North America Foodservice Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Foodservice Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American Foodservice Market will register a CAGR of 3.24% during the forecast period. The growth expansion was brought on by consumers' heavy reliance on packaged food goods and the significant regional presence of food processing businesses. The rising number of food service suppliers successfully digitalizing their operations is expected to fuel the industry.

Key Highlights

• The North American foodservice packaging business has experienced consistent growth over the last decade due to changes in substrate choice, new market expansion, ownership dynamics, and With numerous developments serving the market for corrugated boxes, cartons, and plastic packaging, sustainability, and environmental issues will continue to be prioritized, especially in the United States.
• Flexible packaging will continue to displace conventional packaging. A corrugated box is a typical type of packaging used to ship different food products. It is often constructed of paperboard, primarily made of cellulose fibers from wood. These boxes are extremely strong, stiff, flexible, long-lasting, light, and attractive. Due to their recyclable nature and lack of use of hazardous chemicals during production, the boxes are advantageous for the environment. Corrugated boxes are used in North American food service to package goods.
• Moreover, 83% of all brand owners utilize flexible packaging, according to data from a Harris Poll commissioned by the Flexible Packaging Association. Plastic bottle packing is the principal application for polyethylene. It is a semi-crystalline, lightweight thermoplastic resin with excellent sound insulation, chemical resistance, and low moisture absorption.
• The industry's biggest source of worry is the region's strict environmental restrictions. Over the projection period, it is projected that bans on plastic items at the national and state levels would present significant difficulties to the industry.
• The coronavirus pandemic has substantially influenced the food service industry's profit margin. Businesses in the food industry are observing a sharp decline in consumption and systemic disruptions in supply chain management. The COVID-19 lockdowns substantially impacted the US food service, with spillover impacts on foodservice packaging suppliers. Despite a temporary decline in food service packaging volumes, the industry will rebound in stages against a backdrop of economic adversity. Limited and full-service restaurants are predicted to increase consumer-facing food service packaging volume, albeit slower. Food service packaging should adapt and evolve to meet the increasing needs of the food service business as local economies open up and consumers adopt new dining methods.

Key Market TrendsCorrugated Boxes and Cartons Segment to Exhibit the Highest Growth Rate

• According to many manufacturers, corrugated cardboard packaging forms the basis of the American supply chain. Due to the COVID-19 pandemic, businesses wanted to reassure customers that the cardboard box sector is still active and provides necessary packaging to its clients, who offer grocery stores, pharmacies, homes, and hospitals, along with food and beverage supplies.
• If the supply of these goods were to be interrupted, consumers all around the nation who depend on regular and dependable supplies would suffer great hardship. Corrugated cardboard producers are devoted to operating box factories in compliance with the Centers for Disease Control and Prevention's (CDC) and the Occupational Safety and Health Administration's (OSHA) regulations to ensure that goods continue to flow to the market.
• However, packaging shortages are fueling persistent fluctuations in food and beverage product availability as many manufacturers source materials from overseas. Intense demand for corrugate, cardboard, and paper is causing concerns due to increased shipping activity from major e-commerce companies. Additionally, the uptick in restaurant takeout is exacerbating shortages of items like coffee cups and to-go containers.
• In October 2021, International Paper, a corrugated packaging and pulp manufacturer, stated that it absorbed an additional USD 50 million of supply chain costs for its export operations in its latest quarter. The company also informed in July 2021 that the supply of cardboard boxes was severely low and warned of continued supply chain bottlenecks leading into the rest of the year.
• Also, low containerboard and corrugated cardboard inventory have been a mounting issue since the dramatic growth in e-commerce during the pandemic.
• For Instance, Printpack, a US-based flexible packaging manufacturer, established a strategic agreement with Sirane, a UK-based paper coating and paper-based packaging company in January 2022. These two companies will help customers achieve their environmental goals by delivering recyclable, coated paper packaging. Printpack's printing and laminating experience, combined with Sirane'spaper coating and pouch forming ability, creates the ideal alliance to meet market demand.

Quick-service Restaurants Hold the Maximum Market Share

• The use of sustainable food service packaging in QSRs has become crucial. More people are turning to fast food as a supper option because they have less time to prepare meals at home. Food service businesses may package meals safely and affordably using sustainable packaging styles, giving clients a quick and easy way to transport meals.
• RBI's in-house design team worked with one of its agency partners to create prototypes of the reusable packaging, including a sandwich container and a beverage cup for soft drinks and coffee. Opening and closing, the packaging's height and width, how these will fit into QSR supply chain systems, and scalability are among the factors to be considered.
• For instance, in October 2021, Burger king expanded its U.S menu with plant-based Impossible Nuggets and a national wide release for LOT of Ghosts Pepper Nuggets.
• Most of the food service items used in QSRs are either made of plastic, such as expanded polystyrene (EPS), polyethylene terephthalate (PET), polypropylene (PP), and polylactic acid, or paper, including paper, paperboard, and molded pulp. QSRs deliver high-quality food and beverages more quickly than traditional restaurants or cafes. To achieve fair distribution and a high level of consistency in offering these services, several QSRs have implemented the use of dispensers that supply a controlled volume. Which can include flavored coffee syrup bottles that assure every customer receives the same flavor in their coffee by dispensing a specified amount of syrup with each dispenser pump, ranging from 5ml to 30ml.
• Some QSRs combine restaurant conveniences with the freedom for customers to express their uniqueness through self-service elements. These controlled-volume dispensers, for example, will be found in self-service sauce stations. These can help QSRs deliver exceptional customer service, reduce product waste, and save money.
• Table-service restaurants continue to generate orders primarily through the channels that managers believe will recover the slowest, according to PYMNTS research from the August 2021 Restaurant Readiness Index, created in collaboration with Paytronix and surveying 514 QSR and full-service restaurant managers from across the United States in the spring. In particular, the survey discovered that in-store orders make up a substantially larger amount of table service restaurant sales, especially those from independent table service restaurants. Meanwhile, digital orders make up the majority of QSR orders, notably chain QSR orders.

Competitive Landscape

The North American Food Service Packaging Market will be highly fragmented as many players, such as Inline Plastics, Berry Global Inc., Novolex Holdings Llc, Genpak LLC, and Huhtamaki America Inc. There will be increasing competition among local vendors in the region in the market. Owing to the wide range of food service packaging suppliers, buyers can choose from multiple vendors.

• May 2022 - Amcor Plc has developed the newest technology, PowerPostTM, which allows for up to 30% lighter and 100% recyclable bottles. The technology is made to prevent spillage from overflowing hot drinks. The product also utilizes PowerStrap, a vacuum-absorbing technology.
• February 2022 - The funds administered by Apollo's affiliates (Apollo Fund) and Novolex announced that they had finalized an agreement for the Apollo Funds to purchase most of the company from the Carlyle Fund. Carlyle will continue to own a small portion of the business. Financial details have not been made public.
• February 2022 - The Coca-Cola Company has announced a goal to boost the amount of reusable packaging it uses. 25% of all beverages across the company's portfolio of brands are expected to be sold by 2030 in refillable/returnable glass or plastic bottles, refillable containers, or traditional fountain or Coca-Cola Freestyle dispensers. In recent years, the business collaborated with Burger King and TerraCycle in the US for a trial program in a few cities to reduce waste from single-use packaging by providing reusable food and drink containers.

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.