Precedence Research predicts, the global food packaging market size was accounted at USD 305.29 billion in 2019 and expected to reach around USD 464.98 Billion by 2027 with a compound annual growth rate (CAGR) 5.4% during the forecast period 2020 to 2027.
Why Food Packaging?
The modern day food packaging solution provides tampering & biological safety, complete protection, and counterfeit resistance. It often includes nutritional information on the label along with additional facts about the product offered for sale. Emergence of labels or packaging has helped marketers to trap potential customer. Packaging further plays a vital role in assuring customer satisfaction along with information transmission. Food packaging instructs customers on how the product should be used, recycled, transported, disposed, and many other significant information.
What are the growth factors of food packaging market?
The food packaging market projected to exhibit prominent growth over the analysis period with the advent of various production facilities having an objective of catching up with the latest trends in the market. In addition, rapid changes in the lifestyle of the people along with shifting food preferences of consumers towards packaged food expected to drive the market growth over the forecast period. Further, increasing preference of people for processed food owing to shift in population dynamics from rural to urban areas also propel the growth of the food packaging market.
The market is further driven by numerous factors that include shifting consumer preference towards processed & specialty food, adoption of various marketing strategies by key players in the industry, advancement in materials used for food packaging, rising demand for food packaging materials along with increasing awareness of consumers towards the necessity of good quality food packaging especially in the developing countries. Introduction to various technologies for manufacturing processed food product’s packaging solution as well as introduction of different types of packaging solution for food packaging further fuel the growth of the market.
The Asia Pacific expected to lead the global food packaging market followed by North America and Europe. Besides this, the region has reached its maturity stage that is projected to subsidize the growth of the region in food packaging market. India and China are predicted to be the most lucrative regions among other Asian countries and analyzed to dominate the market during the forecast period. This is mainly due to an increase in the demand for healthy food fueled by the escalating growth in population.
Moreover, increasing demand for packaged food due to positive impact of western culture in eating habits along with technological development and innovation in packaging material together with techniques anticipated to propel the overall market growth in the coming years. Also, an increase in Foreign Direct Investments (FDI) in the food industry along with significant consumption of packaged food among consumers expected to further drive the growth of the market.
- The Asia Pacific estimated to be the dominant market, followed by North America and Europe, accounting for around 40% of the total value share in the year 2019
- High consumption of packaged food by consumers, thriving retail sector, and presence of numerous manufacturers are the key factors projected to propel the market growth in North America
- The paper and paper-based material segment led the global market and accounted for a value share of nearly 32% in 2019 due to its high adoption in a bid to substitute non-biodegradable packing solutions
- Plastic food packaging anticipated to witness considerable growth owing to its increasing adoption because of its low price along with rising usage of plastic films in secondary food packaging
- Based on type, rigid packaging is increasingly used due to its properties that include high barrier to moisture, light, and oxygen that prevents food from getting contaminated
- Flexible packaging expected to be the fastest growing segment by type owing to its ability to form lighter, thinner, and compact packing solution
- Bakery and confectionery products generally require high moisture barrier packaging so as to extend their shelf life that contribute prominently towards the growth of the application
- Increasing consumer inclination toward dairy products in smaller packs owing to shrinking households anticipated to augment the market growth for dairy products
Key Players & Strategies
The global food packaging market players are mostly concentrated in North America and European region; however they focus primarily on extending their reach to the Asia Pacific market to trap the unexplored opportunities.
In addition, market players offer extensive product customization with a view to augment their revenue share on the global platform. They strive to substitute harmful materials with biodegradable ones in accordance to meet the government standards.
Some of the key players operating in the market are Berry Plastics Group, Amcor Plc, Sigma Plastics Group, Sealed Air Corporation, DS Smith PLC, American Eagle Packaging, Ball Corporation, Crown Holdings, Inc., Huhtamaki Oyj., and Ardagh Group among others.
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