Dairy Packaging Market Size, Share & Trends Analysis Report By Raw Material (Plastic, Paper & Paperboard, Glass, Metal), By Product (Rigid, Flexible), By Application (Milk, Cheese, Yogurt), And Segment Forecasts, 2019 - 2025

Industry Insights

The global dairy packaging market size was estimated at USD 62.56 billion in 2018 and is expected to expand at a CAGR of 4.19% during the forecast period. Increasing consumption of dairy products owing to the rising awareness regarding healthy lifestyle is driving the product sales. Rising preference for environmentally friendly and sustainable products is anticipated to positively influence product demand.

The adoption of packaged food products is relatively higher, particularly among the younger generation. Additionally, rising health issues owing to malnutrition have increased the scope of dairy packaging materials. Moreover, the rising importance of packaging material to avoid contamination and adulteration is also anticipated to promote the product demand. Since dairy products are perishable, proper, and effective packaging is necessary to facilitate their storage and transportation. Increasing demand for small packaging owing to the convenience is anticipated to further drive the market. Rising preference as well as awareness regarding fresh products in combination with inflating disposable income and urbanization have resulted in augmented demand for dairy packaging.

However, the hazardous effects of plastics and other non-biodegradable packaging materials have raised concerns among consumers as well as manufacturers. Therefore, companies are shifting towards biodegradable and sustainable packaging materials. Manufacturers are adopting green packaging solutions that focus on using thinner materials and promote recycling. According to the Harvard Business Review, 2% of the milk produced in the U.S. gets rotten on supermarket shelves before it is purchased. Therefore, rising efforts to avoid dairy waste is expected to boost newer packaging technology solutions such as Tetra Pak. Tetra Pak exhibits eco-friendly properties and also extends the shelf life of milk up to nine months even without refrigeration.

Prominent market players are increasing spending on innovation and technology in combination with sustainability to shake up the respective categories. For instance, in May 2018, Tetra Pak International S.A. launched an initiative called Go Green with Tetra’ in collaboration with Sahakari Bhandar and Reliance Fresh retail chains in Mumbai, India to promote recycling of cartons.

Product Insights

Rigid packaging is widely used owing to its properties such as a high barrier to light, moisture, and oxygen, which prevents food from getting contaminated. North America is estimated to be the largest market for rigid packaging, owing to increasing consumer demand for packaged food offering nutritional value and convenience.

Flexible packaging is the fastest-growing segment, exhibiting a revenue-based CAGR of 4.4% over the forecast period owing to the ability of the product to offer thinner, lighter, and compact packing. The shift in demand from rigid to flexible packing solutions is expected to boost the segment growth. Superior performance and convenience offered by retortable packages are presumed to exhibit the largest demand over the forecast period.

Flexible packaging is anticipated to witness sustainable growth owing to developing economies. Technological innovations in product development and increasing trend of smaller package sizes are expected to fuel the segment growth. Moreover, cost-effectiveness and lower material consumption are likely to boost demand over the projected period.

Raw Material Insights

Plastic was the largest raw material segment, accounting for more than 40.7% of the market share in 2018. Plastic protects food over long journeys and safeguards it against pressure, humidity, and light; which makes it difficult to replace the product. Currently, more than thirty different types of plastics are being used for packaging. However, the hazardous effects of plastic on ecology as well as human health are anticipated to hinder product usage. Various companies are striving to eliminate disposable packaging. For instance, in April 2019, Lett, a Brazilian brand, has adopted one-liter PET bottles for its fermented milk product brand Lettico A2. The company has diverted from white, opaque High-density Polyethylene (HDPE) bottles.

Paper and paperboard are projected to foresee a CAGR of 4.8% from 2019 to 2025. Increasing adoption of Tetra Pak carton packages manufactured mostly using paperboard and certain layers of polyethylene and aluminum foil is anticipated to fuel the growth. Paperboard content in these cartons helps provide stability, strength, and smoothness to the printing surface. The aluminum content helps protect the products against light and oxygen to maintain the nutritional value and flavors of food.

Moreover, paperboard molding technology with innovative package structures widely offers dairy product manufacturers with new packaging options. For instance, in November 2017, ARTA INDUSTRIAL GROUP introduced a new paperboard cup for packing dairy products and as well as other chilled foods. The board is coated with a polymer layer on both sides to ensure the protection and freshness of products.

Application Insights

Milk packaging reported a revenue of USD 37.1 billion in 2018 and is expected to witness significant growth owing to the increasing consumption of milk and milk-based drinks such as tea, coffee, hot chocolate, and protein shake among other products. Consumers prefer milk in natural form owing to its key nutritional contribution to the diet. Milk is a major source of calcium, hence, it is beneficial to improve bone health.

Yogurt application is projected to foresee a CAGR of 5.1% from 2019 to 2025. This growth can be attributed to increasing consumption of healthy foods particularly organic yogurt and low-fat yogurt. Moreover, rising preference for flavored yogurt has increased their market share on account of the introduction of various fruit flavors such as chocolate, vanilla, coffee, and mint, for improving the aroma, taste, and texture of the end product. Various health benefits associated with the consumption of organic flavored items are expected to further boost the demand. Flavored products are gaining popularity in North America.

Regional Insights

North America held the largest market share of 33.79% in 2018. The region is anticipated to witness increased consumption of dairy products such as flavored milk and flavored low-fat yogurt. The U.S. is the largest milk-producing country, is witnessing a surge in the consumption of cheese; particularly Italian varieties such as mozzarella, parmesan, and provolone. Rising consumer preference for convenience foods such as pizza, macaroni and cheese, and packaged cheese slices is expected to boost the regional demand for dairy packaging.

The Asia Pacific is expected to witness growth owing to the increasing consumption of milk on account of its nutritional value, particularly to children in key markets including China and India. Increased consumption of dairy products holds a prominent role in enhancing child nutrition and boosting the lives of farmers in the region. Moreover, dairy ranges among the top three commodities concerning the gross value. These trends are projected to play a crucial role in the growth of the regional market.

Dairy Packaging Market Share Insights

Key manufacturers include Huhtamaki; Berry Global Group, Inc.; Bemis Company Inc.; Amcor Limited; Ball Corporation; Tetra Pak International S.A.; Sealed Air Corporation; WestRock Company; Mondi Group; and Nampak Ltd. The leading players stressing on product innovation as a result of new product development that helped gain a greater market share at a global level. The new product launches help keep the consumer interest alive on account of the increasing preference for sustainable products in the majority of the regions.

Some of the market participants are adopting product innovation as their key strategy to boost their market share. For instance, in February 2018, Bemis Company Inc. launched a new innovative, Encore-ultra-clear recyclable film. The technology encompasses ready recyclable material with shelf appealing transparency in combination with achieving sustainability objective of the business. Furthermore, in June 2018, Huhtamaki Group has acquired Ajanta Packaging in India for USD 15.5 million. This acquisition will assist Huhtamaki Group is consolidating its market position.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global dairy packaging market report based on product, application, and region:

• Raw Material Outlook (Revenue, USD Billion, 2015 - 2025)

  • Plastic

  • Paper & Paperboard

  • Glass

  • Metal

• Application Outlook (Revenue, USD Billion, 2015 - 2025)

  • Milk

  • Cheese

  • Yogurt

  • Others

• Product Outlook (Revenue, USD Billion, 2015 - 2025)

  • Rigid

  • Flexible

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    •  The U.S.

  • Europe

    • U.K.

    •  Germany

  • Asia Pacific

    • China

    • India

    •  Japan

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa