Fresh Food Packaging Market - Forecast(2022 - 2027)

Anusha Reddy

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Fresh Food Packaging Market - Forecast(2022 - 2027)

The Fresh Food Packaging Market Size is estimated to reach $165.2 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.1% over the forecast period of 2022-2027.

The Fresh Food Packaging Market Size is estimated to reach $165.2 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.1% over the forecast period of 2022-2027. Fresh Food Packaging is a technique used to prevent food from any unnecessary changes after packaging. The changes might be related to color, odor, taste, and texture, and contamination by any external source. It helps to store food in a convenient size & shape and also gives some basic information about stored food on the external coat of the packed container. Innovative, attractive, and convenient to store packaged food always attract customers. Different materials are used for different packaging food products. Packaging materials are classified into categories depending on the material used for packaging which are paper (kraft paper, sulfite paper, greaseproof paper, parchment paper, flexible paper) plastic (polyethylene, polypropylene, polyvinyl chloride, biodegradable plastic, and others), metal, glass, gusseted bags, the corrugated box used in the fresh food packaging industry. Such fresh food packaging material is used for packaging various types of items like dairy products, beverages, fruits, meat and seafood, pet food, and other types of consumables. The increasing population and demanding need for fresh and organic food all over the world drive the Fresh Food Packaging Market over the forecast period 2022-2027.

Fresh Food Packaging Market Report Coverage

The report: “Fresh Food Packaging Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Fresh Food Packaging Market.

By Type: Rigid, Flexible, Semiflexible

By Material: Plastic (Poly Ethylene (PE), Poly Propylene (PP), BoPET) Metal (Aluminium, Steel, Others) Glass, Paper (kraft paper, sulfite paper, greaseproof paper, parchment paper, flexible paper), Paperboard, Biodegradable Material (Bagasse, Polylactic acid (PLA), Polyhydroxyalkanoates (PHA), Polybutylene succinate (PBS), Polybutylene adipate terephthalate (PBAT) and Starch Blends) and Others.

By Pack Type: Converted Roll Stock, Gusseted Bags, Flexible Paper, Corrugated Box and Others.

By Application: Meat Products, Vegetables, Seafood, Fruits, Diary Products and Others.

By Geography: North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (the Middle East, and Africa).

Key Takeaways

Geographically, Asia-Pacific held a dominant market share in the year 2021, expanding the demand for fresh food and products.
Sustainable packaging solutions with cost-effective technology help to grow the Fresh Food Packaging Market over the forecast period 2022-2027.
Fluctuation in prices owing to various factors like imbalance of demand & supply chain will impact Fresh Food Packaging Market in the projected forecast period.
A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Fresh Food Packaging Market Report.

Fresh Food Packaging Market Segmentation Analysis- By Type

Fresh Food Packaging Market based on type can be further segmented into Rigid, Flexible, and Semiflexible. Rigid Fresh Food Packaging segment held a dominant share in the year 2021. This is attributed to stronger support provided by materials to goods kept in it with barrier wall protection. Aljavascript:nicTemp();so, food packed in the rigid type of material is easy to transport and store with minimum risk of damage to the product inside. Rigid packaging is widely applied in beverages like carbonated beverages, water, juice, tea, sports drink, nutritional drink, baby food, and frozen food. Such wide application and advantages drive the rigid packaging segment.

However, Flexible packaging is estimated to be the fastest growing with a CAGR of 8.2% over the forecast period of 2022-2027. Flexible packaging is further categorized as films – shrink film, stretch film, and pouches. They are lightweight, easy to handle and carry and occupy less space. In April 2019, Amcor launched sustainable high-barrier polyolefin film with the name Amite Ultra Recyclable which can help to reduce carbon footprint by up to 64%. Such innovation, advantages, and the presence of key market players help to grow the flexible packaging market over the forecast period 2022-2027.

Fresh Food Packaging Market Segmentation Analysis- By Application

Fresh Food Packaging Market based on the application can be further segmented into Meat Products, Vegetables, Seafood, Fruits, Dairy Products, and Others. Meat Products held a dominant share in 2021. The meat is highly perishable in nature and posses a high risk of contamination if not packed and stored properly. According to Pew Research, 78% of the global population is non-vegetarian and America was first in consumption of meat in 2020, which is an average of 252 pounds per person, and chicken is held first place followed by beef. Such a huge number of non-veg consumers increases the demand for meat products and their packaging which helps to drive the segment.

However, vegetables are estimated to grow by 7.0% in the forecast period of 2022-2027 owing to the increasing trend of preferring a veganism diet. In 2021, the total number of vegans, vegetarians, and related categories population reached up to 14% of the global population. Also, recommended consumption of vegetables by WHO is 400 grams per person per day but world consumption is 267 grams per person per day which results in market scope for fresh vegetable supply, such factors help to grow Fresh Food Packaging Market over the forecast period 2022-2027.

Fresh Food Packaging Market Segmentation Analysis - By Geography

The Fresh Food Packaging Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific held a dominant market share of 39% in the year 2021. This is attributed to 60% of the world's population living in this region and the increasing demand for fresh food and food products help to drive the market. According to Asia Food Challenge Report 2021 – Asia will spend around $2.4 trillion on food by 2030. The Asian consumers are shifting to fresh foods, healthier diets, sustainable consumption practices, and online purchasing of food, which will drive the Asia Fresh Food Packaging Market.

Furthermore, North America is estimated to be the fastest growing over the forecast period 2022-2027, attributed to an increase in the consumption of packaged foods. Consumers are also shifting their food habits from junk food to healthier higher-quality packaged food. Also, the availability of eco-friendly packagings like biodegradable packaging and sustainable packaging solutions are preferred by consumers to safeguard the environment. Indian Defence Research and Development Organisation (DRDO) launched biodegradable food-grade material with help of Acharya Nagarjuna University and Ecolastic in July 2021. Such factors help to grow the segment over the forecast period 2022-2027.

Fresh Food Packaging Market Drivers

Increasing Consumer Awareness and Demand for Extended Shelf Life of Products Drive Market.

Consumers are highly aware of health-related issues after consumption of unhealthy junk food, however, they preferred fresh food and food products by spending extra, which are beneficial for health. As per CDC, more than 67.3% of adults consumed fruit each day in the U.S. In 2021, online sales of packaged food and beverages hit $109 billion, as per Food Industry Association. Also, consumption of unhealthy food increases problems of obesity all over the world. The world obsess population goes up to 2 billion adults in the year 2021 as per data in world statistics. The increasing prevalence of obesity invites many other diseases such as Cardiovascular Diseases, Hypertension, Blood pressure, Infertility and others. Now-a-days consumers are well aware of the disease's root cause, resulting in the consumption of healthy, fresh food products which helps to drive Fresh Food Packaging Market.

Growing Trend of Clean Labelling is Driving the Market Growth.

Owing to a growth in customer concern for simple and less synthetic chemicals on product labels, the growing trend of clean labeling is a vital contributor to the overall industry expansion. Unhealthy ingredients, such as chemical formulas of synthetic chemicals, are not listed on clean labels. In 2021, sales of clean label ingredients like natural colors and flavors, fruits and vegetables, starch, and sweeteners reached $38.8 billion. Thus, the increasing trend of clean label products are driving the Fresh Food Packaging Market over the forecast period.

Fresh Food Packaging Market Challenges

Fluctuating Prices of Raw Materials Hider Fresh Food Packaging Market Growth

Arrivals in the market, demand, weather conditions, export demand, and varietal differences among marketplaces all have an impact on price changes. When all or some of these factors were active, raw material prices exhibited volatility, which impacted by-products such as Fresh Food Packaging Market price, which in turn influenced the growth of the Fresh Food Packaging Market. In 2021, the price of plastic packaging hiked owing to the unusual increase in raw material prices and energy prices. Most of the food container is made up of 100% recyclable polypropylene and this material is produced from the residual waste of fossil fuel as prices of fossil fuel get hike resulting in an increase in the price of plastic packaging. In January 2021, US polypropylene prices hike from 13.5 to 96.5 percent per pound, also the price of HDPE and LDPE up by 8% & 9% respectively. Such increasing price over time is slowing down the growth of the Fresh Food Packaging Market over the forecast period 2022-2027.

Fresh Food Packaging Industry Outlook

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

Ultimate Packaging
Mondi Group
International Paper Company
PP Global
DuPont de Nemours, Inc.
Amcor Limited
Coveris Holdings S.A
Temkin International Inc.
Smurfit Kappa
Univeg Group

Recent Developments

In March 2022, International Paper Company announced to sell its stakes in Russian llim JV. Company aims to sale up-to 50% shareholding interest in llim Group Joint Venture in Russia aimed at the invasion of Ukraine.
In July 2021, Ultimate Packaging was acquired by ProAmpac – the leader in flexible packaging and material science. Ultimate packaging is one of the largest independent flexible packaging manufacturers in the United Kingdom. Ultimate is specialized in innovative packaging solutions, increasing product shelf life, convenience, and recyclable product range which will help to ProAmpac strengthen its position in the market.
In April 2020, Modi Group – a leading global packaging solution has partnered with Reckitt Benckiser Group, with this partnership they launched a fully mono-material flexible plastic packaging portfolio for the premium line of Finish Dishwasher Tablets ‘Quantum Ultimate’.