Edible Packaging Market

Edible Packaging Market Outlook (2023 to 2033)

The global edible packaging market is valued at US$ 1.11 billion in 2023, as per a research report by Fact.MR. The market is predicted to expand at a noteworthy CAGR of 14.2% and reach a valuation of US$ 4.19 billion by the end of 2033.

Increasing concerns related to hygiene among the majority of people and rising production of waste from synthetic polymers are predicted to boost demand for edible packaging materials. Further, some other drivers, including high consumption of various types of processed food products and adoption of edible packaging options are predicted to offer opportunities for players.

Various materials, including proteins, lipids, composites, surfactants, and polysaccharides are used in the production of edible packaging solutions. They are considered safe options for human consumption. Protein-based films are easily applied to food products and are safe for human beings.

• Protein-based edible packaging materials held 49% share of global industry revenue in 2022.
• Demand for edible packaging products in Germany is projected to rise at 6.5% CAGR through 2033.

The edible packaging landscape is projected to grow at a rapid pace due to increasing product safety and environmental concerns. The rising need to eliminate various harmful packaging material waste is predicted to drive opportunities for players.

Surging quantity of packaging material waste is leading to the requirement for recycling or using biodegradable packaging alternatives. Prominent manufacturers from the pharmaceuticals and food & beverages industries are opting for these packaging solutions as they are environmentally friendly.

Edible packaging maintains the life of products for a longer duration. Moreover, growing demand for healthy and safe products is leading to the rising use of edible packaging. Adoption of these packaging options minimizes waste, extends the shelf life of products, and keeps them fresh for long. These are considered efficient alternatives to petroleum-based films and are eco-friendly.

Fact.MR, a market research and competitive intelligence provider, in its newly published research report, offers various dynamics of edible packaging space. The report encompasses detailed insights into multiple growth-driving factors as well as product innovations. Key segments, a country-level analysis, prominent obstacles, and some other determinates are also mentioned in this research report.

Report Attributes	Details
Edible Packaging Market Size (2023)	US$ 1.11 Billion
Predicted Market Value (2033)	US$ 4.19 Billion
Global Market Growth Rate (2023 to 2033)	14.2% CAGR
Revenue Share of Protein-based Edible Packaging Materials (2022)	49%
Revenue Share of Food & Beverage Sector (2022)	80.1%
United States Market Growth Rate (2023 to 2033)	6.6% CAGR
Germany Market Growth Rate (2023 to 2033)	6.5% CAGR
Key Companies Profiled	WikiCell Designs Inc. Safetraces, Inc. Tate & Lyle Plc. Tips Corp. Watson, Inc. MonoSol, LLC Internpack Devro Plc. Coveris Holdings Dupont de Nemours and Company Nagase & Co. Ltd. Ingredion Inc.

Why are Edible Packaging Materials Gaining Immense Prominence?

“Rising Need for Recyclable Packaging Driven by Restrictions on Single-use Plastics”

Manufacturers in end-use industries are increasingly embracing nanotechnological methods like multifunctional and nano-encapsulation systems to enhance the nutritional value of food products. These advancements offer protection against moisture, heat, and other contaminants. Additionally, there is a growing demand for reusable packaging solutions, presenting new opportunities for suppliers.

Rising demand for biodegradable films for food packaging is predicted to present significant revenue opportunities. As a result, there is a decreased reliance on fossil fuels, with a greater emphasis on alternative substances such as composite films, starch- or cellulose-based materials, polysaccharides, and lipids that offer novel attributes and functions, including biodegradability. The rising demand for various types of biodegradable films used for edible packaging is expected to create opportunities for expansion in the market.

Increasing consumption of ready-to-eat and processed food products and preference for hygienic products are projected to boost demand for edible packaging products as a healthy lifestyle practice.

What Challenges are Hurting the Demand Growth for Edible Packaging?

“Strict Regulations Governing Food Safety & Hygiene Leading to Increased Production Cost for Edible Packaging Manufacturers”

The production cost of edible packaging is higher than other traditional packaging solutions. The increased costs of these solutions in comparison with fossil fuel-based counterparts are predicted to hamper market expansion.

Imposition of stringent regulations by the United States Food and Drug Administration is anticipated to hinder market growth. As per the regulations, edible firms need to be recognized as healthy, safe, and hygienic by authorization. Packaging films should be manufactured on machines that are suitable for food processing and contain water-soluble additives and polymers.

How are New Companies Anticipated to Reconstruct the Edible Packaging Space?

“Focus of New Manufacturers on Production of Environment-friendly Packaging Products”

New entrants in the market are introducing eco-friendly and environmentally friendly solutions to cater to the growing demand for sustainable packaging options. These start-ups are actively implementing product extensions, and upgrades, and introducing new products as strategies to meet the diverse requirements of end-use sectors and consumers.

For instance :

• Evoware, an Indonesia-based company, offers packaging products that are biodegradable, edible, and safe for the environment. The company specializes in providing packaging solutions for both food and non-food products. Their seaweed-based packaging options serve as nutritious and practical alternatives to traditional packaging materials and are environmentally friendly, as they do not require the use of fertilizers or pesticides during the production process.

Country-wise Insights

What is Expected from the United States as Edible Packaging Market?

“Widespread Adoption of Edible Packaging Solutions Driven by Business Innovations and Tax Incentives”

Demand for edible packaging materials in the United States is forecasted to rise at 6.6% CAGR from 2023 to 2033.

Owing to constantly changing lifestyles, demand for packaged foods is increasing in the United States. Increasing adoption of edible packaging products is driven by businesses abandoning traditional packaging methods and embracing improvements, as well as food service outlets and food & beverage manufacturers accepting suitable food packaging options to reduce waste.

Presence of several food packaging manufacturers in the United States is also contributing to revenue streams. Certain incentives through federal tax benefits are also offered to respective end users to push demand for edible packaging materials.

What Makes Germany a Key Country in the European Packaging Market?

“Initiatives by Government and Businesses Supporting Plastic Waste Recycling and High Demand for Packaged Food”

Sales of edible packaging products in Germany are projected to advance at a CAGR of 6.5% through 2033. The significant increase in the invention of goods along with the rising demand for food packaging is estimated to offer a strong foundation for players there.

For instance:

• In March 2019, the German Bundesrat, the upper house of parliament, endorsed innovative packaging solutions to promote packaged waste recycling.

Various food delivery services in Germany are investing and entering into collaborations with manufacturers of biodegradable packaging solutions.

Which Asia Pacific Countries Account for High Sales of Edible Packaging Products?

“Rising Demand for Ready-to-Eat Food in China”

Rapid urbanization and industrialization, and the rising disposable income of people are influencing the standard of living of the majority of people in China. Consumers’ recognition of the merits of edible packaging products is driving them to opt for products that are shelf-stable and eco-friendly. They are becoming more accustomed to buying ready-to-eat products that are directly boosting sales of edible packaging options.

“High Consumer Awareness of Benefits of Edible Packaging in S. Korea”

The market in South Korea is predicted to grow significantly due to the rising consumer consciousness about the benefits of edible packaging. There is a significant shift in consumer preferences for food products that are available in convenient packaging and offer various dietary advantages to satisfy daily requirements. In addition, increased spending on fast and packaged meals is estimated to support demand for edible packaging solutions.

“Growing Awareness of Plastic Pollution in Japan and Wide Availability of Raw Materials for Edible Packaging Production”

The majority of consumers in Japan are becoming aware of the negative effects of excessive use of plastic for food packaging purposes. Moreover, the prohibition of single-use plastics in the pharmaceutical and food & beverages industries is generating demand for edible packaging materials in Japan. Easy availability of raw materials required for edible packaging is also positively influencing growth opportunities.

Category-wise Insights

Which End-use Industry is Generating Significant Revenue Streams for Market Players?

“Extensive Use of Edible Packaging in Food & Beverage Sector”

Edible packaging solutions find significant applications in the pharmaceutical and food & beverages industries. Out of these, demand for edible packaging from the food & beverages sector accounted for an 80.1% market share in 2022.

Edible packaging is extensively used as an eco-friendly food packaging solution to pack a wide variety of products, including dairy products, fresh food, bakery and confectionery, baby food, and functional food ingredients. The landscape of edible packaging is also projected to advance with the rising worldwide demand for processed food as a result of changing consumer lifestyles.

Why is Protein an Important Aspect of Edible Packaging Products?

“Superior Mechanical Properties of Proteins Boosting Their Adoption for Edible Packaging Production”

Proteins accounted for 49% of the global demand for edible packaging materials. in 2022. Protein films are generally manufactured from whey, soy, plants, casein, collagen, gelatin, and gluten. They have superior mechanical properties due to the unique structure of proteins. Further, these protein films offer a barrier to gases, oils, and vapors.

Protein films are capable of preventing biological degradation, microbial development, oxidation of nutrients, and moisture migration. This is contributing to their increased demand across the world.

Key Market Players

Leading companies in the edible packaging market are ramping up their spending to achieve various objectives, such as maintaining product standards, enhancing supply chain management systems, ensuring quality control, and more. Collaborations and product launches are some initiatives taken by players to enrich their product portfolio and expand reach across regions.

For instance:

• Pace International LLC, in September 2021, introduced PrimaFresh 60 Organic. PrimaFresh 60 OR is a premium brand of coatings that are based on organic edibles. The product was specially developed to enhance the fresh appeal of fruit by better managing dehydration.
• BASF in collaboration with Nippon Paint China, in August 2022, introduced eco-friendly edible packaging. This newly launched product was embraced by dry-mixed mortar series products of Nippon Paint.

WikiCell Designs Inc., Safetraces, Inc., Tate & Lyle Plc., Tips Corp, Watson, Inc., MonoSol, LLC, Internpack, Devro Plc., Coveris Holdings, Dupont de Nemours and Company, Nagase & Co. Ltd., and Ingredion Inc. are leading manufacturers of edible packaging products.

Segmentation of Edible Packaging Industry Research

• By Material :

  • Proteins
  • Polysaccharides
  • Lipids

• By Source :

  • Plants
  • Animals

• By Packaging Process :

  • Nanotechnology
  • Antimicrobial
  • Electrohydrodynamic
  • Coatings
  • Microorganisms

• By End Use :

  • Food & Beverages
  • Pharmaceuticals

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa