by the kraft paper segment will be significant during the forecast period. Kraft paper is produced from chemical pulp using the kraft process. The kraft process removes most lignin present in the wood and makes the kraft paper stronger than other papers produced using other pulping processes, such as acidic sulfite processes. Kraft paper is available in various forms, such as unbleached, natural brown, heavy-duty, and bleached white. Natural brown kraft paper is the strongest and is commonly used as wrapping paper.
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The kraft paper segment was valued at USD 37.09 billion in 2017 and continued to grow until 2021. Kraft paper has high elasticity and high tear resistance, which makes it suitable for packaging products such as food products that demand high strength and durability. It is inexpensive compared with other page products and comes in ready-to-use rolls and sheets. It is used in restaurants and delis owing to its moisture-resistant property. It is also resistant to blood, oil, and stains, thus making it useful for food service applications. Butcher paper, a kind of kraft paper, is widely used in restaurants as a sandwich wrapper. It is also used as a replacement for aluminum foil for wrapping barbecue, owing to its positive impact on the barbecue's bark or flavorful meat crust. Freezer page, another type of kraft page, is used for storing meats, fish, and poultry in the freezer for an extended period. Specialty kraft papers such as machine-glazed kraft papers are widely used for packaging in fast food markets and used as a barrier for butter and other dairy products. The wide range of applications of kraft paper will fuel its demand, which will boost the growth of the kraft page segment in the global market during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2022, APAC was the largest market in terms of demand, driven primarily by the demand for packaged processed food products, trade and export activities, and urbanization. Corporate lifestyles have caused significant changes in the packaged food industry in the region. The rapid evolution of retail and food and beverage industries is expected to drive the demand for food contact paper. China, Japan, and India are some of the largest markets for packaged and functional foods and beverages in APAC. High demand for functional and packaged food products and the increase in disposable incomes are the major factors driving the market in APAC.
The market is driven by the increasing population and demand for processed and convenience foods, emphasizing the importance of maintaining the quality and shelf life of food products. Regulatory bodies like the FDA play a crucial role in ensuring the safety of food-grade polymers and grease-resistant materials used in disposable bags. With growing environmental concerns, biodegradable food contact paper emerges as a sustainable option, favored by major food companies like Nestle, Coca-Cola, PepsiCo, and Unilever to reduce carbon footprint. Despite challenges posed by stringent regulations and high costs, advancements in sustainable materials and improved barrier technology offer opportunities for growth, particularly in the bakery & confectionery, dairy products, and fast food industries. E-commerce platforms like Licious, Swiggy, and Foodpanda utilize food contact paper as an eco-friendly marketing tool, catering to customer preferences for safe and sanitary packaging.
The market forecasting report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Food Contact Paper Market Scope |
|
Market Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.23% |
Market growth 2023-2027 |
USD 63.99 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.59 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ahlstrom Munksjo Oyj, Asia Pulp and Paper APP Sinar Mas., Detmold Group, Gascogne Group, Georgia Pacific, Glatfelter Corp., International Paper Co., Maesindo Indonesia Ltd., Malex Paper Products Sdn Bhd, Mondi plc, Nordic Paper AS, Pactiv Evergreen Inc, Papertec Inc., Quick Pack Pacific Co. Ltd., SCG Packaging, Twin Rivers Paper Co., UPM Kymmene Corp., Huhtamaki Oyj, PT Parisindo Pratama, and Smurfit Kappa Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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