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The retort packaging market size is estimated to grow by USD 1.53 billion at a CAGR of 6.93% between 2022 and 2027. The market's expansion hinges on various factors, including the retail industry's appreciation for the benefits of intelligent vending machines, which enhance customer interaction experiences. These machines enable retailers to customize their services and product offerings to meet specific requirements, thereby improving customer satisfaction and loyalty. Additionally, the ability to track and monitor machine performance in real-time allows for proactive maintenance, reducing downtime and increasing operational efficiency. As retailers continue to prioritize customer experience and operational efficiency, the demand for intelligent vending machines is expected to grow significantly.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by end-user (food, beverages, pharmaceuticals, and others), type (pouches, trays, cartons, and others), and geography (APAC, North America, Europe, South America, and the Middle East and Africa).
The food segment is estimated to witness significant growth during the forecast period. These solutions pouches and trays ensure that food items including curries and sauces, ready-to-eat food, seafood, and soups are protected from external contaminants and damage. This segment will be positively impacted by the increasing popularity of seafood, increasing agricultural production, technological advances in food processing, and dynamic food consumption patterns. This will further drive the demand for high-quality packaging like retort packaging especially in North America, the Middle East, and Southeast Asia to ensure that food products are packaged in a secure and hygienic manner.
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The food segment was the largest segment and was valued at USD 1.83 billion in 2017. Convenient and RTE meals are becoming increasingly popular and are encouraging food manufacturers to use retort packaging for increasing the shelf-life of their products. Moreover, retort pouches are capable of withstanding high heat and pressure during sterilization. Trends such as the shift towards stand-up pouch packaging of snacks like popcorn, nuts, and trail mixes, and pre-packaging of meals like pasta, rice dishes, and stews are also boosting demand for retort pouches. Increasing consumer disposable income, especially in countries like India and China will propel segment growth during the forecast period.
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APAC is estimated to contribute 35% 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 APAC, the largest regional market, and the largest revenue-generating counties are China and India mostly due to the increasing demand from end-user industries, such as E-commerce, fast-moving consumer goods (FMCG), and personal care. Moreover, the growth of the retail industry and E-commerce sectors in China, India, and Japan due to increasing consumer demand through online retailers like Alibaba, Amazon, and Flipkart also has a positive impact on the market. This can reduce or even eliminate costs associated with the damage, replacement, returns, waste, and shipping of goods.
Additionally, there are government initiatives such as the signing of an agreement between the Indian Railway Catering and Tourism Corporation (IRCTC) and the Defence Food Research Laboratory (DFRL), a major player in food research product development. This was done to ensure that RTE food packaged for train passengers is contained in retort pouches to maintain safety and hygiene. Hence such factors will contribute to regional market growth during the forecast period.
The market has seen substantial growth due to the rising demand for ready meals and other ready-to-eat meals. This offers a convenient solution for preserving food items like meat, poultry, and seafood while maintaining their freshness and flavor. This market's expansion is fueled by changing lifestyles and increased urbanization, leading to a greater need for quick and simple meal options that can be consumed on the go. The market has also played a significant role in the growth of retort packaging, with materials such as polyamide, polyethylene terephthalate (PET), and aluminum foil being used to create flat pouches that are both lightweight and portable. The market is experiencing robust growth driven by the increasing demand for ready-to-eat meals, meat, poultry, and seafood products, which require glass jars and flexible packaging for preservation. The market is supported by the Flexible Packaging Association and the use of paper boards and other raw paper materials for ready-to-eat meals packaging. These materials offer benefits such as being light weight and portable, making them ideal for on-the-go consumption. Manufacturers are also focusing on the price of paper packaging, making it more competitive in the market. 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 expansion of the E-commerce industry is driving the market growth. Global E-commerce rose from 15% of total retail sales in 2019 to 21% in 2021 mostly due to the convenience of the shopping experience. Increasing sales through online channels and platforms has also increased demand for packaging products like retort packaging to ensure products can withstand the rigors of transportation and product integrity is maintained.
Moreover, increasing demand for ordering food online, especially in developing countries like India, is also resulting in rising demand for retort packaging. This trend is driven by changing lifestyles, increased urbanization, ready-to-eat meals, retort cans, and quick and simple meal options. In 2020, in India, the online food delivery market was valued at approximately USD 5 billion especially driven by the COVID-19 pandemic. Moreover, increasing consumer disposable income has fueled the growth of fast-food businesses that offer RTE meals in India. They also have properties such as the ability to withstand high-temperature processing which helps ensure product quality and safety of a variety of products such as beverages, RTE meals, and pet food. Hence such factors will boost market growth during the forecast period.
Increasing company initiatives to promote sustainable packaging is a key trend in the market. Increasing consumer awareness and government initiatives have shifted several companies to focus on sustainable packaging. Additionally, end-user industries of retort packaging like food and beverage, medical devices, and personal care are also increasingly demanding sustainable packaging alternatives for their products. Hence, companies are catering to this such as Amcor which provides AmLite Standard Recyclable stand-up pouches that are metal-free, high-barrier, and recyclable.
Hence, the demand for these materials like biopolymer-based plastics which are made from corn, wheat, and sugarcane is expected to increase in the future. Moreover, they are used for numerous industrial and consumer goods applications, especially in the packaging industry. Companies in the market are also offering innovative products, such as sustainable stand-up pouches to increase their demand in the competitive market. This aligns with consumer preferences as 60% of end-consumers in the US preferred plant-based products and sustainable packaging, as per a study conducted by the Plant-Based Products Council. hence such factors will fuel market growth during the forecast period.
Hermetic seal protection-related challenges in retort pouches are challenging market growth. Hermetic seals in retort pouches must be properly handled and there must be no vacuums or else the seal could be damaged during processing. Hence, it is crucial to ensure that the pouch is filled with a sufficient amount of the product and that the seal does not come in contact with the sealed area to avoid the creation of a vacuum. Moreover, overfilling of the pouch will result in contamination and failure of the seal.
Moreover, the usage of inert non-condensable gases like carbon dioxide must be limited in the pouch as excess air will stress the seals during thermal processing. Additionally, the hermetic seal is made of two heat-sealable polypropylene layers by various methods such as induction, ultrasonic, contact sealing, and dielectric sealing. During any of these processes, if moisture, oil, or any food particle is present it can contaminate the seal area and affect the entire sealing process. It could even cause abrasions, leakages, or blisters in the seal and compromise the integrity and quality of the product. Hence such factors will hinder market growth during the forecast period.
The market research 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market 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.
Amcor Plc - The company offers retort packaging such as flexible retort pouches.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 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 market is witnessing significant growth driven by the demand for convenient and ready-to-eat meals, including meat, poultry, and seafood products. This packaging solution is also popular for baby food, soups, and sauces due to its ability to preserve flavor and nutrients. The market is influenced by trends such as on-the-go consumption and the increasing adoption of flexible packaging solutions, which offer benefits like waste reduction and ease of handling. Manufacturers are focusing on materials like heat-resistant laminated plastic, paper, PE, and PP to create stand-up retort pouches that are lightweight, portable, and can withstand varying storage temperatures. Major players like Huhtamaki and ProAmpac are also contributing to the market's growth by offering sustainable flexible packaging options.
The market is evolving to meet the diverse needs of various food products, including food fillers, cookies, meat, poultry, and seafood, and soups and sauces. The market is witnessing the adoption of plastic resins for packaging, especially by online brands focusing on enhancing the e-commerce experience. Additionally, the beverage sector is increasingly utilizing these products due to its ability to withstand various storage temperatures. This market trend aligns with the growing emphasis on health and wellness, influencing consumer spending patterns and spending power. The use of mono-material flexible and multilayer flexible packaging is also on the rise, offering enhanced functionality and convenience for consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.93% |
Market growth 2023-2027 |
USD 1.53 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.52 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor Plc, Berry Global Inc., Clifton Packaging Group Ltd., Constantia Flexibles Group GmbH, Coveris Management GmbH, FLAIR Flexible Packaging Corp., Floeter India Retort Pouches (P) Ltd., Fres-co System USA Inc., Icone International Ltd., IMPAK Corp., Logos Packaging, Mondi Plc, NITTOPACK CO. LTD., Otsuka Holdings Co. Ltd., POLYNOVA Industries Inc., Sealed Air Corp., Sonoco Products Co., Tetra Laval SA, Tredegar Corp., and Wihuri International Oy |
Market dynamics |
Parent market analysis, Market Forecasting, 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 End-user
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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