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

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

The Reusable Foodservice Packaging Market size is estimated at USD 24.96 billion in 2024, and is expected to reach USD 32.27 billion by 2029, growing at a CAGR of 5.27% during the forecast period (2024-2029).

The global reusable packaging market is set for significant growth, fueled by a rising need for durable and sustainable material handling solutions. Returnable packaging stands out for its pivotal role in sustainability, curbing the volume of packaging waste that typically ends up in landfills.

Key Highlights

• A diverse urban landscape drives the country's demand for convenient, on-the-go, lightweight foods. In recent years, ready-to-eat and convenient food has evolved into one of the most diverse segments of the global food service, with rising concern about the environment and the escalation in packaging landfills, reusable food service packaging in hotels, full-service restaurants (FSRs), and quick-service restaurants (QSRs).
• Several government bodies worldwide impose strict guidelines for using reusable packaging across sectors. For instance, the SUP Directive mandates that EU Member States actively reduce single-use plastic waste, setting specific reduction targets at local and national levels. In tandem with restrictions, these states are advocating for reusable food packaging to achieve these goals.

Key Highlights

• In France, recent legislation mandates that all on-site meals or snacks be consumed using reusable packaging or crockery.
• Over the past few years, the online food ordering and restaurant delivery sector has grown by 20%. As the online food delivery system gains traction, there is a corresponding surge in demand for sustainable food service packaging. As per the China Internet Network Information Center publication in March 2024, the number of online food delivery users in China rose from 418.83 million in 2020 to a whopping 544.54 million in 2023. This uptick is prompting manufacturers to pivot toward eco-friendly reusable packaging solutions.
• However, transitioning from a single-use to a reuse model for plastic packaging in industrial food applications can introduce unforeseen challenges, particularly in hygiene and sensory perception. Reusing plastic packaging carries the risk of heightening chemical contamination and the presence of microplastic particles in food products. Additionally, it may compromise the packaged goods' hygienic standards and sensory consistency.
• Globally, large companies are shifting from the traditional 'catch, fill, and waste' model to a zero-waste lifestyle. They achieve this by making foodservice packaging reusable, thus extending its lifecycle sustainably. This shift not only cuts down on operational costs tied to packaging but also eliminates the need for continual new packaging purchases.

Reusable Foodservice Packaging Market Trends

Growing Demand From Quick-service Restaurants (QSR) Aids the Market

• Quick-service restaurants (QSRs) offer low-cost food options, focusing on speed of service. Minimal table service and an emphasis on self-service distinguish this group from traditional restaurants. Food and beverages are paid for before consumption at QSRs. Over the last decade, the regional foodservice market, specifically for these countries, has witnessed the growth of several international QSR chains and home-grown brands offering varied cuisines suiting changing consumer preferences.
• With rising awareness of environmental sustainability, several major QSR chains are increasingly focusing on recyclability, compostability, and reusable packaging. Notable players, including Burger King, McDonald's, and Wendy's, have pledged to adopt reusable packaging.
• For instance, McDonald’s in France offers 21 reusable containers for dine-in customers. These include red plastic containers for fries, clear plastic beverage glasses, and white plastic cups designed for chicken nuggets.
• The franchise model will be crucial to the rise of QSR chains, which is expected to fuel market growth across the globe in the upcoming period. According to the data published by the International Franchise Association, in April 2024, after a slight downfall during the COVID-19 pandemic, the number of QSR in the United States rose steadily in the past few years from 183.54 thousand in 2020 to 195.51 thousand in 2023. Notably, as per the estimates, the number of QSRs across the country is expected to further improve during the forecast period.
• Further, increased spending on food, driven by a rising preference for on-the-go eating, has bolstered the demand for QSRs, fueling the need for reusable food service packaging. As per the Office for National Statistics (United Kingdom), consumer spending on restaurants and cafes in the United Kingdom skyrocketed in the post-pandemic period to GBP 132.89 billion (USD 169.50 billion). This bolstered spending is expected to consequently impact the market positively.
• Presently, millennials and Gen Z, in particular, actively seek out brands and places that resonate with their core values. Overall, QSRs can align with consumer demands for transparency and authenticity by actively showcasing their values. This can be achieved through initiatives like fundraisers and promotions, which feature sustainably sourced ingredients and recyclable and reusable packaging.

Asia-Pacific is Expected to Hold a Significant Market Share During the Forecast Period

• Asia-Pacific is home to densely populated and emerging economies such as China and India, and the demand for food services is surging. The market is propelled by a surge in demand for convenience, a pivot toward healthier dietary choices, and consequently, a notable uptick in adopting sustainable packaging is projected to peak during the forecast period. These trends transform the region into a technological innovation and business growth center.
• The region is witnessing a rapid surge in the demand for mobile food service stations. This uptick is primarily driven by escalating urbanization, increasingly busy lifestyles, and a heightened appetite for on-the-go dining.
• For instance, in June 2023, a Hong Kong student-led food service start-up introduced an eco-friendly rental service for reusable bowls. Eleven restaurants with 300 registered users have joined this innovative initiative. Such regional developments would bolster the awareness of reusable product packaging in the foodservice sector.
• The surge in plastic pollution in Asia-Pacific has prompted governments across the region to implement policies that aim to reduce plastic waste and promote sustainable packaging solutions. In 2022, the Government of India introduced a ban on single-use plastic in several sectors, including food service, thereby accelerating the demand for multiple-use packaging products across the country.
• Further, with the growing working population and busy lifestyles, consumer spending on eating outside is also increasing in countries like Japan, China, India, and Indonesia. For instance, according to the Ministry of Internal Affairs and Communications (Japan) and Statistics Bureau of Japan's report published in February 2024, the annual average household expenditure on dining out in Japan increased rapidly from JPY 8.11 thousand (USD 0.051 thousand) in 2021 to JPY 11.11 (USD 0.070 thousand) in just three years ending 2023.

Reusable Foodservice Packaging Industry Overview

The market studied is fragmented, with major vendors accounting for most of the market share. The presence of many players in the market impacts the pricing of services, making it a direct competing factor, especially for small-scale vendors. The vendors in the market studied are expected to focus on providing one-stop-shop services, giving them a competitive advantage. Some of the major players in the market are Berry Global Inc., Ecolab Services, Genpak LLC, and Enpak Enterprise Co. Ltd.

• February 2024: Berry Global launched its Reusable Tableware Range to address the incremental demand for sustainable packaging across the food service industry. This move comes as legislation and consumer demands push the sector towards more eco-friendly packaging solutions. According to the company's Vice President of Food Service division, the new range of reusable tableware aims to cut waste, lessen reliance on new resources, and ensure functionality and durability while meeting legislative standards.
• May 2024: deSter, a developer of serviceware and food packaging, and Eastman, a specialty materials company, collaborated to introduce reusable in-flight drinkware to the airline sector. The packaging utilizes Tritan Renew, a specialty plastic crafted from recycled molecular copolyester. During its development, plastic waste is broken down into its fundamental chemical components, enabling the material to undergo multiple recycling cycles.

Additional Benefits:

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