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The global seafood packaging market size was USD 9,405.5 million in 2019 and is projected to reach USD 13,503.4 million by 2027, exhibiting a CAGR of 4.9% during the forecast period.
The fast-paced lifestyle has led to high demand for convenient food products across the globe. Consumers are moving towards healthier semi-processed pre-packed refrigerated options which in turn is boosting the market growth. Additionally, the growing customer awareness regarding the consumption of fresh seafood that meets safety requirements is likely to create opportunities for the companies present in the market.
The growing adoption of modified atmosphere packaging for fresh seafood, along with the increasing focus of the companies in the production of innovative recyclable and thermal packaging solutions, is projected to fuel the market growth.
COVID-19 Impact: Reduced Sales Owing to Supply Chain Disruption Affecting Seafood Industry
The market that sold seafood and wildlife in the central Chinese town of Wuhan is suspected to be the source of the novel coronavirus in late 2019. The seafood industry has been hit globally because of Covid-19. The cancellation of several orders, freight deliveries being slowed down, refunds being cut and postponed, and problems with obtaining fresh orders and renewing existing orders are some of the problems being experienced by the industry globally.
Fish and fish goods that are heavily dependent on foreign trading have suffered due to supply chain disruptions in the global markets. Lockdown across major countries has resulted in logistical difficulties in trade-in seafood, especially about restrictions on transportation and border crossings. The capture fisheries production in some countries has been suspended or limited owing to the decline in product demand and prices. There is growing evidence in aquaculture that unsold production would lead to a rise in live fish supplies and thus higher feeding costs, as well as a higher risk of fish mortality.
Recent news regarding Chinese authorities detecting the novel coronavirus on the packaging of frozen manufactured seafood has further impacted the industry. China, being one of the major producers of seafood, the risk of potential carriers of the virus related to seafood, has negatively affected the sales of the industry.
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Increasing Demand for Ready-to-eat Meals to Boost Use of Packaging Trays
Hectic urban lifestyles and the rising knowledge of fish as a safe food with high levels of digestible protein and polyunsaturated fatty acids (PUFAs) and cholesterol-lowering properties are favoring the market growth. The growing consumption of marinated and ready-to-cook foods in metros is propelling the demand for innovative packaging solutions for seafood.
The widespread popularity of ready-to-eat meals, especially meals focused on seafood, increases the need for more creativity in packaging solutions for seafood such as trays, pouches, and bags. Trays offer customers comfort while enabling them to cook food directly by placing it in an oven or microwave without compromising the food's consistency and taste. This is expected to bode well for the adoption of innovative seafood packaging solutions in the forthcoming years.
Increasing Awareness Regarding Health Benefits of Seafood Consumption to Drive Market Growth
The demand for high-quality food items with better consistency and shelf-life is growing rapidly. Packaging has brought about a revolution in the production and selling of food items such as seafood that is widely consumed globally. Fish is the most important single source of high-quality protein that provides about 16 % of the animal protein, according to the Food and Agriculture Organization (FAO). Furthermore, according to the World Health Organization, the intake of oily fish such as tuna and salmon by the adult population worldwide tends to minimize the risk of coronary heart disease mortality.
Both developing and the developed countries are supported by a growing emphasis on fish and agriculture cultivation. Fish is a primary or only source of animal protein in many developed countries and is important for the supply of micronutrients to the vulnerable populations. With over 25,000 recognized species, marine ecology, habitat preservation, regeneration, and marine environmental protection are gradually understanding the biodiversity and ecological functions of the fish.
Innovations in Packaging Techniques to Propel the Market Growth
Conventional packaging concepts are limited in their capacity to extend the shelf-life of fish products. This can be resolved by the introduction of vacuum and modified atmosphere packaging (MAP) technologies. However, this requires high capital expenditure in the case of MAP, apart from the need for fresh food-grade gas. Such shortcomings have led to the development of the new and updated strategies for preserving the consistency of food and prolonging shelf life.
Smart packaging technology is one such innovative packaging strategy that finds its way in the protection of different food systems like fish and shellfish. The market for active and smart packaging solutions is driven by the production of new technologies of products and cost-effective pricing, which would promote greater market adoption of advanced seafood packaging solutions.
Increasing Incidence of Food Contamination to Limit Product Adoption
Microorganisms are a primary source of spoilage in most seafood products. However, few bacteria known as Unique Spoilage Organisms (SSOs), contribute to the aggressive off-flavors associated with spoilage of seafood. Microbial decay in food leads to spoilage or changes the sensory properties of a food component, making it unfit for human consumption. Seafood can experience rapid microbial contamination and growth if it is subjected to poor handling and storage. Some microorganisms cause spoilage to differing degrees depending on the overall microbial flora, nature of the fish, methods of handling and packing, and temperature of storage. Therefore, the growing incidence of food spoilage is expected to hinder the seafood packaging market growth.
Unregulated or incorrectly processed products may be susceptible to microbiological contamination and cross-contamination. Seafood is frequently subject to unhygienic handling by staff at the manufacturing and packing level, poor storage conditions, unusual temperatures and the use of preservative compounds. Therefore, the packaging firms are adapting to recent mandates to stop the degradation or misinformation before the substance enters the supply chain.
Plastic Segment to Hold the Largest Share in The Market
Based on materials, the market is segmented into plastic, paper & paperboard, metal, glass, and others.
The plastics segment accounted for a major share in 2019 and is expected to dominate during the forecast period due to the exceptional properties of plastic. Plastic packaging demand is driven by its exceptional properties like impermeability towards moisture, fluids, water vapors, air, and other contaminants. Oxidation and interference of other air components degrade the quality of seafood that can lead to the formation of toxic substances.
Plastic packaging is impermeable, which eliminates this risk. Additionally, properties such as thermo-sealability, transparency, flexibility, lightweight, mechanical properties, inexpensiveness, and convenience of handling shall contribute towards the increasing demand for plastic packaging. The most protective, durable, and customizable type of fish container is flexible packaging. The development in the processing techniques and polymer packaging formulations is expected to fuel the market growth.
The glass segment is expected to grow rapidly due to its excellent properties such as recyclability, chemically inert nature, aesthetically alluring, and eco-friendly. Sustainability is one of the important aspects that affect the choice of packaging. Considering the eco-balance, glass is more advantageous than plastic which is anticipated to drive the segment growth.
Trays Segment Dominated the Market in 2019
Based on product type, the market is segmented into trays, bags & pouches, food cans, boxes, shrink films, and others.
Several types of packaging are available in the market with different shapes, sizes depending upon the type of content. Trays segment accounted for a dominant share of the market owing to convenient shelf life, handling, lightness, and reliability. Trays have re-closable lids which makes it convenient to store seafood for a longer time and effortlessly in the refrigerator. They are available in various sizes and shapes, which makes it an attractive choice for manufacturers to store different types of fish.
Shrink films are the primary covering used to wrap the seafood, which further is passed through a heat tunnel or oven to shrink the content. Attributed to the properties such as stabilization of products, temper resistance, cushioning, and specific barrier and mechanical properties, shrink films will showcase significant growth during the forecast period.
Vacuum Skin Packaging to Expand Rapidly
In terms of packaging technology, the market is segmented into modified atmosphere packaging, vacuum skin packaging, and others.
Seafood is perishable and has a lower shelf life as compared to other foodstuffs like fruits and vegetables. So it is important to pack seafood with enhanced technology to preserve it for a longer period and avoid damage and degradation of nutrients. Packaging technology has led to longer shelf-life, transportation, and preservation of nutrients of seafood.
Modified atmosphere packaging is a widely used technique used to pack seafood. It is used to manipulate the internal atmosphere of a package. It is generally carried out by lowering the amount of oxygen to avoid oxidation and replacing it with inert gases like nitrogen and sometimes carbon dioxide. The internal atmosphere is stabilized by gas flushing and vacuum compensation which results in increasing the shelf life of the products. The low cost of the machines used for such packaging is expected to boost the segment growth.
The benefits of vacuum skin packaging include aerobic microorganism formation, decreased evaporation, dryness, decreased fat oxidation, and freezer burning of frozen products. Additionally, it aids in prolonging the shelf life and decreasing the volume for bulk packs containing lighter materials.
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Fresh & Frozen Segment to Emerge Dominant
In terms of application, the market is classified into fresh & frozen, processed, and ready to eat.
The fresh & frozen seafood segment accounted for a dominant market share due to the high demand for raw fish and other seafood across the world. Due to the increasing awareness among consumers about the health benefits of including seafood in diet, there has been a significant increase in demand for fish, molluscs, and other types of seafood. Frozen seafood has a longer shelf life and can be transported to areas where fresh fish are not available. This is expected to increase the demand for the market.
Fresh seafood is used to produce ready to eat and processed fish products. This is expected to boost the demand for the ready-to-eat segment.
The processed segment is the fastest-growing segment attributed to the high demand for raw, canned, and preserved sea products like tuna, salmon, crabs, lobsters, and other types of seafood.
Fish Segment to G Due to Health-Related Benefits
In terms of seafood type, the market is bifurcated into fish, molluscs, crustaceans, and others.
The increasing demand for processed and raw fish for applications such as food processing, hotels, restaurants, processed food manufacturing companies, animal feed, and others is boosting the fish segment growth. Additionally, the adoption of seafood in diet attributed to the nutritional value of fish is positively impacting the market growth.
The molluscs segment is expected to expand rapidly due to the increasing demand for scallops, oysters, squids, octopus, and clams.
Crustaceans like shrimps, prawns, crabs, lobsters, and crayfish are used in making exotic dishes. Shifting preferences of consumers towards seafood are likely to boost the segment growth.
Asia Pacific Seafood Packaging Market Size, 2019 (USD Million)
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Asia Pacific stood at USD 7,157.6 million in 2019 and is likely to hold a major share in terms of production as well as consumption of seafood. Fish is the staple food and regularly consumed in the region. Fish farmers and producers need to cover long distances in the sea and oceans to obtain fresh and healthy products that can be preserved and canned for longer shelf life. Additionally, the presence of an ample number of seafood packaging manufacturers in China, India, Japan, and South Korea is likely to boost the regional market. The raw material used for manufacturing cartons, bags, boxes, and other packaging equipment is easily available in southern and eastern Asia. This is expected to impact the market positively.
In North America, the demand is rising due to the massive consumption of canned seafood. There has been a substantial increase in demand for canned fish products attributed to various factors such as the growing number of working women, rise in disposable income, and others. Moreover, the increasing awareness regarding the health benefits of including fish in the diet is expected to fuel the demand for seafood packaging.
The high spending on food, health and nutrition is a factor driving the demand for canned seafood. Additionally, the encouragement by the Food and Drug Administration (FDA) to include fish like salmon, tuna, and other seafood in diet due to the presence of vitamin D, omega-3 fatty acids, EPA, DHA, and other nutrients shall exhibit high demand for canned fish products which further aid the market.
Europe, with its large coastline, is likely to experience high production of seafood in the forthcoming years. Countries such as Portugal and Iceland have the highest consumption of seafood per capita in Europe. Additionally, high demand from the hospitality and hotel sector of densely populated countries such as France, Italy, Spain, Poland, and the UK shall drive the demand for packaged seafood.
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An increase in per capita consumption of seafood in countries like Brazil, Argentina, and the Caribbean region shall aid the growth of the market. High demand for different types of fish and seafood to make Caribbean cuisine which mostly consists of fish is expected to drive the demand for packaged seafood.
The Middle East & Africa is expected to rise at a rapid pace. The region is experiencing considerable demand for seafood and fish attributed to its nutritional aspects and the increasing awareness regarding its health benefits. The high demand for canned fish products due to the convenience in use and extended shelf life is expected to drive the adoption of innovative seafood packaging solutions. Additionally, the local brands that provide various types of canned products are expected to drive the seafood packaging market. For instance, Woolworths is a South African company that provides an extensive range of canned fish and seafood.
Companies to Focus on Biodegradable Packaging to Help Environment
Seafood packaging is a concentrated market, with the majority of the companies operating regionally. Some of the players that have been listed as Tier 1 players are Sealed Air, Amcor plc, DS Smith, and Smurfit Kappa. Key players are showing huge interest in investing in Asia Pacific to grow their business. They run around the globe across dedicated logistics networks and fabrication centers.
Companies are focusing on offering comprehensive product customization to expand their product portfolio and boost their sales. To meet changing government requirements, they aim to substitute current products with biodegradable ones. In May 2020, JCS Fishing redesigned the packets for its range of frozen salmon items in a way that minimized the use of plastic packaging by about 60%. In order to minimize manufacturing costs, a substantial number of firms are incorporated around the supply chain and engage in captive raw material use.
An Infographic Representation of Seafood Packaging Market
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The seafood packaging market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, material, product types, seafood type, packaging technology, and leading applications of the product. Also, the report offers insights into market trends and highlights vital industry developments. Research methodology such as bottom-up and top-down approach is used in the study. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Million)
By Packaging Product
By Seafood Type
Fortune Business Insights says that the global market size was USD 9,405.5 million in 2019 and is projected to reach USD 13,503.4 million by 2027.
In 2019, the market in Asis pacific stood at USD 7,157.6 million.
Growing at a CAGR of 4.9%, the market will exhibit steady growth during the forecast period (2020-2027).
The fresh & frozen segment is expected to be the leading segment in the market during the forecast period.
The increasing awareness regarding the health benefits of seafood is likely to drive the market.
Sealed Air, Amcor plc, DS Smith, and Smurfit Kappa, are major players of the global market.
Asia Pacific dominated the market share in 2019.
The increasing innovation in packaging technologies is expected to propel market growth.
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