Ottawa, Oct. 03, 2024 (GLOBE NEWSWIRE) -- The global sustainable foodservice packaging market size is predicted to increase from USD 65.73 billion in 2023 to approximately USD 108.80 billion by 2033, according to a study published by Towards Packaging a sister firm of Precedence Statistics. The industry is expected to grow at a notable CAGR of 6.37% between 2024 and 2034.
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Key Takeaways: Leading Factors of the Sustainable Foodservice Packaging Market
- Use of compostable options due to its environmental benefits is the major factor that drives the market.
- Consumer demand drives sustainable foodservice packaging market growth in North America due environmental impact.
- Restaurant industry is the dominating sector in market due to advantageous benefits of sustainable packaging.
- Functionality and cost-effectiveness of sustainable packaging solution is an unceasing challenge for the market.
Market Overview
The sustainable foodservice packaging market revolves around use of biodegradable and compostable materials which reduces the environmental impact made by foodservices by using recyclable and eco-friendly packaging. Along with this, waste reduction, reduction of carbon footprint and conservation of resources are the leading objectives of the market. The demand for cost-effective, renewable sources has increased the demand of the market.
The waste reduction attributes to the benefits of sustainable packaging solutions. The efficiency in biodegradable material reduces the environmental impact and also designs innovative packaging which fit to the size. The biodegradable materials like bamboo, paper and plant-based are good alternatives.
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Driver
Drastic climatic changes and increasing pollution, to require more sustainable solutions
The major driving factor is the increasing demand for sustainable packaging in foodservices due to the drastic changes in geographical conditions and rapidly increasing pollution which is harmful for the consumer health. The changes in global temperature requires sustainable packaging which will sustain the food freshness and resist moisture while also reducing spoilage. The focus on sustainable packaging also boosts the market and eliminates waste generation by increasing the use of reusable material and decreasing the dependence on single-use material. Reduction in plastic pollution is also a leading benefit of sustainable foodservice packaging market.
Restraint
Higher costs of materials and limited functions hinder the market growth
The leading challenges which hinder the growth of sustainable foodservice packaging market is raw material costs and different functions like barrier features which won’t provide resistance against oxygen, in result, affecting food quality. The prices of raw material like paper, wood and corrugated box can change due to economic ups and downs, in result, affecting the profit margin. Sustainable packaging may not withstand the temperature changes and the durability of the packaging may not be robust enough can hinder the growth of the market.
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Boom of bio-based and edible alternatives
The technological advancements innovate materials based in consumer preference which bend towards sustainable packaging. Innovation and utilization of materials like PLA (polylactic acid), PHA (polyhydroxyalkanoates), and cellulose-based films is bio-based and is able to decompose naturally which in consequence reduces carbon print and landfill waste. Renewable sources like corn, sugarcane, and cellulose have advantage over the sustainable materials. Edible packaging is the new trend in sustainable drive. It is made from proteins, lipids, and polysaccharides and the speciality of edible packaging is, it is consumable. The replacement of single-use items is plant-based or starch-based utensils which is a beneficial alternative for the sustainable packaging and it also includes edible alternatives which are made from starch, corn, or seaweed.
Opportunity
Customization and higher performance can create opportunities
The sustainable foodservice packaging market offers opportunities in providing recyclable and reusable materials made from bio-degradable materials like paper and paper-board or wood material which is a sustainable option. Customization according to the manufacturer preferences can create opportunity for the market to provide them with higher packaging material, thus, increasing the market growth. The demand for sustainable packaging solutions is also due to the increasing consumer preferences leaning towards green packaging.
Regional Insights
Asia-Pacific is the dominating region and owns the largest share in sustainable foodservice packaging market due to increasing consumer awareness which is a result of environmental impact. The rapid urbanization and increasing high incomes have also contributed to the market growth. Asia-pacific focuses on the adoption of bio-degradable packaging and material to initiate and support sustainable drive and to increase the market rate. Although, the consumer demand expands market growth, the limited infrastructure for waste regeneration and supply chain have hindered the development of sustainable packaging solutions.
- In March 2024, TOPPAN Holdings Inc in collaboration with India-based TOPPAN Speciality Films Private Limited (TSF) had developed a barrier film, GL-SP, which used biaxially oriented polypropylene (BOPP). The company also focused on launch sales of barrier packaging for dry contents and focused in American, European, Indian and ASEAN market region.
North America plays a significant part in sustainable foodservice packaging market due to increasing awareness among consumers. The global warming issue has impacted Americans due to the use of single plastics which are being banned in the region and instead, adoption of compostable alternatives has accelerated the market growth. The restriction on use of single-use plastic has increased the utilization of bio-degradable packaging solutions as companies also want to attract consumer base by presenting sustainable packaging.
The government initiatives and corporate initiatives have also contributed significantly to the awareness of using eco-friendly packaging for foodservices. The focus on innovating sustainable foodservice packaging has also increased competition among companies, in result, increasing the market drive.
- In March 2024, Berry Global in collaboration with Mitsubishi Gas Chemical Company had launched an EVOH-free barrier resin which was developed to use as a coat for thermoformed tubes, jars, and bottles. The resin had received validation from the Association of Plastics Recyclers (APR) and was expected to be used as an alternative solution during shortage.
Europe is the fastest growing region in sustainable foodservice packaging market and it is the result of Europe’s sustainable schemes and regulations which are followed by the consumers. The region has a steady waste management system which has increased the market rate. The recycling infrastructures have established a well circular economy in the region and its focus on recycling biodegradable material has also adoption of sustainable packaging solutions.
Reusability and recyclability are the important factors for European consumers which are consciously aware about the environmental impact sustainable packaging has on it. European companies focusing on sustainable practices significantly increase sustainable foodservice packaging market.
- In June 2024, AeroFlexx, a full-service liquid packaging company in collaboration with Polish liquid concentrates supplier Chemipack had launched an eco-friendly liquid packaging solution. The aim of collaboration was to increase AeroFlexx’s global presence and to present eco-friendly packaging formats to the European market. Chemipack had 5 production lines which developed and filled 100 million litres of liquids every year.
Top Companies Leading the Sustainable Foodservice Packaging Market
- Tetra Pak
- Amcor plc
- Ball Corporation
- Huhtamaki
- Sealed Air Corporation
- WestRock Company
- Smurfit Kappa Group
- DS Smith
- Genpak
- LLC
- Berry Global Inc.
- Graphic Packaging International
- Eco-Products Inc.
Recent Development
| Company | Acros Dorados Holdings |
| Headquarters | Argentina, |
| Recent Development | In June 2024, Arcos Dorados, the largest McDonald’s franchise had adopted 100% biodegradable, home-compostable and all-natural barrier which is developed J&J Green Paper’s JANUS coating. The company wants to use standard petroleum-derived polyethylene coating instead of single-use plastics and PFAS chemicals. |
| Company | Archroma |
| Headquarters | Switzerland |
| Recent Development | In April 2024, Archroma had launched a Cartaseal OGB F10 barrier coating, which, was water-based, oil and grease resistant and bio-based raw material. The company stated that it was certified by FDA and BfR. The product was developed for PFAS-free oil and grease resistance in food and non-food paper and board packaging industry. The company had also aimed to reduce reliance on oil-based substances by papermakers. |
Segmental Insights
By Material Type
The paper and paper-board segment are the dominating segment in the sustainable foodservice packaging market. It is dominating due to its properties which are convenience and flexibility. The paper and paper-board segment provides easy handling, strong protection and adaptability and can also be easily recycled or bio-degraded. Apart from this, paper and paper-board materials can be customized and are in demand due to its features like resistance compressive forces and bending stiffness. Paper and paper-board materials are used in corrugated boxes, milk cartons and bags.
The plastic segment is the fastest growing segment in the sustainable foodservice packaging market. It will dominate the market due to its properties which are providing protection, durability and preserving product quality. The plastic segment offers a hygienic and lightweight packaging which makes it preferred among the consumers. Customization and safety are the essential features of the plastic segment.
By End-User Industry
The quick service restaurant is the dominating segment in the sustainable foodservice packaging market due to its speed, convenience and delicious flavours offered by QRS. The use of biodegradable materials like cardboard, bagasse, plant-based plastics, paper, and compostable food wraps are being considered as the go-to packaging option due to consumers awareness about the environmental impact. The trends are adopted according to the consumer demand.
The full-service restaurants are the fastest growing segment in sustainable foodservice packaging market due to the segment providing consumers with value-related goals which are achieved by purchasing services and products. Commercially provided meals influenced by food and services drive packaging solutions to present foodservices in sustainable manner. The take-outs are packed in paper or plastic bags and containers which are recyclable.
More Insights in Towards Packaging
- The global semiconductor & IC packaging materials market size reached US$ 39.93 billion in 2023 and is projected to hit around US$ 113.29 billion by 2034, expanding at a CAGR of 10.2% during the forecast period from 2024 to 2033.
- The global health and hygiene packaging market size reached US$ 111.00 billion in 2023 and is projected to hit around US$ 221.90 billion by 2034, expanding at a CAGR of 6% during the forecast period from 2024 to 2033.
- The global pharmaceutical containers market size is estimated to reach USD 174.45 billion by 2033, up from USD 94.51 billion in 2023, at a compound annual growth rate (CAGR) of 6.49% from 2024 to 2033.
- The nutraceutical flexible packaging market size is accelerating, with forecasts predicting significant revenue growth between 2023 and 2034, driving innovation and sustainability in health-focused packaging solutions globally.
- The global end-of-line packaging market size is estimated to reach USD 9.50 billion by 2033, up from USD 6.14 billion in 2023, at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2033.
- The global panel level packaging market size is estimated to reach USD 11.13 billion by 2033, up from USD 0.43 billion in 2023, at a compound annual growth rate (CAGR) of 38.60% from 2024 to 2033.
- The global transit packaging market size reached US$ 231.25 billion in 2023 and is projected to hit around US$ 454.48 billion by 2033, expanding at a CAGR of 6.99% during the forecast period from 2024 to 2033.
- The global polystyrene packaging market size reached USD 24.58 billion in 2023 and is projected to hit around USD 37.92 billion by 2033, expanding at a CAGR of 4.43% during the forecast period from 2024 to 2033.
- The global wine packaging market size is estimated to reach USD 10.99 billion by 2033, up from USD 6.11 billion in 2023, at a compound annual growth rate (CAGR) of 6.19% from 2024 to 2033.
- The global beer cans market size reached USD 12.77 billion in 2023 and is projected to hit around USD 19.14 billion by 2033, expanding at a CAGR of 4.13% during the forecast period from 2024 to 2033.
Sustainable Foodservice Packaging Market Segment
By Material
- Paper & Paperboard
- Plastic
- Metal
- Others
By Product
- Corrugated Boxes and Cartons
- Trays, Plates, Food Containers, and Bowls
- Clamshells
- Others
By End User
- Quick Service Restaurants
- Full-Service Restaurants
- Cafe & Kiosks
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- U.K.
- France
- Germany
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-East Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
View Sustainable Foodservice Packaging Market Full TOC: https://www.towardspackaging.com/table-of-content/sustainable-foodservice-packaging-market-sizing
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About Us
Towards Packaging is a leading global consulting firm specializing in providing comprehensive and strategic research solutions. With a highly skilled and experienced consultant team, we offer a wide range of services designed to empower businesses with valuable insights and actionable recommendations. We stay abreast of the latest industry trends and emerging markets to provide our clients with an unrivalled understanding of their respective sectors. We adhere to rigorous research methodologies, combining primary and secondary research to ensure accuracy and reliability. Our data-driven approach and advanced analytics enable us to unearth actionable insights and make informed recommendations. We are committed to delivering excellence in all our endeavours. Our dedication to quality and continuous improvement has earned us the trust and loyalty of clients worldwide.
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