Food Packaging Market 2020 and Forecast 2021-2027

                                          
Report Overview: Food Packaging Market


The global food packaging market size was estimated at USD 292.15 billion in 2020, exhibiting a CAGR of 4.1% over the forecast period 2021-2027. Growing demand for packaged food by consumers owing to quickening pace of life and changing eating habits is expected to have a major impact on the market. The product offers extended and stable shelf-life, high barrier properties, and safety, thereby boosting the market growth.

Factors such as convenience and use of high-performance material are expected to aid the industry growth. Improved shelf-life, coupled with heightened efficiency in the prevention of content contamination, is expected to increase the growth of the market. In addition, factors such as increasing population, increase in disposable income, and shrinking households have a positive impact on the market.

The market in the U.S. is expected to be fueled by increasing urban population leading to growth in consumption of packaged food and rising popularity of single-serve packs. The market is also supported by an increasing infrastructure for the recycling of plastics, metals, and glass however, concerns regarding wastage due to improper packaging may hamper the growth.

Bargaining power of buyers is expected to remain high during the forecast period. The industry is characterized by the presence of large number of buyers, which is expected to increase over the forecast period. In addition, buyers seek for innovative and customized solutions for their products and exhibit high levels of price sensitivity and often resort to material substitution.

The market is expected to remain highly regulated with agencies such as U.S. Food and Drug Administration (FDA) and the European Commission imposing stringent regulations regarding use of food packaging types and food contact materials. The market is shifting toward more sustainable packing solutions such as bio-based plastics and thermoplastics, which is further expected to spur market growth.

Rising sales of retail products and the trend of online shopping is expected to have a positive influence over the market. Increasing consumption of snacks instead of traditional food is anticipated to generate the demand for packaged products thus driving the market growth.

Type Insights: Food Packaging Market

Rigid packaging is widely used owing to its properties such as a high barrier to light, moisture, and oxygen, which prevents food from getting contaminated. North America is estimated to be the largest market for rigid food packaging, owing to increasing consumer demand for packaged food offering nutritional value and convenience. Applications of semi-rigid packaging include dairy products, fresh sandwich packs, and bakery and confectionery products. Thus, increased consumption of milk and dairy products and bakery and confectionary products is expected to generate the demand for semi-rigid food packaging in the coming years.

Flexible packaging is the fastest-growing segment, exhibiting a CAGR of around 5.9% from 2020 to 2027 owing to its ability to form thinner, lighter, and compact packing. Shift in demand from rigid to flexible packing solutions is expected to increase segment growth. Superior performance and convenience offered by retortable packages is presumed to exhibit the largest demand over the forecast period.

Flexible packaging is anticipated to witness sustainable growth owing to growing demand in the developing economies. Technological innovations in product development and increasing trend of smaller package sizes are expected to fuel the segment growth. Moreover, cost-effectiveness and reduced raw material consumption are likely to boost demand over the projected period.
Material Insights

The paper and paper-based material segment accounted for a revenue share of 31.9% of the total food packaging market in 2019. Growth of this segment is driven by high product adoption in a bid to substitute non-biodegradable packing solutions. Innovations in design, ease of printability, and sustainability give paper packaging a competitive advantage over plastic and metal packaging solutions.

Plastic food packaging is expected to witness rapid growth owing to adoption by end users due to its low prices. Rising usage of plastic films in secondary food packaging is anticipated to have a positive influence on the market. noteworthy properties offered by plastic packaging such as increased sealing capacity and high moisture barrier is presumed to drive the product demand.

Metal packaging is commonly used for applications such as canned food, fish, meat, and canned fruits. Growing demand for metal cans owing to extended shelf-life of food products, tamper-proof packing, and nutrition preservation is predicted to boost the market growth. Rise in investments, technological advancements, and design innovations are expected to drive the segment growth.

The glass material segment is estimated to reach USD 43.5 billion by 2027 owing to the growing demand for glass packaging for food on account of its non-corrosive nature. In addition, recyclability, non-permeability, and chemical inertness make it a suitable and safe material for direct food contact.

Application Insights: Food Packaging Market

Bakery and confectionery products are generally packed in high moisture barrier packaging in order to extend their shelf life. Flexible packaging is widely used for the aforementioned application owing to its advantages such as lightweight, printability, and cost-effectiveness over paper cartons and tins. Furthermore, the attractive packing of confectionery products is expected to increase the segment growth.

Consumer inclination toward dairy products in smaller packs due to shrinking households is anticipated to augment market growth. Adoption of attractive food packaging strategies by manufacturers is also likely to boost the segment growth. Moreover, the rising demand for dairy products such as yogurt and ice cream is expected to augment the growth.

Rising health awareness is projected to generate the demand for fruits and vegetables and subsequently packaging solutions for the same. Additionally, rising consumer disposable income has led to a rise in demand for garden-fresh products. Increasing consumer demand for environment-friendly food packaging solutions with low costs and ease of handling is expected to generate the demand over the next few years.

Increasing demand for smaller portions of meat and seafood is expected to generate the demand for packaging of these products. Emergence of fish and seafood as snacks is expected to drive growth. Moreover, government initiatives to promote healthy eating habits are expected to increase the demand for meat, poultry, and seafood packaging.

Regional Insights: Food Packaging Market

Asia Pacific is estimated to be the largest market, followed by Europe and North America, accounting for 37.0% of the total market share in 2019. The industry is expected to be driven by increasing population, rising per capita income, and growing demand in emerging economies such China, Japan, and India.

China is the largest consumer owing to its large population and growing economy. The market in China is expected to grow at a significant rate owing to its expanding middle-class population and their rising purchasing power. India is the fastest-growing market owing to the increasing usage of the products in retail chains.

Thriving retail sector, high consumption of packaged food by consumers, and the presence of large number of manufacturers are expected to generate the demand for food packaging solutions in North America. Despite a high saturation level, Europe is expected to exhibit a positive outlook over the forecast period. Europes single market policy allows free-trade within the region, which is anticipated to encourage exports, consequently driving the market growth.

Food Packaging Market Share Insights: Food Packaging Market

The market exhibits presence of a large number of players, most of which operate through North America and Europe. Players are exhibiting immense interest in investing in Asia Pacific to expand their business. They operate through dedicated distribution networks and manufacturing locations across the globe.

Companies offer extensive product customization in an attempt to increase their share and augment their revenue. They strive to replace existing materials with biodegradable ones in order to meet changing government standards. Large number of companies are integrated across the value chain and indulge in captive consumption of raw material in order to reduce production cost.

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global food packaging market report on the basis of type, material, application, and region:

Type Outlook (Revenue, USD Billion, 2016 - 2027)

  
Rigid
  
Semi-rigid
  
Flexible

Material Outlook (Revenue, USD Billion, 2016 - 2027)

  
Paper & Paper-based
  
Plastics
  
Metal
  
Glass
  
Others

Application Outlook (Revenue, USD Billion, 2016 - 2027)

  
Bakery & Confectionary
  
Dairy Products
  
Fruits & Vegetables
  
Meat, Poultry, & Seafood
  
Sauces & Dressings
  
Others