Molded Pulp Packaging Market Size, Share & Trends Analysis Report By Source (Wood Pulp, Non-Wood Pulp), By Molded Type (Thermoformed, Transfer), By Product, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Molded Pulp Packaging Market Trends

The global molded pulp packaging market size was estimated at USD 5.46 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2030. Factors attributing to market growth include increasing demand for sustainable & eco-friendly packaging solutions and increasing demand from end-use industries such as food packaging, healthcare, food service, electronics, and others. Manufacturers are striving to maintain a healthy competitive environment across market space by implementing various strategies. For instance, in July 2023, Tekni-Plex, Inc. announced the opening of their facility in Ohio, for manufacturing specialty molded pulp products, especially fiber-based egg cartons.

Food packaging and foodservice industries together dominated the North American molded pulp packaging industry. This dominance can be correlated to a huge demand for packaged food and on-the-go food serving. Commercial food service establishments accounted for over USD 813.4 billion of the total food marketing system market and thus, emerged as a major segment of the industry. Commercial food service category includes restaurants, caterers, cafeterias, fast-food outlets, and other institutions that prepare, sell, and serve food. With such institutions looking forward to new packaging solutions having minimal carbon footprint, the market is expected to witness strong growth over the coming years.

Trays dominated the product segment in the U.S. owing to growing awareness of environmental benefits of using sustainable packaging solutions, increasing demand for convenient and lightweight packaging options, and rise in e-commerce activities. Trays are widely used for packaging a wide range of products, including food items such as fruits, vegetables, eggs, and meat. Demand for molded pulp trays is expected to continue to grow due to increasing demand for eco-friendly and sustainable packaging solutions.

Market Dynamics

Rising consumption of eggs and fresh fruits and growing demand for sustainable packaging are preponderance for the market growth. Eggs are packaged in molded pulp trays and clamshells, which are then sold to restaurants, foodservice operators, and individual buyers. In addition, per capita egg consumption is increasing on a yearly basis across the world. Thus, rising consumption of eggs, owing to expanding population, associated health benefits, and increasing demand for higher protein intake, is anticipated to drive demand for molded pulp packaging products, thereby propelling market growth.

Plastic is one of the major used materials for packaging in various industries including food & beverage, healthcare, cosmetics & personal care, and consumer goods. However, plastic is a non-biodegradable, unsustainable material, and can have an adverse impact on the lives of humans as well as animals. In addition, the recycling rate of plastic waste products is low as compared to the consumption rate, which ultimately pollutes land, ocean, and drinking water. According to the UN, 300 million tons of plastic waste is generated every year globally, which is nearly equivalent to the weight of the global human population.

Source Insights

Based on source, the wood pulp segment accounted for a revenue share of over 85.0% in 2023. This is owing to its abundant availability, cost-effectiveness, and customizable to have different depths, sizes, and shapes to fit various food items which also makes them a popular choice for packaging manufacturers. Wood pulp molded packaging has a wide application in various end-use industries. For instance, it is widely used in the food & beverage industry as it offers excellent protection for food products during shipping and storage.

The non-wood pulp segment is anticipated to record the highest CAGR during the forecast period. Growth of the non-wood pulp segment is owing to growing concern about deforestation. This pulp is produced with not-wood cellulosic plant material or agricultural waste such as cereal straws, grasses, sugarcane, and others. This is gaining popularity in the production of pulp due to its high availability, lower cost, and growing concerns about deforestation.

Molded Type Insights

Based on molded type, the transfer segment held the largest market share of over 57.0% in 2023. Transfer molded pulp has a wide application in the food packaging industry due to hygroscopic property of the material, and air permeability which results in a longer shelf life of beverages and food products that are to be further shipped. Moreover, molded pulp packaging protects from shocks that cause breakage or damage to the products, especially fruits, vegetables & eggs, and non-alcoholic, and alcoholic beverages.

The thermoformed segment is anticipated to grow at fastest CAGR over the forecast period. This is attributed to the rising concerns about environmental impact of single-use plastics which resulted in a shifting trend of consumers from plastic thermoformed packaging to sustainable molded thermoformed pulp packaging.

End-use Insights

Based on end-use, the food packaging segment dominated the market with a revenue share of over 44.0% in 2023. Molded pulp packaging is mainly used for packaging fruits, vegetables, and eggs. Clamshells and trays are considered primary packaging types for eggs due to the low price and cushioning offered. In addition, molded pulp trays and clamshells offer extended shelf life of eggs keeping them fresh by ventilation provided in this packaging.

The electronics industry is expected to witness a CAGR of 9.1% over the forecast year owing to high demand for the packaging of sensitive electronic devices such as laptops, smartphones, and others. The electronics require molded pulp packaging to transport and store delicate electronic devices that keep them safe from any external damage which is anticipated to drive the demand for molded pulp packaging products.

Product Insights

Based on product, the tray segment dominated the market with a revenue share of over 41.0% in 2023 owing to wide application of these trays in food packaging and food service industries. These trays are molded pulp trays that are widely used for packaging of eggs in retail distribution channels as it provides protection from breakage and keeps the product safe.

The molded pulp clamshells segment is projected to grow at a fast CAGR of 8.5% over the forecast period. Eggs are either packed in plastic clamshells or in molded pulp clamshells. The demand for plastic clamshells has been declining for the past few years owing to its increasing demand for molded pulp clamshells. This can be attributed to convenience, in terms of carrying and disposing of, offered molded pulp clamshells.

Regional Insights

Asia Pacific held the largest market share of over 41.0% in 2023. The region is segmented into China, Japan, and India. China accounted for the largest market share of the market in 2023 in the Asia Pacific region. This is attributed to the large food & beverage industry followed by the electronics market owing to the high population and increasing disposable income of consumers in the country. Moreover, the country is home to several electronic companies such as Huawei Technologies Co., Ltd, Lenovo, Xiaomi, and others which gives rise to a demand for molded pulp packaging to store and transport delicate electronic goods.

North America was the second leading region for molded pulp packaging in 2023. The region is home to many food service companies including fast food chains, restaurants, catering services, and others. Ongoing trend of on-the-go food or snack consumption gives rise to molded pulp packaging such as trays, bowls, and cups, as consumers are becoming aware of sustainable packaging and prefer it over single-use plastic packaging.

Key Companies & Market Share Insights

The molded pulp packaging industry is highly competitive with the presence of both global and regional companies. Companies operating in the market offer a wide range of products that are available in a variety of shapes, sizes, and colors. Moreover, they offer custom packaging products to suit customer-specific requirements.

The market has also witnessed several new product launches and mergers and acquisitions over the last few years.

• In June 2023, ANTAIRA TECHNOLOGIES, LLC. announced its transition to complete molded pulp packaging for its network devices across North America in line with companies moving towards sustainable packaging solutions.

• In February 2023, Huhtamako Oyj announced acquisition of a joint venture foodservice distribution in Australia. With this acquisition, the company is serving food services packaging solutions to a wide network of regional and metropolitan wholesalers, restaurant businesses, and others.

Molded Pulp Packaging Market Report Scope

Global Molded Pulp Packaging Market Segmentation

This report forecasts revenue and volume growth at regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global molded pulp packaging market report based on source, molded type, product, end-use, and region:

• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Wood Pulp

  • Non-wood Pulp

• Molded Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Thick Wall

  • Transfer

  • Thermoformed

  • Processed

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Trays

  • End Caps

  • Bowls & Cups

  • Clamshells

  • Plates

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Food Packaging

  • Food Service

  • Electronics

  • Healthcare

  • Industrial

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Southeast Asia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa