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The food contact paper market is estimated to grow at a CAGR of 9.23% between 2022 and 2027. The size of the market is forecast to increase by USD 63.99 billion. The growth of the market depends on several factors, including growing sales of food products on e-commerce platforms, growing adoption of sustainable packaging, and growth in the processed food industry.
This report extensively covers market segmentation by material (kraft paper, specialty paper, recycled paper, and others), type (non-poly coated and poly-coated), and geography (APAC, Europe, North America, South America, and Middle East and Africa). 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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Technavio categorizes the global food contact paper market as a part of the global paper packaging market. Paper packaging is an effective and low-cost method used to protect, preserve, and transport a wide range of goods. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
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.
Key Food Contact Paper Market Driver
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.
Significant Food Contact Paper Market Trend
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 paper recycling. Recovered papers are used in pulp production because they consume significantly low energy. Moreover, manufacturing pulp from recovered paper 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 paper products. Recycling one ton of newspaper and printing and writing papers 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 during the forecast period.
Major Food Contact Paper Market Challenge
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.
Key Food Contact Paper Market Customer Landscape
The 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 Food Contact Paper Market Customer Landscape
Vendors 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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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 paper 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 paper, another type of kraft paper, 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 paper 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 COVID-19 pandemic negatively impacted the regional market in 2020. However, the lockdown restrictions were lifted by the end of 2020 owing to large-scale vaccination drives across APAC. This resulted in the resumption of operations of essential businesses, such as food processing, and led to a gradual recovery of the regional market in 2021. In addition, the expansion of the online food delivery market in India has been facilitated by rapid digitalization, a growing online consumer base, and rising individual purchasing power. For instance, the top two players, Swiggy and Zomato, reported 1.8 - 2 million daily orders in January 2021. Such factors are expected to drive the demand for food contact paper, which in turn, will drive the growth of the market in APAC during the forecast period.
The 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.
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Food Contact Paper Market Scope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.23% |
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Market growth 2023-2027 |
USD 63.99 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.59 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 |
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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. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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