Food Packaging Market Analysis APAC,Europe,North America,South America,Middle East and Africa - US,China,India,Germany,UK - Size and Forecast 2023-2027

Food Packaging Market Forecast 2023-2027

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. 

Market Forecast

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Market Dynamics

The market is a significant sector that plays a crucial role in the food industry. With the increasing consumer awareness towards health and safety, the demand for advanced and innovative food packaging solutions has been on the rise. The market consists of various types of packaging materials such as Plastics, Paper and Board, Aluminum, and others. These materials are used to produce different packaging formats like Pouches, Cartons, Trays, and Films. The Containment sector is a major segment in the market, which includes packaging for various food categories like Dairy, Meat, and Convenience Foods. The primary objective of food packaging is to ensure product safety, extend shelf life, and maintain product quality. Moreover, the packaging design plays a vital role in attracting consumers and building brand loyalty. The Spirits and Beverages sector is another significant market for food packaging, where the focus is on preserving the taste, aroma, and appearance of the product. The use of advanced technologies like Active and Intelligent Packaging is gaining popularity in this sector to enhance product safety and consumer convenience. In conclusion, the market is a dynamic and evolving industry that caters to the diverse needs of the food and beverage industry. The market is driven by factors like consumer preferences, regulatory requirements, and technological advancements.

Key Market Drivers

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. The market plays a crucial role in combating food counterfeiting, particularly for fast-food items and convenience foods such as readymade meals and prepared meal kits. High-barrier properties of packaging materials, including plastic containers, paper packaging, bioplastic material, PCR plastic, and bio-based polymers, are essential in maintaining product safety and shelf life. Smart packaging solutions, incorporating nanotechnology, antioxidants, antimicrobials, moisture absorbers, visual alerts, and time and temperature indicators, offer enhanced inventory control and consumer education. Market availability and customization options further contribute to the effectiveness of food packaging in preventing food waste and ensuring product authenticity. Microwave packaging and secondary/tertiary packaging also play essential roles in maintaining the integrity of food products throughout the supply chainFor 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.

Market Trends and Analysis

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. The market encompasses primary, secondary, and tertiary packaging solutions for various food items, including fast-food and convenience foods like readymade meals and prepared meal kits. Primary packaging, such as plastic containers and paper packaging, must possess High barrier properties to maintain product quality, freshness, and shelf life. Secondary packaging plays a crucial role in ensuring safe shipment through efficient design and materials like bioplastic, PCR plastic, and bio-based polymers. Tertiary packaging, such as smart packaging with nanotechnology, antioxidants, antimicrobials, moisture absorbers, visual alerts, and time and temperature indicators, further enhances product safety and inventory control. Consumer education and market availability are essential factors in the adoption of advanced packaging technologies. Key trends include customization options, microwave packaging, and food waste reduction.

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.

Major Market Challenges

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 .In the Market, various materials such as plastic, glass, metals, and paper are utilized for primary, secondary, and tertiary packaging of food items, including fast-food and convenience foods like readymade meals and prepared meal kits. The prices of raw materials, particularly recycled fibers and virgin fibers, significantly impact the market, leading to increased production costs and reduced profit margins for vendors. Plastic containers, paper packaging, bioplastic materials, PCR plastic, and bio-based polymers are commonly used in food packaging. Advanced technologies like smart packaging, nanotechnology, and customization options are employed to enhance the barriers, microwave packaging, inventory control, and consumer education. Barriers, such as antioxidants, antimicrobials, moisture absorbers, and visual alerts, ensure product safety, shelf life, and time and temperature control. Market availability, food waste reduction, and convenience are essential considerations in the food packaging industry. Smart packaging solutions, including nanotechnology, offer advanced features like real-time monitoring, freshness indicators, and active components to maintain product quality and safety. The use of biodegradable and eco-friendly materials, such as bioplastic and PCR plastic, is gaining popularity due to increasing consumer awareness and environmental concerns.
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.

Market Segmentation by Product, Application, Geography

This market research and analysis report extensively covers market segmentation. It also includes an in-depth analysis of drivers, trends, and challenges. The market is a significant sector in the Contamination and Transformation industry. It involves the production and distribution of various types of packaging solutions for food products. The market is driven by factors such as the need for extended shelf life, convenience, and safety. Food packaging materials include plastic, paper, aluminum, and glass. The use of sustainable and eco-friendly packaging is a growing trend in the market. Damage-resistant and lightweight packaging are also popular choices due to their cost-effectiveness and environmental benefits. The Spilage segment is a major application area for food packaging. The market is also segmented based on the type of food, such as bakery and confectionery, dairy and frozen foods, meat, poultry, and seafood, and beverages. The market is expected to grow at a significant rate due to the increasing demand for convenience food and the rising awareness of food safety. The use of advanced technologies such as active and intelligent packaging is also expected to drive market growth. The Retail segment is a significant end-user in the  market. The market is also witnessing a shift towards online sales, which is expected to create new opportunities for players in the market. In conclusion, the market is a dynamic and growing sector in the Contamination and Transformation industry. It is driven by factors such as convenience, safety, and sustainability, and is expected to grow at a significant rate in the coming years.

Product Analysis

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. The  market is dominated by the fast-growing segment of flexible plastic packaging. This category encompasses various forms, such as bags, pouches, liners, wraps, and sachets. Flexible plastic offers several advantages, including customization possibilities, reusability, and a wide range of printing options. Primary, secondary, and tertiary packaging applications for food items can benefit from plastic containers, paper packaging, and emerging bioplastic materials like PCR plastic and bio-based polymers.

Smart packaging innovations, including nanotechnology, enhance food safety and shelf life through the use of antioxidants, antimicrobials, moisture absorbers, visual alerts, and time and temperature indicators. These advancements contribute to reducing food waste and catering to the demand for convenience food, such as fast-food items, readymade meals, and prepared meal kits. Market availability, inventory control, consumer education, and product safety are crucial factors influencing the adoption of various packaging solutions.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.

Application Analysis

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. s. Contamination, spoilage, damage, and pest attacks are significant challenges during storage, transit, and retail sale. External factors such as relative humidity, light, pressure, and heat can also impact food quality and safety. Consumer demand for convenient and portable packaged products, influenced by changing consumption habits and lifestyles, drives the packaging industry's growth. Flexible packaging, including plastic cling film and eco-friendly alternatives, is essential for product protection and extending shelf-life. Intelligent packaging techniques, such as temperature indicators and oxygen scavengers, ensure food safety and freshness. Technological advancements, including advanced innovations in plastic packages and intelligent packaging, cater to the evolving needs of the food sector and e-commerce retail. The packaging industry focuses on providing essential services to protect packaged foods from the external environment and maintain food safety and quality during storage, transit, and retail sale. Consumer demand patterns and stockpiling requirements continue to shape the industry's innovations, with a focus on convenience, portability, and food safety.

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.

Regional Analysis

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.The Food Packaging Industry in APAC experiences robust growth due to improved economic conditions and urbanization.

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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. Key product categories include Films & wraps, Stick packs & sachets, Bottles & jars, Boxes & cartons, Cans, Trays, and Clamshells. Fruits & vegetables, Bakery & confectionery, Dairy products, Meat, poultry & seafood, and Quick-service restaurants, Café & kiosks, Full-service restaurants, and Chain restaurants drive demand. High barrier properties, safety, and high-performance materials are essential. Single-serve packs, recycling, and sustainable packing materials are prioritized. Fresh food products use Paper and paper-based, Metal packaging, and Glass packaging. The Application segment includes Dairy products, extending shelf life, and Plastic food packaging in the Plastic material segment. 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, online purchasing 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.

Who are the Major Companies in the Food Packaging Industry?

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: 

• 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.
• Tetra Laval S.A.
• Toyo Seikan Group Holdings Ltd.
• Crown Holdings Inc.
• Huhtamaki Oyj

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.

Segment Overview

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. 

• Product Outlook
  • Flexible plastic
  • Rigid plastic
  • Glass
  • Metal
  • Others
• Application Outlook
  • Bakery and confectionery
  • Dairy products
  • Poultry meat and seafood
  • Fruits and vegetables
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The 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 purchasing meat and seafood marinated product-selling brands further drive market growth

Additionally ,the market is a significant sector that plays a crucial role in the preservation and protection of food products. The use of advanced packaging technologies, such as Recycling, Sustainability, and Barrier Properties, is essential in extending the shelf life of food items and ensuring their safety and freshness. The Plastic and Paper packaging industries are major contributors to this market, providing various types of packaging solutions like Pouches, Trays, and Bags. The Online and E-commerce sectors have also influenced the market, leading to an increase in demand for lightweight and convenient packaging options. The Production processes in this market involve various stages like Extrusion, Injection Molding, and Coating. The use of Durability, Printing, and Functionality in food packaging is also a key trend, as consumers increasingly demand attractive and practical packaging solutions. Overall, the market is a dynamic and evolving industry that continues to adapt to changing consumer preferences and technological advancements.

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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis industry across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

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