EGG PACKAGING MARKET ANALYSIS

Egg packaging is a type of material designed specifically for the safe storage and transportation of eggs. Some of the most common egg packaging options include egg basket, filler tray, and egg carton. Clean and odorless rice husks, wheat chaff, or chopped straws are shaped into firm walled baskets or crates to make egg baskets. The filler trays are then placed in boxes or cases that can also hold egg cartons. In recent times, changes in consumer diet habits and lifestyles have been driving the global consumption of calorie- and protein-rich foods. The global demand for high-quality protein is creating a huge potential market for eggs. Eggs and egg products are a staple in many households and restaurants, which is driving the demand for eggs, and in turn, encouraging the development of egg packaging products for safe transportation. In 2016, according to the United States Department of Agriculture (USDA), egg production in the U.S. had increased by 5% since 2015. Increasing egg consumption is thus driving the demand for egg production and packaging to meet the global demand.

The global egg packaging market was valued at US$ 4,923.8 Mn in 2020. It is expected to reach US$ 7,671.8 Mn by 2028 and exhibit a CAGR of 5.7% during the forecast period (2021-2028).

Drivers:

Growing demand for packaging solutions from the food and beverage industry is expected to drive the egg packaging market growth over the forecast period. The popularity of egg packaging is increasing due to the use of recyclable materials. Growing environmental issues and increasing demand for recyclable packaging solutions are expected to drive the egg packaging market growth.

Increasing consumer awareness of the nutritional value of eggs is also driving egg consumption in developing countries. Eggs are now a quick and easy choice for snacks therefore consumers looking for a healthy and nutritious option. These factors are driving the demand for eggs, and thus driving the demand for egg packaging in the market.

Figure 1. Global Egg Packaging Market Revenue Share (%), By Region, 2020

Among regions, Asia Pacific held a dominant position in the global egg packaging market in 2020, accounting for 47.3% market revenue share, followed by Europe and North America. Due to an increase in people's inclination toward a healthy lifestyle, Asia-Pacific currently dominates the egg packaging market, which will have a significant impact on the regional market growth.

Market Restraints

The profit margins of leading vendors will be impacted by increasing intense competition as a result of the availability of both large and small businesses. Furthermore, the large amount of water required for the production of molded paper for packaging is a major source of concern for suppliers, which is expected to have a negative impact on the egg packaging industry during the forecast period.

Market Trends

The rapid growth of the packaging industry with the emergence of environment-friendly packaging will positively affect the global egg packaging market. Product manufacturers are developing green packaging materials with low carbon footprint and easy recycling by using environmentally friendly ingredients. Recycled materials are frequently used in eco-friendly and sustainable packaging, reducing resource waste during production. The manufacturing process is also more efficient, reducing resource consumption and the negative impact on environment. Therefore, these factors are expected to drive the global egg packaging market growth at an exponential rate during the forecast period. For instance, in 2015, in the egg packaging segment, Huhtamaki, a major player, launched "GreeNest" egg cartons. GreeNest is one of the innovative egg packaging solutions, which is made up of 50% grass fiber and reduces 50% of water consumption during its production. Considering the environmental factors, these kinds of innovations will help boost the global egg packaging market.

Figure 2. Global Egg Packaging Market Revenue Share (%), By Packaging Type, 2020

Among packaging type, the egg cartons sub-segment held a dominant position in the global egg packaging market in 2020, accounting for 31.2% market share. The dimpled shape of the cartons helps protect the eggs from stresses and shocks experienced during storage and transportation, thus reducing the risk of damage or crushing of the eggshells.

Global Egg Packaging Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 outbreak was first reported in December 2019 in Wuhan, China. Due to lockdowns, travel bans, and business closures, the outbreak has affected economies and industries in a number of countries. The food & beverage industry is one of the world's most important industries which has been hit hard by supply chain failures, technology event cancellations, and office closures during the COVID-19 pandemic. For instance, China is the world's manufacturing hub and the greatest producer of raw materials for a variety of industries, and it is one of the worst-affected nations. The closure of various Chinese plants and factories has hampered the global supply chains, disrupting manufacturing, delivery schedules, and product sales. Several companies have already stated that there may be delays in product deliveries and a drop in future sales. Furthermore, global travel bans imposed by countries in Europe, Asia, and North America are impeding opportunities for business collaborations and partnerships.

Competitive Section

Major players operating in the Global Egg Packaging Market include Hartmann, Tekni-Plex, MyPak Packaging, Dispak, Celluloses De La Loire (CDL), DFM Packaging Solutions, Ovotherm, Pactiv, Huhtamaki, and DAVA Foods.