SINGLE USE PACKAGING MARKET ANALYSIS

Market Size and Trends

The single use packaging market is estimated to be valued at USD 108.35 Bn in 2024 and is expected to reach USD 158.66 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

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The single use packaging market is expected to witness positive growth over the forecast period. The increasing demand from foodservice outlets and on-the-go food and beverage consumption are driving the growth of the market. Strong economic growth and changing lifestyles in developing countries are increasing the demand for convenience packaging solutions. Growth in the e-commerce industry is also favoring the market as more packages are needed for product delivery. However, stringent regulations around single use plastics by governments globally due to environmental concerns may hamper the market growth. Manufacturers are focusing on developing sustainable packaging using recycled content to comply with the new rules.

Growth in food & beverage industry

The growth and expansion of the food & beverage industry continues to be a major driver for the increased adoption of single use packaging solutions globally. As consumer lifestyles and preferences evolve, there is a constant demand for new, convenient and on-the-go packaging formats that allow consumers to enjoy their snacks, meals or beverages wherever and whenever they want. In response, companies in the food and beverage space are innovating and launching an array of ready-to-eat and ready-to-drink products that are packaged in single-serve containers which can be easily transported and disposed of after single use.

A prime example is how the quick service restaurant industry has expanded rapidly during recent years. Food chains are introducing new snacking and smaller meal options that are packaged in disposable containers suitable for eating outside the restaurant premises such as in offices, parks, or during travel. Additionally, the thriving food delivery business has increased the need for stackable and leak-proof single-use packaging for transporting hot and cold food items safely to customers' doorsteps. On the beverage front, the rise of energy drinks, bottled coffees, juices, and flavored water segments have all contributed to higher consumption of single-portion plastic, glass or carton bottles instead of traditional multi-serve containers.

Market Concentration and Competitive Landscape

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Increased environmental regulations

Heightened regulatory scrutiny on environmental pollution from plastic waste globally has emerged as a strong driver for the single use packaging market, particularly biodegradable and recyclable packaging materials. Various governments are implementing stricter rules around the usage of conventional plastic bags, straws, cutlery, and other disposable items due to the growing solid waste problem.

Key Takeaways from Analyst:

The single use packaging market is experiencing steady growth driven by the expanding foodservices and F&B industries. Growing consumer preference for convenience foods and ready-to-eat meals is increasing the demand for disposable packaging such as paper bags, cups, and plastic containers. North America  currently dominates the market owing to the large population and rising food consumption. Asia Pacific is also a major region supported by the fast paced lifestyle of consumers that favors packaged food products.

Stricter environmental norms around plastic waste management could restrain the market growth in the coming years. Many countries and local authorities have either banned or imposed levies on single use plastics which will compel packaging manufacturers to invest in eco-friendly alternatives. Recyclability issues with material composites pose a challenge as well. On the flip side, changing consumer preference for sustainable packaging presents an opportunity for biodegradable and compostable packaging formats in the market. Innovation in materials and machinery will help overcome the performance deficit of alternatives to petroleum-based plastics.

The foodservice packaging segment is expected to offer the most lucrative opportunities owing to the rapid expansion of the food delivery and takeaway market globally. Growing demand for smaller pack sizes from small and medium retailers also works in favor of single use packaging.

Market Challenges: Environmental concerns regarding disposal of single use packaging

Environmental concerns around disposal of single-use packaging have emerged as a major restrainer for the growth of the single use packaging market. There is a rising awareness among consumers and regulators about the harmful impact of non-biodegradable and plastic packaging on the environment. Large quantities of such packaging ends up in landfills or oceans every year, where it takes centuries to degrade and breaks down into microplastics that enters the food chain. This has led to governments across many countries introducing strict regulations around usage of certain kinds of plastics and mandates for minimum recycled content in packaging.

Market Opportunities: Innovation of eco-friendly and biodegradable materials

The single use packaging market currently faces significant opportunities with the rising demand for eco-friendly and biodegradable materials. As consumers become more environmentally conscious, they are increasingly looking for sustainable alternatives to traditional plastic packaging. Brands and retailers recognize the need to shift toward more sustainable options in order to appeal to these consumers and meet their expectations. Innovation in plant-based bioplastics made from agricultural byproducts offers a promising solution. Materials like bio-PET (made from sugarcane), PHA (made by bacteria from plant oils), and cellulose (from wood or non-food plants) allow producers to create packaging that is largely biodegradable and compostable within just a few months. Some big brands have already started utilizing these materials for certain product lines, improving their green credentials amongst customers. For example, Nestle Waters North America has replaced the plastic rings on its water bottles with plant-based materials for certain brands which now decompose more quickly should they end up as litter.

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Insights by Material Type:  Paper and Paper Board Segment is Driven by Shift to Sustainable Materials

The paper and paper board segment is expected to hold 42.2% share of the single use packaging market in 2024, due to strong consumer preference for more eco-friendly options. Paper products are widely considered to have a lower environmental impact than plastic or glass alternatives. As sustainability becomes an increasingly important factor in purchasing decisions, demand has grown for packaging made from renewable, natural materials like paper.

A key strength of paper is its ability to be recycled multiple times with minimal loss of quality. Recycling programs for paper are also more widespread and efficient than those for plastic or other materials. This supports the perception of paper as a "green" packaging solution that can be reused or recycled responsibly at the end of its useful life. Companies promoting paper products emphasize their commitment to sustainability goals through the use of recycled content and fibers from responsible forestry sources.

Beyond environmental benefits, paper also performs well from a functional perspective for certain applications. Properties like printability, writability, and barrier qualities make paper well-suited for areas like food service disposables, paper bags, carton packaging, and protective wrapping or cushioning. Improvements in coating and lamination techniques further expand the versatility of paper-based solutions.

Insights by End-User Industry: Food/Beverage Leads as an Essential Application for Single-Use Packaging

The food & beverage industry is expected to dominate the end-user segment with 32.3% of the market share in 2024, due to widespread reliance on single-use packaging for safe, hygienic and convenient product handling. Whether shipping raw ingredients and goods or ringing up prepared meals and drinks to go, disposable containers, bags, wrappers and other packaging play a fundamental role throughout food/beverage supply chains.

From grocery stores to quick service restaurants, takeaway and delivery have become essential channels powered by single-use packaging. During the pandemic, demand skyrocketed as more consumers opted for contactless purchasing of prepared food ordered online or via mobile apps. Even as dining rooms reopen, off-premise consumption habits developed during lockdowns will likely remain significant drivers of food packaging consumption. Within grocery, single-use formats are indispensable for everything from sliced meats and cheeses to bakery items, produce, snacks and frozen goods. Their tamper-evidence and protective properties preserve freshness throughout transport from manufacturers to retailers to homes. Similar needs apply in institutional foodservice serving cafeterias, hospitals, schools and airlines.

Regional Insights

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North America has established itself as the dominant region in the global single use packaging market. The region is expected to account for 34.5% of the market share in 2024. With the strong presence of major packaging producers as well as manufacturers across industries that consume significant amounts of single use packaging, the market has achieved notable scale. Being an early adopter of single use packaging solutions to meet various needs has given North American players considerable experience and expertise. Meanwhile, growing environmental concerns have spurred innovation towards more sustainable product offerings in the region. This positions North America favorably to lead the transition towards greener single use solutions.

Among all regions, Asia Pacific has emerged as the fastest growing market for single use packaging. Rapid economic development and industrialization have fueled demand from diverse end-use sectors for conveniently packaged goods. At the same time, vast populations and urbanization and Westernization of lifestyles have increased consumption of ready-to-eat and on-the-go food products. This has led Asian manufacturers to heavily rely on single use packaging materials to meet these needs efficiently. Countries like China, India, and other developing Asian nations also serve as key export hubs, giving an added boost to packaging requirements. As disposable incomes rise across the region, greater affordability also supports market expansion. While environmental issues pose future challenges, Asia Pacific's continued growth presents sizable opportunities for players to tap into the region's growing packaging needs.

Market Report Scope

Key Developments

• In March 2024, Supply chain partners collaborate to launch new premium film packaging made with 50% recycled plastic
• In 2023, Google launches Single-Use Plastic Challenge in search of plastic-free single-use food service packaging
• In 2022, Ardagh Group partnered with Constellation Brands Inc. to design and manufacture a highly decorated wine bottle for its Crafters Union brand. The 360-degree decorated 750ml Claret wine bottle, manufactured by Ardagh Group, provides great shelf appeal in a premium, sustainable glass bottle.
• In 2022, Amcor launched a novel platform of paper-based packaging products, AmFiber. AmFiber innovations aim to redefine the competencies of traditional paper packaging, delivering a wider range of features and functional advantages to meet the changing requirements of consumers.

*Definition: The single use packaging market consists of companies that manufacture disposable packaging products that are used only once before they are thrown away. This includes items like paper bags, plastic film wrap, plastic bottles and containers, aluminum foil, plastic cups and plates, straws, plastic cutlery, coffee sleeves, and lids. Single-use packaging is very commonly used for food service, takeout and delivery, as well as industrial and institutional applications where sanitary, disposable packaging is required or preferred.

Market Segmentation

•  Material Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Paper and Paper Board
  • Plastics
  • Glass
  • Other Material Types
•  End-user Industry Insights (Revenue, USD Bn, 2019 - 2031)
  • Food & Beverage
  • Personal Care
  • Pharmaceutical
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Ardagh Group SA
  • Amcor PLC
  • Winpak Limited
  • Dart Container Corporation
  • Snapsil Corporation
  • Transcontinental Inc.
  • Berry Global Inc.,
  • Huhtamaki Oyj
  • Sealed Air Corporation
  • Sonoco Products Company
  • Hotpack Packaging Industries LLC