Produce Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Produce Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Produce Packaging Market size is estimated at USD 37.75 billion in 2024, and is expected to reach USD 46.20 billion by 2029, growing at a CAGR of 4.12% during the forecast period (2024-2029).

Produce packaging ensures appropriate packaging for fresh vegetables and fruits. The growing demand for fresh fruits and organic products influences the demand for produce packaging.

Key Highlights

• Produce packaging refers to packaging for fresh produce using various materials to protect it from physical damage. Packaging plays a pivotal role in lengthening a product’s shelf life by preserving valuable nutrients of the produce and retaining its freshness. Growing demand for ready-to-eat meals drives the produce packaging market for fresh fruits or pre-cooked vegetables.
• The growing investment in technology for produce packaging drives market growth. Companies such as Point Five Packaging (a United States-based company) use modified atmosphere packaging (MAP) technology, which decreases the oxidation process for fresh produce, keeping them from degrading as quickly as possible to extend shelf life. Additionally, technology significantly reduces the risk of contamination from environmental factors, including chemicals, moisture, and ultraviolet (UV) light.
• Suitable packaging is crucial to obtain optimal shelf-life and minimize physical damage to fresh produce. Cardboard is the most common type of packaging used. However, it also requires additional internal packaging materials, such as tissue wrapping, cups, and pads.
• Many companies in the market are aiming to improve the shelf life of fresh produce by using corrugated packaging. For instance, in January 2024, Cascades Inc., a Canadian company, launched new produce basket packaging designs made from 100% recycled fiber, which aligns with the company's circular economy approach. The new packaging line features a corrugated basket that prevents products from falling and keeps the fruits and vegetables intact throughout transportation and storage.
• The use of plastic containers for produce packaging can negatively impact the environment. Many retailers provide single-use plastic packaging for fruits and vegetables that cannot be recycled. Additionally, the use of plastic bags does not necessarily protect vegetables or fruits from being bruised, thus restraining the demand for plastic bags. In addition, several governments are banning single-use plastic bags. In August 2023, France announced the ban on plastic packaging for fresh fruits and vegetables to reduce plastic waste and its impact on the environment, which can impact the market’s growth.

Produce Packaging Market Trends

Corrugated Boxes as a Packaging Material Type May Register a Significant Share in the Market

• Corrugated boxes consist of two paper liners glued to a corrugated inner 'fluting,' forming connected arches for added strength. These boxes are versatile, as the corrugated board can be tailored to create custom containers, with printing options varying based on design and production scale. Corrugated boxes are primarily used for fresh produce and offer ventilation, moisture resistance, and protective qualities.
• These boxes are not just about functionality. They are designed to enhance protection and optimize shipping efficiency, thus bolstering their demand. Corrugated boxes can be tailored in shape, size, and style to meet diverse product needs. The paper components used in their construction are food-safe, ensuring product integrity.
• Leading providers in the market, like Amcor Group and Thimm Group, specialize in manufacturing recyclable corrugated cardboard. With its high recycling rate, this eco-friendly material is a sustainable alternative to plastic. These cardboard solutions also offer flexibility, allowing for tailored printing and coating options.
• The growing demand for produce packaging in North America expands the need for paper and paperboard material to make corrugated boxes and containers. According to data by the Board of Governors of the Federal Reserve System (United States), paperboard container manufacturing in the United States was at 89.50 million ton in Q1 2023 and reached 90 million tons in Q4 2023. Additionally, stringent government regulations for plastic packaging boost the demand for corrugated packaging globally.

Asia-Pacific to Witness Significant Growth in the Market

• Asia-Pacific is expected to account for a significant market share due to increased packaging demand for produce items such as apples, pears, and sweet potatoes and the rising demand for cut and shredded produce that uses convenience packaging.
• In Asia-Pacific, shifting consumer behavior is creating demand for fresh produce packaging. Fresh produce is sold in various forms of packaging in the region, including pouches, bags, and rigid plastic containers, as well as more intensive packaging that provides ease of use, convenience, superior performance, and improved shelf-life and environmental footprint.
• Asian countries, including China, India, Japan, and South Korea, have a growing interest in organic vegetable and fruit production. Additionally, according to data from the Food and Agriculture Organization in the United States (FAO), 99% of tropical fruit production is from Asia-Pacific and Latin America, thus propelling the exports of fresh tropical fruits and boosting the demand for produce packaging.
• According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India is the second-largest producer of fruits and vegetables after China, providing the former with ample export opportunities. During 2022-2023, India exported USD 1,635.95 million worth of fresh fruits and vegetables.

Produce Packaging Industry Overview

The produce packaging market is characterized by differentiation, growing service penetration, and high levels of competition. Design, technology, and application innovation can gain a sustainable competitive advantage. The market for produce packaging is fragmented as there are several players vying for higher market share. However, short product development cycles and higher exit barriers are affecting key players in the market. Overall, the intensity of competitive rivalry is expected to be high.

• In May 2024, Mondi PLC, a United Kingdom-based packaging company, partnered with Scan Sverige, a Sweden-based company, to create a polypropylene (PP)-based mono-material packaging for food packaging, including plant-based foods, salami, and sliced ham. The packaging was developed for recycling and has a high oxygen and moisture barrier to protect food and keep it fresh.

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