US Plastic Packaging for Food

US Plastic Packaging for Food

Demand for food packaging made from plastic is forecast to increase 3.0% per year to $36 billion in 2027. Plastic will continue to be the largest and fastest growing of the major food packaging materials – thanks to its versatile nature, low cost, and excellent performance – although other, more sustainable materials like molded fiber will provide increasing competition going forward.

Sustainability Will Have Nuanced Effects on Plastic Packaging

The growing impact of sustainability on the packaging market will affect plastic in several distinct ways. Despite plastic being the leading target for sustainability conversions, end users continue to value plastic over other materials based on cost and performance. However, manufacturers have employed several techniques to improve the environmental profile of their products in recent years, including:

• incorporating greater amounts of recycled content
• ensuring their plastic packaging is recyclable, with a trend toward monomaterial packaging becoming more prevalent
• light weighting and source reduction

Additionally, bioplastics will play a more significant role in the plastic food packaging market going forward. However, bioplastics must overcome price and scalability issues in order to become truly competitive with conventional plastics.

Flexible Packaging Will Continue to Gain Favor Among End Users

Demand for flexible plastic food packaging will be supported by both its performance benefits and favorable environmental profile compared to rigid packaging. Flexible plastic packaging is highly versatile, conforming to various product shapes, sizes, and applications, allowing for widespread market penetration. Moreover, it often requires fewer resources to manufacture and produces less waste.

Gains will also be driven by the increasing popularity of stand-up pouches, which are valued for their aesthetics and portability. Additionally, newer flexible packaging products, such as vacuum skin packaging and brick packs in meat packaging and bag-in-box formats (which use plastic bladders) for foodservice and retail, will support demand growth.

Healthy Growth in Prepared Foods and Candy & Confections Will Support Demand

While meat, poultry, and seafood will continue to account for most of plastic’s absolute gains, faster growing markets such as prepared foods and candy and confections will support even greater demand for plastic food packaging overall, driven by:

• expanding availability of fresh/refrigerated prepared foods like grab-and-go complete meals, salads, and sandwiches at grocery and convenience stores
• increasing sales of pre-packaged refrigerated meals (including prepared meats and pasta dishes) from leading food companies
• the trend toward smaller individually wrapped versions of larger candies
• shift to higher-value packaging formats such as stand-up pouches and two-piece containers

Study Description

This study examines the US market for plastic 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 and 2032. Annual data is provided for 2018-2026. Data are provided in current dollar value. Also provided is an analysis of key industry players.