Food packaging to grow at CAGR of 5.4% by 2027
Asia Pacific expected to lead growth
The food packaging market is expected to grow at a CAGR of around 5.4% during the forecast period 2020 to 2027 and is expected to reach US$ 464.98 billion by 2027, according to a new report by Precedence Research.
Asia Pacific is estimated to be the dominant market, followed by North America and Europe, accounting for around 40% of the total value share in the year 2019. Thus, Asia Pacific is expected to lead the global food packaging market during the forecast period.
The region has reached its maturity stage that is projected to subsidise the growth of the region in the food packaging market. India and China are predicted to be the most lucrative regions among other Asian countries and analysed to dominate the market during the forecast period. This is mainly due to an increase in demand for healthy food fueled by the escalating growth in population.
Moreover, increasing demand for packaged food due to the positive impact of western culture in eating habits along with technological development and innovation in packaging material together with techniques anticipated to propel the overall market growth in the coming years. An increase in Foreign Direct Investments (FDI) in the food industry along with significant consumption of packaged food among consumers is expected to further drive the growth of the market.
The paper and paper-based material segment led the global market and accounted for a value share of nearly 32% in 2019 due to its high adoption in a bid to substitute non-biodegradable packing solutions.
However, plastic food packaging is anticipated to witness considerable growth due to its increasing adoption for its low price along with the rising usage of plastic films in secondary food packaging.
Based on type, rigid packaging is increasingly used due to its properties that include a high barrier to moisture, light, and oxygen that prevents food from getting contaminated. Flexible packaging is expected to be the fastest-growing segment by type owing to its ability to form lighter, thinner, and compact packing solution.