Global Produce Packaging Market - 2021-2028
Produce Packaging Market Overview
The market for produce packaging is experiencing strong growth as an increase in fresh produce production and the growing role of packaging in the traceability, marketing and protection of fresh vegetables and fruits. Also growing presence of dry cut, ready-to-eat produce will provide extra suitability and use more value-added produce packaging. Moreover, increased nutritional awareness and increasing interest in fresh fruits such as produce, as a key element of a healthy lifestyle, are trends currently followed among the consumers expected to increase the demand for products with product packaging.
The global produce packaging market is estimated to reach US$ YY million by 2028 from the recorded market size of worth US$ YY million in 2020, growing at a CAGR of YY% during the forecast period (2021-2028).
Produce Packaging Market Dynamics
The increasing inclination of consumers towards ready-to-eat product is triggering the demand for produce packaging in recent times. Growing demand for gluten and meat-free meal creates a strong opportunity for the produce packaging market growth.
Increasing population and availability of ready-to-eat food is expected to increase the market size
Population growth, grown availability of ready-to-eat food and trends towards healthier eating habits are some of the drivers for the fruit application segment, and it will outpace the overall produce packaging average during the forecast period. New product introduction in producing packaging for vegetable application in nontraditional categories is expected to assist the production advancements for most vegetable types. The use of overwrap trays for fresh produce is also expected to grow with a significant CAGR during the forecasted period, but the growing use of plastic bags and stand-up pouches used for product packaging may reduce the demand for trays and clamshells.
Produce sales reached $69.58 billion in 2020, an 11.38% increase according to "Power of Produce 2021," a recent report from the Food Industry Association (FMI). The report also noticed that grocery shoppers are purchasing more products than before the COVID-19 pandemic, with consumers purchasing more fresh fruit (up 8.87%) and more vegetables (up 14.15%).
Growing awareness of gluten and meat-free meal option is expected to boost the market growth
Furthermore, with the growing awareness of gluten and meat-free meal options, fresh produce has gained popularity in both foodservice industries and retail stores, as these seek ways to appeal to consumers with dietary restrictions. Moreover, the demand for organic and natural food is experiencing high demand. Keeping such factors in mind, identified players in the market like Amcor plc, Berry Global Inc., Mondi Group, and Ball corporation are focusing on the incorporation of tactics including business agreements, strategic alliances, sales contracts, diversifications, innovative launches, mergers & acquisitions, R&D, technological upliftments, product line extensions, hiring technical expertise, joint ventures, collaborations, product approvals etc. for gaining a competitive edge over others in the market.
High cost of produce packaging is expected to hinder the market growth
However, high cost of produce packaging materials is expected to hinder the growth of the global produce packaging market. The cost of packaging materials plays an essential role in the supply chain and logistics sector. As a result, the demand for developed packaging materials is low in this sector. In addition, limited commercial applications of certain types of produce packaging will also hamper the overall market. For instance, antimicrobial packaging has limited applications in the commercial sector and hence, the demand for this type of packaging is low.
Produce Packaging Market Segment Analysis
By application, the market is segmented into food grains, vegetables, fruits and others.
Lightweight established recycling infrastructure, comparatively low cost, decent protective performance and graphics capabilities make the corrugated boxes segment a leader by packaging type in the produce packaging market. The development of many applications raises in moderate price, and competition from reusable plastic containers for product packaging is expected to hinder the demand for boxes in the middle of the forecast period. But at the same time, it is expected that demand for expensive box structures such as modeler boxes, white top line board boxes, recyclable boxes and moisture resistant boxes will increase significantly in the produce packaging market. Among the packaging type segment, plastic containers used for product packaging are expected to experience the fastest growth. Berry applications and widening use with other produce stuff will help propel the growth of this sub-segment in the produce packaging market. Competitive products used for product packaging, such as stand-up pouches, can restrain the box segment. Because pouches are less expensive than rigid containers, higher demand is anticipated for pouches.
The majority of consumers buying local food are seeking product freshness as well support to the local economy. With rising demand for gluten- and meat-free meal options, fresh produce has gained popularity in both foodservice industries and retail stores, as these seek ways to appeal to consumers with dietary restrictions. In retail stores, demand for packaging of produce providing, which are display-ready and being sold ready-to-eat, will gain an uptick in a bid to extend the shelf-life of these product offerings. Similarly, demand for produce packaging in food service industries will also remain higher while offering healthier food options while cutting down on labor costs and meal preparation time.
Produce Packaging Market Geographical Analysis
Based on the geography, the produce packaging market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa. The demand for produce packaging in the North American market is expected to remain at the dominant position in sales and value generation due to the growing volume of trade and e-commerce in countries such as the U.S.
APAC is expected to dominate the produce packaging market during the forecast period
The APAC dominates the produce packaging market due to the high production rates of fresh produces in the region. Besides, the increasing demand for efficient packaging solutions due to the high exports of produces in India and China acts as another driving force for the regional market's growth. Vast investments in product upgrades and developments of packaging technology in the region raise the market share. Moreover, growing e-commerce businesses in the region drive market growth.
North America acquires the second position in the produce packaging market. The region observes superior product development as far as packaging is concerned due to vast R&D innovations and investments. Additionally, strict food safety policies drive the demand for smart packaging in Canada's food & beverage sector, and the U.S. substantiates the market growth. The U.S., with its burgeoning eCommerce sector, dominates the regional market. The region anticipates a significant share in the market due to rising trends like the packaging of unpackaged produce items such as apples, pears, sweet potatoes and rising demand for shredded and cut produce that deploys convenience packaging.
Moreover, the U.S. export value of fresh vegetables in 2018 stood at USD 2,159.8 million according to USDA and Import & Export & value for fresh fruit, vegetables & nuts and pulse crops together in Canada accounted to 542.4 million & 703.3 million respectively, as per the latest data released by statistics Canada. Such increased activity in the region is leading to the growing adoption of product packaging. With growing trends towards reducing food waste in the trend, the produce industry is expected to adopt the packaging due to the convenience it gives to retailers by providing smaller portions and excreting packaging costs at multiple levels.
Further, another significant driver for produce packaging is the organic food market in this region. According to the FiBL survey in 2017, organic food revenue is highest in the U.S. at EUR 40,010.89 million and Canada at EUR 3,001.99 million, making North America lead the distribution of retail sales value. This creates a tremendous demand for produce packaging in the region. The European produce packaging market has appeared as a profitable market globally. Risen demand for fresh vegetables and fruits increases the region's produce packaging market share. Furthermore, the vast adoption of produce packaging solutions propels market growth. Produce packaging manufacturers in the region continually offer new, sustainable packaging that can minimize environmental footprint at every point in the supply chain.
Produce Packaging Market Competitive Landscape
The produce packaging market is fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream application. Amcor Limited, Coveris Holdings S.A, Smurfit Kappa Group, E. I. du Pont de Nemours and Company, Mondi Plc, Bemis Company Inc., International Paper Company, D.S. Smith Plc, Silgan holdings Inc., Sealed Air Corporation are the major player in the packaging market. The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the produce packaging market globally.
Overview: The company is a growing global organization producing and developing responsible packaging for beverage, food, medical, pharmaceutical, home & personal care and other products. The company has 230 sites with approx. 47,000 employees in more than 40 countries and had sales of US$ 12.5 billion.
End consumer benefits
End consumer benefits
The global produce packaging market report would provide an access to an approx. 69 market data table, 72 figures and 180 pages.
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