Active and Modified Atmosphere Packaging Market 2017–2027
Active and modified atmosphere packaging is a smart and intelligent packaging technology that is used to enhance the shelf-life of the food products. It has the ability to sense or measure an attribute of the product, such as the status of the inner the atmosphere of the package or the shipping environment. This packaging solution ensures the extended shelf-life of the product without requiring any preservative chemical or stabilizers. They find application across meat, poultry and seafood, dairy products, fruits and vegetables, bakery and confectionery, processed food products, and others.
The global active and modified atmosphere packaging market accounted for about US$ 19 Billion in 2018 and is anticipated to reach US$ 29 Billion by the end 2027, with a CAGR of 4.5% during the forecast period (2019 to 2027).
Increasing demand for processed food around the globe coupled with the growing food and beverage industry is a prime factor expected to propel the market growth of active and modified atmosphere packaging. Active and modified atmosphere packaging is highly preferred food packaging solution for increasing the shelf life of fresh food products and they find application mostly in the self-venting microwave packs and respiring trays. Hence, the growing demand for processed food is expected to serve as a major driver for market growth.
The advantage offered by the active and modified atmosphere packaging in terms of fresh food packaging is projected to fuel the market growth. This solution offered sustainability advantages such as lower carbon presence and reduced energy consumption as compared to rigid packaging. Moreover, this packaging technology does not require any preservatives to extend the shelf-life of the food product. Hence, the aforementioned advantage of the active and modified atmosphere packaging is expected to foster market growth.
Asia-Pacific region dominated the global active and modified atmosphere packaging market in 2018, accounting for 37.51% share in terms of volume, followed by Europe and North America, respectively.
Figure 1. Global Active and Modified Atmosphere Packaging Market – Value Share (%), By Region, 2018
Concerns associated with the physical protection of the thin films is expected to hinder the market growth. The thin films of flexible packaging used in active and modified atmosphere packaging does not offer as much physical protection as rigid packaging. Moreover, flexible packaging bags designed for liquid products can get easily punctured and therefore, require handling with care over the production process. Hence, concern associated with the stability and handling of the packaging is expected to hamper the market growth over the forecast period.
Though the advanced modified atmosphere packaging limits the growth of the bacteria in the food product it does not slow down the growth of some harmful bacteria. In order to tackle this situation, MAP is sometimes used along with the other preservative method such as refrigeration and once this one food is opened, the food has a normal shelf-life. Therefore, this is another major concern that is expected to hamper the market growth of the active and modified atmosphere packaging.
Growing food and beverage industry coupled with a rising number of the consumers on eating out is expected to propel the market growth of the active and modified atmosphere packaging solution. According to GlobalData Quick Service, Restaurant & Fast Food category is forecasted to see the strongest average annual growth in sales during 2017-20, at 5.9%. Moreover, according to the same sources the United States was the largest food and beverage market in the Americas as well as globally, with consumer spending on Eating Out reaching USD 729 billion (PPP) in 2016.
Increasing spending by the government on the food sector in the U.S region is expected to propel the market growth over the forecast period. According to the United States Department of Agriculture Economic Research Service In 2018, U.S. consumers, businesses, and government entities spent $1.71 trillion on food and beverages in grocery stores and other retailers and on away-from-home meals and snacks. Moreover, in 2018, Americans spent an average of 9.7 percent of their disposable personal incomes on food—divided between food at home (5.0 percent) and food away from home (4.7 percent).
Figure 2. Global Active and Modified Atmosphere Packaging Market – Market Opportunity Analysis
In application segment, meat, poultry & seafood dominated the global active and modified atmosphere packaging market in 2018, and accounted 34.2% share in the market, followed by fruits & vegetables and processed food products, respectively.
Figure 3. Global Active and Modified Atmosphere Packaging Market – Revenue Share (%), By Material Type, 2018
The manufacturer is developing novel packaging solutions in order to reduce plastic consumption, this trend is expected to fuel the market growth over the forecast period. For instance, in April 2018, RAP, a manufacturer of food-to-go packaging, has developed the world’s first Modified Atmosphere (MA) RapTray which provides an alternative to full plastic trays and reduces plastic use by 85%. it’s the world’s first hermetically sealed carton food tray which means it removes virtually all oxygen from inside the tray, extending product shelf life and maintaining food freshness.
The rising number of partnerships among manufacturers of the active and modified atmosphere packaging is expected to fuel the market growth. For instance, in August 2018, Israel-based packaging firm StePac has partnered with Tadbik to produce a modified atmosphere re-sealable lidding film in order to extend the shelf life of fresh produce in aesthetic and functional retail packaging, as well as reduce waste. This collaboration is part of the company’s aim to implement a comprehensive supply chain solution for the delivery of fresh cherries.
Figure 4. Global Active and Modified Atmosphere Packaging Market –Value Chain Analysis
Players active in the market are Amcor Limited, LINPAC Packaging Limited, Bemis Company Inc., Berry Plastics Corporation, Coveris Holdings S.A, Winpak Limited Company, Sealed Air Corporation, ULMA Packaging S. Coop, and Ilapak International, S.A.
Few Recent Developments
- In July 2016, the company partnered with Tesco & Cargill—a company engaged in packaging of chicken products—in order to develop MAP trays mainly for meat and poultry packaging
- In January 2016, the company collaborated with Graphic Packaging—a company that offers paper packing solutions—to develop four-pack styles for the food industry in order to improve shelf-life of baked food products
- In February 2016, the company introduced a novel technology for rigid vacuum skin packaging that significantly helps increase the shelf life of products
- In January 2016, the company launched new vented pyramid packs with a new innovative design to extend the shelf life of food. This is especially useful for packaging vegetables such as tomatoes, cucumbers, and carrots.
Bemis Company Inc.
- In April 2016, the company acquired packaging operations of steripac—a company engaged in the manufacture of medical devices
- In 2015, the company acquired Emplal Participacoes S.A.—a Brazil-based manufacturer of plastics packaging for food and consumer applications—in order to expand its presence in Latin America