Food Packaging Market Size, Share & Trends Analysis Report By Type (Rigid, Semi-Rigid, Flexible), By Material (Paper, Plastics), By Application (Bakery & Confectionery) By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global food packaging market size was valued at USD 362.9 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030. The changing eating habits and the quickening pace of life have driven the demand for packaged food, which is expected to significantly impact the food packaging industry. Moreover, the benefits offered by food packaging such as extended and stable shelf-life, high barrier properties, and safety, have boosted the industry’s growth. Factors such as the use of high-performance materials and the availability of various material compositions are expected to aid the growth of the food packaging industry. Benefits of food packaging such as prevention of content contamination and improvement of food shelf-life along with heightened efficiency are expected to boost the market growth. Moreover, the shrinking household size, rising disposable income, and the increasing population are also expected to positively impact the market growth.

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

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

The food packaging industry is highly regulated due to the presence of government agencies such as the U.S. FDA and European Commission imposing stringent regulations regarding the use of materials for food packaging and types of food packaging. The food packaging industry is shifting toward including sustainable packing materials such as bio-based plastics which in turn is further expected to heighten industry growth.

Rising sales of retail products and the growing trend for online purchasing are expected to positively influence the market. The busy lifestyle and the introduction of new health-conscious snacks such as baked and low-fat snacks are also increasing the consumption of these products over traditional food products. This, in turn, is further anticipated to drive demand for packaged food products, which is consequently estimated to boost the market growth.

During the COVID-19 pandemic, the sales of online goods and services increased due to the shift from offline to online purchasing. This trend continued to grow during the post-normalization of operations. The introduction of innovative online shopping experiences with multiple touchpoints for consumers benefitted the sales of food packaging solutions used in the e-commerce industry, which in turn, is expected to contribute to market growth in the coming years.

Type Insights

Flexible packaging dominated in 2022 and accounted for over 43.0% of the overall revenue share. Flexible packaging is the fastest-growing segment owing to its ability to form thinner, lighter, and compact packaging. A shift in demand from rigid to flexible packing solutions is expected to boost segment growth. Superior performance and convenience offered by retortable packages are presumed to exhibit the largest demand over the forecast period.

Rigid packaging is widely used owing to its properties such as a high barrier to oxygen, light, and moisture, preventing contamination of food. Rigid packaging has witnessed a growing demand from North America owing to increasing consumer demand for packaged food offering nutritional value and convenience.

The demand for fresh food products such as fruits and vegetables, along with processed protein-rich fish and meat, is steadily growing in countries such as Canada, China, and India owing to health awareness among the masses. Rigid products are extensively utilized for the packaging of these products, contributing to segment growth.

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

Material Insights

Plastics dominated the material segment and accounted for over 39.0% of the total revenue share in 2022. Plastic food packaging is expected to witness rapid growth owing to adoption by end users due to its lower prices. The rising usage of plastic films in secondary food packing is anticipated to have a positive influence on the industry. Superior properties offered by plastic packaging such as increased sealing capacity and high moisture barrier are presumed to drive demand.

Paper and paper-based materials accounted for over 33.0% of the total revenue share in 2022. The growth of this segment is driven by high product adoption in packaging as an alternative to non-biodegradable packing solutions. Innovations in design, ease of printability, and sustainability gives paper packaging a competitive advantage over plastic and metal packing solutions.

The stringent regulations governing packaging products are expected to pose several challenges. California, Delaware, Connecticut, Maine, Hawaii, New York, Vermont, and Oregon are among the states that have banned single-use plastic bags. This trend is expected to impact the growth of plastic materials in the North American market for food packaging over the forecast period.

Metal packaging is commonly used for applications such as canned food, fish, meat, and canned fruits. Growing demand for metal cans owing to the extended shelf-life of food products, tamper-proof packing, and nutrition preservation is predicted to boost industry growth. A 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-corrosive nature is expected to bolster demand in the food packaging market. In addition, recyclability, non-permeability, and chemical inertness make it a suitable material for direct food contact.

Application Insights

Bakery and confectionary products dominated the application segment and accounted for over 27.0% of the total revenue share in 2022.Bakery and confectionary products are generally packed in high moisture barrier packaging to extend their shelf life. Flexible packaging is widely used for the aforementioned application owing to its advantages such as cost-effectiveness over tins and paper cartons, printability, and lightweight. The attractive packaging of confectionary products is expected to boost the growth of the industry.

The shrinking households have driven consumer inclination toward dairy products in smaller packs which is anticipated to further augment the flexible food packaging industry’s growth. The adoption of an attractive packaging 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.

The growing presence of vegans in the region has increased the growth opportunities for companies that operate in the plant-based packaged food industry. The demand for ready-to-eat meals is expected to witness significant growth during the forecast period.

Rising health consciousness among consumers is projected to drive the demand for fruits and vegetables, 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.

In addition, the emergence of online meat and seafood marinated products selling brands such as Licious, Angus Meats, and Wegmans Food Markets is expected to drive the market growth. Moreover, government initiatives to promote healthy eating habits are expected to boost demand for sterilizable packaging of seafood, poultry, and meat, which in turn, can contribute to the growth.

Regional Insights

Asia Pacific is estimated to be the largest market, followed by Europe and North America, accounting for over 38.0% of the total market revenue in 2022. The food packaging industry is expected to be driven by the rising per capita income, increasing population, and the growing demand for packaged food in emerging economies, such as India, Japan, and China.

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 its rising purchasing power. India is the fastest-growing market owing to the increasing usage of the product in retail chains.

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

Despite the 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.

Key Companies & Market Share Insights

The market exhibits the presence of a 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.In an attempt to increase their market share and augment their revenue companies offer extensive product customization. They strive to replace existing materials with biodegradable ones to meet changing government standards. A large number of companies are integrated across the value chain and indulge in captive consumption of raw materials to reduce production costs.

In recent years, several packaging technologies have been introduced in the global market due to continuous investments in research & development programs by leading packaging companies. Child-proof & elderly-friendly packaging, retort packaging, modified atmosphere packaging (MAP), temperature-controlled packaging, and are a few of the commonly used packaging technologies.The value additions in the packaging offered by manufacturers have resulted in a significant expansion of the market size in terms of revenue and benefitted the companies in terms of profit margin. Some prominent players in the global food packaging market include:

• Amcor plc

• Sealed Air

• Sonoco Products Company

• Berry Global, Inc.

• WestRock Company

• Mondi

• Genpak LLC

• Pactiv LLC

• Chantler Packages

• WINPAK LTD.

• Alpha Packaging

• BE Packaging

• Cheer Pack North America

• Evanesce Packaging Solutions Inc.

• Pacmoore Products Inc.

• Innovative Fiber

• Emmerson Packaging

• PakTech

• Tradepak

• ProAmpac

Food Packaging Market Report Scope

Global Food Packaging Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global food packaging market based on type, material, application, and region:

• Type Outlook (Revenue, USD Billion, 2019 - 2030)

  • Rigid

  • Semi-rigid

  • Flexible

• Material Outlook (Revenue, USD Billion, 2019 - 2030)

  • Paper & Paper-based Material

  • Plastics

  • Metal

  • Glass

  • Others

• Application Outlook (Revenue, USD Billion, 2019 - 2030)

  • Bakery & Confectionary

  • Dairy Products

  • Fruits & Vegetables

  • Meat, Poultry, & Seafood

  • Sauces & Dressings

  • Others

• Regional Outlook (Revenue, USD Billion, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia