Compostable Paper Tray Market Share

Compostable Paper Tray Market Forecast

Compostable Paper Tray Market Size was valued at USD 1.39 Billion in 2023. The compostable paper tray market is projected to grow from USD 1.49 Billion in 2024 to USD 2.37 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.0% during the forecast period (2024 - 2032).

Due to the global fight against plastic, compostable paper trays are becoming increasingly popular with consumers. They are also cost-effective and environmentally friendly. Global market leaders in the biodegradable paper tray industry are increasing their customer base with recycled content. These trays are produced utilizing corrugated boards, molded pulp, boxboards, and other materials, and have many uses in various end-user industries such as food and beverage, personal care, retail, and healthcare sectors, among others. A significant increase in the demand for paper trays is expected because of increased attention being paid to sustainability and lowering the amount of plastic packaging waste. Due to increased consumer interest in compostable products, manufacturers in the compostable paper tray market are investing extensively in providing sustainable paper trays with a wide range of paper designs.

COVID-19 Analysis

Due to lockdowns, travel restrictions, and business closures, the COVID-19 pandemic had impacted economies and businesses in numerous nations. The global supply chain had been impacted, which had a significant impact on the manufacturing capacities, delivery schedules, and sales of various goods. This happened because of the closure of numerous manufacturing facilities in places like North America, Europe, Asia Pacific, South America, and the Middle East & Africa. The pandemic had a direct influence on supply and demand, which disrupted supply chains and markets and, in turn, influenced the financial health of the businesses and the global economy.

Compostable Paper Tray Market Dynamics

Drivers

• Zero waste edible trays creating buzz and turning up sales of compostable paper trays market
  
  
  
  • Despite many advantages that plastic trays offer, customers are looking for sustainable and environmentally friendly packaging alternatives. Edible trays are becoming more and more popular lately because they produce no waste and may be consumed immediately after usage. The market for compostable paper trays is witnessing an increased sales due to the emergence of edible trays composed of sugarcane, palm leaf, corn starch, bagasse, and among others. Given that they meet all the consumer's packaging needs, it is anticipated that these edible trays will prove to be an effective packaging alternative to conventional trays.
  
  
  
  


• Consumers' demand for eco-friendly and sustainable items and growing environmental worries.

Market Opportunities

• Growing industry demand for flexible packaging
  
  
  
  • The growth of the flexible packaging market is supported by rising consumer emphasis on product safety and convenient handling, proliferating food & beverage industry, and increasing demand for bio-based and sustainable products.
  
  
  
  

Market Restraints

• Concerns about use of degradable additives in packaging
  
  
  
  • There are several environmental concerns surrounding packaging solutions, including the use of compostable and degradable materials as well as recycling challenges. The Institute of Scrap Recycling Industries, or ISRI, released several clarifications and new policy statements on the use of degradable additives in packaging in 2017. The research emphasized the fact that the degradable chemicals have not undergone comprehensive testing and the level of risk to the environment and to human health that they may represent is not completely understandable.
  
  
  
  

Compostable Paper Tray Market Segment Overview

By Source

On the basis of source, the market for compostable paper trays is segmented into virgin fiber and recycled fiber. In 2020, the virgin fiber market category held a greater market share for compostable paper trays. Fresh wood pulp is used to create virgin fiber. There are no recycled elements in the paper produced from virgin fiber. Virgin fiber are frequently utilized in the packaging sector to create products made of paper and paperboard. Virgin fiber are used to create compostable paper trays that are used to package foods like fruits, eggs, and vegetables since they guarantee food safety by preventing taint, odor, and migration problems as well as comply with food safety laws. Virgin fiber are extremely strong and resistant to breaking.

By Material Type

On the basis of material type, the corrugated boards, boxboards/cartons, and molded pulp segments make up the global market for compostable paper trays. Corrugated cardboard is a common type of packaging material that may be used to hold, ship, and protect practically any goods. Boxboards are comprised of a low-density, extremely stiff, and somewhat yellow inside substance. The primary end uses are for pharmaceuticals, graphic design, and health and beauty products. Increased consumer demand for transparent, biodegradable packaging solutions and rising product demand in end-user industries are driving the growth of the molded pulp market.

On the basis of end-user, the market for compostable paper trays is segmented into the food and beverage sector, consumer electronics industry, personal care and cosmetics business, healthcare industry, and others. The compostable paper trays market was dominated by the food and beverage sector in 2020. Eggs, fresh fruits and vegetables, salad, and other food products are some of the key products that utilize global compostable paper trays for packaging. The delicate surfaces of these objects are cushioned by these trays, ensuring their protection throughout shipment. Compostable paper trays make sure that the food products are kept fresh by providing adequate air inside the container. These trays also guarantee food safety by shielding the food from odor and contamination. They are one of the most popular packaging choices in the food and beverage industry since they also comply with food safety laws.

Regional Analysis

According to the scope of the report, the global compostable paper tray market is categorized into North America, Europe, Asia Pacific, and Rest of the World.

North America: The North American market dominates the market for compostable paper trays. As of 2022, the regional market is estimated to contribute to majority of the shares and is expected to maintain its dominance throughout the study period. With majority of the market share for compostable paper trays in North America, Tier 1 companies have a firm grip on the sector. Additionally, they are utilizing the immense growth potential in emerging economies through the expansion of production facilities, strategic alliances, and the introduction of new products.

Asia-Pacific: The key countries in the Asia Pacific compostable paper trays market includes China, Japan, India, South Korea, Australia, and rest of Asia Pacific. In the region, both the food packaging and retail sectors are expanding significantly. The market for food service packaging is growing owing to the rapid expansion of tourism industry and consumers' rising quality of life. Therefore, to increase their market share, manufacturers are concentrating on establishing their footprint in the growing economies of Asia-Pacific regions, particularly China and India. Due to the presence of supermarkets and hypermarkets in the region, these markets have a significant potential for growth in terms of compostable paper tray sales.

Competitive Landscape

Due to the presence of numerous domestic and regional competitors, the global compostable paper trays market is extremely fragmented and competitive. Key players use a variety of marketing tactics, including mergers & acquisitions, expansions, collaborations, and partnerships. Additionally, the top businesses use new product creation as a strategic way to enhance their market position among consumers.

Recent Developments

• In March 2021, International Paper bought two state-of-the-art corrugated box plants located in Spain. It has grown its production capabilities in areas of Madrid and Catalonia to offer high-quality packaging solutions for applications in industrial and e-commerce segments.


• Graphic Packaging launched a sustainable paper packaging solution range Produce Pack for fresh produce. The compostable paper trays can be used for a variety of applications and preserve fresh produce. It is hygienically protected as the produce is prepacked and narrow down handling from field to store. 

List of the key Companies Covered in Compostable Paper Tray Market Report are:

Mondi Group plc, Huhtamaki Oyj, International Paper, BillerudKorsnas, UFP Technologies, Inc., CS Packaging, Inc., Stora Enso, Novolex, Orcon Industries, Athena Superpack Private Limited, Henry Molded Products, Inc. are some of the key players operating in the global compostable paper tray market.

Report Overview

The study covers the existing short-term and long-term market effects. It helps in the creation of regionally specific short- and long-term business plans. Major geographic areas in North America, Europe, Asia-Pacific, and the rest of the world are covered in the report. Porter's five forces, Porter's value chain, market drivers, market restraints, opportunities, challenges, and the market effect of COVID-19 are all examined in the research.

Study Objectives

• To provide a detailed analysis of the market structure and forecast for the next ten years of the various segments and sub-segments of the compostable paper tray market.


• To provide insights about factors affecting the market growth.


• To analyze the compostable paper tray market based on various factors such as price analysis, supply chain analysis, Porter's five force analysis, etc.


• To give historical and projected market segment and sub-segment revenue data for the four primary geographical regions and their respective nations—North America, Europe, Asia-Pacific, and the Rest of the World.


• To offer market analysis at the country level, considering market size now and market prospects for the future.


• To provide strategic profiling of key players in the market, comprehensively analyze their core competencies, and draw a competitive market landscape.


• To track and analyze competitive developments such as joint ventures, strategic alliances, mergers & acquisitions, new product developments, and R&D in the compostable paper tray market.

Compostable Paper Tray Market Segmentation:

By Source

• Virgin Fiber Paper Trays


• Recycled Fiber Paper Trays

By Material Type

• Corrugated Boards


• Boxboards/Cartons


• Molded Pulp

By End User

• Food and Beverages Industry


• Consumer Electronics Industry


• Personal Care and Cosmetics Industry


• Healthcare Industry


• Others

Company Profiles

• Huhtamaki Oyj


• Mondi Group plc


• International Paper


• BillerudKorsnas


• UFP Technologies, Inc.


• CS Packaging, Inc.


• Stora Enso


• Novolex


• Orcon Industries


• Athena Superpack Private Limited


• Henry Molded Products, Inc.