Food Packaging market expected highest growth of $456.6 billion by 2027
Asia Pacific to significantly grow due to growing population, increasing urbanization, and rising disposable income of consumers.
The global food packaging market size is expected to reach USD 456.6 billion by 2027, expanding at a CAGR of 5.2% over the forecast period, according to a new report by Grand View Research, Inc..
The market in Asia Pacific was worth USD 112.2 billion in 2019. The region is anticipated to witness significant growth on account of growing population, increasing urbanization, and rising disposable income of consumers.
Growing demand for convenience food products due to change in lifestyle and alternative eating habits is expected to bolster the market growth.
The industry exhibits rapid growth for single-serve and portable food packs. Increasing purchasing power of buyers owing to rising per capita income is expected to boost the growth. Increasing urban population and attraction toward ready-to-eat meals by consumers is expected to increase demand for food packaging.
Rising concerns of consumers regarding contamination and food safety is predicted to bolster the demand for effective packaging solutions. In addition, increasing number of retail chains is anticipated to propel sales of packaged food, consequently driving the market growth. Surge in demand for food delivery services is also expected to have a positive impact on the industry.
Rising inclination toward innovation in environment-friendly and sustainable packaging is an emerging trend in the industry. Emergence of new and innovative packing types and technologies including Modified Atmosphere Packaging (MAP), active packaging, and, printing technologies are expected to boost the market across the globe. Players also insist on investing in development of cost-effective, lightweight, and high performance materials.
The food packaging industry is expected to be restrained by high volatility observed in prices of raw materials. In addition, introduction of sustainable packaging materials by major manufacturers and increasing consumption by buyers, are expected to provide an impetus to the market over the next few years.
Flexible packaging is expected to register the highest CAGR of 6.0% in terms of revenue from 2020 to 2027, owing to its cost-effectiveness, high performance, and constant innovations undertaken by major manufacturers.
Paper and paper-based packaging is estimated to be the fastest growing segment, exhibiting a CAGR of 6.1% from 2020 to 2027, owing to its low cost and sustainability parameters.
Bakery and confectionary is anticipated to be the largest application, which recorded a market size of USD 82.6 billion in 2019 owing to growing demand for cakes, candies, and frozen ready-to-eat bakery products.