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

The Food Packaging Market was valued at $444.4 billion in 2023. This market is expected to reach $698.4 billion by 2031 from an estimated $468.1 billion in 2024, at a CAGR of 5.9% during the forecast period 2024-2031.

Food Packaging Market Size & Forecast

The growth of this market is driven by the growing demand for convenience food products, the increasing demand for convenient & portable packaging solutions, the rising demand for food products with extended shelf life, and high growth in the retail sector. However, food packaging materials’ susceptibility to degradation and fluctuations in raw material prices restrain market growth.

Furthermore, the growing emphasis on eco-friendly packaging & recyclability and innovation in packaging technology are expected to generate growth opportunities for market stakeholders. However, stringent regulatory requirements are a major challenge for the players operating in the food packaging market.

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

Food Packaging Market Growth Drivers

Growing Demand for Convenience Food Products

Consumer demand for convenience foods has grown substantially over the last decade. Convenience foods (ready-to-eat/ready-to-cook meals and snacks) have gained popularity as they take less time and effort to prepare than cooking food from scratch. Factors such as hectic lifestyles, growing urbanization, and evolving consumer preferences are driving the demand for convenience food products. According to a survey conducted by the International Food Information Council in April 2023, seven in 10 Americans (72% of the total population) snack at least once a day on ready-to-eat products, with dairy, bakery, confectionery, and savory products accounting for 70% of the consumption. Moreover, according to a survey on consumer perceptions regarding food conducted by Agriculture and Agri-Food Canada, in 2023, Canadian consumers’ spending on convenience foods increased by 54% compared to 2019. Further, according to Agriculture and Agri-Food Canada, in 2021, the European snacks market was valued at $138.2 billion, and total retail sales in this market are expected to reach $173.2 billion by 2026. In addition, according to Bio Springer AM Corporation (France), the retail value of savory convenience foods in Asia during 2019-2023 totaled $378 billion.

Furthermore, more than half of the world’s population lives in urban areas, and virtually all countries are becoming increasingly urbanized. According to the United Nations World Urbanization Prospects, in 2023, almost 56.9% of the world’s population lived in urban areas, and this number is further expected to increase to 68% by 2050. Urbanization significantly contributes to improved living standards and rising incomes, influencing the affordability of convenience foods. Thus, rapid urbanization and increasing consumer preference for RTC/RTE foods contribute to the growth of the convenience foods market.

The increasing consumption of convenience foods is driving the demand for food packaging materials as packaging helps convenience food manufacturers maintain freshness, ensure quality, and improve the portability of their products. Packaging allows for the easy storage and consumption of ready-to-eat meals on the go. Thus, the growing demand for convenience foods is increasing the utilization of food packaging solutions, driving the growth of this market.

Rising Demand for Food Products with Extended Shelf Life

In recent years, there has been a notable shift in consumer behavior toward products that offer convenience, longevity, and safety. The demand for products with extended shelf life is primarily driven by the increasing need for convenience in modern lifestyles. With busy schedules and a growing preference for ready-to-eat and pre-packaged foods, consumers are seeking products that can be stored for longer periods without compromising their quality. Proper packaging ensures that food products remain fresh, nutritious, and safe for consumption over a more extended period, reducing the frequency of shopping trips and minimizing food waste. This shift toward products with extended shelf life is driving the demand for advanced food packaging solutions. The food packaging industry is focusing on technological advancements to meet the rising demand for products with extended shelf life. These advancements are aimed at improving the protective qualities of packaging materials to preserve the freshness and safety of food products over extended periods.

Thus, the increasing demand for food products with extended shelf life is boosting the development and utilization of food packaging technologies, driving the growth of this market.

Food Packaging Market 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, the total retail sales of food & beverage products in the U.S. increased by 20.7% in 2022 compared to the previous year. Further, the number of food delivery app users in the U.S. reached 53.9 million in 2023 from 49.5 million in 2022, an increase of 8.9%. According to Eurostat, the proportion of e-shoppers in the European Union reached 75% in 2022 from 55% in 2012. Online deliveries from restaurants, fast-food chains, and catering services accounted for a 19% share of the total e-shopping volume. According to the International Trade Administration (U.S.), the E-commerce market in Asia-Pacific is expected to reach $28.9 trillion by 2026. Additionally, by 2025, Africa is expected to have over half a billion E-commerce users. According to the International Trade Administration (U.S.), the E-commerce market in Brazil is expected to cross $200 billion by 2026 at a growth rate of 14.3%. As a result, many retailers are adopting E-commerce solutions to supplement their existing brick-and-mortar presence and meet the growing demand for digital services.

With online shopping becoming more prevalent and convenient, the need for robust, efficient, and sustainable packaging solutions has also increased. Food businesses are increasingly turning to innovative packaging solutions to cater to consumers’ growing demand for quality and freshness. Advanced packaging, such as insulated boxes, vacuum-sealed pouches, and temperature-controlled containers, has become a staple in food E-commerce. These materials help preserve food products, keep them fresh, and ensure that they reach customers in optimal condition.

Thus, growing E-commerce in the food & beverage industry is boosting the demand for food packaging, generating growth opportunities for market stakeholders.

Food Packaging Market Opportunities

Growing Emphasis on Eco-friendly Packaging & Recyclability

With consumers becoming 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, and renewable materials. Hence, some companies have started producing biodegradable and renewable cellulose-based barrier films.

Recyclability is an important aspect of sustainable packaging as 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 growing focus on sustainability is driving the demand for recyclable packaging, generating market growth opportunities. Further, in 2020, the Chinese government implemented a plastic waste ban to reduce the use of single-use plastics, including plastic bags and packaging materials. This initiative encouraged businesses to use alternative materials and innovate packaging solutions.

Thus, the growing focus on sustainability and environmental protection is driving the demand for eco-friendly and recyclable food packaging materials, generating growth opportunities for market stakeholders.

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 packaging, paper & paper-based packaging, metal packaging, glass packaging, and other packaging materials. In 2024, the plastic segment is expected to account for the largest share of 43.3% of the food packaging market. The large market share of this segment can be attributed to the wide range of applications and the versatile, functional properties of plastic. In addition, technological advancements, including the development of biodegradable plastics and the increasing demand for lightweight packaging, contribute to the segment’s large share.

Moreover, the plastic segment is projected to register the highest growth rate of 6.6% during the forecast period 2024–2031 due to the increasing demand for biodegradable plastic packaging solutions.

By Packaging Type: The Flexible Segment to Dominate the Food Packaging Market in 2024

Based on packaging type, the food packaging market is segmented into flexible, rigid, and semi-rigid packaging. In 2024, the flexible segment is expected to account for the largest share of 46.6% of the food packaging market. The large market share of this segment is attributed to the increasing adoption of flexible packaging due to its advantages, including convenience, sustainability, cost-effectiveness, extended shelf life, and versatility.

Moreover, the flexible segment is also projected to register the highest CAGR of 6.5% during the forecast period 2024–2031 due to growth in E-commerce and the enhanced branding and consumer appeal offered by flexible packaging.

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

Based on product type, the food packaging market is segmented into bags & pouches, bottles & jars, films & wraps, boxes & cartons, trays, cans, stick packs & sachets, and other product types. In 2024, the bags & pouches segment is expected to account for the largest share of 28.6% of the food packaging market. This segment’s large market share is mainly attributed to continuous innovation in material & design, increased consumer demand for foods packed in bags & pouches due to the convenience offered, and the growing focus on sustainable packaging solutions.

However, the films & wraps segment is projected to register the highest CAGR of 7.1% during the forecast period 2024–2031 due to the growing consumption of convenience foods, growth of the food service and food & grocery delivery sectors, and a shift from rigid to flexible packaging.

By Application: The Beverages 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, pet food, baby food, ready-to-eat meals, and other applications. In 2024, the beverages segment is expected to account for the largest share of 24.3% of the food packaging market. This segment’s large market share can be attributed to several factors, including the growing demand for ready-to-drink beverages, the increasing focus of beverage manufacturers on brand identity, continuous innovation & new product development, and the demand for attractive and premium packaging solutions.

However, the snacks segment is projected to register the highest CAGR of 6.2% during the forecast period, mainly due to the growing consumption of snacks, growing urban populations, the increasing number of nuclear families, the increasing number of working women, media penetration leading to an attraction for novel foods, and rising disposable incomes.

By End User: The Food Manufacturers Segment to Dominate the Food Packaging Market in 2024

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 66% of the food packaging market. This segment’s large market share is attributed to the high demand for processed foods and the growing number of food processing units.

However, the food service providers segment is projected to register the highest CAGR of 7.1% during the forecast period. This segment’s growth is primarily driven by the increasing number of food service outlets, the rising consumption of ready-to-eat meals and fast food, and the increasing penetration of e-commerce.

Geographic Analysis

Based on geography, the food packaging market is segmented into 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 41.5% of the food packaging market, followed by Europe and North America. The Asia-Pacific food packaging market is estimated to reach $1,96.6 billion in 2024. The large share of this regional market is mainly attributed to the increased demand for processed food products, robust growth in the food & beverage industry, and rising disposable incomes.

Additionally, this APAC is expected to register the highest CAGR of 6.5% during the forecast period due to growing government support for the food processing sector and food & beverage product manufacturers’ increasing focus on the development of innovative products.

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 3–4 years. The key players operating in the food packaging market are Amcor plc (Australia), Smurfit Westrock plc (Ireland), Mondi plc (U.K.), Berry Global Group, Inc. (U.S.), Sealed Air Corporation (U.S.), Ball Corporation (U.S.), Tetra Pak International SA (Switzerland), Schur International Holding A/S (Denmark), Anchor Packaging LLC (U.S.), Crown Holdings, Inc. (U.S.), International Paper Company (U.S.), Graham Packaging Company Inc. (U.S.), Borealis AG (Austria), and B.C. Jindal Group (India).

Food Packaging Industry Overview: Latest Developments from Key Industry Players

• In July 2024, Smurfit Kappa (Ireland) acquired WestRock Company (U.S.), a company that manufactures and distributes containerboard and paperboard packaging solutions.
• In July 2024, Mondi Group (U.K.) launched Flexibag Reinforced, a range of mono-PE-based, recyclable packaging materials with improved mechanical properties.
• In February 2024, Mondi Group (U.K.) acquired Hinton Pulp (Canada) from West Fraser Timber Co. Ltd. for $5 million to increase its production capacity.
• In May 2024, Amcor plc (Australia) opened the Amcor Innovation Center Europe (AICE) in Ghent, Belgium. This state-of-the-art packaging innovation hub collaborates with brands and retailers to develop packaging solutions that enhance outcomes for both consumers and the environment.

Food Packaging Market Research Summary

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