Food Service Packaging Market

Food Service Packaging Market Outlook

The global food service packaging (FSP) market is estimated to be valued at US$ 64.1 billion in 2023 and it is anticipated to grow at a CAGR of 6.0% to reach US$ 114.7 billion by the end of 2033.

Changing lifestyle of consumers and their preference for ready-to-eat is considered the prime factor for the growth of the food service packaging market. Further, the increasing environmental concern creates the demand for sustainable and recyclable food packaging material. Such factors are likely to create a plethora of opportunities for the food service packaging market.

Report Attributes	Details
Estimated Market Value (2023E)	US$ 64.1 Billion
Forecasted Market Value (2033F)	US$ 114.7 Billion
Global Market Growth Rate (2023-2033)	6.0% CAGR
North America Market Share (2023)	5.9%
East Asia Market Growth Rate (2023-2033)	6.1% CAGR
Europe Market Growth Rate (2023-2033)	5.8% CAGR
Key Companies Profiled	Huhtamaki Oyj Amcor Plc Genpak LLC Linpac Packaging Pactiv LLC D&W Fine Pack Sealed Air Corporation

Historic and Future Path for Food Service Packaging Market

Food service packaging has witnessed high demand, especially after covid-19 as online food and zero-contact delivery policies are still prevalent across numerous economies, which requires proper packaging.

Further, the demand for instant food has increased rapidly, owing to the increasingly growing working class, hectic work schedules, and problems faced during urban commutes, which significantly impact the growing instant or convenience food demand. Facilitating the delivery and carrying of instant or convenience food paves the way for the food service packaging market.

• Short Term (2023-2026): Growing demand for ready-to-eat food is likely to drive the food service packaging market during the short term.
• Medium Term (2026-2029): Growing online food delivery services especially across emerging economies due to the growing working class and rising disposable income to fuel the food service packaging market during the projection period.
• Long Term (2029-2033): Manufacturing companies investing heavily in research and development for a more sustainable and unique design which is likely to create a positive environment for the growth of food service packaging.

Market Dynamics Overview

“Changing Consumer’s Food Habits to Boost the Demand for Food Service Packaging”

Over the period, consumers’ lifestyle has changed rapidly. This includes food habits as well. Consumers have shifted towards fast food and ready-to-eat food which is anticipated to be the prime factor for the growth of the food service packaging market.

Many developed as well as developing countries have witnessed high demand for packaging from the food industry over the years. Online food delivery system is gaining consumers attraction, which is safe, healthy, and gives the same taste. The global online food delivery market is valued at over US$ 180 billion in 2022 and is expected to continue its dominance over the forecast period. Also, grab & eat system is getting popular as it gives the consumer more comfort.

Furthermore, consumers’ demand for packaged food that offers nutritional value and convenience is majorly driving market growth. Also, the growing demand for dairy products requires semi-rigid packaging which is anticipated to drive food service packaging.

“Recyclable Product in Food Packaging to Provide Opportunity for the Manufacturers”

Globally, the proliferation of recyclable and organic products has provided food packaging manufacturers with an opportunity to exploit new trends of organic packaging or edible packaging. As per the statistics, 30-40% of the food gets wasted every year because of improper packaging. This is likely to give manufacturers an edge to provide better packaging solutions for the food & beverage industry.

Recycling packaging products provide multiple benefits such as saving raw material, reducing greenhouse gas emissions, and saving energy consumption as well. Recycled processes reduce 62.0% of the waste and reduced landfill by 35.0%.

“Stringent Government Regulations to Hamper the FSP Market Growth”

Government regulations regarding food and beverages and their packaging are likely to hamper the food service packaging market. In order to, ensure food safety, especially from coated packaging which emits VOCs and negatively impacts the food consumer's health.

Further, licensing and approvals from food authorities are also required to register and establish the commercial business. Such factors restrain the entrance of new market players. Further, e-commerce sites offer counterfeit packaging solutions at lower prices which affects brand value and customer faith.

Country-wise Insights

Why the US is Likely to Increase Demand for Food Service Packaging in the Coming Years?

Food service packaging consumption in the U.S. is expected to grow at a CAGR of 6.1% between 2023-2033.

Rapid changes in the lifestyle of U.S. consumers and their preference for grab and go & convenience eating trends have been the key factors for the growth of the food packaging market in the U.S.

The U.S. fast food industry is valued at over US$ 300 billion in 2022 and is expected to grow at a CAGR of over 5.0%. This is expected to create high demand for food packaging.

What Role does China Play in the Expansion of the Food Service Packaging market?

China is one of the most promising markets for food service packaging. China has a population of over 1.4 billion and holds the position of the highest number of millennials across the globe.

As one of the fastest-growing economies, China’s food service market has increased rapidly over the years. China’s food service market is valued at over US$ 940 billion in 2022. This is expected to increase rapidly due to consumer preference for ready-to-eat and fast food. Also, surging disposable income is prompting the consumer to go for instant food, thus expanding the scope of the fast food culture in China, which in turn, drives the food service packaging market.

It is projected that the food service packaging market in China is anticipated to grow at a CAGR of 6.3% in the forecast period.

Category-wise Insights

How are Dairy Products Stimulating Market Growth?

Packaging for dairy products has become an increasingly active center of innovations from manufacturers. As shopping habits change and consumers are increasingly concerned about the quality, sustainability, and eco-friendly design for packaging is likely to drive the food service packaging market on the back of growing dairy products’ durable packaging demand.

Food service packaging for dairy products is anticipated to grow at a CAGR of 5.7% in the forecast period.

Why Polyethylene Terephthalate Packaging is Gaining Attraction?

Growing demand for sustainable packaging from the food & beverage industry is likely to drive the demand for polyethylene terephthalate. PET’s recyclable properties will the food packaging market during the forecast period.

PET bottles are the most widely used recycled plastic packaging across the globe. As plastic waste concerns rise, food service packaging players are focusing on the recyclable materials trend to increase the demand for PET as it is recyclable in nature.

Polyethylene terephthalate is anticipated to grow at a CAGR of 6.0% in the period of 2023-2033.

Market Titans Key Strategies

Prominent food service packaging market players are 3M Company, Tesa SE, Nitto Denko Corporation, LINTEC Corporation, BASF SE, Lohmann GmbH & Co. KG, and Exxon Mobile Corporation.

Companies are investing heavily in research and development for the betterment of the product used in food packaging. Also, the development of edible packaging on the back of environmental concerns is gaining traction and seeking manufacturers’ attention.

Mergers and acquisitions are go-to strategies for market titans. For instance, in 2021, Imperial Dade acquired Cosgrove Enterprises. This acquisition will help the company to strengthen its position as a distributor of specialty products in food packaging. With this acquisition, the company will strengthen its position in the US markets.

Fact.MR has provided detailed information about the price points of key manufacturers of food service packaging positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Food Service Packaging Industry Research

• By Product Type :

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

• By Packaging Material :

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

• By Fabrication Type :

  • Thermoforming-based
  • Die Cutting-based
  • Injection Molding-based

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA