Modified Atmosphere Packaging Market

Modified Atmosphere Packaging Market Outlook (2023-2033)

The global modified atmosphere packaging market is valued at US$ 16 billion in 2023 and is anticipated to reach US$ 25 billion by 2033, registering a CAGR of 4.5% from 2023 to 2033 (forecast period).

The food distribution industry has witnessed two major developments in the last century: canning and freezing. This provided consumers with easy access to the majority of types of produce. However, the energy crisis, environmental consciousness, and demand for healthy and fresh food have generated a need for a technology that enables the year-round distribution of fresh produce.

Modified atmosphere packaging, or MAP, is a sophisticated technology that includes altering or modifying the atmosphere inside a pack to protect its contents. Some of the most often utilized MAP technologies are on-package valves, gas flushing, barrier packaging films, and scavenger or desiccant packs.

Modified atmosphere packaging provides optimal conditions for extending product shelf life, maintaining product freshness and quality, and preventing oxidation and spoiling of perishable products. Consequently, modified atmosphere packaging is widely used in convenience foods, fruits and vegetables, bakery and confectionery, dairy, poultry, seafood, and meat products, among others.

During the outbreak of COVID-19, the global modified atmosphere packaging (MAP) market encountered supply chain problems as countries around the world went into lockdown. However, the increasing demand for packed food during the outbreak raised the need for modified atmosphere packaging.

Moreover, during the COVID-19 pandemic, customers developed a routine of fewer but larger shopping trips, resulting in a demand for longer-lasting food.

• As per a survey by LendingTree in October 2020, four in ten US customers stated they go to the food store less frequently than they did before the pandemic; nevertheless, the survey also showed that weekly average grocery expenditure climbed by 16%.

This placed a strain on food companies to make their products last longer. As a result, the demand for modified atmosphere packaging surged considerably.

• The FAO (Food and Agriculture Organization of the United Nations) estimates that around 1.2 billion metric tons, or roughly one-third of all food produced by humans, is wasted each year globally.

Since 790 million people, or nearly 10% of the world's population, are malnourished, there is already a strong emphasis on food supply, highlighting the significance of decreasing food waste.

Modified atmosphere packaging is crucial in improving product quality and reducing waste.

• For example, the utilization of modified atmosphere packaging for bananas decreased waste from 10% to 2% in the winter and from 30% to 4% in the summer.

Report Attributes	Details
Market Size (2023)	US$ 16 Billion
Projected Market Value (2033)	US$ 25 Billion
Global Market Growth Rate (2023-2033)	4.5% CAGR
North America Market Growth Rate (2023-2033)	4%
Fruits and Vegetables Segment Share (2022)	37%
Key Companies Profiled	Air Products and Chemicals, Inc Ilapak International SA Amcor Ltd Linde AG Bemis Co., Inc CVP Systems, LLC Berry Plastics Corporation Coveris Holdings SA

Which Factors are Fueling the Demand for Modified Atmosphere Packaging Solutions?

“Increasing Demand for Ready-to-Eat Food Goods”

Ready-to-eat food goods witnessed a considerable demand during the COVID-19 outbreak. With countries on lockdown and a large populace working from home, the demand for ready-to-eat food increased exponentially.

• For example, Grofers, an online grocery store based in India, reported a 160% increase in the ready-to-eat segment, 30% in the premade meals and mixes area, and 40% in the frozen food segment, showing an increasing preference for ready-to-eat products over home-cooked food.

These factors are fueling the demand for modified atmosphere packaging.

“Availability of Legal Marijuana Products”

Since legal marijuana products are now commercially available in some US states and across Canada, companies in this industry are ensuring that their products remain fresh for long durations to provide a better consumer experience.

Modified atmosphere packaging solutions help to keep the yield fresh by preventing oxygen generation in such packaging. As a result, industry leaders are spending on automated marijuana packaging systems that use a modified atmosphere packaging solution, such as nitrogen gas flush and MAP sealing equipment, to prolong the shelf life of their products. This is projected to spur the demand for modified atmosphere packaging over the next ten years.

What Can Negatively Impact the Sales of Modified Atmosphere Packaging?

“High Investment Costs for Modified Atmosphere Packaging”

The investment cost of modified atmosphere packaging is high due to the expenses of potential failures such as leaks caused by inadequate temperature or pressure distribution, incorrect gas composition, seal contamination, contaminated or worn tools, or defective material.

The procedure is also limited for widespread commercial application due to the increased expense of gas packaging technology and the potential growth of food-borne diseases caused by temperature misuse. Furthermore, once the pack is opened or leaked, the benefits of modified atmosphere packaging are lost. Such factors can negatively impact the sales of modified atmosphere packaging.

Country-wise Insights

Why Does the United States Lead the North American Market?

Demand for modified atmosphere packaging in North America is projected to expand at a CAGR of 4% during the forecast period. This is due to the rising demand for fresh and high-quality packaged foods, hygienic food packaging, an on-the-go lifestyle, and manufacturers' need for longer shelf life. Moreover, advances in food packaging equipment and technology and a shift toward convenient and easy-to-handle packaging are also important factors driving regional market expansion.

The United States is dominating the North American market. The United States has a substantial amount of food waste due to improper packaging and wastage throughout the supply chain, which has resulted in the country's adoption of modified atmosphere packaging for fresh fruits and vegetables.

• As per USDA, 30%-40% of food in the United States is wasted each year.

This waste can be reduced with proper temperature management combined with modified atmosphere packaging.

Which Countries Will Provide Lucrative Growth Opportunities in Asia Pacific?

Due to the rapid expansion of the packaging industry in Asia Pacific, the regional market is expected to expand at a rapid pace throughout the projected period. The increasing urban population and growing disposable income is driving the demand for packaged food and beverages, increasing the need for modified atmosphere packaging.

Aside from South Korea and Japan, emerging nations like India, Indonesia, and China, among others, are offering profitable growth prospects.

What Aspects are Strengthening Market Growth in Europe?

The demand for modified atmosphere packaging in Europe is escalating. The EU is the world's second-largest pork producer after China. Germany, France, and Spain are the EU's main producers, accounting for half of the overall EU output. The EU exports roughly 14% of its overall output. With such a production trend, the sales of modified atmosphere packaging are increasing in European nations.

Category-wise Insights

Why is Modified Atmosphere Packaging Widely Used for Fruits & Vegetables?

Fruits and vegetables held 37% of the global market for modified atmosphere packaging in 2022.

When fruits and vegetables breathe, they absorb oxygen and release heat, water, and carbon dioxide, resulting in the breakdown of carbohydrates and a variety of other compounds that have a significant impact on the flavor, freshness, and health quality of the fruits and vegetables. They emit ethylene, which is one of the primary causes of fruit and vegetable spoilage during storage and retail shelf life.

Modified atmosphere packaging is widely used to enhance the storage capacity of fruits and vegetables while also controlling ethylene.

Competitive Landscape

The global MAP market is fairly competitive. Modified atmosphere packaging companies are focusing on increasing their position through strategic collaborations and R&D expenditures.

• Amcor, a global pioneer in creating and delivering reliable packaging solutions, acquired a state-of-the-art flexible packaging facility in the Czech Republic in August 2022.
• Amcor Plc revealed in January 2021 that the Carbon Trust's 'Reducing CO2 Packaging' Label can now be placed on Amcor packaging to show major carbon footprint reduction. It is part of the company's lifecycle assessment service, which helps brands to measure the carbon footprint of their packaging from raw materials to end-of-use.
• Ametek Mocon introduced the Dansensor Checkpoint 3 EC Headspace MAP Gas Analyzer in June 2021, which aids in the measurement of O2/CO2 or O2 in modified atmosphere packages for smoked produce, flammable gas, and high oxygen applications.
• Klöckner Pentaplast (KP) created a fresh protein-modified atmosphere packaging tray in June 2021 that many meat packers can use throughout California. Kp's premium modified atmosphere packaging tray offers a design that enables 30% more trays per pallet. Kp's MAP tray is based on an annual capacity of 30 million US 3-2.0 size trays; it can fit 3,500 MAP trays per pallet, as opposed to the industry standard of 2,200 trays per pallet.
• In February 2021, Air Products, an American company, debuted new scented modified atmosphere packaging in the United Kingdom. Due to the modified atmosphere packaging gas, the system vaporizes natural scents, such as essential oils, into the packaging in an equivalent period, with no additional production stages.

Key Segments of Modified Atmosphere Packaging Industry Research

• By Material :

  • Ethylene Vinyl Alcohol
  • Polyethylene
  • Polyethylene Terephthalate
  • Polyamide
  • Other Materials

• By Application :

  • Poultry
  • Seafood & Meat Products
  • Fruits & Vegetables
  • Convenience Foods
  • Bakery & Confectionery
  • Dairy Products
  • Other Applications

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA