Food containers are used for packaging, carrying, and transporting food products, which is a major factor driving the global food containers market growth. Packaged foods primarily include ready-to-eat (RTE) meals, ready-to-eat convenience foods, frozen meals, cake mixes, snacks, desserts, among others. Manufacturers are expected to increase production capacity in response to rising demand for these products, which will fuel demand for food containers over the forecast period.
Global food container market is expected to surpass US$ 228.8 billion by the end of 2030 and exhibit a CAGR of 4.4% during the forecast period (2022 to 2030).
Drivers
The disposal of food packaging is one of the leading causes of environmental pollution around the world. According to United Nations Environment Programme, more than 350 million tons of plastic are produced each year globally, and 85% of the ocean waste is plastic. As a result, more eco-friendly food containers are being manufactured as people become more aware of environmental issues. Furthermore, the rising demand for perishable products such as dairy and meat that can be stored in eco-friendly containers would provide significant potential for the growth of this industry during the forecast period. As a result, environmentally friendly food containers will drive the global food container market growth during the forecast period.
The demand for packaged food products such as biscuits and instant noodles increased significantly, resulting in an increase in the average purchase value per customer. As more people worked from home, the definition of a basic necessity shifted from staple foods to snacks and munchies. This trend is likely to continue during the holiday season. Manufacturing, processing, distribution, and marketing of food products is developing significantly in developing nations. Furthermore, diet and tastes are changing as a result of factors such as disposable income, individual preferences, globalization, and so on. This has contributed to the growth and acceptance of packaged foods among consumers in emerging economies.
Among regions, Asia Pacific held a dominant position in the global food container market in 2021, accounting for 38.2% market share in terms of revenue, followed by North America, and Europe. Growth of Asia Pacific market is attributed to increased personal disposable income as a result of changing lifestyles, which further augments demand for canned food, and increased popularity of packaged food
Figure 1. Global Food Container Market Revenue Share (%), By Region, 2021
Market Restraints
The global food container market is rapidly expanding; however, some factors are limiting its expansion, such as changing consumer preferences. Companies have to invest significantly in innovative designs that appeal to customers, which makes it difficult for market players to keep up with changing preferences. As a result, changing consumer preferences is expected to impede the global food container market growth during the forecast period.
Consumers across the globe are demanding convenient packaging that is easy to carry and store for ready-to-consume food. Therefore, it is very important for food container manufacturers to keep up with these changing consumer preferences.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 154.9 Bn |
| Historical Data for: | 2017, 2018 and 2019 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 4.4% | 2030 Value Projection: | US$ 228.8 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Amcor plc, Anchor Glass Container Corporation, Ball Corporation, Berry Global Inc., Crown Holdings, Inc., Graham Packaging Company, Graphic Packaging International LLC, Plastipak Holdings, Inc., and Printpack |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Trends
The coronavirus pandemic has driven demand for single-serving containers instead of large-volume packages. Consumers have become more aware of the potential number of touch points of a given product, with concern that every touch point increases the possibility of exposure to a virus. Opening a single container, consuming the contents, and recycling/reusing the container reduces the touch points thereby essentially reducing the potential of exposure. However, there are various regulations, which restrict the use of single-serve containers. For instance, the European Union applies a significant tax to single-use containers. This is expected to shift food & beverages companies’ preference towards environmentally-friendly, recyclable, compostable, or biodegradable packaging.
Figure 2. Global Food Container Market Revenue Share (%), By Material, 2021
Among material, plastic segment accounted for the highest market share of 53.2% in the global food container market in 2021. Due to its numerous advantages over other materials, plastic is the most widely used material in the packaging industry. Plastic is lighter than other materials such as glass, metal etc. and requires very little energy to produce. It is also relatively inexpensive, in comparison to other materials such as metals and glass.
Global Food Container Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic has changed the buying pattern of consumers. Nationwide lockdowns have led to panic buying of food and hygiene products. Nestle S.A., a food and drink company, reported quarterly growth in sales of 4.3% in North America and Europe in April 2020 compared to the previous quarter. Kraft Heinz Company’s (multinational food company) overall net sales of company growth is increased by 3.3% in the first quarter of 2020, compared to the first quarter of 2019 primarily due to the sudden increase in demand for packaged food due to the pandemic. This is driving demand for packaging products and solutions. However, retail demand for food & beverages soared during the pandemic. According to The Organization for Economic Co-operation and Development (OECD’s) report ‘Food Supply Chains and COVID-19: Impacts and Policy Lessons’ published in June 2020, the sales of frozen and packaged foods in particular increased dramatically: at their peak in the second half of March 2020, the weekly sales of frozen foods were 63% higher than the year before in France, while sales of packaged foods were 56% higher year-on-year in Germany.
Key Players
Key players operating in the global food container market include Amcor plc, Anchor Glass Container Corporation, Ball Corporation, Berry Global Inc., Crown Holdings, Inc., Graham Packaging Company, Graphic Packaging International LLC, Graphic Packaging International LLC, Plastipak Holdings, Inc., and Printpack.
A food container is a container that is used to store, preserve, and transport food in order to extend food’s shelf life and make food easier to handle. Increased awareness of sustainability issues and environmental challenges such as pollution, related to food packaging is driving the growth of food container market. This will also ensure that consumers receive high-quality food. Changing lifestyles of consumer is another factor driving the demand for ready-to-eat packaged goods which eventually increased demand for food container globally.
Market Dynamics
As the world continues to fight the effects of climate change, consumers are changing their values to encourage more sustainable and environmentally friendly consumption habits. As a result, major businesses across the globe aim to shift their packaging materials to meet the needs of the customers. Furthermore, Generation Z is willing to pay more for environmentally sustainable products which is another factor that is expected to boost the growth of the global food container market over the forecast period.
Key market players are focusing on product launches, product expansions, mergers, acquisitions, and partnerships in order to expand their business in the market. For instance, in August 2021, Amcor plc (a company engaged in the production of packaging solutions) announced its plans to build two new state-of-the-art innovation centers. The new centers expand the global reach of Amcor’s innovation network, which currently includes flagship sites such as Neenah, Wisconsin and Manchester, Michigan, in the U.S., as well as smaller sites around the world.
Food contamination due to the use of cheaper quality materials and environmental impact of the disposal of food storage containers are some of the factor expected to hamper the growth of the target market during the forecast period. For instance, according to United Nations Environment Programme, around 40% of the demand for plastic is generated by single-use plastic products such as cup, lid, straws, water bottle, or the plastic container. The reports by the UN Environment Programme revealed that globally around 1,000 rivers are accountable for nearly 80% of global annual riverine plastic emissions into the ocean, which range between 0.8 and 2.7 million tons per year.
Key features of the study:
Detailed Segmentation:
*” marked represents similar segmentation in other categories in the respective section.
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