Foodservice Packaging Market to Progress at 5.3% CAGR Through 2025; Compostable and Sustainable Solutions Gauge Market Growth

  • Published On : May 21, 2020

Eco-conscious customers have fueled the demand for compostable foodservice packaging solutions. New techniques are being adopted to reduce the costs associated with the manufacturing of sustainable packaging options. Driven by these factors, the global foodservice packaging market is projected to expand at a healthy 5.3% CAGR through 2025, according to a new Persistence Market Research (PMR) study.

Foodservice manufacturers are seeking new alternatives to plastic packaging amidst the novel coronavirus outbreak. They are capitalizing on incremental opportunities by increasing the availability of single-use packaging options. Intuitive dispensing systems are a novel introduction in the foodservice packaging market. Sustainable dispensing systems are eliminating issues of wastage associated with cutlery pieces owing to the utilization of conventional trays.

Key Takeaways of Foodservice Packaging Market Study

  • Foodservice outlets dictate more than 50% of the bottom lines for manufacturers, as compared to online food ordering and institutional foodservice.
  • Manufacturers are increasing their production capabilities in disposables by offering heat resistance and anti-fogging attributes.
  • Growing number of QSRs (Quick Service Restaurants) and non-chain restaurants are creating revenue streams for manufacturers.
  • Manufacturers expect price premium for offering packaging solutions that match the performance of plastic amidst COVID-19 pandemic.
  • Collaborative innovation programs are pooling like-minded entrepreneurs to develop new packaging materials.
  • Non-profit international organizations in the business of foodservice packaging are launching initiatives to deploy education and training for workers and other stakeholders.

“Recyclability and sustainable innovations are at the forefront for companies to boost their credibility in the global market landscape. Stringent regulations and environment safety laws are fueling innovations in new packaging materials,” says a PMR analyst.

Impact of COVID-19 on Foodservice Packaging Market

The Coronavirus outbreak has caused a slowdown in global economic activities. Moreover, it is being argued whether plastic packaging helps against contamination of food or whether it is a carrier of the novel virus particles. Hence, manufacturers are innovating in paperboard and functional recyclable barrier coatings to keep food free from contaminants. The trend of contact-less delivery is supporting the business of foodservice packaging. Similarly, drive-through and takeaway services are preventing the spread of the infection. However, foodservice associations in India are seeking financial bailout package to recover losses owing to the Coronavirus crisis.

Foodservice Packaging Market: Competition Landscape

Growing number of QSRs and take-home food brands are creating incremental opportunities for startups and emerging players who are experimenting with new packaging materials. As such, the foodservice packaging market is largely fragmented, thus indicating that emerging players are giving a stiff competition to leading market players. Manufacturers are adopting the concept of green packaging to develop recyclable and compostable pack designs. Apart from food outlets, manufacturers are targeting stadiums, large cafeterias, multinational corporates and small & medium enterprises to increase uptake of packaging units, says PMR research authors.


Lockdown relaxations in orange and green zones of Indian cities are helping in revenue generation activities after a long slump in business proceedings. However, the situation is much critical in the U.S. and European countries that continue to register new COVID-19 cases.

As Coronavirus is predicted to subside in countries of Asia Pacific region, manufacturers are gearing for capacity additions once production plants are permitted to begin manufacturing. They are unlocking opportunities by innovating in sustainable dispensing systems that are replacing traditional self-service bowls and trays.

View Report Table of Contents, Figures, and Tables

Know More About Foodservice Packaging Market Report

Persistence Market Research, in this new report, offers an unbiased analysis of the global foodservice packaging market, analyzing historical demand from 2012 - 2016 and forecast statistics for 2017 – 2025. The study offers market growth projections

based on product type, base material, fabrication process, and end-use industry across five key regions.

For more detailed insights on how the market will progress through the course of projection period, write to

About Consumer Goods Division at Persistence Market Research

The Consumer Goods team at Persistence Market Research helps clients from all over the globe with their unique business intelligence needs by offering expert analysis, actionable insights, and strategic recommendations. With a repertoire of over 1,000 reports and 1 million+ data points, the team has analyzed the consumer goods industry lucidly in 50+ countries for over a decade. We provide end-to-end research and consulting services; reach out to explore how we can help.

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