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

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

The Milk Packaging Market registered a CAGR of 4.6% during the forecast period 2022 - 2027. The growing inclination toward eco-friendly packaging and increasing flavored milk consumption is expected to drive market growth.

Key Highlights

• Milk is the most consumed dairy product in the world. The high content of moisture and minerals in milk makes it very challenging for vendors to store it for a long period of time. This is one of the major reasons for milk being traded as milk powder or processed milk. More than 70% of fresh milk packaging is contributed by HDPE bottles, leading to lesser demand for glass bottle packaging. The trend of on-the-go consumption, the convenience of the easy pour, appealing packaging quality, and health awareness reflected by the popularity of drinkable dairy-like, soy-based, and sour milk, has created a significant demand for milk packaging.
• According to FAO, global milk production is projected to grow by 177 million metric tons by 2025. Increasing consumer preference to gain proteins from dairy products rather than cereal sources due to changing lifestyles and rapid urbanization is expected to drive the demand for products, like milk, over the forecast period. Such trends are further expected to influence the milk packaging market.
• Bio-based packages are more sustainable than standard milk cartons, reducing the manufacturer’s reliance on fossil-based polyethylene plastic in the lining. Consumer interest in sustainability is increasing, with research indicating that people of all ages believe businesses should take responsibility for their environmental footprint.
• Moreover, cartons are being adopted as an ideal option for packaging milk for retail distribution. Companies are increasingly adopting aseptic cartons and pouches for milk packaging. Research shows that the organoleptic quality of aseptically processed UHT milk has significant benefits in terms of lactulose, lactoserum proteins, and vitamin content compared to retort processing.
• Furthermore, vendors have sought strategic partnerships to enhance milk packaging in the global market. For instance, in January 2021, A2 Milk Co., a New Zealand brand, announced the acquisition of Mataura Valley Milk (MVM) with a 75% stake. The company made an investment of NZD 268.5 million. This is expected to provide various opportunities for milk packaging vendors in the region.

Key Market TrendsPaperboard to Witness Significant Demand

• Increasing awareness about eco-friendly packaging materials has created significant traction in milk packaging across the world. The paperboard segment is projected to be the fastest-growing milk packaging material due to its recyclable properties. Growing awareness associated with the environment is expected to have a positive impact on the paperboard packaging segment, owing to its recyclable features.
• It offers extra protection to the stored product and increases shelf life. Moreover, the information imprinted on the packaging is clear and highly visible, likely to propel market growth.
• In addition, it omits the option of plastic or any other packaging, which can be harmful to the environment. The abovementioned factors are projected to fuel the utilization of paperboard packaging for milk over the forecast period. The production of paperboard for packaging is increasing worldwide due to its benefits, like its recyclability and decomposable property.
• In line with the increasing adoption of paperboard packaging, major companies in the market have been opting for paperboard packaging. For instance, in August 2022, Liberty Coca-Cola launched Coca-Cola in KeelClip paperboard packaging, which would replace the traditional plastic rings to hold the beverages together.
• With the increasing adoption of paperboard packaging, companies have also been focusing on recycling papers in the market. As per the American Forest and Paper Association, in 2021, the paper recycling rate reached 68%, a rate on par with the highest rate previously achieved. Similarly, the recycling rate for old corrugated containers (OCC) or cardboard boxes stood at 91.4%. Such increasing awareness of paper recycling has also been contributing to the market growth of the Milk Packaging Market during the forecast period.

Asia Pacific to Witness the Highest Growth

• The Asia Pacific region has a high potential for lactose-free dairy products as healthy alternatives to lactose products, which is likely to complement milk production, thereby propelling the market growth.
• In addition, the population in the region is usually tolerant of lactose-containing products, which creates new avenues for lactose-free products. Also, the growing concerns over child nutrition are projected to complement milk consumption, thus propelling the market.
• The rising availability of packaged dairy products through various retailing channels owing to the rising population with an increasing consumer preference towards protein-based products are some of the factors helping the adoption of dairy-based packaging in the APAC region and is also expected to contribute to the market growth.
• Increasing disposable incomes and population fuels the demand for staple food in the region. Increased consumption of dairy products is prominent in enhancing child nutrition and boosting the lives of farmers in the region.
• Furthermore, the increased standard of living and aging population further increases these markets' popularity. Higher disposable income in developing countries such as India and China increases the purchasing power of customers. Hence, consumer dependence on processed, pre-cooked, and packed foods is likely to increase. Such customer spending and preferences changes are expected to contribute to market growth.

Competitive Landscape

The Milk Packaging Market is highly fragmented as the unorganized players directly impact the existence of local and global players in the industry. Local farms use e-commerce and can attract customers by providing convenience and flexibility. Moreover, the growth in milk production is driving the players to develop better packaging solutions, making the milk packaging market highly competitive. Some of the key players in the market are Evergreen Packaging LLC, Stanpac Inc., Elopak AS, Tetra Pak International SA, and Ball Corporation. These players constantly innovate and upgrade their product offerings to cater to the increasing market demand.

• September 2021 - Clover Sonoma announced a post-consumer recycled (PCR) gallon milk jug (in the United States). The jug has 30% PCR content, and the company aims to increase the PCR content and extend the PCR content used in milk jugs by 2025.

Additional Benefits:

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

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.