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The Food Packaging Market size is estimated to grow by USD 79.41 billion between 2022 and 2027 accelerating at a CAGR of 4.32%.
One of the primary drivers of growth stems from the escalation of food counterfeiting, the drive to minimize food waste, and the need to meet the increasing demand for convenient packaging and processed food choices. The growing preference for quick, ready-to-eat meals is a result of shifting lifestyles and dietary inclinations on a global scale. With more individuals balancing busy work schedules, there's a heightened interest in healthier options that accommodate their fast-paced routines, leading to a significant inclination towards readily available packaged and processed foods. As the time allocated for meal preparation dwindles, these convenient food alternatives are experiencing a surge in popularity, thereby fueling substantial growth in the global market for packaged and processed foods. This market analysis and report includes in-depth information on the key market drivers, trends, and challenges during the forecasted period.
Prevention of food counterfeiting is a major market driver. Food counterfeiting poses a significant challenge for both food manufacturers and consumers, resulting in substantial financial losses for the global food industry. Manufacturers can adopt various measures to mitigate the risk of food fraud. For instance, in the US, close collaboration between food manufacturers and customs officials helps identify counterfeit products, although these options have limitations and depend on government support.
Packaging plays a crucial role in combating food counterfeiting. Food traceability is a key solution that enables tracking of products throughout the supply chain. Technologies like barcodes and RFID tags are utilized to track food items. Therefore, effective packaging is essential for implementing these technologies. The use of barcode labels on packaged products enhances product integrity and significantly reduces the risk of counterfeiting during the forecast period.
Growing sales of food products on e-commerce platforms is an ongoing market trend. Food products have expanded their presence into the realm of e-commerce, necessitating durable primary packaging to maintain product quality and freshness during shipping. Efficient secondary packaging is also crucial for safe product delivery, as this can damage products, impacting brand reputation and leading to financial losses. The demand for secondary packaging has consequently increased.
Furthermore, the demand for healthy food options, including nutritious snack bars, is on the rise. Online grocery sales in the US account for a significant share of the overall e-commerce market, with various channels available such as delivered baskets, click-and-collect, fresh delivery, and meal kits. Major companies like Amazon offer convenient online grocery delivery services, such as next-day delivery through Amazon Fresh, subscribe and save options, and the Amazon Dash button. These factors contribute to the growth of the market size during the forecast period.
Volatility in raw material prices is a major market challenge. The different types of materials used for the packaging of food include plastic, glass, metals, and paper. For example, cartons used in these are produced either from recycled fiber mills or virgin fibers. The prices of both recycled fiber mills and virgin fibers constantly fluctuate, which is a major concern for end-users like carton producers. The instability in the price of raw materials will result in the reduction of profit margins of companies due to the increasing production cost. Hence, companies are forced to increase their product pricing due to fluctuating raw material prices. The price of virgin fiber seems to be more stable when compared with recycled fiber.
The prices of these raw materials such as paper and paper products that are used to manufacture corrugated packaging solutions are expected to fluctuate during the forecast period. Hence, companies are expected to increase the prices of corrugated packaging in response to the increase in raw material prices. In addition, aluminum, a key raw material used for food can manufacturing, is exhibiting price fluctuations that hamper the growth of the market during the forecast period.
This market research and analysis report extensively covers market segmentation. It also includes an in-depth analysis of drivers, trends, and challenges.
The market share growth by the flexible plastic segment will be significant during the forecast period. Flexible plastic comes in a variety of forms, including bags, pouches, liners, wraps, and sachets. Due to its many advantages over other types of packaging materials, the flexible plastic packaging market is predicted to expand. Flexible plastic packaging offers a variety of creative possibilities in terms of shapes and sizes, enabling packaging customization. It is reusable, and a wide variety of printing options are supported. Additionally, it is simple to ship because the material is light in comparison to other packaging options.
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The flexible plastic segment was valued at USD 144.30 billion in 2017 and continued to grow until 2021. Due to its advantages in terms of weight, cost, and ease of shipping, flexible plastic packaging is increasingly being used in the consumer goods sector. As a result, it has become a widely used packaging type across industries. A recent development in product marketing is the use of packaging techniques that improve the visual appeal and aesthetics of the product. As a result, companies have consistently developed innovative solutions for customers, which helps the flexible plastics market. Hence, all the above-mentioned factors are anticipated to drive the growth of the market during the forecast period.
Based on application, the bakery industry is the largest sector among processed food industries in India, with bread and biscuits accounting for about 82% of total bakery products. With a market size of 49.5 billion tons, the bakery market in India is the third largest in APAC, following Japan and Australia. Packaging materials used include cellophane, known for its gas barrier properties and heat sealability, as well as Biaxially Oriented Polypropylene film (OPP). OPP monofilm is used for less demanding applications, while duplex OPP or OPP combinations like OPP/PE and OPP/PET are used for higher quality products. The growing demand for bakery products will drive the growth of the bakery and confectionery segment in the forecast period. These factors contribute to the overall market growth.
APAC is estimated to contribute 56% 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.
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The APAC market is expected to experience positive growth during the forecast period due to improved economic conditions in countries like China, India, Indonesia, and Australia. This has led to increased investments across various sectors. The demand for these in the region is driven by urbanization and changing lifestyles, resulting in higher demand for fast food and ready-to-eat meals.
The growth of e-commerce is also a significant factor contributing to the expansion of the APAC market. Consumer preferences are shifting towards packaged foods due to rising incomes, busy lifestyles, time constraints, and the availability of packaged food options. Online platforms offer convenience, prompt delivery, and attractive discounts, further boosting the demand for packaged food products. This has led to innovations in this sector, driving industry growth in the forecast period. Therefore, these factors will drive the growth of the regional market.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Tata steel- The company offering food packaging solutions under its brand CRYOVAC.
The 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.
This market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Global market is influenced by various factors, including eating habits, the urban population, and government initiatives aimed at sustainability. With growing environmental concerns, there's a shift towards sustainable packing materials and recycling of glass, metals, and plastics. This market offers a wide range of packaging solutions, including high-performance materials with high barrier properties for preserving freshness. Both flexible-type and rigid packaging options cater to diverse needs, from single-serve packs to retail products. Key segments include paper and paper-based materials, glass packaging, and specific segments like bakery and confectionery products and the dairy product segment. Moreover, the rise of the plant-based packaged food industry and online meat and seafood marinated product-selling brands further drive market growth.
Food Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.32% |
Market growth 2023-2027 |
USD 79.41 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.52 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor Plc, Ardagh Group SA, Ball Corp., Berry Global Inc., BWAY Corp., CANPACK SA, COFCO Corp., DS Smith Plc, International Paper Co., Kian Joo Can Factory Bhd, Metal Packaging Europe, O I Glass Inc., Orora Ltd., Sealed Air Corp., Silgan Holdings Inc., Tata Steel Ltd., Tetra Laval S.A., Toyo Seikan Group Holdings Ltd., Crown Holdings Inc., and Huhtamaki Oyj |
Market dynamics |
Parent market analysis, Market Growth and Trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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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