According to the Food Safety and Standards Regulations (FSSR), 2011, ice cream, kulfi, chocolate ice cream or softy ice-cream means the frozen milk product conforming to the composition specified, obtained by freezing a pasteurized mix prepared from milk or other products derived from milk, or both, with or without addition of nutritive sweeteners and other permitted non-dairy ingredients.
The global ice cream packaging market is estimated to surpass US$ 896.81 million by the end of 2028, in terms of revenue, exhibiting a CAGR of 5.05% during the forecast period (2021 to 2028).
The increasing demand for ready-to-eat and convenience ice cream products, owing to the busy lifestyles due to hectic work life schedules and increasing number of working individuals are expected to drive the ice cream packaging market growth. In addition, rising demand for frozen food, owing to several advantages such as longer shelf life, coupled with easy availability is further expected to fuel the market growth.
In addition, changing lifestyles, coupled with rising disposable income and growing population are expected to drive demand for ice creams, which is further expected to augment demand for ice cream packaging over the forecast period. For instance, in India by end of 2021, households' disposable income is projected to grow to US$ 5,545.1 in nominal terms, surpassing pre-covid-19 levels of US$ 5,443.8 in 2019, which will help support domestic demand
Among regions, market is segmented into Asia Pacific, North America, Europe, Middle East & Africa, and Latin America. Asia Pacific held dominant position in the global ice cream packaging market in 2020, accounting for 44.50% market share, owing to increasing standard of living, and growth in the consumption of ice cream in China, India, Japan, and ASEAN countries. For instance, Ice cream shops market in China grew 14% to reach an estimated US$ 6.4 billion in retail sales value in 2018. Forecast predicts that the ice cream shops market will grow further at a CAGR (compound annual growth rate) of 11.9%. It will reach US$ 11.1 billion in the five years to 2023. Asia Pacific is followed by North America and Europe.
Figure 1. Global Ice Cream Packaging Market Revenue Share (%), By Region, 2020
Lack of awareness about ice cream packaging in many underdeveloped and developing countries is expected to restrain the market growth over the forecast period. Lack of universal directives pertaining to applications of ice cream packaging is also expected to hinder the market growth during the forecast period
Rising demand for new flavors of ice cream, gelato, and other super-premium products have caused a rise in ice cream sales across the globe, which in turn is expected to boost the ice cream packaging market growth.
|Base Year:||2020||Market Size in 2020:||US$ 650.0 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.05%||2028 Value Projection:||US$ 896.81 Mn|
Sonoco Products Company, International Paper Company, Sealed Air Corp., Huhtamaki Oyj, Amcor Plc, Linpac Group Ltd, Ampac Holdings LLC, INDEVCO Group, Tetra Laval, Berry Global, Stora Enso, and SIG
|Restraints & Challenges:||
Figure 2. Global Ice Cream Packaging Market – Opportunity Analysis
On the basis of distribution channel, supermarket/hypermarket segment held 43.7% market share in 2020. The supermarkets and hypermarkets are increasing across the globe. These supermarket/hypermarkets are arranging special events, such as cookery classes, to increase the footfall and boost consumer engagement. Retail suppliers often partner with brands for such initiatives. For instance, there are 42,505 Supermarkets & Grocery Stores businesses in the US as of 2021, an increase of 0.6% from 2020. There are more than 435,000+ supermarkets in India.
Figure 3. Global Ice Cream Packaging Market Revenue Share (%), By Distribution Channel 2020
Global Ice Cream Packaging Market - Impact of Coronavirus (COVID-19) Pandemic
The global market for ice cream packaging market has been negatively impacted due to the ongoing COVID-19 pandemic. Several governments across the globe have imposed nationwide lockdowns to limit the spread of the virus, which resulted in the shutting down of businesses and ceasing of several economic activities. For instance, according to the International Monetary Fund’s 2020 report, the global economy has contracted sharply by 3.0% in 2020, which is worse than the 2008-09 financial crisis. Moreover, the reduced demand for ice cream has indirectly led to low demand for the packaging sector across the globe. The outbreak of COVID-19 has acted as a massive restraint on the supermarkets and hypermarkets market in 2020, as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally.
Key players operating in the global ice cream packaging market include Sonoco Products Company, International Paper Company, Sealed Air Corp., Huhtamaki Oyj Plc, Linpac Group Ltd., Ampac Holdings LLC, INDEVCO Group, Tetra Laval, Berry Global, Stora Enso, and SIG.
Packaging Institute International defined packaging as the enclosure of products, items or packages in a wrapped pouch, bag, box, cup, tray, can, tube, bottle or other container form to perform various functions such as containment, protection, preservation, communication, utility, and performance. If the device or container performed one or more of these functions, it was considered a package. Packaging of ice cream is mainly performed to protect ice cream from outside environment, especially after the completion of manufacturing process so that ice cream should not melt easily and retain moisture, flavor, and freshness for a longer period of time.
The demand for ice cream packaging has been growing rapidly due to increased demand for packaged food, and a strong retail network across the globe. Currently, dependency on the packaged ready to eat convenience products is increasing to save time. The increasing urbanization, increased shelf-life of otherwise ice cream products are boosting the demand for packaged ready food. Moreover, increasing investments by packaging companies in advanced freezing techniques is expected to drive growth of the ice cream packaging market.
However, various factors such as stringent regulations on the raw material used in ice cream packaging, lack of awareness about ice cream packaging, and dearth of universal directives pertaining to applications of ice cream packaging are expected to restrain the ice cream packaging market growth. For Instance, The directive 94/62/EC covered all types of packaging placed on the EU market and all packaging waste. This directive regulates the chemicals and heavy metals present in packaging. These regulation is restraining the use of polymers in ice cream packaging thereby restraining the market growth.
Major players operating in the ice cream packaging market are adopting various organic and inorganic growth strategies such as expansion, joint venture, collaboration, strategic alliances, new product launches etc. to increase their global reach and business operations. For instance, on June 23, 2021, Sealed Air Corporation dedicated over US$ 30 million in capital to expand global production capacity of packaging and invest in new equipment systems to cater to the accelerating demand for Automated Packaging Systems (APS) AUTOBAG brand solutions, an acquisition Sealed Air closed in 2019. The investment is for capacity expansion, ‘touchless’ automation, and proprietary digital printing technologies.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.