Food Packaging Market Size, Share, Forecast, & Trends Analysis by Material (Plastic, Metal, Glass), Packaging Type (Rigid, Flexible), Product Type, Application (Bakery Products, Dairy Products, Snacks, Meat Products, RTE Meals) - Global Forecast to 2031

Food Packaging Market Size & Forecast

The Food Packaging Market is expected to reach $697.74 billion by 2031, at a CAGR of 5.9% from 2024 to 2031. This market’s growth is primarily attributed to the growing demand for convenience food products, increasing demand for convenient and portable packaging solutions, rising demand for longer shelf-life products, and strong growth in the retail sector. However, susceptibility to degradation and fluctuations in raw material prices may restrain market growth.

In addition, the growing emphasis on eco-friendly packaging, recyclability, and innovation in packaging technology are expected to create market growth opportunities. On the other hand, stringent regulatory requirements pose a significant challenge to the market’s growth.

Moreover, the rise of e-commerce and edible packaging are prominent trends in the food packaging market.

Food Packaging Market Growth Drivers

Increasing Demand for Convenient and Portable Packaging Solutions

The packaging industry has witnessed a significant shift towards lightweight and convenient packaging solutions. Several factors, including cost-effectiveness, environmental concerns, and consumer preferences, drive this trend. Due to its reduced weight, this packaging solution contributes to lower transportation costs and better space utilization in warehouses and during shipping.

Modern consumers lead fast-paced lifestyles, demanding products that are not only easy to purchase but effortless to use and store. The trend of consuming on-the-go products like snacks, biscuits, confectionery, and beverages has increased. Hence, there is an increasing demand for packaging solutions that are convenient and portable. Lightweight packaging meets these expectations by offering portability and ease of handling, opening, and disposal.

Further, with the rise in urban population, there is a greater demand for single-serving and ready-to-eat food products, which require innovative, convenient packaging solutions. Additionally, the emergence of online grocery shopping has increased the need for packaging that can protect food during shipping and handling while still being convenient for consumers to use. The expansion of convenience stores and growth in the number of supermarkets and hypermarkets are driving the demand for convenient packaging solutions.

Click here to: Get Free Sample Pages of this Report

High Growth in the Retail Sector

The retail industry is the most dynamic industry globally, which has a direct impact on the packaging industry. The increasing number of convenience stores, specialty stores, and modern groceries, primarily in metropolitan cities, has paved the way for more technical advances in packaging. For instance, according to the National Retail Federation, the number of Walmart Inc. stores across the globe increased from 6,360 in 2019 to 10,569 in 2023. In addition, the number of Carrefour SA stores across the globe increased from 6,726 in 2019 to 14,474 in 2023. Further, according to the Investment Promotion and Facilitation Agency of India (Invest India), the Indian retail sector is expected to grow by 12% between 2022-2032, owing to rapid urbanization, income growth, and a rise in nuclear families are anticipated to support the growth of this market.

Additionally, there is an increasing demand for healthier, organic, and specialty food products. Consumers are becoming increasingly health-conscious and are seeking out food that meets specific dietary needs and preferences. Moreover, the rise of e-commerce has revolutionized the food retail industry. Online grocery shopping has become increasingly popular, driven by the convenience of home delivery and the ability to easily compare prices and products.

Organized retail chains such as supermarkets, hypermarkets, specialty stores, and e-commerce offer access to a wide range of products, catering to diverse consumer preferences and lifestyles. Technological advancements have improved the shopping experience and operational efficiency in food retail. As a result, there is a heightened need for food packaging that not only ensures product safety and freshness but enhances product appeal.

Food Packaging Market Growth Trends

Rise of E-commerce

The landscape of the food industry has transformed with the advent and exponential growth of e-commerce. According to the U.S. Census Bureau and International Trade Association, in the U.S., total retail sales for food & beverage increased by 20.7% in 2022 from the previous year. Further, the number of food delivery app users in the U.S. increased from 49.5 million in 2022 to 53.9 million in 2023, an increase of 8.9%. As a result, many retailers are adopting e-commerce solutions to supplement their existing brick-and-mortar presence to meet the growing demand for digital services.

As online shopping becomes more prevalent and convenient, the need for robust, efficient, and sustainable packaging solutions has surged. Whether consumers are ordering food for delivery or in-store pickup, having high expectations for quality, freshness, and proper packaging, to meet these demands, food businesses have increasingly turned to innovative packaging solutions. Advanced materials such as insulated boxes, vacuum-sealed pouches, and temperature-controlled containers have become staples in e-commerce food packaging. These materials help to preserve food products, keep them fresh, and ensure they reach optimal conditions for customers.

Thus, the rising E-commerce trend in the food & beverage industry is expected to boost the demand for food packaging in the upcoming years.

Edible Packaging

Novel food packaging techniques are an important area of research to promote food & beverage product quality and safety. There is a growing trend towards environmentally sustainable and edible forms of packaging. Edible packaging represents a transformative innovation poised to reshape the packaging industry. The growth of the edible packaging market is primarily driven by the rising need to reduce packaging waste. By offering a sustainable alternative to traditional materials, edible packaging lowers environmental impact and enhances consumer experience.

Edible packaging refers to materials that are safe for human consumption and serve as packaging for food and other products. It is made from natural and biodegradable materials such as seaweed, starches, proteins, vitamins, and fruit and vegetable by-products. These materials are not only safe for consumption but also break down naturally, reducing the burden on landfills and oceans. Edible packaging can maintain food quality, extend shelf life, reduce waste, and contribute to the economic efficiency of packaging materials.

Furthermore, governments and regulatory bodies are implementing policies and regulations aimed at reducing single-use plastics and promoting the use of eco-friendly packaging materials. In response, companies in the food & beverage industry are exploring edible packaging options as part of their sustainability strategies. Thus, the rising need to reduce packaging waste is increasing the adoption of edible packaging is contributing to the growth of this market.

Food Packaging Market Growth Opportunities

Growing Emphasis on Eco-friendly Packaging and Recyclability

As consumers become increasingly aware and conscious of environmental issues, the demand for sustainable packaging solutions is on the rise. Businesses can significantly reduce their environmental footprint by using recyclable, biodegradable, or renewable materials. To reduce environmental effects, some companies have started producing biodegradable and renewable cellulose-based barrier films.

Recyclability is an important aspect of sustainable packaging because it helps lower the amount of waste sent to landfills and conserves natural resources by promoting the use of recycled materials in the production of new items. Traditional packaging materials, such as plastic and styrofoam, are being replaced by alternatives like recycled paper, cardboard, plant-based plastics, and compostable materials. These materials reduce the carbon footprint and promote a circular economy by closing the loop through recycling and composting processes. Thus, the huge demand for sustainable and recyclable packaging provides lucrative opportunities for food packaging manufacturers across the globe.

Innovation in Packaging Technology

The food processing industry has seen impressive innovation in terms of packaging. Food packaging technology has been evolving rapidly to address sustainability, safety, and convenience concerns. The field of food packaging is changing rapidly, with new technologies and materials that bring innovative packaging to the forefront. Key packaging industry trends facilitating this advancement include the internet of packaging, active packaging, 3D printing, and the integration of nanotechnology. Even so, the rise in online shopping presents a significant challenge in the form of increased packaging waste. To address this, emerging companies are rapidly innovating in areas, such as biodegradable, recyclable, and edible packaging materials.

The use of smart packaging has been increasingly adopted in the food & beverage industry to improve supply chain efficiency, enhance product safety and quality, increase consumer demand for transparency and convenience, and improve consumer engagement. Smart packaging, also known as connected packaging, uses electronic devices to add functionality to packages and improve the customer experience. These technologies often integrate sensors, indicators, or other intelligent components to provide additional information or benefits.

In addition, other emerging technologies, such as LED-integrated packaging, color-changing materials, and advanced moisture control, are set to revolutionize the packaging sector. Further, the adoption of eco-friendly inks like soy, water, and UV-based variants is on the rise. Thus, growing innovation in packaging technology is expected to offer opportunities for food packaging manufacturers across the globe.

Food Packaging Market Analysis: Key Findings

By Material: The Plastic Segment to Dominate the Food Packaging Market in 2024

Based on material, the food packaging market is segmented into plastic, paper & paper-based material, metal, glass, and other packaging materials. In 2024, the plastic segment is expected to account for the largest share of 41.5% of the food packaging market. This segment’s large market share and rapid growth are attributed to various benefits, such as versatility, cost-effectiveness, flexibility, and ease of production. Plastic food packaging material is versatile and convenient, making it ideal for a wide range of food & beverage products, such as fresh produce, dairy, meat, seafood, snacks, ready-to-eat meals, and beverages. Plastic food packaging extends the shelf life of perishable foods by acting as an excellent barrier against moisture, air, light, and pathogens. Furthermore, this segment is estimated to register the highest CAGR during the forecast period.

By Packaging Type: Flexible Segment is Expected to Register the Highest CAGR During the Forecast Period

Based on packaging type, the food packaging market is segmented into rigid, semi-rigid, and flexible. The flexible segment is poised to register the highest CAGR during the forecast period. This segment’s rapid growth is primarily attributed to its numerous benefits, including convenience, sustainability, cost-effectiveness, extended shelf life, and versatility. Moreover, enhanced branding and consumer appeal due to flexible packaging and e-commerce growth further support the growth of this segment.

By Product Type: The Bags and Pouches Segment to Dominate the Food Packaging Market in 2024

Based on product type, the food packaging market is segmented into bags and pouches, films and wraps, stick packs and sachets, bottles and jars, boxes and cartons, trays, cans, and other types of food packaging. In 2024, the bags and pouches segment is expected to account for the largest share of the food packaging market. This segment’s large market share is mainly attributed to its continuous innovation in material & design, increased consumer demand for convenience, and growing focus on sustainable packaging solutions.

By Application: The Bakery and Confectionery Products Segment to Dominate the Food Packaging Market in 2024

Based on application, the food packaging market is segmented into bakery products; confectionery products; dairy products; snacks; beverages; meat, poultry, and seafood products; cereals & grains; oilseeds & pulses; herbs & spices; fruits and vegetables; sauces, dressings, and condiments; pet food; baby food; ready-to-eat meals; and other applications. In 2024, the bakery products segment is expected to account for the largest share of 32.7% of the food packaging market. This segment’s large market share can be attributed to several factors, including high consumption of bakery products, continuous innovation, and new product development, the shift towards health-oriented bakery products, the rising number of ready-to-eat product chains and QSRs, and increasing bakery manufacturers' emphasis on product differentiation and presentation.

Furthermore, the beverages segment is expected to register the highest CAGR during the forecast period. This growth is attributed to the growing demand for ready-to-drink beverages, the increasing focus of beverage manufacturers on brand identity, and the demand for attractive and premium packaging solutions.

By End User: Food Service Providers Segment is Expected to Register the Highest CAGR during the Forecast Period

Based on end user, the food packaging market is segmented into food manufacturers, food service providers, packaging service providers, and other end users. In 2024, the food manufacturers segment is expected to account for the largest share of the food packaging market. This segment’s large market share is attributed to the huge demand for processed foods and the growing number of food processing units. Moreover, the food service providers segment is poised to register the highest CAGR during the forecast period. This segment’s rapid growth is primarily attributed to the increasing number of food service centers, rising consumption of ready-to-eat meals and fast food, and growing penetration of e-commerce.

Geographical Analysis

Asia-Pacific: Fastest-growing Regional Market

Based on geography, the food packaging market is divided into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 34.6% of the food packaging market. Asia-Pacific’s large market share and rapid growth are attributed to increased demand for processed food products, robust growth in the food & beverage industry due to increasing urbanization, growing health awareness, and rising disposable income levels, government support for the food processing sector, and increasing innovation and new product developments in the food & beverages industry.

Moreover, this region is also expected to register the highest CAGR during the forecast period.

Food Packaging Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the food packaging market are Amcor Plc. (Australia), Smurfit Kappa Group plc. (Ireland), Mondi Limited (U.K.), Berry Global Group (U.S.), Sealed Air Corp. (U.S.), Ball Corporation (U.S.), Tetra Pak International SA (Switzerland), Schur Flexibles Group (Austria), Anchor Packaging Inc. (U.S.), Crown Holdings Inc. (U.S.), International Papers (U.S.), WestRock Company (U.S.), Graham Packaging Company Inc. (U.S.), Borealis AG (Austria), and Jindal Poly Films Limited (India).

Food Packaging Industry Overview: Latest Developments from Key Industry Players

• In February 2024, Amcor Plc (Australia), a manufacturer of spouted flexible pouch and cap packaging, collaborated with Stonyfield Organic (U.S.), an organic yogurt maker and Cheer Pack North America (U.S.), to launch the first all-polyethylene (PE) spouted pouch. This new pouch is made with Amcor's AmPrima Plus, a polyethylene (PE) film designed for recyclability. Amcor research and development worked closely with Cheer Pack North America’s pouching and spouting experts for validation of the AmPrima Plus structure in production environments.
• In November 2023, ProAmpac Intermediate Inc. (U.S.) launched ProActive PCR retort pouches, a sustainable alternative to conventional retort options. These pouches are designed to reduce virgin plastic usage and contain up to 30% post-consumer recycled (PCR) material by mass.
• In March 2023, Paper Excellence Group (Canada), through its subsidiary Domtar Corp. (Canada), acquired Resolute Forest Products (Canada) to expand its scale, product offering, and geographic reach.
• In April 2022, Mondi launched two sustainable packaging solutions for food products at Anuga FoodTec in Cologne, Germany. These two products are: PerFORMing Monoloop, a recyclable paper-based tray, and Mono Formable PP, a semi-rigid plastic tray.

Food Packaging Market Research Summary

Key questions answered in the food packaging market report: