The Global Fresh Food Packaging Market – Keeping It Fresh

The Global Fresh Food Packaging Market is expected to grow at a compound annual growth rate of 4.20% over the forecast period to reach a market size of US$112.789 billion in 2026 from US$84.562 billion in 2019.

Packaging of fresh food is required for the transportation to avoid any spoilage and physical damage. Food products are packed using several materials to protect the contents from adverse environmental conditions such as pollution, weather adversities, and dust among others. The demand for ready-to-eat and packaged food is increasing among the consumers especially the millennials and this high demand is expected to continue during the forecasted period. The rising demand is motivating the players of the fresh food packaging market to focus and introduce innovative packaging solutions to provide convenience and a longer shelf-life of the contents.

According to the WRAP study, 60% of the household waste arise from the consumers not consuming edible food in proper time. But with a twofold approach of more effective labeling and branding, consumers can better understand the shelf life of the food and active packaging can allow the contents of the packaging to last longer.

In addition to the growing awareness regarding the environment, global warming and the impact of the plastic on the environment is a big concern for the consumers and government which is restraining the market growth of the fresh food packaging. This is motivating the players of the fresh food packaging to focus and introduce cost-effective and biodegradable packaging solutions. Amcor launched Amite Ultra Recyclable in 2019 which is made from the company’s revolutionary and more sustainable high-barrier polyolefin film which can reduce the carbon footprint by up to 64%. Disposal of food waste while the packaging is a major concern for the companies which is proving to be a challenge to find solutions to.

Market Players included in the report of the Global Fresh Food Packaging Market are Mondi PLC, DS Smith PLC, Coveris Holdings S.A., Bemis Company, Inc., Smurfit   Kappa, Sealed Air Corporation, Amcor Limited, LINPAC Packaging, Sonoco Products, AEP Industries.

COVID-19 Impact

The outbreak of the Covid-19 pandemic has impacted every industry and have highly disrupted the distribution channel. The coronavirus moderately impacted the global fresh food packaging market. The decline in the consumption of the packaged food and the outbreak of the Bird Flu in various parts of India led to a decrease in demand for the packaged food or restaurant food. The demand for the fruits and vegetable market was increasing during the pandemic as people were trying to eat healthy to improve their immunity against the coronavirus, which was driving the market demand for the fresh food packaging. 

Market Size

Global Fresh Food Packaging Market on the basis of region is segmented as North America, South America, Europe, Middle East, and Africa, and the Asia Pacific.

Asia Pacific region is expected to grow at a fast CAGR during the forecasted period. This can be attributed to the rising disposable income, increasing population and burgeoning demand for fruits & vegetables, poultry & meat products across the globe. The rising demand and shift of consumer demand towards healthy lifestyle and high purchasing power is expected to increase the demand in the region. For instance, on World Idly Day, iD Fresh Food, one of India’s giant fresh food brands, announced the launch of a Giant Home Kitchen which is a state-of-the-art facility and one of the world’s largest Idly and Dosa batter preparation and packaging plant in Anekal, Karnataka. The investment in this plant is close to INR 40 crores.

Fresh food packaging market by Type is segmented as Plastic, Paper and Board, Glass, Metal and Others. Convenience food include chopped vegetable bags, single-serve salad packaging, salad bags and fresh herbs packs which require different types of packaging materials.

While by Application, the fresh food packaging is segmented as Poultry and Meat Products, Dairy Products, Produce (Vegetables and Fruits), Sea Food and Others. In the emerging markets of MENA and BRICS, the increasing demand for such food items is increasing as the demand for the convenience and ready-to-eat products are driving the fresh food packaging market.

For instance, Bemis Company, Inc. provides flexible packaging solutions. The prominent players in the market are adopting various strategies such as mergers and acquisitions, collaborations, expansion, etc. to maintain their position in the market and to meet the rising demand for fresh food packaging material.

Restraints

The issue and impact faced during the disposing of the packaging material such as plastic or glass etc this is being faced by every country globally. The government of various countries are mandating various regulations and restriction regarding the disposal of packaging material which can highly impact the market growth of the fresh food packaging industry. For instance, In Europe, the regulations for plastic landfills are extremely stringent. The European Union expects to achieve ‘zero plastics to landfill’ by the year of 2025.

Another challenge includes the stringent rules and regulations regarding the raw material. Regulations regarding the food packaging to preserve the chemical, sanitary and physical integrity of the contents of the food packaging. For example, in the US, packaging materials that are harmful to health are removed based on analytical chemistry data. According to the European Union (EU), all food packaging materials need to be cleared based on a toxicological evaluation and published regulations, regardless of exposure. Similarly, China's Food Safety Law requires the approval of all food-related products, including food packaging materials.

Packaging

The global fresh food packaging market is expected to augment due to the rise in the consumption of the fresh food products. The demand for the fresh food products are majorly popular in developing countries such as China and India and is expected to grow even further during the forecasted period. After packaging, it takes time for the packaged food to reach the consumers and it might not be fresh and lose its aroma & taste before reaching its destination. To find a solution for this restrain, the industries of food processing are investing in the research and development to introduced new packaging techniques which will aid in increasing the shelf life and maintain the freshness of the contents.