Dairy Packaging Market - Forecasts from 2024 to 2029

Dairy Packaging Market - Forecasts from 2024 to 2029

The dairy packaging market is evaluated at US$61.436 billion for the year 2022 and is projected to grow at a CAGR of 4.82% to reach a market size of US$85.397 billion by the year 2029.

Dairy packaging refers to the process of enclosing and protecting dairy products such as milk, cheese, yogurt, and butter to maintain their freshness, safety, and quality during storage and transportation. This packaging involves various materials like cartons, bottles, pouches, and containers that are designed to prevent contamination, preserve nutritional value, and extend shelf life, ensuring consumers receive safe and high-quality dairy products.

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MARKET TRENDS:

The dairy packaging market refers to the industry involved in the design, production, and distribution of packaging materials and solutions specifically tailored for dairy products such as milk, yogurt, cheese, and butter. This market encompasses various packaging formats and technologies aimed at preserving the freshness, safety, and quality of dairy items during storage and transportation, while also meeting consumer demands for convenience, sustainability, and product information.

The dairy packaging market plays a crucial role in ensuring that dairy products reach consumers in optimal condition while adhering to regulatory standards and environmental considerations. Its market drivers are the growing global demand for dairy products, increased consumer awareness of food safety and hygiene, the rising popularity of on-the-go consumption, advancements in packaging technology, and the industry's shift towards eco-friendly and sustainable packaging options to address environmental concerns.

MARKET DRIVERS:

Rising global demand for dairy products is anticipated to fuel the market.

The dairy packaging industry is significantly impacted by the growing demand for dairy products, which also influences many elements of package design, materials, and technology. The need for effective and ecological packaging solutions is growing as consumer tastes change towards healthier lifestyles and more use of dairy products such as milk, yogurt, cheese, and butter.

Packaging that not only maintains product safety and freshness but also complies with changing customer demands for portability, convenience, and sustainability is required due to the increase in demand. The necessity for packaging solutions that maintain product quality and increase shelf life is one of the primary effects of the growing demand for dairy products.

Advancements in packaging technology are expected to upsurge the market expansion.

Technological developments in packaging have a significant effect on the market for diary packaging and are revolutionizing how dairy products are transported, kept, and eaten. These developments improve dairy packaging in several ways, including convenience, safety, sustainability, and preservation. For example, the advancement of intelligent and active packaging technology allows antimicrobials and oxygen scavengers to be included, prolonging the shelf life of dairy items and cutting down on food waste.

With the use of modified atmosphere packaging (MAP) procedures, product freshness and quality are maintained by regulating the environment inside the package to inhibit microbial growth and enzymatic reactions. Additionally, advancements in barrier materials and coatings improve the resilience of packaging against rips, tears, and moisture, maintaining product integrity through the supply chain.

MARKET RESTRAINTS:

There are several obstacles faced by the dairy packaging industry that might affect its rate of expansion. The fluctuation of raw material prices is a major obstacle, especially for packaging materials that come from petroleum, like plastics. Oil price fluctuations can cause packaging manufacturers' manufacturing costs to fluctuate, which can have an impact on their pricing strategies and profit margins.

Dairy packaging firms must also comply with strict standards and laws on food safety and packaging materials, which means they must spend money on quality control procedures and certification processes. Furthermore, dairy packaging makers have hurdles in making the switch to eco-friendly materials and methods while preserving product integrity and cost-effectiveness due to the growing customer demand for sustainable packaging solutions.

Positive growth is expected in the paperboard segment.

The paperboard segment of the dairy packaging market is experiencing significant growth primarily because of the increasing demand for sustainable packaging solutions. Paperboard is a recyclable and biodegradable material, making it an attractive choice for environmentally-conscious consumers. Its lightweight and versatility make it suitable for various dairy products like milk, yogurt, and cheese. Moreover, its affordability makes it a cost-effective option for dairy producers, further contributing to its market growth.

Asia Pacific is predicted to account for a significant share of the dairy packaging market.

The Asia Pacific region is poised to dominate the dairy packaging market share due to several key factors. The world's largest population and the region's rising demand for dairy products are anticipated to drive the need for dairy packaging. Increasing disposable incomes in the region lead to a higher demand for processed and packaged foods, with dairy products being a popular choice.

Additionally, the growing preference for convenient food options fuels the demand for processed and packaged dairy items. Furthermore, the presence of major dairy producers like India, China, and Indonesia, investing in new packaging technologies and expanding production capacity, contributes to the region's prominence in the dairy packaging market.

Products offered by key companies:

Arla Foods has launched a new line of milk packaging that is made from 100% FSC-certified paperboard. FSC certification ensures that the paperboard is sourced from responsibly managed forests.
FrieslandCampina has launched a new line of milk packaging made from 86% renewable plant-based materials. The packaging is made from a combination of paperboard, sugarcane, and cornstarch, and it is 100% recyclable.

Market Developments:

In November 2023, Sidel introduced a PET bottle for liquid dairy products that is incredibly light and compact. The new Sidel PET bottle is intended to provide producers of liquid dairy products with a stronger competitive edge. This mini-size is perfect for ambient and cold chain operations and is made for goods like drinking and probiotic yogurts with capacities ranging from 65 to 150 millilitres.
In July 2023, Arla Foods partnered with sustainable startup Blue Ocean Closures to develop fiber-based caps for its milk cartons. This collaboration aims to reduce plastic usage by over 500 tonnes per year and aligns with Arla's goal to eliminate fossil-based plastics by 2030. The fiber-based caps were made from sustainably sourced materials, featuring a thin barrier coating and advanced vacuum press forming technology.
In March 2023, Organic Valley launched new product packaging with a bright and modern design, emphasizing its ethically sourced products from small family farms. The Nowstalgia concept combines an idealized past with a contemporary look. The packaging highlights core values like pasture-raised dairy and the absence of antibiotics and GMOs.

Segmentation:

By Packaging Type
Cans
Bottles/ Containers
Cartons
Pouches/Bags
Others
By Material
Plastic
Paper and Paperboard
Glass
Others
By Product
Butter
Frozen Product
Milk
Cheese
Yogurt
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Thailand
Indonesia
Others