Food Packaging Market to Expand by USD 75.3 Billion from 2024 to 2028, Driven by Anti-Counterfeiting Measures, AI's Influence on Market Trends - Technavio Report

NEW YORK, Aug. 26, 2024 /PRNewswire/ -- The global food packaging market size is estimated to grow by USD 75.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.98%  during the forecast period. Prevention of food counterfeiting is driving market growth, with a trend towards growing sales of food products on e-commerce platforms. However, volatility in raw material prices  poses a challenge. Key market players include Amcor Plc, Ardagh Group SA, Ball Corp., Berry Inc., BWAY Corp., CANPACK SA, COFCO Corp., Crown Holdings Inc., DS Smith Plc, Huhtamaki Oyj, 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, Tetra Laval SA, and Toyo Seikan Group Holdings Ltd..

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Market Driver

The food packaging market is experiencing significant growth due to the increasing trend of food sales on e-commerce platforms. Primary packaging, which includes the direct contact packaging of food products, is essential to maintain the product's quality and freshness during transit. Efficient secondary packaging is also crucial to ensure safe shipment of the product to customers. With the rise of various healthy food options, such as snack bars, and the increasing popularity of online grocery sales, the demand for secondary packaging is on the rise. In the US, online grocery sales account for an 18%-22% share of the overall e-commerce market. E-commerce channels like delivered baskets, click-and-collect, fresh delivery, and meal kits are driving the growth of the food packaging market. Major players, such as Amazon, are providing online grocery delivery services, further fueling market growth. The importance of proper packaging in maintaining product quality, customer satisfaction, and brand reputation cannot be overstated. Therefore, the food packaging market is expected to continue its growth trajectory during the forecast period. 

The Food Packaging Market is witnessing significant trends with a focus on customization options, meeting consumer preferences and convenience. Barriers to entry include high production costs and regulatory compliance. Microwave packaging is gaining popularity due to its convenience. Inventory control is crucial to minimize food waste and maintain product safety. Consumers demand longer shelf life and freshness, driving innovation in antioxidants, antimicrobials, moisture absorbers, and visual alerts. Smart packaging with time and temperature indicators ensures product safety during storage, transit, and retail sale. Food contamination, spoilage, damage, and pest attacks are major challenges addressed through advanced packaging technologies. The external environment, including relative humidity, light, pressure, heat, and microorganisms, also impact food packaging design and materials. 

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Market Challenges

• The food packaging market utilizes various materials such as plastic, glass, metals, and paper for food packaging. For instance, cartons are manufactured from either recycled fiber mills or virgin fibers. The prices of these raw materials, particularly recycled fiber mills and virgin fibers, are subject to constant fluctuations, posing a significant challenge for end-users like carton producers. This instability in raw material pricing results in increased production costs and decreased profit margins for vendors. The prices of paper and paper products used in corrugated packaging solutions are also anticipated to fluctuate during the forecast period, leading companies to increase corrugated packaging prices in response. Furthermore, aluminum, a crucial raw material in food can manufacturing, is experiencing price fluctuations that hinder the expansion of the global food packaging market.
• The Food Packaging Market faces various challenges in different segments. For food products, the use of stick packs and sachets, bottles and jars, boxes and cartons, cans, trays, clamshells, and dairy products require high barrier properties for extended shelf life. Quick-service restaurants, café & kiosks, full-service restaurants, and chain restaurants demand safe, high-performance materials in diverse material compositions for single-serve packs. Eating habits have shifted towards packaged food, necessitating recycling-friendly solutions for retail products. Online purchasing increases the need for flexible-type packaging, while rigid packaging remains essential for fresh food products. Dairy product segment and plastic food packaging in the plastic material segment require high barriers properties for fast-food items. Primary, secondary, and tertiary packaging solutions include plastic containers, paper packaging, bioplastic material, PCR plastic, and bio-based polymers. Smart packaging and nanotechnology are emerging trends to enhance food safety and extend shelf life. Overall, the food packaging market must cater to the diverse needs of various food segments while addressing sustainability concerns.

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Segment Overview 

This food packaging market report extensively covers market segmentation by  

1. Product 
• 1.1 Flexible plastic
• 1.2 Rigid plastic
• 1.3 Glass
• 1.4 Metal
• 1.5 Others
2. Application 
• 2.1 Bakery and confectionery
• 2.2 Dairy products
• 2.3 Poultry meat and sea food
• 2.4 Fruits and vegetables
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Flexible plastic-  The flexible plastic segment dominates the global food packaging market, accounting for a significant share. Notable types of flexible plastic include bags, pouches, liners, wraps, and sachets. This segment's growth can be attributed to its numerous advantages over other packaging materials. Flexible plastic offers design versatility with various shapes and sizes. It also supports reusability through zip locks and resealable seals. Printing options are extensive, and it's lightweight, facilitating easy shipping. In the consumer goods sector, flexible plastic packaging is increasingly popular due to its weight, cost, and ease of shipment benefits. Vendors continue to innovate, catering to the trend of enhancing product appeal through packaging. These factors collectively fuel the expansion of the global food packaging market.

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Research Analysis

Food packaging plays a crucial role in preserving the quality and safety of food products. It protects against contamination, spoilage, damage, and pest attacks during storage, transit, retail sale, and external environments. The importance of food packaging is heightened in the context of increasing relative humidity levels, which can lead to spoilage and microbial growth. High-barrier properties are essential for extending the shelf life of various retail products, including dairy items and fast-food items. Single-serve packs have gained popularity in recent years due to their convenience. Recycling is a significant consideration in the food packaging industry, with a growing focus on sustainable and eco-friendly solutions. Plastic food packaging, including plastic containers, remains a common choice due to its low cost and high durability. However, concerns over plastic waste and environmental impact are driving innovation in alternative materials. Primary packaging directly contacts the food, secondary packaging groups multiple primary packages together, and tertiary packaging protects the product during transit. Food packaging plays a critical role in ensuring food safety and extending the shelf life of various food products, from online purchasing to retail sale.

Market Research Overview

The Food Packaging Market is a significant sector that focuses on protecting and preserving various packaged foods from contamination, spoilage, damage, and pest attacks during storage, transit, retail sale, and external environment exposure. Factors like relative humidity, light, pressure, heat, and microorganisms can affect food quality and safety, leading to reduced shelf-life and food safety concerns. Packaged products, including packaged foods, face challenges due to changing consumption habits and lifestyles, necessitating product protection, convenience, portability, and essential services. Innovations in packaging, such as flexible packaging, advanced innovations, and eco-friendly packages, have gained popularity in the food sector. Products like convenience food, snacks, frozen food, finger food, candy, beverages, and fast food items are increasingly being packaged using various materials like plastic packages, plastic cling film, eco-friendly packages, and renewable materials such as milk protein, casein-based films, and biodegradable materials. The choice of packaging material depends on the product type, including rigid, semi-rigid, and flexible packaging, and packaging type, such as bags & pouches, films & wraps, stick packs & sachets, bottles & jars, boxes & cartons, and cans or trays. Environmental concerns, including packaging waste, environmental impact, plastic pollution, and resource conservation, have led to the adoption of sustainable packaging solutions and the use of natural resources like glass, metal, paper & paperboard, plastics, and wood. In summary, the Food Packaging Market plays a crucial role in ensuring food safety, quality, and convenience while minimizing environmental impact and promoting resource conservation.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Flexible Plastic
• Rigid Plastic
• Glass
• Metal
• Others
• Application
• Bakery And Confectionery
• Dairy Products
• Poultry Meat And Sea Food
• Fruits And Vegetables
• Others
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio