Food Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Glass, Metal, Paper & Paperboard, Plastic, and Wood), By Product Type (Rigid, Semi-rigid, and Flexible), By Packaging Type (Bags & Pouches, Films & Wraps, Stick Packs & Sachets, Bottles & Jars, Boxes & Cartons, Cans, Trays, Clamshells), By Application (Fruits & Vegetables, Bakery & Confectionery, Dairy Products, Meat, Poultry & Seafood, Sauces, Dressings, and Condiments), By End-user (Quick Service Restaurants, Cafe & Kiosks, Full Service Restaurants, Chain Restaurants), and Regional Forecast, 2023-2030

The global food packaging market size was valued at USD 456.00 billion in 2022 and is projected to rise from USD 479.73 billion in 2023 to USD 714.16 billion by 2030, growing at a CAGR of 5.85% during the forecast period.

Food packaging is the process of enclosing food items to protect them from contamination, spoilage, damage, and pest attacks during storage, transit, and retail sale. It also protects the food from several external environmental factors such as relative humidity, light, pressure, heat, microorganisms and others. Rising consumer demand for packaged products due to the shift in consumption habits and changing lifestyles are the key factors driving market share. The packaging industry is thriving due to its ability to provide essential benefits, including product protection, convenience, and portability, all of which contribute significantly to its expansion on a global scale. The rising efforts by major manufacturers to provide such helpful packaging and increasing usage of intelligent packaging techniques foster the industry globally.

COVID-19 IMPACT:

COVID-19 Outbreak Boosted the Demand for Flexible Packaging in Food Industry 

As governments worldwide classified the food industry as an essential service during the pandemic, its impact on the global market was relatively lower compared to the manufacturing industry. Companies specializing in flexible packaging, particularly those serving sectors such as packaged foods, thrived during the outbreak. Several factors contributed to the global food packaging market share, including changing consumer demand patterns, government measures, and stockpiling, which fueled the demand for packaged food. Moreover, heightened concerns over food safety during the pandemic led to a significant shift in consumer preferences in developing economies such as India, with many opting for packaged food over unpacked alternatives. Furthermore, the rise in e-commerce retail during the outbreak further boosted domestic packaged food sales and the demand for flexible packaging for packaged foods.

LATEST TRENDS

Packaging Innovation in the Food Industry will Emerge as a Key Trend

The rising innovations in packaging hold a potential opportunity for market growth. Packaging plays a vital role in preserving food quality, ensuring food safety, and increasing shelf-life. Plastic packages are very useful in achieving innovative product solutions. Among various types of plastic packaging, plastic cling film is a widely used plastic packaging today. The shift toward eco-friendly packages and advanced innovations in cling film packaging is shaping the trajectory of this market. This innovation comprises an extensive range of packaging options, namely intelligent packaging, active packaging, nanocomposites, edible/biodegradable packaging, and different types of packaging design.

According to the Food & Agriculture Organization of the United Nations, innovations and technological advancements in the food sector are rapidly evolving in the food safety arena. These technological advancements, spanning food production, processing and packaging, offer improved tools for traceability, sensing contaminants in food, and inspecting outbreaks. Consequently, this surge in innovation has generated a high demand for packaging innovations, further thriving as a critical trend for market growth.

DRIVING FACTORS

Rising Demand for Convenience Food to Aid Market Growth

Convenience food is majorly used due to its easy portability, long shelf life, and ready-to-eat features. These items encompass a range of products, including snacks, frozen food, finger food, candy, and beverages. These products usually require less preparation and are served hot in ready-to-eat containers. Rising demand for ready-to-eat snacks due to a sedentary lifestyle is expected to fuel demand for convenience food, thus boosting growth in the global market. Additionally, rising per capita disposable income and an increasing working population further contribute to market expansion.

Nowadays, due to consumers' fast-moving lifestyle, there has been an increasing demand for fast food items. This high demand has caused convenience food makers to develop products with better nutritional value and less harmful effects on the body. Henceforth, the increasing demand for convenience food contributes to the need for significant packaging, boosting the industry.

Increasing Demand for Edible Packaging to Bolster Market Growth

Rising concerns about packaging waste and its environmental impact are boosting the demand for edible packaging. Over the past decade, traditional food packaging materials created tons of packaging waste and increased landfills. The recycling rate of the plastic materials has remained too low. According to the Organization for Economic Co-operation and Development (OECD), plastic pollution is growing relentlessly as waste management and recycling is falling short. Globally, only 9% of plastic waste is recycled, while 22% is mismanaged. Such factors underscore the need for edible packaging and its contribution to the industry's growth.

Edible packaging highly relies on renewable and biodegradable materials, providing consumers with a sustainable substitute for conventional plastic food packaging. A new form of edible packaging involves the use of milk protein to create casein-based films that encapsulate food products. These casein films keep the food fresh by reducing exposure to oxygen, offering better storage, enhancing shelf life and safety, and eliminating the waste cycle. The rising demand for edible packaging solutions is thus bolstering the global food packaging market growth.

RESTRAINING FACTORS

Rapid Changing Technologies and Rising Cost of Raw Materials May Impede Market Growth

Plastic is one of the primary raw materials used for food packaging. The plastic packaging is made from synthetic polymers, such as polypropylene and polyethylene, manufactured from natural resources. The fluctuating price of these raw materials affects the packaging industry. Moreover, regulations developed by the government and associations over resource conservation are surging the price of these raw materials, which, in turn, is restraining market growth. The limited availability of raw materials also impedes technological advancements in packaging solutions, further hindering market expansion. The high costs of raw materials are leading to restricted access to many new packaging technologies, forcing companies to rely on traditional packaging methods. This affects the economy and leads to environmental consequences.

SEGMENTATION

By Material Analysis

Plastics Segment Take the Lead by Bolstering Preservation and Sustainability

Based on material, the market is segmented into glass, metal, paper & paperboard, plastics, and wood. The plastics segment dominates the global industry. The plastic used in packaging is the most preferred material owing to its properties such as flexibility, lightweight nature, cost-effectiveness, and resistance to splintering. It also provides effective protection against food damage. Most of the plastic resins used in packaging are recyclable. Both flexible and rigid plastic packaging offer innovation opportunities. For instance, modified atmosphere packaging (MAP) helps conserve food freshness, increasing the product's shelf life by slowing bacterial growth. The increasing consumption of beverages has led to a rise in plastic demand, which may favor market growth.

By Product Type Analysis

Flexible Packaging Commands Dominance with Innovation and Technological Advancements

Based on the product type, the market is segmented into rigid, semi-rigid, and flexible. The flexible product type segment dominates the market and is estimated to witness massive development over the forecast period. It is attaining high demand due to increasing technological advancement and innovative solutions for product packaging needs. Flexible packaging uses significantly less material than rigid containers and requires less energy when forming packaging products. Rising demand for packaging to ensure nutrient and flavor fortification will accelerate segment growth.

By Packaging Type Analysis

Bags & Pouches Segment Seizes Market Share, Driven by Versatility and Printing Advancements

Based on packaging type, the market is segmented into bags & pouches, films & wraps, stick packs & sachets, bottles & jars, boxes & cartons, cans, trays, clamshells, and others. The bags and pouches packaging type holds the most significant segment share and is projected to grow exponentially over the forthcoming years. Pouches are lightweight and offer excellent product integrity. They are easy to reseal and carry, which increases their demand in the food industry. In addition, the modern flexographic printing methods employed in bags & pouches contribute to the segment growth.

By Application Analysis

Bakery & Confectionery Segment Sustains Market Leadership, Fueled by Diverse Product Applications

Based on application, the market is segmented into fruits & vegetables, bakery & confectionery, dairy products, meat, poultry & seafood, sauces, dressings & condiments, and others. Among these applications, the bakery & confectionery segment is expected to remain dominant during the forecast period. This segment finds prominent use in bakery & confectionery items, including chewing gums, croissants, savory pastries, candies, toffees, and chocolates. Increasing the consumption of these food products will lead to market growth. In addition, the demand for gluten-free substitutes has widely increased, contributing to the segment growth.

By End-user Analysis

Full-Service Restaurants Lead Market, Fueled by Convenience and Health Trends

Based on end-user, the market is segmented into quick-service restaurants, café & kiosks, full-service restaurants, and chain restaurants. Full-service restaurants segment holds the largest share of the global market. The rising consumer focus on more convenient methods of food consumption is the primary factor enhancing the segment's growth. In addition, the augmenting demand for healthy food and creative presentation also contribute to the growth of the full-service restaurant segment.

REGIONAL INSIGHTS

Geographically, the market is studied across Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa.

Asia Pacific region accounted for the largest global market share and is expected to continue its dominance over the forecast period. The rising urban population levels and the development of retail infrastructure are expected to support the growing need for packaged goods in countries China, Japan, and India. Due to various manufacturers and increasing demand for frozen food, China is a significant consumer of packaging in Asia. Furthermore, the region is witnessing increased consumer spending on packaged food and improvements in lifestyles, further fueling the demand for products.

North America is the second-dominating region in the global market. The U.S. is one of the major consumers of packaged foods, which will aid market growth. Rising awareness regarding a healthy lifestyle has influenced consumers to shift to a higher quality of packaged food, driving product demand.

Europe held a significant share and is anticipated to witness substantial growth over the forecast period owing to increasing demand from the food & beverage industry. Increasing demand for packaging and processed food and changing consumer lifestyles, mainly in Germany, the U.K., and Italy, will bolster regional growth.

In Latin America, Mexico and Brazil emerge as major countries that will support market expansion. Growth in the region is mainly attributable to the growing demand for canned food. Additionally, the adoption of novel packaging tools, such as Modified Atmosphere Packaging (MAP), increases as consumers demand greater transparency and minimal processing. Such features enhance the food packaging industry in the Latin American region.

The Middle East & Africa are expected to observe substantial growth in the market owing to increasing demand for dairy products, meat, poultry, and seafood applications. The surge in Western food culture and food service in the region indicates the increasing product demand that will lead to market growth. A burgeoning demand for convenience food with rising consumer purchasing power will foster regional growth during the forecast period.

KEY INDUSTRY PLAYERS

Key Packaging Manufacturers to Reinforce Position Due to Deliberate Acquisition and Expansion

The competitive landscape depicts a well-established food packaging industry, with the top companies accounting for a significant share of the market. Key players in the market have invested considerable resources in developing several products and technologies. These companies have adopted strategies of expansion, new product development, partnership, and acquisition to increase their regional presence and product portfolio.

Major players operating in the market include Mondi Group, Amcor plc, Berry Global Inc., Stora Enso, and Constantia Flexibles. Significant companies constitute more than 50% of the market, and many regional and local players dominate the outstanding market. Additionally, numerous other players operating in the industry are focused on delivering advanced packaging solutions to gain a competitive edge in the market.

LIST OF KEY COMPANIES PROFILED:

• Mondi Group (Austria)


• Amcor plc (Switzerland)


• Berry Global Inc. (U.S.)


• Stora Enso (Finland)


• Constantia Flexibles (Austria)


• Plastipak (U.S.)


• Tetra Pak International S.A. (Switzerland)


• DS Smith (U.K.)


• Crown Holdings, Inc. (U.S.)


• ExxonMobil Chemical (U.S.)


• Coveris Group (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 – SIG enabled Casalasco Società Agricola introduced its food products in aseptic carton packs with its signature full-barrier packaging material.


• January 2023 – Cascades announced the launch of eco-friendly packaging designed especially for fresh fruits and vegetables. The company developed a closed basket with recycled and recyclable corrugated cardboard for the produce sector.


• April 2022 – Mondi declared the introduction of new packaging solutions, specifically for the food industry, at Anuga FoodTec in Cologne, Germany. The launch of two new tray packaging products offers recyclable choices for fresh food manufacturers, helping reduce food waste.


• July 2020 – Austrian meat producer Hütthaler joined forces with Mondi to develop an entirely recyclable thermoforming film tailored to their sausages and meat products. Crafted from a mono-material solution, this cutting-edge film can be fully recycled and offers a protective barrier to enhance food preservation and extend its shelf life.


• July 2019 – Berry Global Group, Inc. announced its acquisition of RPC Group Plc. This strategic move created a leading global supplier of protective solutions, allowing the company to serve a diverse customer base with high-quality, protective, innovative solutions and an extensive manufacturing footprint.

REPORT COVERAGE

The market report presents a comprehensive industry assessment by offering valuable market insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis of food packaging market trends and segments, including material, packaging type, end-user, and regions, helping readers get a comprehensive global industry overview.

REPORT SCOPE & SEGMENTATION