Food service packaging market to expand at 5.23% CAGR over 2020-2027
June 9, 2020Global food service packaging market generated revenues worth USD 72.91 billion in the year 2019 and is expected to showcase a y-o-y growth rate of 5.23% between 2020 and 2027.
Shifting preferences towards convenience food products is one of the major factors driving the market growth. In fact, according to Statista, the worldwide remuneration of convenience food accounted for USD 563,881 million in the year 2020 and is anticipated to grow by 0.3% annually by the year 2025.
Notably, food service packaging helps in protecting food items from contamination caused by air, moisture and contamination. It also assists in maintaining catalytic activity in fresh foods. It comprises of product packaging techniques such as wraps, jars, aerosol containers, ampules, bottles, and cans among others.
Food service packaging plays a pivotal role in preserving the quality of food items during transportation and handling processes. Moreover, it boosts customer experience and aids in promoting food sales, which in turn is further amplifying the market expansion.
The COVID-19 pandemic has compelled various regions to impose lockdowns to curb the spread of the virus. As a result, there has been an upsurge in the demand for convenience food products as well as effective food service packaging solutions in order to prevent contamination. Additionally, this type of packaging improves the shelf life of the food products, thereby stimulating the industry outlook.
The cost effective nature of food service packaging is also stimulating the industry outlook. However, strict regulatory scenario pertaining to such packaging solutions may act as a restraining factor to the overall market growth.
A gist of the market segmentation
Global food service packaging industry is divided into segments such as material type, packaging type, application scope, and regional terrain. Speaking of material type, the market is further bifurcated into plastic, metal, and others.
Based on packaging type, the industry is split into rigid, flexible, paper & paperboard and others. On the other hand, as per the application spectrum, the food service packaging market is classified into dairy products, bakery & confectionary, fruits & vegetables, food & beverage and others.
Elaborating on the geographical landscape
Worldwide food service packaging market is split into North America, Asia-Pacific, Latin America, Europe, and Rest of the World. The North America food service packaging industry is expected to generate substantial revenues in the ensuing years, primarily due to growing demand for convenience food products.
Parallelly, the Asia-Pacific market is predicted to expand significantly during the estimated timeframe. The growth is attributed to flourishing packaging as well as food & beverage industries.
