Foodservice Packaging Market

Global Market Study on Foodservice Packaging: Rising Consumer Demand for Pre-packed Food Complementing Growth

Foodservice Packaging Market Segmented By Plates, Trays, Cups, Bowls, Pizza Boxes, Straws, Single serve Portion Packs, Clamshell, Lids for Cups, Stirrers, Cutlery Product in Aluminium, Paperboard, Molded Fibers, Plastic, Wood Material by Thermoforming, Die Cutting, Injection Molding Fabrication Process

Foodservice Packaging Market: About the Report

The foodservice packaging market is witnessing high demand mainly due to rising consumer demand for pre-packed food products across the world. Manufacturers are increasingly shifting from traditional packaging solutions to eco-friendly, bio-based solutions, with the growing need to reduce pollution and waste. PMR’s report also explains in detail why the foodservice packaging market will see stagnation in developed regions such as North America and Europe, and how Asia Pacific will provide the most lucrative opportunities to stakeholders in this space.

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  • Dart Container Corporation
  • Georgia-Pacific LLC 
  • Anchor Packaging Inc.
  • Pactiv LLC
  • D&W Fine Pack
  • Gold Plast SPA
  • Berry Global Group Inc.
  • DOpla S.p.A.
  • Smurfit Kappa Group
  • WestRock Company
  • Huhtamäki Oyj
  • New WinCup Holdings, Inc.
  • Linpac Packaging Ltd
  • Graphic Packaging Holding Company
  • Coveris Holdings S.A.
  • Novolex Holdings, Inc.
  • Be Green Packaging
  • Genpak, LLC
  • Southern Champion Tray, LP


Foodservice Packaging Market Trends             

End Users Eyeing Use of Extrusion Coated Paper-based Food Packaging: Introduction of 'extrusion coated paper' is trending in the global foodservice packaging market. Extrusion coating is done on paper to make it show the aspects of plastic. Primarily extrusion coating on paper is done to increase the mechanical and chemical properties (such as: moisture and aroma resistance, oxygen barrier, heat seal ability, and other chemical film properties) of foodservice packaging such as food wraps, pizza boxes, plates, etc. Furthermore, extrusion coating is generally used to provide grease protection on the paper for sandwiches, pizzas, etc. The process involves applying extrusion coating on the paper by putting molten plastic on it and then chilling it to get a uniform and a very thin layer of plastic over the surface.

Extrusion coating is done on paper generally by adding a molten layer of polyethylene, polypropylene, or metalized films of aluminium. A shiny surface is created by extrusion coating to increase the sales appeal of the product.

Consumer Inclination toward Ready-to-eat and On-the-go Food Amplifying Sales: Various functional aspects such as low cost, hygiene, easy & convenient storage, and ready-to-go features of foodservice disposables also contribute to their rising demand across the world. Companies associated with foodservice offer numerous services, including 'fly home' and 'dine in' to provide customers with a number of options. This is surging the growth of the foodservice disposables market across the globe, and as such, the global foodservice packaging market. With a continuously growing number of working people and rising urbanization, these food consumption patterns are expected to obtain the tag of 'new normal' across the globe. This is projected to drive demand for foodservice disposables significantly over the next five years.

Consumer preference for takeaway or readymade food is increasing, owing to changing patterns of lifestyles, growing disposable income, and expeditious urbanization in various economies. Moreover, growing number of working people, especially the young generation, is preferring pre-packed or on-the-go food, which is fueling the expansion of the foodservice packaging market size at a rapid pace. The global foodservice packaging market is anticipated to expand at a CAGR of over 5% during the forecast period.

Changing Business Model of Food & Beverage Service Providers: Globally, growing number of multinational QSRs, or quick service restaurants, such as KFC and McDonald’s is leading the world to augmented demand for foodservice packaging solutions. These QSRs usually do not show any interest in investing in resources for maintenance and cleaning of business containers, which helps these QSR chain owners and operators reduce labour costs and utilize available resources for enhancing the quality of service and providing better customer support.

Various regional and local players across the world are also adopting similar business ideas, which is further reinforcing demand for foodservice packaging solutions. Besides this, rapid growth of food industrialization across the world is boosting demand for food packaging solutions. Flexibility in production proficiencies has allowed players to manufacture and supply foodservice packaging solutions to capture a wide range of end users operating in food industries.

Adoption of Biodegradable & Compostable Materials in Foodservice Packaging: Increasing use of polyethylene in our regular life creates huge plastic waste. Various bans and regulations imposed by regulatory authorities across the world are helping the environment, and this has led food manufacturers to produce biodegradable and eco-friendly packaging solutions. Extending activity of the production of bio-degradable packaging solutions may help foodservice packaging manufacturers during the forecast period. Increasing concerns among consumers about environmental pollution and damage caused by the harmful use of plastic products are creating opportunities for manufacturers in the foodservice packaging market space, who are now shifting their focus from traditional packaging solutions to eco-friendly, bio-based solutions for maintaining sustainability.

Key players in the foodservice packaging market are working on eco-friendly packaging formats that are made from natural polymers, so that they are easily biodegradable. For instance, Huhtamäki  freshly launched a disposable food tray, which is microwaveable and a green solution for customers. Product improvement is important for companies, since it enhances the attractiveness of the product and has the same functionalities that of a plastic tray. Foodservice packaging products made from synthetic polymers do not biodegrade easily, and leave toxic chemicals that cause environmental pollution.

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Shrinking Profit Margins Due to Intense Competition Hindering Market Growth

Intense competition, increasing mergers and acquisitions, and liable changing nature of raw material prices lead to continuous on profitability-margin-scale of foodservice packaging solution manufacturers. Also, maintaining long-term relations with distributors and retailers is of strategic importance in this business, and hence, manufacturers need to strategically position their products in terms of pricing. As new players are entering the business and existing players are expanding production capacity, distributors also demand higher margins, which further shrinks manufacturers’ net profits.Foodservice Packaging Market

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Foodservice Packaging Market: Competition and Regional Overview

According to PMR’s analysis, it is anticipated that, the Asia Pacific region is expected to lead the global foodservice packaging market share due to  rapidly growing urbanization, especially across emerging nations. Changing taste and preferences of consumers and increasing adoption of takeaways from hotels & restaurants by consumers are playing major roles for market growth. North America is also expected to witness decent growth in the global foodservice packaging market because of the presence of a huge customer base for pre-packaged food in the region.

Further, players in the foodservice packaging market focus on strengthening their market footprints worldwide and provide innovative solutions to customers, so as to have a competitive advantage in this space.

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COVID-19 Impact on Foodservice Packaging Market

The novel coronavirus pandemic has had a significant impact on the profitability margin of the foodservice industry. Companies associated with the food & beverage industry are experiencing notably reduced consumption rates as well as disturbed supply chain management systems. Increasing hygiene consciousness about food and packaging among consumers has resulted in declining food packaging sales till Q3 2020. However, many companies who were on the verge of shutting down prior to the outbreak of COVID-19 are now back in the industry, as demand is increasing. These companies are likely to stay in the run with the implementation of clean room packaging and hygienic packaging solutions. Most people are preferring packaging quality over taste because of health-consciousness.

Analysts’ Viewpoint

A brief overview of the changing landscape of the foodservice packaging market has led our analysts to conclude that, the foodservice packaging industry is expected to gain more traction in the next decade. Developed countries of North America and Europe are expected to experience stagnant growth. On the other hand, Asia Pacific is expected to create potential sales opportunities in the foodservice packaging market, attributing to rapidly developing trend of fast food and take-away food consumption among millennials.

Further, inclusion of green packaging solutions in the foodservice industry is creating huge growth opportunities for end users, who are are gradually shifting to the use of 100% recycled material for packaging. Amid the COVID-19 pandemic, end users and key players are laying more emphasis on clean room and non-contaminated packaging technology for food packaging, which might further increase their profitability.

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