New York, Jan. 11, 2024 (GLOBE NEWSWIRE) -- As per Persistence Market Research, the foodservice packaging market achieved a revenue of US$ 461 billion in 2022. The demand for foodservice packaging is set to rise, with key players dominating a significant share in 2022. The global market is projected to hit US$ 824.5 billion by 2033, growing at approximately 5.7% CAGR from 2023 to 2033.
Various trends across different geographical regions are propelling the global packaging sector. Countries like China, India, Brazil, Russia, and other emerging nations are witnessing increased urbanization, growth in retail chains, and booming healthcare and cosmetics industries, which drive the demand for packaging.
In the food industry, manufacturers are constantly seeking packaging solutions that offer more convenience, longer shelf life, and cost-effectiveness compared to current options. This dynamic and fiercely competitive market responds to the consumer's desire for novelty and innovation, pushing the packaging sector to evolve.
In developing countries, rising living standards and disposable income encourage consumers to purchase a wide range of items, boosting the demand for packaging.
Analyzing the Foodservice Packaging Market from 2018 to 2022 and projecting into 2023 to 2033, manufacturers in the fast-paced food and beverage sector must meet growing consumer expectations, follow the latest trends, and introduce new products to keep consumers engaged. Clean-label branding, emphasizing natural and organic ingredients without artificial substances, gains popularity and is integrated into packaging materials more frequently. Sustainability goals emphasize weight reduction and package recycling, making packaging flexibility, variety, and complexity crucial.
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Market Scope:
| Report Coverage | Details | |
| Market Revenue 2023 | US$ 484 Billion | |
| Estimated Revenue 2032 | US$ 842.5 Billion | |
| Growth Rate - CAGR | 5.7% | |
| Forecast Period | 2023-2033 | |
| No. of Pages | 300 Pages | |
| Market Segmentation | By Product type, Material, Fabrication Process, End Use, Region | |
| Regions Covered | North America, Latin America, Europe, South Asia & Pacific, East Asia, The Middle East & Africa | |
| Key Companies Profiled |
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Market Dynamics Overview:
The Shift in Consumer Eating Habits Driving Demand for Food Service Packaging
Consumer lifestyles and eating habits have changed rapidly over time. The preference for fast food and ready-to-eat meals is a significant factor contributing to the growth of the food service packaging market.
Both developed and developing countries have experienced a surge in demand for packaging from the food industry. The rise of online food delivery systems, valued at over US$ 180 billion globally in 2022, is expected to continue dominating in the future. The convenience of the grab-and-eat system is gaining popularity among consumers.
Moreover, the market is propelled by consumer demands for packaged food that provides nutritional value and convenience. The increasing demand for dairy products necessitates semi-rigid packaging, further boosting the food service packaging sector.
Recyclable Packaging Presents Opportunities for Manufacturers
The global trend towards recyclable and organic products provides an opportunity for food packaging manufacturers to embrace new trends such as organic or edible packaging. Approximately 30-40% of food is wasted annually due to improper packaging, creating an opportunity for manufacturers to enhance packaging solutions for the food and beverage industry.
Recycling packaging products offers several benefits, including saving raw materials, reducing greenhouse gas emissions, and lowering energy consumption. Recycling processes contribute to a 62.0% reduction in waste and a 35.0% decrease in landfill.
Strict Government Regulations as a Challenge to FSP Market Growth
Government regulations pertaining to food and beverage packaging may pose challenges to the food service packaging market. Stringent measures are in place to ensure food safety, especially regarding coated packaging emitting VOCs that could adversely affect consumer health.
Additionally, obtaining licenses and approvals from food authorities is a requirement for registering and establishing commercial businesses. These factors act as barriers for new market entrants. Furthermore, e-commerce platforms offering counterfeit packaging at lower prices impact brand value and erode customer trust.
In a nutshell, the Persistence Market Research report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand this industry. Get a glance at the report at - https://www.persistencemarketresearch.com/market-research/foodservice-packaging-market.asp
Competitive Scenario:
In order to stay competitive and expand their market presence, companies in the industry utilize diverse strategies such as collaborations, mergers and acquisitions, and the introduction of new products.
As an example:
In 2022, BRANDMYDISPO unveiled its initiative to provide complimentary personalized mylar bag design services. The company is dedicated to delivering high-quality printed packaging solutions across various sectors, including the food and beverage industry.
Market Segmentation:
Why is Polyethylene Terephthalate Packaging Becoming Popular?
The demand for eco-friendly products is fueling growth in the packaging industry. PET's recyclability is driving expansion in the packaging sector, with an estimated CAGR of ~6.3%. Currently, PET bottles are the most widely recycled plastic packaging globally. Food service packaging companies are leveraging the trend toward recyclable materials to increase their market share and enhance growth opportunities in response to increasing concerns about plastic waste.
In the Material Type Segment, Which Category is Set to Lead the Market?
In the material type segment, aluminum is poised to dominate the market, with an expected CAGR of ~6.5%. Aluminum is a preferred choice for food packaging due to its superior recyclability and unique physical and chemical properties, making it suitable for food products compared to materials like plastics and glass.
Unlike plastic and paper, aluminum is infinitely recyclable. It is also more robust and lightweight, highly malleable, resistant to organic acids, and an excellent heat conductor. These qualities make it the preferred material for packaging food products. Moreover, aluminum is one of the most abundant elements in the Earth's crust, ensuring widespread availability.
How is the Growth of Online Food Ordering Accelerating?
The online food ordering market is anticipated to grow with a CAGR value of ~7.3%. The advent of digital technologies has transformed the process of meal delivery. Customers now prefer placing orders online or through restaurant apps instead of physically visiting the establishment. In return, restaurants ensure convenience and transparency in their services by fulfilling online orders and delivering food directly to customers' homes.
The food industry has witnessed significant changes in recent years, allowing customers to easily and quickly order food online for prompt home delivery.
Country-wise Analysis:
How is the U.S. Foodservice Packaging Market Performing?
In North America, the U.S. stands out as a significant player in the foodservice packaging market, with an expected growth rate of approximately 6.5%. While external factors like a weakened global economy, a stronger dollar, and potential shifts in monetary policy pose threats to investments in packaging machinery, overall growth is likely to encourage capital investments.
Moreover, the recent decline in interest rates has prompted businesses to secure funding at lower rates. Some American and Canadian companies are considering relocating their manufacturing operations to Mexico to take advantage of duty-free goods and lower labor costs.
What is the Situation of the Foodservice Packaging Market in China?
In East Asia, China emerges as a key market for foodservice packaging, with an anticipated growth rate of about 4.2%. China's economic growth necessitates productivity gains, leading the government to announce plans for modernizing the industrial sector, particularly by transitioning to advanced machinery.
Chinese machinery manufacturers currently face challenges related to their reliance on foreign technology and a lack of innovation. The planned industry reorganization includes the closure of small businesses to consolidate the machinery market. Additionally, the government accelerates the development of sophisticated machinery by offering tax benefits for importing components.
What is the Potential of the Foodservice Packaging Market in India?
In South Asia, India takes the lead in the foodservice packaging market, expected to grow at a CAGR of around 5.2%. India's packaging industry ranks 11th globally, with packaged processed food claiming the largest market share (48%), followed by personal care packaging (27%) and pharmaceutical packaging (6%).
The consumption of convenience foods is driving the food packaging market's growth, emphasizing both aesthetic appeal and practicality as key drivers. Advances in food processing have increased the demand for innovations in food packaging technology, making food packaging indispensable.
Key Queries Addressed in the Report
- What are the factors steering the growth trends in the market?
- What is the current market size, and how is it expected to evolve in the coming years?
- What pivotal elements are shaping the market?
- How is the segmentation of the Foodservice Packaging market carried out, considering types, fuels, applications, or other pertinent factors?
- Who are the major participants in the Foodservice Packaging market?
- What strategies are these players employing to secure a competitive advantage?
- What are the driving forces behind the expansion of the Foodservice Packaging market?
- Which regions are anticipated to witness significant growth, and what are the reasons behind it?
- What recent technological advancements are influencing the Foodservice Packaging industry?
About Persistence Market Research:
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