CAGR: 5.2 %Current Market Size: USD 120 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The Global Food Service Packaging market is expected to grow from USD 120 billion in 2021 to USD 180.01 billion by 2029, at a CAGR of 5.2% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the rising awareness about preserving the freshness of food for a long time.
Food service packaging, as implied by the name, includes all packaging options used to package food items to prevent them from becoming contaminated by outside influences. Additionally, the purpose of food service packaging is to maintain the freshness and safety of packaged food items while extending and improving their shelf life. Food service packaging solutions make sure that food items are hygienic and fit for consumption. Products used for serving or packing prepared foods and beverages in dine-in, takeout, and home delivery food service facilities are referred to as food service packaging. Products for food service packaging include plates, bowls, bags, containers and lids, cutlery and utensils, hot and cold beverage cups, and beverage carriers. These products shield food goods from microbial, atmospheric, and moisture-related contamination. The market for food service packaging is in great demand, mostly as a result of the growing global consumer demand for pre-packaged food products. With the growing need to decrease pollution and waste, manufacturers are rapidly switching from conventional packaging solutions to eco-friendly, bio-based ones.
Sample Request: - Global Food Service Packaging Market
Market Dynamics:
Drivers:
Manufacturers are concentrating more on product packaging in addition to food services production to draw in more customers. To cut down on the costs of logistics and recycling, food service producers are seeking sustainable packaging materials. The demand for food service packaging that maintains the product's freshness and aroma over time has increased.
The increase in funds being devoted for the growth and development of innovative and automated packing equipment/machinery is a result of the increasing number of strategic market alliances. Additionally, an increase in the amount of money spent on research and development would pave the door for breakthroughs involving these packaging options.
Restraints:
Future market trends are hampered by the variable cost of raw materials used in food service packaging. For food makers and businesses, the price of raw materials continues to be the main source of worry. To remain competitive and provide sustainable margins in light of the significant price volatility of raw materials, it becomes a genuine problem for food firms.
Market expansion would be hampered by the increasing enforcement of strict environmental rules placed on the industry about the packaging waste produced. Additionally, the market's potential for expansion will be limited by strict controls on product approvals. More restrictions put in place by the government on the use of plastic as a packaging material would also be a hindrance.
Opportunities:
The materials and packaging industries have enormous growth potential due to global economic expansion. Food service packaging solutions provide cost-effective product packaging. The packaging industry's emphasis on contemporary technologies is closely correlated with rising demand for such packaging solutions. Globalization and growing urbanization are the main drivers of market value growth. Other factors influencing market expansion include the booming creation of flexible packaging solutions, expanding technological developments in packaging equipment and technology to support a wide range of products, and increased e-commerce industry proliferation. Additionally, during the projection period, the profitable potential for market participants are expanded by developments in manufacturing technology. The market's future expansion will also be aided by growing consumer awareness of the advantages of flexible lid stock packaging solutions, such as their affordability and extended product shelf lives.
Challenges
The price of the product rises as the packaging becomes more inventive, which is a deterrent for the market for food service packaging. As the food industry develops continuously, product packaging also advances, necessitating increased resources, technology, research, and other variables to satisfy consumer demand. All of these variables have a direct impact on the price or output of the product, which is likely to have an impact on the market throughout the Projection time.
Segmentation Analysis:
The global Food Service Packaging market has been segmented based on material type, packaging type, application, and regions.
By Material Type
The material type segment is plastic, paperboards, metal, and others. The plastic segment led the largest share of the food service packaging market with a market share of around 27.3% in 2021. Flexible packaging is available in the form of plastic. It enables food service operators to alter the packaging's size, shape, and aesthetic to meet the needs of their clients. Because it is lightweight, plastic packaging is preferred in the food service sector. Due to these advantages, plastic packaging has drawn interest from clients in the food service sector. As a result, the need for plastic foodservice packaging is growing.
By Packaging Type
The packaging type includes flexible packaging and rigid packaging. The flexible packaging segment led the food service packaging market with a market share of around 63.08% in 2021. The growth can be attributed to the simplicity of use and the need for less packing. Additionally, segmental expansion is facilitated by the fact that it uses less energy than rigid containers. It is also recyclable and reusable, making food service packaging businesses consider it as a feasible option.
By Application
The application includes food service outlets, online food ordering, and institutional food services. The online food ordering segment led the food service packaging market with a market share of around 43.08% in 2021. The recent explosion in app-based meal delivery services will increase demand for online food ordering because it necessitates more packaging. Given the benefits it provides, such as low-cost marketing, real-time expense monitoring, and effective order administration, more and more food service enterprises will turn to online meal ordering, driving the industry growth.
By Regional Analysis:
The regions analyzed for the food service packaging market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Food Service Packaging market and held the 32% share of the market revenue in 2021.
Global Food Service Packaging Market- Country Analysis:
Germany's food service packaging market size was valued at USD 6.04 billion in 2021 and is expected to reach USD 8.2 billion by 2029, at a CAGR of 4% from 2022 to 2029.
The market in the country is being driven by the ongoing rise in consumer demand for frozen, processed, and semi-processed food items with higher nutritional values. This demand is encouraging food packaging manufacturers to increase their production capacity of packaging products for diversified product categories.
China Food Service Packaging’s market size was valued at USD 12.28 billion in 2021 and is expected to reach USD 17.86 billion by 2029, at a CAGR of 4.8% from 2022 to 2029. The market is being driven by increased disposable incomes, particularly in urban areas. Additionally, China's enormous pool of affordable and competent employees allows the nation to sell its goods on the worldwide market at extremely competitive prices, which increases regional product demand.
India's Food Service Packaging market size was valued at USD 9.98 billion in 2021 and is expected to reach USD 13.97 billion by 2029, at a CAGR of 4.3% from 2022 to 2029. As lifestyles change and the country's food distribution systems grow more dependent on online food applications, the trends in food packaging are changing quickly. The popularity of the typical fast food meal and an expanding global population are pushing the food service packaging market.
Key Industry Players Analysis:
To increase their market position in the global Food Service Packaging business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
5.2% |
Market Size |
120 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Material Type, By Packaging Type, By Application, and Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
D&W Fine Pack, Sealed Air Corporation, Huhtamaki Oyj, Amcor Plc, Genpak LLC, Stanpac Inc., Smurfit Kappa Group, WestRock Company, Linpac Packaging, Pactiv LLC, DS Smith, Berry Global, Inc., Dow Inc., Ball Corporation, Reynolds Group Holdings Limited., among others |
By Material Type |
|
By Packaging Type |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Food Service Packaging Market by Material Type:
Global Food Service Packaging Market by Packaging Type:
Global Food Service Packaging Market by Application:
Global Food Service Packaging Market by Region:
Global Food Service Packaging market size was USD 120 billion in 2021.
Global Food Service Packaging market is expected to reach USD 180.01 billion by 2029, at a CAGR of 5.2% from 2022 to 2029.
Leading market players active in the global food service packaging market are D&W Fine Pack, Sealed Air Corporation, Huhtamaki Oyj, Amcor Plc, Genpak LLC, Stanpac Inc., Smurfit Kappa Group, WestRock Company, Linpac Packaging, Pactiv LLC, DS Smith, Berry Global, Inc., Dow Inc., Ball Corporation, Reynolds Group Holdings Limited.
Increasing preference for biodegradable packaging solutions is primarily driving the growth of the Food Service Packaging market.
Food Service Packaging market will grow at CAGR of 5.2% from 2022 to 2029
Political Factors- The factors that can affect the food services packaging industry's long-term profitability in a particular nation or market are heavily influenced by political issues. Operating in the food services packaging industry in more than a dozen nations exposes food services packaging to various political systems and environmental concerns. Diversifying the systemic risks of the political environment is necessary to succeed in such a dynamic industry as food services packaging and containers across numerous nations. Political stability and importance of food services packaging in the country's economy. Trade regulations & tariffs related to Consumer Goods and Food food services packaging also affects the market’s growth.
Economical Factors- The economic growth and overall investment in an economy are determined by the macroenvironmental factors, such as the inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle. In contrast, microenvironmental elements like industry norms impact the firm's competitive edge. Food services packaging can Projection not only the growth trajectory of the food services packaging sector but also that of the organisation by using country-level economic factors like growth rate, inflation and industry-level economic indicators like food services packaging & containers industry growth rate, consumer spending, etc. Exchange rates impact an economy's supply and price of imported commodities as well as the costs associated with exporting goods.
Social Factor- The manner of life and culture of the society affect the organisational culture in a given setting. When food services packaging creates a marketing message for consumers in the food services packaging & containers industry, shared beliefs and attitudes of the populace significantly influence how marketers at that company comprehend the clients of a specific market. Education level and education standards in food services packaging also affect the market’s growth. In addition to cultural features, social variables also consider age distribution, career attitudes, health consciousness, and emphasis on safety. Social trends impact a company's operations and the demand for its products. An ageing population, for instance, can indicate a smaller and less willing workforce (thus increasing the cost of labour). In addition, businesses may alter their management tactics to reflect these social trends (such as recruiting older workers).
Technological Factors- Technological features, including R&D effort, automation, technology incentives, and the pace of technological progress, are examples of technological factors. They can establish entry barriers, the minimum effective production level, and impact outsourcing choices. Additionally, changes in technology can have an impact on prices, quality, and innovation. A company should analyse the industry's technological state as well as how quickly it is being disrupted by technology. Slow technological disruption will allow more time, whereas rapid disruption may give a firm little time to adapt and be profitable.
Environmental Factors- Environmental considerations include ecological and environmental elements, including weather, climate, and climate change, which may negatively impact some sectors of the economy like tourism, agriculture, and insurance. Additionally, as people become more aware of the possible effects of climate change, it changes how businesses run and the products they offer, creating new markets and eroding or eliminating existing ones. Climate changes such as climate change, greenhouse gas emissions, and growing pollution are effectively by prominent market players. It should emphasise waste management, recycling, renewable energy sources, and food services packaging that decomposes naturally. It should also be aware of how its resources and waste are being used up, as this could negatively affect its brand reputation and consumer loyalty.
Legal Factors- Legal considerations include discrimination, consumers, antitrust, employment, and health and safety laws. These elements may impact a company's operations, expenses, and product demand. The food services packaging industry is subject to very strict legislative requirements. Market players must abide by all laws and binding rules and regulations to gain consumer loyalty and faith in their brand products. Nearly all nations now have laws that must be followed for consumer protection, data privacy, intellectual property rights (IPR), health and safety, employees and the workplace, and other topics. Therefore, it becomes essential for this business to conduct itself lawfully and ethically to prevent any legal proceedings, penalties, or punishments from a court of law. Like in India, FSSAI is in charge of monitoring food product adulteration, safety, and standards. All food businesses are required by law to comply with this requirement.
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