Food Service Packaging Market Analysis

Global Food Service Packaging Market Overview

Food Service Packaging Market Size was valued at USD 45.10 Billion in 2023. The food service packaging industry is projected to grow from USD 49.86 Billion in 2024 to USD 100.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.18% during the forecast period (2024 - 2032). The increase in the consumption of pre-packaged foods is the key market driver driving the market for food service packaging. A growing consumer preference for food to go helps expand the market for this service. The market for food service packaging is further fueled by the availability of packaging materials in various sizes, shapes, and types and by the growing general use of these containers.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Service Packaging Market Trends

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  Rising consumer preference towards fast food and ready-to-eat foods is driving the market growth

  
  

The lifestyle of customers has significantly altered over this time. Food preferences are also included in this. The primary driver of expanding the food service packaging industry is expected to be the consumer movement toward fast food and ready-to-eat foods. Over the years, the food business has created a significant demand for packaging in many developed and developing nations. Customers are becoming increasingly interested in online meal delivery systems because they are secure, healthy, and offer the same flavor. Over US$ 180 billion was the estimated  market size for online meal delivery in 2022, and this dominance is anticipated to persist throughout the projection period. The grab-and-eat method is becoming increasingly common because it increases consumer comfort. Furthermore, packaged food that is convenient and has nutritional value is in high demand, which is a big factor in the market's expansion.

Quick-service restaurants (QSRs) focus on providing quick, inexpensive food alternatives. These establishments differ from regular restaurants in emphasizing self-service and providing limited table service. Rigid polystyrene (PS), polypropylene (PP), expanded polystyrene (EPS), polyethylene terephthalate (PET), and polylactic acid (PLA) make up the majority of the single-use plastic food service items used in QSRs. Most food options on QSR menus are eaten straight from packets or containers. Fast food is popular because it is convenient, prepared quickly, affordable, and offers high value. As a result, the packaging is a crucial component of the food product and, from the consumer's point of view, must be compatible with their reasons for eating fast food and their expectations. Single-use food service packaging in QSRs has become essential to a fast-paced world. More individuals rely on fast food since they have less time to prepare meals at home. Single-use packaging enables restaurants to package food rationally, securely, and economically while giving customers a quick and easy way to transfer meals.

Food packaging manufacturers now have the chance to capitalize on emerging trends in edible or recyclable packaging due to the  growth of these items. According to estimates, poor packing results in the annual loss of 30–40% of food. This will probably provide businesses an advantage in developing better packaging solutions for the food and beverage sector. Recycling packaging materials has numerous advantages, including reducing the use of energy and raw materials and reducing greenhouse gas emissions. Recycling techniques cut waste by 62.0% and landfill use by 35.0%. Thus, driving the food service packaging market revenue.

KFC India unveiled ‘KFConscious’ as the most eco-friendly restaurant in Chennai since it used environment-friendly materials in June 2022. They have also announced plans for another twenty outlets across India by the end year 2022, bringing total earnings predictions to $175.21 million by next year. That is the expected revenue of total company turnover according to company statements released on May 18th last month, during an investor call. As a result, such instances are driving the demand for sustainable foodservice packaging in QSRs.

Food Service Packaging Market Segment Insights

Food Service Packaging Product Insights

The  food service packaging market segmentation, based on product includes Flexible Packaging, Rigid Packaging, Paper and Pouches, Bags and Others. The flexible packaging segment dominated the market. A type of flexible packaging uses flexible material as its main component. It may be tear-resistant, stretchable, or shrinkable. Flexible packaging is typically made of lightweight, thin materials that can easily mold to fit a variety of shapes. Examples of flexible packaging are stand-up pouches (SU PP), films and laminates, pouches, and bags.

Food Service Packaging Application Insights

The  food service packaging market segmentation, based on application, includes Dairy Products, Fruits and Vegetables, Baked Goods and Others. The baked goods category generated the most income. Bread, cakes, pastries, cookies, muffins, and other things are all considered baked goods. These commodities must be packaged properly to preserve their quality, freshness, and presentation because they are perishable and frequently need to be protected during transportation and storage. Sustainability and environmental friendliness are becoming increasingly essential for the baked products market.

Figure 1:  Food Service Packaging Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Service Packaging Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American food service packaging market area will dominate this market. The market is expanding due to consumers' heavy reliance on packaged food products and the strong regional presence of food processing businesses. The market is projected to be driven by the rising number of food service suppliers successfully digitalizing their operations. Additionally, the expanding vegan population and the shift in consumer tastes towards meat alternatives are expected to create new opportunities for growth for the food packaging industry.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  FOOD SERVICE PACKAGING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe food service packaging market accounts for the second-largest market share because packaged food has a widespread customer base. The popularity of convenience foods has been facilitated by increased urbanization and rising disposable income, boosting demand for effective food service packages. Additionally, increased plastic production in developing economies will drive regional industrial trends. Further, the German food service packaging market held the largest market share, and the UK food service packaging market was the fastest growing market in the European region

The Asia-Pacific Food service packaging Market is expected to grow at the fastest CAGR from 2023 to 2032 due to rapid urbanization and changing customer preferences. The market is also anticipated to grow quickly due to consumer desire for ready-to-eat and fast food. Additionally, rising disposable income encourages consumers to choose instant meals, broadening the breadth of the fast food culture in China and India and driving the market for food service packaging. Moreover, China’s food service packaging market held the largest market share, and the Indian food service packaging market was the fastest growing market in the Asia-Pacific region.

Food Service Packaging Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the food service packaging market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, food service packaging industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  food service packaging industry to benefit clients and increase the market sector. In recent years, the food service packaging industry has offered some of the most significant advantages to market. Major players in the food service packaging market attempting to increase market demand by investing in research and development operations include Rock-Tenn Company (U.S.), Amcor Limited (Australia), Letica Corporation (U.S.), Ball Corporation (U.S.), Greif Incorporated (U.S.), Ampac Packaging LLC (U.S.), BWAY Corporation (U.S.), Crown Holdings Incorporated and Bemis Company Incorporated.

Amcor Plc is a company that offers packaging services. Pet bottles, plastic bottles and jars, capsules and closures, specialty folding cartons, free films, rigid containers, bags and pouches, wrappers, laminates and flow packs are just a few of its fiber, plastic, metal and glass packaging solutions. Products from the company are used in various technical applications as well as the beverage, food, personal care, pharmaceutical, medical device, homecare, and animal care industries. Additionally, it services the markets for healthcare, pharmaceuticals, personal care, and home goods. In April 2022, AmFiberTM is, a new platform of paper-based packaging goods introduced by Amcor. Amcor's consumer-centric and flexible approach to innovation is on display in the AmFiber platform, which strives to reinvent the capabilities of conventional paper packaging by offering a larger range of features and functional advantages to meet shifting customer needs.

Berry Includes Food-Grade Recycled Content in Flexible Plastic Packaging September 2023 - Berry has introduced food-grade LDPE films containing at least 30% post-consumer recycled plastic (PCR) into the market. Therefore, through this addition to its already robust film portfolio, Berry provides brands with a solution to their sustainability commitments to include PCR in food packaging.

Metal packaging services are offered by Ball Corp (Ball). It produces metal packaging items such as steel, aluminum, general, and aerosol containers for the beverage, automotive, food, paint, healthcare, personal care, and household products industries. The business creates, develops, and produces cutting-edge aerospace systems and related technologies for government and commercial clients, including instruments and sensors, antennas and microwave systems, electronic warfare, aerospace technology and components, spacecraft and space science, radio frequency systems and components, and data exploitation solutions.

Key Companies in the food service packaging market include

• Rock-Tenn Company (U.S.)


• Amcor Limited (Australia)


• Letica Corporation (U.S.)


• Ball Corporation (U.S.)


• Greif Incorporated (U.S.)


• Ampac Packaging LLC (U.S.)


• BWAY Corporation (U.S.)


• Crown Holdings Incorporated


• Bemis Company Incorporated

Food Service Packaging Industry Developments

In April 2022, Burger King UK became the first quick-service restaurant corporation in the UK to trial a new range of reusable and returnable packaging for its burgers and sides. This pilot launch was done together with Loop—the global reuse platform—whereby the company was able to test reusable burger clamshells for the very first time. Thus, these cases have fuelled demand for environmentally friendly approaches in food service packaging.

In March 2023 Hinojosa Packaging Group launched a new line of food service packaging products that are printed using printing methods safe for contact with food. It is made from fully recyclable paper and is biodegradable and, thus, distinguishes it from all other similar kinds of packs.

In February 2024, Berry launched its range of Reusable tableware to help satisfy the demand in the food service industry for more sustainable packing solutions. This is a response to growing legal and customer pressures across sectors to change their packaging practices. An example of such laws includes France’s Anti-Waste Law for Circular Economy law (AGEC), which states that restaurants and other establishments with seating capacity of 20 or more people should provide reusable crockery.

In 2024: Huhtamaki launched new food service packaging solutions with improved sustainability and functionality for various food applications.

In 2023: Georgia-Pacific introduced advanced food service packaging materials with enhanced durability and user convenience.

Food Service Packaging Market Segmentation

Food Service Packaging Product Outlook (USD Billion, 2018-2032)

• Flexible Packaging


• Rigid Packaging


• Paper and Pouches


• Bags


• Others

Food Service Packaging Application Outlook (USD Billion, 2018-2032)

• Dairy Products


• Fruits and Vegetables


• Baked Goods


• Others

Food Service Packaging Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America