Fresh Food Packaging Market Report Overview
Global fresh food packaging market size was valued at USD 123.4 billion in 2020 and is forecasted to grow at a compound annual growth rate (CAGR) of 5.0% during 2021 to 2028. Growing demand for organic fresh food items such as fruits, vegetables, and dairy from diet and health-focused consumers is likely to positively affect the market during the forecast period. In addition, increasingly more foodservice operators and retail chains in North American and European economies are likely to shift from plastic packaging to a sustainable alternative to appeal to an environment-aware consumer base in the region. Therefore, the above-mentioned factors are likely to propel the demand for green fresh food packaging.
The U.S. is also a major packaging product market globally with a total size of more than USD 177 billion as of 2019, stated by the Flexible Packaging Association. One of the highest producers and exporter for application sectors such as dairy products, eggs, meat, and vegetables and fruits that have generated massive demand for packaging food products fresh within the nation.
As per the data released by Produce Marketing Association in October 2020, fresh produce sales grew by USD 4.5 billion in the United States during the period from January to August 2020 compared to the same period in 2019. As per a survey carried out in July 2020, most modern consumers opted for the purchase of fresh food and are ready to pay an extra premium price for the same.
Plastic resins like polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), and others like paper pulp, metals, and glass are primarily utilized for packaging produce products. These plastic resins are crude oil-based. Moreover, materials like steel, aluminum, and glass are energy-intensive materials. Thus, constant fluctuation in crude oil prices creates uncertainty regarding the availability of raw materials at lower or economical prices posing difficulties for fresh food packaging.
In addition, in order to contain the humongous quantity of plastic waste produced every year, most regulatory institutions and governments across the globe have over the years imposed limitations on the creation of mostly plastic waste. The regulatory authorities are focusing on the circular economy whereby greater significance would be accorded to packaging product reusability and recycling activity reinforcement which is likely to be a challenge for plastic material and an opportunity for paper and paper board, bagasse, and polylactic acid. Packaging Type Insights
The rigid fresh food packaging segment was the largest type segment in 2020 and held the highest revenue share of 52.4%. Rigid solutions offer better support to the goods that are packaged with hard bases and barrier walls. Products packaged in a rigid form of packaging are simple to transport from one location to another without compromising the content due to the strong structure of the packaging.
These packs are convenient to store because of their greater level of stack ability within warehouses, while in transit, and put on shelves at retail stores. It can shield the food from external shock or damage while being handled and transported resulting in increased demand by the eggs, fruits, and vegetable manufacturers.
Material Insights
The plastic material market led the market for fresh food packaging and held the highest revenue share of 37.2% in 2020 due to its low price, durability, and high availability. Plastic packaging offers a good moisture barrier to the contents. Likewise, transparent, and clear containers or films are popular as they allow end-users to easily recognize the content as well as inspect the product quality resulting in high market share.
The paper and paperboard segment came out to be the second-largest material and is a green option for plastic.
Paper fiber-based rigid packaging solutions like trays and boxes are sought after by customers due to declining plastic usage in packaging. For example, Sweden’s AR Packaging introduced a one-piece barrier carton board tray in March 2021 that can be applied for fresh fruits and vegetables along with herbs, mushrooms, and seeds like. Application Insights
The dairy product segment led the fresh food packaging market and had the highest revenue share of 39.3% in 2020. According to the report, ‘OECD‒FAO Agricultural Outlook 2018–2027on Dairy and Dairy Products’, fresh dairy products accounted for the highest share of milk and dairy product consumption representing 50.0% of total milk production worldwide.
Storage and transport of fresh fruits and vegetables have a greater expense since safe handling is involved during the process to shield the products from outside force. Thus, players are introducing new products to meet individual consumer needs. For example, Amcor introduced a 1-liter container bottle for fresh milk in March 2021. This is produced from 20% clear Post-consumer Recycled (PCR) Polyethylene Terephthalate (PET) that makes the product more sustainable.
The fruits and vegetable application segment is anticipated to experience a CAGR of 4.9% in revenue during the forecast period. Fruits and vegetables are the key contents in a vegetarian diet. The change in the consumer preference towards a vegan diet and plant-based nutrients is anticipated to increase the market size of the fruits and vegetable segment.
Regional Insights
Asia Pacific led the market for fresh food packaging and held the highest revenue share of 40.9% in 2020. The region is anticipated to lead the market during the forecast period.
The region has various rapidly growing economies such as India, China, South Korea, Japan, and Indonesia.
A huge customer base in nations such as India and China is the cause behind the huge demand for fresh food items, which further is increasing the demand for fresh food packaging during the forecast period. Asia Pacific dominated the world market in plastics production and held more than 50.0% revenue share in 2020.
Huge production of glass and metals such as aluminum and steel has created raw material availability in excess and is attributed to the major share of other categories in the material segment. Nonetheless, the plastic material segment will be facing a number of challenges with increasing consumer awareness and strict government regulations toward plastics pollution.
North America was the third-largest market for fresh food packaging in 2020 due to the availability of advanced application industries within the U.S. and Canada.
Growing emphasis on minimizing plastics usage in the food and beverages sector is likely to increase demand for sustainable alternatives in the region. Stringent laws regarding environmental safety and the growing requirement for readily disposable solutions are likely to propel the demand for recyclable and biodegradable packaging materials.
