Food Container Market Size Estimated to Reach $190 Billion by 2027

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Food Container Market Size Estimated to Reach $190 Billion by 2027

May 06
22:52 2022
Food Container Market Size Estimated to Reach $190 Billion by 2027
Food Container Market | IndustryARC
The Growth of Packaged Food as One of the Most Profitable Divisions of the Global Food and Beverage Business Has Fuelled Large-scale Advancements Across the Food Container Market.

Food Container Market Overview

The Food Container Market size is estimated to reach $190 billion by 2027. Furthermore, it is poised to grow at a CAGR of 4.3% over the forecast period of 2022-2027. Food storage containers, especially in the refrigerator and freezer, are used to keep food at normal temperatures. Some food products must be kept for longer periods of time, necessitating the use of containers that are exceptionally durable, efficient, and protective. For food preservation, some food containers are subjected to additional procedures. Plastic bags, plastic containers, and glass containers are all options for food storage and made of compounds such as botulinum toxin, perfluorooctanoic acid, perfluorooctane sulfonate. There are many different types of plastics, but edible grade food containers are made of polyethylene, polyester, and polypropylene. Polyethylene is far more flexible than other options, and the container’s exterior is stamped with high-density polyethylene (HDPE). The increased demand for packaged food products around the world is likely to drive market expansion. Furthermore, the ease with which these containers may be used to package, carry, and transport food products is a major element boosting product demand in the global market. Ready-to-eat (RTE) meals, RTE convenience foods, frozen dinners, cake mixes, snacks, and desserts are all examples of packaged foods. Manufacturers are likely to increase production capacity in response to rising demand for these items, which will boost demand for food containers over the forecast period. The market grew slowly in 2021 as a result of the COVID-19 epidemic.

Food Container Market Segmentation Analysis-By Material

The Food Container market based on material can be further segmented into Paperboard, Metal, Glass, Plastic, and Others. Plastic have a large part of the global market share in 2021 Owing to its demand, reusability features, and cost efficiency, plastic accounts for the majority of consumption in the production of food containers. Plastic is also lighter than other materials and requires very little energy to manufacture. Furthermore, when compared to other materials such as metals and glass, it is quite affordable.

However, glass is estimated to be the fastest-growing, with a CAGR of 4.9% over the forecast period of 2022-2027. A plastic cover is commonly attached to glass storage containers to keep them sealed. When compared to other types of containers, glass jars have a higher demand attributed to its capacity to keep food fresh for longer. Over the last few years, there is an increasing trend of transparency in food packaging. Consumers want to see the physical product before they buy it, in addition to the ingredients specified on the label. Many companies, particularly dairy product companies, have begun to offer their products in transparent glass containers to capitalise on this trend. Further, the Paris Agreement provides impetus to the manufacturers, as the agreement aims to limit global warming to 1.5 degree centigrade.

Food Container Market Segmentation Analysis-By Packaging Type

The Food Container market based on packaging type can be further segmented into rigid packaging, Semi-rigid Packaging and Flexible packaging. In 2021, the rigid packaging segment had the biggest market share. Its strong stiffness, impact strength, and barrier qualities contribute to this. The rigid food containers have a longer lifespan, which is driving the segment’s growth over the projection period (2022-2027). Increased demand for packaged food as a result of changing lifestyles is expected to be one of the segment’s main growth drivers. The booming beverage industry, which is dominated by products like whiskey and energy drinks, is driving up demand for rigid packaging.

However, during the projection period 2022-2027, flexible packaging is intended to create at the quickest rate, with a CAGR of 5.1%. This is attributable to the increasing relevance of thin-film packaging as a protective medium for extending the shelf life of processed food commodities in the nutritional industry. Owing to rising demand in the food and beverage industries, the flexible plastic packaging market is likely to rise significantly in the future. During the forecast period, rise in modern retailing, high consumer income, and acceleration in e-commerce activities, particularly in emerging nations, are expected to benefit the flexible packaging market sector.

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Food Container Market Segmentation Analysis-By Geography

The Food Container market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. In 2021, North America dominated the Food Container Market, accounting for 35.5% of the total market. This is responsible for the increase in the use of packaged items, waste reduction, the growing usage of tiny food containers in households, and the need for fresh food. Furthermore, rising personal income, urbanisation, and rising interest in packaged foods are all driving factors in this region’s industry.

Furthermore, rising demand for canned foods in the U. S., such as tinned fish and meat, is propelling market expansion in the region. The U.S. was the top revenue provider in North America, thanks to the robust growth of the food and beverage industry, which is one of the main drivers of the regional market. Regulations requiring recycling and material sustainability in order to preserve environmental balance are driving demand for bio plastic packaging. As per USDA, the food retailing segment grew by around 7% between 2019-2020. Further, industry expects a growth owing to peculiar COVID surges.

Food Container Market Drivers

To assist promote the market, more focus is being placed on food container innovation and aesthetics

Food manufacturers are increasingly focused on food container innovation and aesthetics, which is motivating them to provide their products in a variety of creative food packaging, which is projected to drive market growth in the near future. Nissin, for example, is eliminating lid-closing stickers from its cup noodle package and replacing them with a new design to reduce plastic waste. The sticker, which was made of plastic, was used to hold the lid tight after pouring hot water into the cup noodle container. The new double flap lid will work in the same way, with a W-shaped flap to keep the lid shut. The material of the lid, which is made of paper, does not alter.

Maintaining food quality through innovative methods to support market expansion is to cater to the market growth

One of the primary factors driving the worldwide Food Container market is the rising demand for maintaining food quality through innovative methods. Food containers keep food products fresh and allow them to transport securely great distances from their point of manufacture. The need for food containers has increased as a result of rising populations, urbanisation, and changing lifestyles. However, pertaining to the environmental issues that come with it, businesses are coming up with innovative solutions. Furthermore, government regulations limiting greenhouse gas emissions in the food and beverage industry are anticipated to increase demand for sustainable packaging, driving market growth. For example, Advanced Food Products has been following sustainability initiatives which focuses on reducing fuel and energy consumption, reducing waste by following zero landfill policies, and achieving 100% recyclable practises.

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Food Container Market Challenges

Food contamination and low hygiene are factors impeding the market growth

Food contamination is known to occur when food is stored in containers for an extended period of time. Keeping up with changing consumer tastes is the biggest issue for food container makers. As a result, food container makers must produce high-quality, fresh, leak-proof, airtight, and creative goods with an attractive appearance. Moreover, as per a research by Friends of Earth, the manufacturing process of making plastic emits and contributes to around 5% of the greenhouse gas emissions.

Food Container Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Food Container Market. The top 10- Food Container Market companies’ are-

1. Amcor plc

2. Sonoco Products Company

3. Graham Packaging Company, Inc.

4. Silgan Holdings, Inc.

5. Ardagh Group

6. Berry Plastics Corp.

7. Plastipak Holdings, Inc.

8. Weener Plastics

9. Ball Corp.

10. Tetra Pak

Recent Developments

In May 2021, Plastipak announced an investment in recycling at its manufacturing plant located in Toledo, Spain, with an objective to convert PET flakes into food-grade recycled PET pellets. These pellets are designed for direct use in new food containers, bottles, and preforms. The recycling plant would produce close to 20,000 tons of food grade pellet a year and will commence operation/production from the summer of 2022. Additionally, the project would create 14 new jobs.

In May 2021, Berry Superfos, a business unit of Berry Global unveiled a new sustainable CombiLight pot for food producers. This latest resource-efficient food packaging solution would help in removing plastic content by 60% in comparison to similar solutions. The new CombiLight pot is designed for its usage in lightweight packs and is made by utilizing less fossil material and combines a plastic structure with coated natural fibers.

In May 2021, Novolex entered into an agreement to acquire Flexo Converters. This acquisition aims to expand Novolex’s portfolio and enable Duro to support customer demand via Flexo’s production capacity. Novolex has witnessed a substantial surge in demand for paper bags because of the shifting purchasing pattern of consumers. Flexo products will be sold under the Novolex Duro® Bag brand. Novolex has seen a significant increase in demand for paper bags as consumer purchasing patterns have shifted.

Key Takeaways

Geographically, North America accounted for the greatest market share of more than 35.5%, owing to Urbanization, as well as ascending interest in packaged food. The market for U.S. is driven by the increasing sophisticated consumer demand for convenient, easy-to-carry, storable and ready-to-eat food packaging. Furthermore, North America is expected to offer lucrative growth opportunities to the marketers in the projected period of 2022-2027 owing to a rapid increase in consumption of various food and beverages items along with other spirits.

In recent years, the growth of packaged food as one of the most profitable divisions of the global food and beverage business has fuelled large-scale advancements across the food container market. However, challenges forging in terms of container’s recyclability and cost implications has hampered the overall market growth.

A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Food Container Market Report.

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September 2022