Food Packaging Market Size, Share & Trends Report

Food Packaging Market Size, Share & Trends Analysis Report By Type (Rigid, Flexible), By Material (Paper & Paperboard, Plastics), By Application (Bakery & Confectionary, Dairy Products), And Segment Forecasts, 2018 - 2025

  • Published Date: Apr, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-365-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 140

Industry Insights

The global food packaging market size was estimated at USD 277.9 billion in 2017, exhibiting a CAGR of 5.1% over the forecast period. Growing demand for packaged food by consumers owing to quickening pace of life and changing eating habits is expected to have a major impact on the industry. The product offers extended and stable shelf-life, high barrier properties, and safety, thereby boosting industry growth.

U.S. food packaging market

Factors such as convenience and use of high performance material are expected to aid industry growth. Improved shelf-life, coupled with heightened efficiency in prevention of content contamination, is expected to boost the growth of the market. In addition, factors such as increase in population, rising disposable income, and shrinking households have a positive impact on the market.

The growth of the industry in U.S. is expected to be fueled by increasing urban population leading to growth in consumption of packaged food and rising popularity of single-serve packs. Industry growth is also supported by increasing infrastructure for recycling of plastics, metals, and glass. However, concerns regarding wastage due to improper packing may hamper growth.

Bargaining power of buyers is expected to remain high during the forecast period. The industry is characterized by presence of large number of buyers, which is expected to increase over the forecast period. In addition, buyers seek for innovative and customized solutions for their products and exhibit high levels of price sensitivity and often resort to material substitution.

The market is expected to remain highly regulated with agencies such as U.S. FDA and European Commission imposing stringent regulations regarding use of food packaging types and food contact materials. The market is shifting toward more sustainable packing solutions such as bio-based plastics and thermoplastics, which is further expected to heighten industry growth.

Rising sales of retail products and trend for online shopping is expected to have a positive influence over the market. Increasing consumption of snacks instead of traditional food is anticipated to drive demand for packaged products, which is consequently estimated to boost market growth.

Type Insights

Rigid packaging is widely used owing to its properties such as 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.

Applications of semi-rigid packaging include dairy products, fresh sandwich packs, and bakery and confectionary products. Thus, increased consumption of milk and dairy products and bakery and confectionary products is expected to drive demand for semi-rigid packaging.

Flexible packaging is the fastest growing segment, exhibiting a revenue-based CAGR of 5.9% from 2018 to 2025 owing to its ability to form thinner, lighter, and compact packing. Shift in demand from rigid to flexible packing solutions is expected to boost segment growth. Superior performance and convenience offered by retortable packages is 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 size is expected to fuel the growth of the segment. Moreover, cost-effectiveness and lower material consumption is likely to boost demand over the projected period.

Material Insights

Paper and paper-based material accounted for 31.8% of the total market revenue in 2017. Growth of this segment is driven by high product adoption in a bid to substitute non-biodegradable packing solutions. Innovations in design, ease of printability, and sustainability gives paper packaging a competitive advantage over plastic and metal packing solutions.

Plastic food packaging is expected to witness rapid growth owing to adoption by end users due to its lower prices. Rising usage of plastic films in secondary food packing is anticipated to have a positive incluence on the industry. Superior properties offered by plastic packaging such as increased sealing capacity and high moisture barrier is presumed to drive demand.

Metal packaging is commonly used for applications such as canned food, fish, meat, and canned fruits. Growing demand for metal cans owing to extended shelf-life of food products, tamper-proof packing, and nutrition preservation is predicted to boost industry growth. Rise in investments and technological and design innovations are expected to drive the growth of this segment.

Growing demand for glass packing for food on account of its non-corossive nature is expected to bolster demand in the food packaging market. In addition, recyclability, non-permeability, and chemical intertness makes it a suitable material for direct food contact. The segment is estimated to reach USD 37.6 billion by 2025.

Application Insights

Bakery and confectionary products are generally packed in high moisture barrier packaging in order to extend their shelf life. Flexible packaging is widely used for the aforementioned application owing to its advantages such as lightweight, printability, and cost-effectiveness over paper cartons and tins. Attractive packing of confectionary products is expected to boost the growth of the industry.

Consumer inclination toward dairy products in smaller packs due to shrinking households is anticipated to augment market growth. Adoption of attractive packing strategy by manufacturers is also likely to boost the growth of the dairy products segment. Moreover, rising demand for dairy products such as yogurt and ice cream is expected to augment segment growth.

Global food packaging market

Rising health awareness is projected to drive demand for fruits and vegetable, and subsequently packaging solutions for the same. Additionally, rising consumer disposable income has led to a rise in demand for garden fresh products. Increasing consumer demand for environment-friendly packing solutions with low costs and ease of handling is expected to drive demand over the next few years.

Increasing demand for smaller portions of meat and seafood is expected to drive the demand for packaging of these products. Emergence of fish and seafood as snacks is expected to drive growth. Moreover, government initiatives to promote healthy eating habits is expected to boost demand for meat, poultry, and seafood packaging.

Regional Insights

Asia Pacific is estimated to be the largest market, followed by Europe and North America, accounting for 35.9% of the total market revenue in 2017. The industry is expected to be driven by increasing population, rising per capita income, and growing demand in emerging economies such China, Japan, and India.

China is the largest consumer owing to its large population and growing economy. The food packaging industry in China is expected to grow at a significant rate owing to its expanding middle class and their rising purchasing power. India is the fastest growing market owing to increasing usage in retail chains.

Thriving retail sector, coupled with high consumption of packaged food by consumers, is expected to drive demand for packaging solutions in North America. In addition, the region benefits from presence of large number of manufacturers.

Despite high saturation level, Europe is expected to exhibit a positive outlook over the forecast period. Europe’s single market policy allows free-trade within the region and this is anticipated to encourage exports, consequently driving industry growth.

Food Packaging Market Share Insights

The market exhibits presence of large number of players, most of which operate through North America and Europe. Players are exhibiting immense interest in investing in Asia Pacific to expand their business. They operate through dedicated distribution networks and manufacturing locations across the globe.

Companies offer extensive product customization in an attempt to increase their share and augment their revenue. They strive to replace existing materials with biodegradable ones in order to meet changing government standards. Large number of companies are integrated across the value chain and indulge in captive consumption of raw material in order to reduce production cost.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2017

Forecast period

2018 - 2025

Market representation

Volume in Kilotons, Revenue in USD Million and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., China, India, Japan, Germany, U.K., Brazil

Report coverage

Volume forecast, Revenue forecast, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global food packaging market report on the basis of type, material, application, and region:

  • Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Rigid

    • Semi-rigid

    • Flexible

  • Material Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Paper & paper-based material

    • Plastics

    • Metal

    • Glass

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Bakery & Confectionary

    • Dairy Products

    • Fruits & Vegetables

    • Meat & Seafood

    • Sauces & Dressings

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue; USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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