Global Food Packaging Market Value to Hit USD 592.8 Billion in 2032
The global food packaging market value is expected to reach approximately USD 592.8 billion in 2032, growing at a CAGR of slightly above 5.3% between 2023 and 2032 according to Market.US (Powered by Prudour Pvt Ltd), a company that specialises in in-depth market research and analysis.
Recall, it was valued at around USD 358.3 billion in 2022.
Today, people are adopting healthier lifestyles and consuming more convenience foods. Thus the demand for these items is increasing. The industry will benefit from convenience and high-performance materials which increase efficiency in preventing contamination and longer shelf lives. Growth will be seen due to factors like disposable income, shrinking households, and an expanding population.
According to Market.us, the food packaging market size is expected to reach USD 592.8 billion by 2032 and it is progressing at a CAGR of of 5.3% within a forecast period from 2023 to 2032, Due to Rising Demand for Eco-Friendly Packaging of Products and Longer Shelf Life of the Product.
- By Product, rigid packaging holds the largest market share in 2022.
- Based on Material, the market can be divided into four segments: paper, plastics, glass, and metals. The largest market share belongs to the paper and board category.
- By Application, the bakery & confectionary application segment has dominated the market with 25% of the share.
- In 2022, Asia-Pacific dominated the market with the highest revenue share of approximately 34.8%.
- Europe has held a 28% revenue share in 2022.
- Asia-Pacific will drive expanding demand from 2023-2032.
Due to this growing demand for fast food in our society, convenience food producers have responded by creating products with higher nutritional values and fewer adverse effects on the body. This market expansion can be attributed to the convenience food producers are creating. They are developing products with more beneficial nutrition for customers while lessening adverse reactions in their bodies.
Plastic is one of the primary raw materials used in food packaging. Natural resources are utilized to produce synthetic polymers like polypropylene and polyethylene. They are then used by manufacturing industries in plastic packaging. Unfortunately, the packaging industry is facing increasing costs from shifting raw material costs. The governments’ resource conservation laws are also driving up these costs further.
Factors affecting the growth of the Food Packaging industry
- Numerous factors can impact the growth of the food packaging market industry. Some of these include:
- Plastic is a key raw material in food packaging. Synthetic polymers such as polypropylene and polyethylene are produced from natural resources to create plastic packaging.
- Technological Advances: Shelf life is one of the key aspects of domestic and international food industry competition.
- Growing Awareness of Environmental Friendly Packaging Trends: The market has been shaped by a trend toward eco-friendly packaging.
- Government Support and Funding: Governments around the world are increasingly providing financial assistance and funding for eco-friendly packaging, which is fueling growth in this industry.
- The high demand for convenience foods drives up the demand for food packaging, propelling the market’s expansion.
- Food product manufacturers are investing a considerable amount of money in research and development of cutting-edge packaging methods like nanotechnology in an effort to provide more cost-effective options.
- Cardboard is the most easily recyclable packaging material, followed by plastic, metal, and glass.
- Consumer preference for products with extended shelf lives is growing due to increasing health awareness and an appreciation of fresh food’s importance.
Top Trends in Global Food Packaging Market
There is room for expansion in the market due to the growing innovations in packaging. Food safety and quality are both greatly aided by packaging over the course of its shelf life. Innovative product solutions greatly benefit from plastic packaging. Cling film made of plastic is one type of plastic packaging that is used a lot today.
The market is being shaped by the move toward eco-friendly packaging and advanced cling film packaging innovations.
There are a lot of different ways to package this innovation: nanocomposites, edible/biodegradable packaging, intelligent packaging, active packaging, and various design options for packaging. These packaging solutions increase market availability, control inventory, educate consumers, extend food product shelf life, and even guarantee food product quality and safety. Due to its longer shelf life, active packaging is an excellent option for numerous applications in the food industry, thereby reducing food waste.
Nanotechnology is a new method that can prevent food from spoiling. It can also extend the shelf life of food, repair packaging tears, guarantee food safety, alleviate the food shortage problem, and improve consumer health.
Accommodation food is significantly utilized because of simple movability, the long time span of usability, and the prepared-to-eat. Snacks, frozen foods, finger foods, candy, beverages, and other types of food fall under this category. These items are typically served hot and in ready-to-eat containers, requiring less preparation time.
The convenience food market is expected to expand due to the rising sedentary lifestyle demand for ready-to-eat snacks. Additionally, the primary driver of market expansion is rising disposable income per capita and an expanding workforce. The majority of consumers are moving toward food that is easy to eat, which will boost the food packaging market.
There has been an increasing demand for fast food items in today’s society as a result of consumers’ fast-paced lifestyles. Convenience food manufacturers have developed products that have a higher nutritional value and fewer negative effects on the body as a result of this high demand. The market’s expansion is aided by the fact that the high demand for convenience foods directly drives up the demand for food packaging.
Green packaging is increasingly being used to achieve sustainability. They contribute to the reduction of pollution in the environment and offer a wide range of benefits, such as reducing the use of plastic, increasing recycling, conserving energy, and making transportation more effective, which has led to an increase in industry expansion.
During the forecast period, it is anticipated that the Asia-Pacific market will contribute the most revenue. The customers of the area have seen significant increases in their discretionary income, which has raised both their capacity to spend and the standard of living for the locals. Food packaging is in high demand in this region due to the growing urban populations of China and India.
The market’s expansion is being driven by exports of fruits and vegetables to the Asia-Pacific region. Fruit and vegetable imports have increased by 17.6% globally and by an astonishing 51.6% from the Asia-Pacific region. In addition, the food packaging industry is embracing packaged food boxes more and more in nations like India, where online meal ordering is on the rise.
The North American market is anticipated to experience steady revenue growth as a result of an increase in the consumption of packaged foods. Fast food is being replaced by healthier, higher-quality packaged foods by consumers. Biodegradable and sustainable packaging, for instance, are environmentally friendly options that people prefer to use.
This market has a diverse mix of small, medium, and large businesses which makes it highly competitive. Due to the shift toward sustainable packaging. Major players in this space must compete against both local and international firms. Furthermore, numerous smaller players offer customized goods for customers.
Recent advances in packaging technologies are the result of leading packaging companies’ ongoing investments in research and development programs. Temperature-controlled packaging, retort packaging, child and elderly-friendly packaging, as well as modified atmosphere packaging (MAP), are some of the most commonly employed packaging techniques.