US Food Packaging

US Food Packaging

Demand for food packaging is forecast to increase 2.5% per year to $58.1 billion in 2027, with real growth of 1.2% per year to 540 billion units. While growth in unit terms will remain relatively steady, market value growth will be affected by an easing of high raw material prices and supply chain issues that caused pricing for most products to surge in 2021 and 2022. In general, the food market is challenging for packaging suppliers due to the vast number of distinct applications in which packaging must not only meet specific performance criteria, but also be cost effective and fall in line with changing sustainability goals and consumer preferences:

• Premium, high-performance products – such as aseptic cartons, skin packaging, and bag-in-box formats – will see the strongest advances.
• Fresh and frozen food formats continue to see the fastest growth, with conventional shelf-stable formats somewhat lagging.
• Plastic will continue to be the largest and fastest growing of the major food packaging materials, although sustainable materials like molded fiber will experience faster growth overall as they penetrate new applications.
• The outlook for paper-based packaging will be mixed, with sluggish gains in products like folding cartons overshadowing healthy gains in growth areas like aseptic cartons and food cups.

Sustainability Remains Top Concern for Packaging Products, Drives Innovations

Sustainability continues to be among the highest profile concerns in the food packaging market, with producers of different formats and materials jockeying to be seen as the most eco-friendly. Actions taken to improve sustainability include greater focus on recyclable and compostable packaging, incorporating recycled and post-consumer content into packaging, light weighting and source reduction, and improving shelf-life to reduce food waste. Additionally, many manufacturers are working to increase the performance of sustainable solutions, such as developing aqueous barrier solutions for paper and molded fiber products to allow their use in a wider variety of applications while still maintaining their recyclability or compostability.While plastic is the leading target for sustainability conversions, end users continue to value plastic over other materials based on cost and performance. To address sustainability concerns, manufacturers have increasingly focused on ensuring that their plastic packaging is recyclable and incorporates recycled content, as well as offering more bioplastic options.

Convenience & Performance Remain the Most Important Factors for Food Packaging

Packaging is one of the key ways that food companies differentiate their products, so new formats are always in demand. As such, high-performance products are expected to take share from traditional packaging; formats like aseptic cartons, vacuum skin packaging, stand-up pouches, and bag-in-box will continue to see the strongest gains as they afford a variety of benefits – including extended shelf-life, lighter weight, ease of dispensing, improved sanitation, and a more premium appearance – over traditional, lower-cost packaging options like bags, wrap, and cans.

Study Description

This study examines the US market for food packaging, defined as primary and secondary packaging materials sold to food manufacturers, primarily for products targeted at retail or foodservice markets. Historical data are provided for 2012, 2017, and 2022, with forecasts through 2027. Annual data is provided for 2018-2026. Data are provided in current dollar value and units. Also provided is an analysis of key industry players.