Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Foodservice Disposables Market 2017–2027
Foodservice disposable is used in the packaging of food and beverage products. Foodservice disposable products offer greater ease of packaging food and customer convenience with hygiene and cleanliness. Theses product can be classified into plates, clamshells, trays & containers, cups & bowls, and cutleries. They are manufactured from raw materials such as paper and paperboard, plastics, and aluminum. Restaurants, retail and vending machines, institutions, and lodging and hospitality are some of the major end-user of foodservice disposable. Foodservice disposable offers convenience and reduces the delivery of time and is gaining huge popularity among hectic lifestyle people.
The global foodservice disposables market is projected to surpass US$ 36.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 5.2% during the forecast period (2019 to 2027).
The rising number of online food delivery services around the globe is primarily fueling the market growth of foodservice disposable. Growing Consumer preference for takeaway or ready to eat food due to changing lifestyles, increasing disposable income, and ongoing urbanization, especially across developing economies is propelling the market growth of foodservice disposable. Additionally, rising out of home food habits is also augmenting demand for foodservice disposables, thereby fueling the market growth.
The rising number of on-the-go consumers due to the advantage offered by foodservice disposable such as low costs and food hygiene, easy storage and grab-and-go is expected to propel the market growth of foodservice disposable. Moreover, with the rising number of the working population and ongoing urbanization, online food service is projected to gain popularity among millennial consumers. This, in turn, is expected to fuel the market growth of foodservice disposables in the years to come.
Geographically, Asia-Pacific dominated the global foodservice disposables market in 2018, reporting 44% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global Foodservice Disposables Market, Revenue Share (%), By Region, 2018
The penetration of sustainable packaging solutions is expected to impact market growth negatively. Rising environmental awareness and increasing government regulations regarding recyclable foodservice disposable solutions, as it reduces carbon footprint and ensures proper coding for traceability are projected to hinder the market growth to a certain extent. The aforementioned factors are anticipated to restrain market growth over the forecast period.
Intense competition in the market due to the presence of a large number of players is leading to shrinking of profit margins. This factor is hindering the market growth of foodservice disposable. Moreover, volatility in raw material prices results in constant pressure on the profitability margins of foodservice disposable manufacturers is also anticipated to restrict the market growth of foodservice disposable.
The growing focus of manufacturers to introduce new sustainable innovative products in foodservice solution is propelling the market growth of foodservice disposable. For instance, in October 2019, Novolex, manufacture of diverse packaging and foodservice products, has launched various new products that reduce waste in the foodservice industry. Cutlerease is a new single-piece cutlery utensil dispensing system. Increasing launch of such novel and sustainable packaging solutions will propel the market growth of foodservice disposable.
The booming food and beverage industry, especially in the Asia Pacific region, is projected to augment the market growth of foodservice disposable. According to the India Brand Equity Foundation, the Indian food, and grocery, the market is the world’s sixth-largest, with retail contributing 70 percent of the sales. The Indian food processing industry accounts for 32 percent of the country’s total food market. Therefore, the booming food and beverage industry is expected to foster the market growth of foodservice disposable.
Figure 2. Global Foodservice Disposables Market – Opportunity Analysis
The growing focus of major players to enhance their distribution channel by forming a partnership is expected to foster the market growth of foodservice disposable. For instance, in November 2018, Nov 28, 2018-Sole Source Capital today announced that it has partnered with Individual Foodservice (“IFS”) and will combine the business with Trade Supplies, LLC to create one of the largest non-perishable foodservice distributor and packaging solution providers in California.
An increasing number of acquisitions and mergers among key players is anticipated to accelerate the market growth of foodservice disposable. For instance, in June 2019, Audax Private Equity has completed the sale of Imperial Dade Intermediate Holdings, LLC to Bain Capital Private Equity, LP. Imperial Dade’s management and Audax will continue to be significant investors in the Company. Imperial Dade is a leading provider of foodservice disposables and janitorial supplies & equipment.
Figure 3. Global Foodservice Disposables Market, Revenue Share (%), By Application, in 2018
On the basis of end user, in 2018, restaurants accounted the largest market share of 34% in terms of revenue, followed by retail & vending machines and lodging & hospitality, respectively.
Key players active in the global foodservice disposables are Dart Container Corporation, Georgia-Pacific LLC, Anchor Packaging Inc., D&W Fine Pack LLC, Gold Plast SpA, Berry Plastics Group, Inc., DOpla S.p.A., Huhtamäki Oyj, New WinCup Holdings, Inc., andPactiv LLC
Few Recent Developments
Anchor Packaging Inc.
- In 2015, the company launched a new product line, which comes with an ergonomic design and includes a reduced level of petroleum-based materials. This type of container is available in 16, 24, and 32-ounce sizes.