Food Service Packaging Market

Food Service Packaging Market Outlook

The food service packaging market was valued at over US$ 54 Bn in 2020 and is expected to reach almost US$ 97 Bn by 2031. The market is growing steadily due to the growing consumer demand for recyclable and sustainable food packaging materials.

Consumption Analysis of Food Service Packaging from 2016-2020 Vs the Future Outlook for 2021-2031

According to Fact.MR, a provider of market research and competitive intelligence, the global market for food services packaging has grown at a CAGR of over 5% the from 2016-2020, topping US$ 54 Bn by 2020.

Changing lifestyles have altered eating habits, with preference for ready-to-eat foods gaining prominence. Hence, demand for food service packaging in various formats has expanded, with a focus on convenient packaging driving demand.

Growth became especially pronounced since the onset of COVID-19, as instant food consumption surged exponentially. As per Fact.MR, the market is slated to expand at over 6% CAGR from 2021-2031, topping US$ 97 Bn.

How is a Changing Food Industry Landscape Heightening Food Service Packaging Adoption?

The food industry has undergone significant changes over the past few years. Pandemics have made consumers rely on online delivery platforms with all safety standards in place, starting from preparation to packaging and to delivery.

Growing demand for reusable and recyclable containers emerged during the COVID-19 crisis. This led manufacturers to develop organic, eco-friendly, and recyclable products for the global market.

Rising infection concerns have fueled demand for paper cups, bowls and plates in the global food industry. Using paper packaging, refilling, recycling, and reducing packing volumes have all gained prominence in the food service packaging industry.

What role do increased R&D and New Innovative Products Play in the Growth of the Food Service Packaging Market?

Manufacturing companies are investing heavily in packaging companies in order to develop more sustainable, unique, and novel design products over the next decade. However, packaging companies are at risk of underinvesting in data analytics, which is a key component of new product development success.

Manufacturers make large investments in testing the newly developed products before they go on sale worldwide. R&D strategies have the specific aim of reducing costs, lowering product costs; improving sensory properties that make food more appealing, improving nutritional value for dietary needs, improving food safety, adding convenience, and offering consumers a broader range of choices in food items.

The benefits come from either constant, gradual product improvements or significant, disruptive product changes. In addition to technology-new products, materials, processes, storage-new understanding of consumer needs can also result in innovation in these areas.

Where are the Biggest Opportunities for Food Packaging Suppliers?

Consumer demand for packaged foods that offer nutritional value and convenience are driving the global demand for food packaging services. In addition to dairy products and bread and sandwich products, semi-rigid packaging types are used for bakery and confectionery products.

Globally, the proliferation of organic and recyclable products is a major factor driving demand for food service packaging. Consumers are increasingly using single-use products, driving the industry to become the fastest growing sector over the next ten years.

Developing countries are thus focused on high-tech solutions and new technologies to give food shelf lives, prevent damage, preserve nutritional value, and protect it from all adverse effects.

Country-wise Analysis

How Lucrative are Food Service Packaging Sales Prospects in the U.S?

According to Fact.MR, food service packaging sales in the U.S is expected to grow at 5% CAGR through 2031. As per statistics, 30-40% of the food grown is wasted each year, mostly because they are improperly packaged.

Emergence of a fast-paced lifestyle has popularized grab-and-go and convenience eating trends. Hence, fast food joints are proliferating, generating high demand for robust food service packaging solutions across the country.

How are East and South Asia Generating Expansion Prospects?

The market for food service packaging is projected to grow significantly across East and South Asia. Surging disposable incomes are prompting consumers to opt for instant foodstuffs, thus expanding the scope of fast food culture. India and China represent the most opportunistic landscapes.

Food packaging trends are rapidly changing as lifestyles change and food distribution channels become increasingly reliant on online food applications. An increasingly large population and the average fast food meal's popularity are driving the food service packaging industry. As per Fact.MR’s analysis, a market share exceeding 50% is projected for both regions collectively.

Category-wise Insights

Why is Polyethylene Terephthalate Packaging Gaining Traction?

The packaging industry is growing due to a growing demand for sustainable products. PET's recyclable properties will drive growth in the packaging industry. A CAGR of around 6% has been projected for this segment.

PET bottles are currently the most widely used recycled plastic packaging in the world. As plastic waste concerns mount, food service packaging players are capitalizing on the recyclable materials trend to widen their market footprint, thus broadening growth prospects.

How are Single Serve Portion Packs for Dairy Products Stimulating Market Growth?

Dairy products are being packaged with an increasing variety of materials and technologies, but finding the right options can be challenging. A revenue share of around 30% has been projected for this segment.

Packaging for dairy products has become an increasingly active center for innovation. As for shopping habits, change and consumers become increasingly concerned about sustainability, eco-friendlier designs and packaging are being created in a wide variety of sizes and shapes.

Competitive Landscape

Mergers and acquisitions, partnerships, and the development of new products are just some of the strategies used by market players to stay competitive and expand their market footprints in the industry.

• On March 12, 2021, Imperial Dade acquired Cosgrove Enterprises, Inc. This acquisition will help the company solidify its position as a premier distributor of specialty products. As a result of this acquisition, the firm is strengthening its presence in the southeast of the U.S.
• On 26 July 2021, Graphic Packaging unveiled OptiCycle, an alternative to traditional PE and polylactic acid-coated products foodservice packaging. A single-use food service packaging that is easily recyclable and the first of its kind to be commercially available by a domestic supplier in North America.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan South Korea India Australia Brazil Mexico Argentina GCC South Africa
Key Market Segments Covered	Product Type Packaging Material Application Type Fabrication Type  Region
Key Companies Profiled	Huhtamaki Oyj Amcor Plc Genpak LLC Linpac Packaging Pactiv LLC D&W Fine Pack Sealed Air Corporation Stanpac Inc. Smurfit Kappa Group WestRock Company DS Smith Ball Corporation Berry Global, Inc. Dow Inc. Reynolds Group Holdings Limited
Pricing	Available upon Request

Key Segments Covered

• Product type

  • Food Service Packaging for Plates
  • Food Service Packaging for Shallow Trays
  • Food Service Packaging for Cups
  • Food Service Packaging for Bowls
  • Food Service Packaging for Bottles
  • Food Service Packaging for Cans
  • Food Service Packaging for Single Serve Portion Packs
  • Food Service Packaging for Clamshell Containers (Hinge Lid Containers)
  • Food Service Packaging for Two Piece Containers (Separate Lid Containers)
  • Food Service Packaging for Others (Foil, Paper and Pouches)

• Packing Material

  • Polyethylene Terephthalate (PET, PETE, PETG or polyester) Food Service Packaging Material
  • High Density Polyethylene (HDPE) Food Service Packaging Material
  • Polyvinyl Chloride (PVC) Food Service Packaging Material
  • Low Density Polyethylene (LDPE) Food Service Packaging Material
  • Polypropylene (PP) Food Service Packaging Material
  • Polystyrene (PS) Food Service Packaging Material
  • Aluminum Food Service Packaging Material
  • Clay Coated Cardboard Food Service Packaging Material
  • Molded Fiber Food Service Packaging Material

• Application Type

  • Packaging for Foodservice Outlets
  • Food Service Packaging for Bakery Products
  • Food Service Packaging for Takeaway Meals
  • Food Service Packaging for On-the-Go Breakfast
  • Food Service Packaging for Institutional Food Services
  • Food Service Packaging for Online Food Ordering
  • Food Service Packaging for Dairy Products
  • Food Service Packaging for Alcoholic Beverages
  • Food Service Packaging for Ready to Drink Beverages
  • Food Service Packaging for Other Applications

•  Fabrication Type

  • Thermoforming-based Food Service Packaging
  • Die Cutting-based Food Service Packaging
  • Injection Molding-based Food Service Packaging