Food Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Food Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The food packaging market was valued at USD 301.3 billion in 2020 and is expected to reach USD 411 billion by 2026, at a CAGR of 5.5% over the forecast period 2021 - 2026. According to the Flexible Packaging Association, in 2018, Food end-user segment contributed to 70% of total flexible packaging revenue worldwide (USD 31.8 billion) which is USD 22.6 billion.

Key Highlights

• The changes in the lifestyle of the people and changing food preferences of consumers, along with the increasing population in developing nations will drive the growth of the market in the forecasted period.
• The growing preference of people for processed food due to the surging working population, rising disposable incomes, and hectic lifestyles, to shifts in population dynamics from rural to urban areas, is also driving the food packaging market.
• New packaging technologies, such as active packaging, intelligent packaging, and engineering science, have evolved over the years, which enables flexible packaging of food products. Companies are adopting eco-friendly packaging by using biodegradable packaging material which can be recycled, renewed, and reused.
• However, the market is anticipated to remain highly regulated with agencies such as the United States FDA and the European Commission imposing stringent regulations regarding the use of food packaging types and food contact materials and slow growth of packaged food market is hampering the market growth.

Key Market TrendsIncreasing Demand for Shelf-Life Extension of Foods Accelerating the Food Packaging Market

• After packaging, it takes time for packaged food to reach consumers across various parts of the world. The packaged food may not be fresh and might lose its aroma and taste before reaching the consumer. The threat of food being spoilt before reaching the consumer is increasing, as it would result in a loss of the capital invested in the packaging.
• To overcome this, food processing industries are investing in technologies and various new packaging techniques, such as intelligent packaging and engineering science, which help in increasing the shelf life of the product. Organizations are focusing on consumer satisfaction, apart from revenues, as it impacts the image and value in the market.
• According to a survey of American Adults by Consumer Action, in July 2019, 34% of adults have knowledge of most recyclable food packaging material as cardboard, followed by plastic 26%, glass 21%, and metal 8%.
• Increasing health consciousness and awareness regarding consuming fresh food are influencing consumers to opt for packaged products with a longer shelf life. Therefore, rising demand for better shelf life products across countries such as the United States is driving the market growth.

Asia-Pacific to be the Fastest Growing Market

• Asia-Pacific has experienced positive growth in the food packaging market and is estimated to witness significant growth, over the forecast period. The disposable income of consumers in the region has witnessed significant growth, which has increased the standard of living of people in the region.
• The growing urban population in India and China is increasing the demand for food packaging in this region. India and China, together contributed over 70% of the total share of Asia-Pacific share, in 2018.
• The increasing exports of fruits and vegetables in Asia-pacific is increasing the growth of the market. The world imports of fruit and vegetables have increased by 17.6%, imports of fruits and vegetables in the Asia Pacific region increased by a remarkable 51.6%.
• Moreover, in a country such as India, the growing demand for online food ordering is increasing which is pushing the usage of packaged food boxes for the food packaging market.

Competitive Landscape

The food packaging market is fragmented. Companies are offering extensive product customization in an attempt to increase their share and augment their revenue. They are striving to replace existing materials with biodegradable ones in order to meet changing government standards. Due to the presence of several players, the market has strong competition. Some of the major players in the market are Amcor Plc., Smurfit Kappa Group plc., Mondi Limited.,Sonoco Products, Berry Global Group, Ball Corporation, Tetra Pak, Schur Flexibles Group, Anchor Packaging Inc., Crown Holdings Inc., International Papers, WestRock , Sealed Air Corp., among others.

• May 2019 - Sealed Air Corporation signed a definitive agreement to acquire Automated Packaging Systems, Inc., a leading manufacturer of high-reliability, automated bagging systems, for a purchase price of USD 510 million on a cash and debt-free basis.
• April 2019 - Amcor Plc. launched Amite Ultra Recyclable, its first packaging product made from the company’s revolutionary, more sustainable high-barrier polyolefin film. It can reduce a pack’s carbon footprint by up to 64%.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Amcor Plc.
Smurfit Kappa Group plc.
Mondi Limited
Berry Global Group
Ball Corporation
Tetra Pak
Schur Flexibles Group
Anchor Packaging Inc.
Crown Holdings Inc.
International Papers
WestRock
Sealed Air Corp.
Graham Packaging Company Inc.

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