Produce Packaging Trays Market Outlook (2023 to 2033)
Worldwide sales of produce packaging trays are expected to evolve at a CAGR of 4.5% from 2023 to 2033. Presently, the global produce packaging trays market is valued at US$ 3 billion and is projected to reach a market size of US$ 4.7 billion by 2033.
Produce packaging covers a variety of packaging materials such as corrugated boxes, plastic containers, film lidding and laminates, bags and pouches, and trays that are utilized and assembled to bundle, pack, or label fresh produce.
Produce packaging provides several advantages for fresh produce, such as contamination prevention, physical damage protection, extended shelf life, labeling and marketing potential, and food wastage reduction.
- According to Our World in Data, the trend of single-person households is growing substantially around the world. In the United States, the percentage of adults living alone almost doubled over the last five decades, reaching nearly 27% in 2019.
Single-person households are becoming more frequent to reduce living costs while improving living standards. This trend is rapidly gaining traction in Europe and Asia. Single-person households are prevalent in countries such as the United Kingdom, India, Japan, and China.
As a result of this trend, packaging and food service industries have raised manufacturing of compact produce packaging trays and a variety of other packaging solutions, as consumers opt for smaller amounts of food to decrease waste.
Moreover, the increasing trend toward healthier eating has boosted the consumption of fresh fruits and vegetables. As a result, local food vendors and retail outlets are stacking freshly sliced fruits and vegetables in high-grade produce packaging trays to entice customers. Furthermore, the rising penetration of online grocery stores, particularly in countries like India, has expanded the use of produce packaging trays.
Governments around the world are concentrating on decreasing pollution and urging end-use sectors to choose environmentally friendly solutions. There are strict regulations for plastic landfills in Europe. The European Union aims to have "zero plastics to landfill" by 2025.
In light of the increasing concerns associated with environmental pollution, packaging firms are working on eco-friendly solutions for environmental sustainability. Green packaging items are created with the three 'R's of eco-friendly packaging in mind: renew, reuse, and recycle. Governments in emerging and developed nations are pushing packaging solution companies to create eco-friendly products.
Produce packaging trays can be manufactured using eco-friendly materials such as bioplastics, palm leaf, forest wood, and recycled paper. Producers widely employ recycled packaging materials to create eco-friendly packaging materials. The molded pulp tray is one such product composed of recycled material and is environmentally beneficial.
| Report Attributes |
Details |
| Market Size (2023) |
US$ 3 Billion |
| Projected Market Value (2033) |
US$ 4.7 Billion |
| Global Market Growth Rate (2023 to 2033) |
4.5% CAGR |
| North America Market Share (2022) |
35% |
| Plastic Trays Segment Share (2022) |
65% |
| Key Companies Profiled |
Amcor Limited; International Paper Company; Bemis Company, Inc; D.S. Smith Plc; Coveris Holdings S.A; E. I. du Pont de Nemours and Company
|
Why is Demand for Produce Packaging Trays Gaining Traction?
“Increasing Demand for Convenience Food Products”
Convenience food products are becoming increasingly popular among consumers. The shift toward a healthier lifestyle and consumers' high purchasing power are the primary factors increasing the demand for convenience food products.
Salad trays, fresh fruit trays, fresh herbs packs, and vegetable trays are some examples of convenience food in the fresh food category. The fast-paced lifestyle in developing markets is another major reason for the surge in demand for convenience food products.
Moreover, working-class women and single parents are two demographic factors that add to the demand for convenience food products. As a result, rising demand for convenience food products is fuelling the sales of produce packaging trays.
Which Factor Can Limit the Sales of Produce Packaging Trays?
“Strict Government Rules Concerning Raw Materials for Production”
Food packaging's key functions are to prevent food from contamination and to maintain its quality, integrity, and safety. A majority of food packaging regulation systems include broad safety criteria designed to protect the chemical, sanitary, and physical integrity of food products.
These regulations typically restrict the transfer of components from packaging material to food that can be detrimental to human health or cause an undesirable change in the odor, taste, or composition of the food.
- In the United States, for example, hazardous packaging materials are eliminated based on analytical chemistry data.
- As per the European Union (EU), irrespective of exposure, all food packaging materials must be cleared based on a toxicological examination and established regulations.
Country-wise Insights
Why is the United States Leading the North American Market?
“Increasing Consumption of Fresh Fruits & Vegetables in the United States”
North America accounted for 35% of the global market for produce packaging trays in 2022. The United States is the market leader in North America.
- According to the United States Department of Agriculture, the country's consumption of fresh fruits and vegetables has climbed dramatically over the last five years.
Moreover, with the unprecedented emergence of COVID-19, consumers' consumption of fresh fruits and vegetables grew due to a growing awareness of health and well-being among them.
- According to the Dietary Guidelines for Americans, more than 50% of the U.S. population consumes fresh fruits whole or in dried, juice, or frozen form.
As a result, the demand for produce packaging trays is increasing in the United States.
Which Countries are Driving Market Growth in Asia Pacific?
“Japan & South Korea Key Markets in Asia Pacific”
Asia Pacific anticipates a considerable market share due to the increasing packaging of unpackaged produce goods such as sweet potatoes, pears, and apples and rising demand for chopped and shredded produce that uses convenience packaging.
The demand for fresh produce packaging is growing in Asia Pacific. In the region, fresh produce is marketed in a variety of packaging formats, including trays, bags, pouches, and rigid plastic containers, as well as more intensive packaging that offers convenience, ease of use, higher performance, and a reduced environmental impact.
- For example, Qingdao Hengsheng Plastics co. Ltd concentrates on creating fresh produce packaging for the fruit and vegetable market. The company manufactures produce packaging trays that can be stored after transporting the products.
Japan and South Korea are greatly supporting the market expansion in Asia Pacific.
How are Sales of Produce Packaging Trays Shaping Up in Germany?
“Increased Fresh Food Production and Favorable Government Policies”
Fresh fruits and vegetables are in high demand in European countries such as Germany, thanks to a paradigm shift toward organic varieties and the advent of packaging that extends shelf life.
- In 2019, vegetables and fruits accounted for 14% of the overall value of agricultural produce in the European Union.
- According to Eurostat, fruits and vegetables are important agricultural goods in European countries, with a yearly output value of more than €57 billion in 2019, with vegetables having the largest market share.
Germany has established a comprehensive support structure, particularly through the regulatory framework, to boost local production and assist the agricultural sector. Increased fresh food production, combined with favorable government policies, is driving the expansion of the fresh fruits and vegetable market in Germany, fuelling the sales of produce packaging trays.
Category-wise Insights
Why are Plastic Trays Most Commonly Used?
“Plastic Trays Considered Cost-efficient”
Plastic trays captured 65% of the global market in 2022. To achieve a greater market share, plastic trays manufacturers are focusing on product innovation, mergers, and acquisitions.
Moreover, they are concentrating on providing cost-effective solutions, developing their manufacturing capabilities and facilities, and building strategic alliances with large firms and regional leaders. Research is also being conducted to develop bioplastics that are not only energy-efficient but also biodegradable.
Competitive Landscape
The market for produce packaging trays is highly fragmented and competitive, with various local and regional competitors. Marketing tactics used by key companies include mergers and acquisitions, expansions, collaborations, and partnerships.
- Kari-Out Company invested approximately $10 million in sustainable paper packaging in April 2022. The company intends to use this to expand its production capacity at its Specialty Quality Packaging (SQP) facility in New York. Kari-Out makes paper food trays, eco boxes, and a variety of other paper-based items. This effort by the company is expected to meet the rising consumer demand for food paper trays.
- In April 2022, Mondi Group, a multinational firm in packaging and paper, introduced a line of fit-for-purpose packaging solutions branded Grow&Go for protecting and shipping fresh produce. The Grow&Go line provides logistical benefits such as space savings provided by palletized flat corrugated packing. All packaging solutions are properly stackable and strong enough to prevent damage and waste during assembly and filling. These are available for a variety of applications, including big bulk shipments, light fruit and vegetable assortments for on-shelf display, and many others. The entire Grow&Go portfolio is composed completely of paper and meets food contact regulations.
- Printpack announced the debut of their preserve range of breathable laminated film for fresh produce in August 2021, which has been pre-qualified by the How2Recycle group.
- In June 2021, WestRock Company, a leading manufacturer of specialized paper and packaging solutions, announced the extension of its produce packaging and the launch of the EverGrow Collection. This new line is constructed from sustainably sourced wood fiber, which is recyclable and contributes to the company's goal of reducing waste and developing a 100% recyclable, reusable, and compostable product range.
