Europe Retort Pouch Market Size, Share & Trends Analysis Report By Material (Polypropylene, Polyethylene, Polyamide, PET, Aluminum Foil, Others), By Packaging Type (Stand-up Pouches, Flat Pouches), By Closure Type (Tear Notch, Zipper, Spout), By Application  (Food , Beverage, Pet Food, Others) and By Country(U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, Rest of Europ) Forecasts, 2022-2030

Market Overview

Food packaging created from a lamination of flexible plastic and metal foils is known as retort packaging. It is utilized as an alternative to standard industrial canning methods and allows for the sterile packaging of a wide variety of food and drinks handled by aseptic processing. Water to fully cooked, thermo-stabilized (heat-treated), high-caloric (1,300 kcal on average) meals like Meals, Ready-to-Eat (MREs), which can be consumed cold, warmed by submerging in hot water, or heated with a flameless ration heater, a meal component initially adopted by the military in 1992. Retort packaging is used in field rations, space food, fish products, camping meals, fast noodles, and enterprises like Capri Sun and Tasty Bite.

With a market value of USD 1,197.7 million in 2021, Europe will be the second-largest market after the Asia Pacific region. It will reach a value of USD 2,137 million in 2030, growing at a CAGR of 6.6 % over the projected period. The region is home to the majority of the key firms in the food and beverage industry. The region also exports some of the most important food items. As a result, packaged food items have a high level of dependability.

Market Dynamics

Europe retort pouch market drivers

• Consumer demand for preservative-free products is growing: When non-sterile items are hermetically sealed, which literally translates to non-sterile packing, retort occurs. The packing is placed in a retort pressure vessel and exposed to steam pressure. In comparison to hot-filling, the product is also exposed to high temperatures for a substantially longer time. The extra time might drastically degrade the product's overall quality and nutritional content. The growing demand for preservative-free products among consumers around the world is a major driver for the European retort packaging market. The demand for preservative-free products is at an all-time high as customers become more concerned about the detrimental effects of preservatives in their beverages.

• Growing demand for retort packaging by airlines: Consumers are increasingly turning to sustainable and environmentally friendly packaging solutions, which has led to the introduction of 100% recyclable packaging and stand-up bags in a variety of designs. Sustainable packaging can help firms enhance revenues and remove needless manufacturing spare parts, enhancing the safety of production lines and lowering disposal costs, in addition to delivering environmental benefits. The primary goal of packing is to protect not just the product during transit, but also the warehouse and retail outlets before the product is sold. For different types of items, different styles of packaging are employed. Retort packaging is also utilized for large and bulky food products, as well as other items and this is the reason why retort packaging demand is increasing in the European market due to more demand from Airlines.

• To prevent food waste, there is a growing demand for intelligent packaging. Intelligent packaging provides a variety of options for reducing food waste by providing numerous signs to prevent food spoiling. As a result of rising food waste, consumers are increasingly drawn to foods packaged intelligently. Indicators (time-temperature indicators; integrity or gas indicators; freshness indicators); barcodes and radiofrequency identification tags (RFID); and sensors (biosensors; gas sensors; fluorescence-based oxygen sensors), among others, are all part of intelligent packaging. As a result, intelligent packaging enables food manufacturers to track the state of their products in real-time, resulting in less food waste. Furthermore, intelligent packaging can serve as a major tool for consumers to select products at the retail level, as intelligent packaging designs allow consumers to assess product quality. As a result, smart packaging is projected to play a significant role in enticing customers.

Europe retort pouch market restraints

• High cost linked with research and development: As packaging companies rely substantially on their research and development capabilities, they can afford to spend more on R&D. For example, shifting customer preferences from traditional packaging to intelligent and active packaging, and raising consumer knowledge of food safety, among other things. As a result, businesses must spend on research and development to diversify their businesses and uncover new growth prospects as technology advances and this can sometimes become a restraint in the growth of the business.

• Plastic packaging items are prohibited in the European market: Due to an increase in environmental concerns in some locations, the government has adopted strong measures to prohibit the sale of single-use plastic products and non-biodegradable packaging. This is due to the fact that plastic products take longer to disintegrate and are harmful to both aquatic and terrestrial species. For example, According to Natural Environment, 100,000 sea turtles and other marine animals die each year as a result of being strangled in bags or mistaking them for food.

Key market opportunities

• Increasing demand for lightweight and convenient packaging material: Lightweight packaging material is required for beverages, particularly pouches. Pouch designs have improved in recent years, enabling more customers to buy fruit drinks, nutraceuticals, meal replacement shakes, fiber supplements, and cold-pressed juices, providing a chance for manufacturers to gain market share.

Regional Analysis

The United Kingdom, Germany, France, Spain, Italy, the Netherlands, and Switzerland are among the nations covered in the Retort packaging market research. With a market value of USD 1,197.7 million in 2021, Europe will be the second-largest market after the Asia Pacific region. It will reach a value of USD 2,137 million in 2030, growing at a CAGR of 6.6 % over the projected period. The region is home to the majority of the key firms in the food and beverage industry. The region also exports some of the most important food items. As a result, packaged food items have a high level of dependability. The growing use of flexible packaging in Europe aims to reduce plastic consumption, resulting in increased market growth. With an expected market value of USD 698.4 million in 2030 and a CAGR of 7.0 percent, Germany will provide a large market share to the global European market. Due to increased investments in retort packaging growth, Germany dominates the European retort packaging industry. Furthermore, growth in demand for retort packaging by food and drinks is expected to stimulate demand in this region.

In countries like UK, Spain, France the demand for these packaging is increased due to the aviation sector or airline industry which is the reason of the constantly increased CAGR value in Europe. Also, the demand for ready-to-eat food is increasing rapidly in past few years in these European countries, from which it can be inference that demand will keep increasing in near future,

Segmental Analysis

Polypropylene, polyethylene, polyamide, PET, aluminum foil, and other materials are used in the market. With an expected market value of USD 1,690.8 million in 2021, polypropylene will be the fastest-growing sector. It will reach a market value of USD 3,015.8 million in 2030, with an annual growth rate of 8.1%. Extreme temperature and chemical resistance, as well as expanding usage in automotive, packaging, healthcare, electronics, and building and construction, will all contribute to market expansion. Higher tensile strength, superior barrier, and cheaper cost will all contribute to the segment's value. With an expected value of USD 1,453.8 million in 2030, the PET sector will have the second-largest market share.

The market can be separated into two types of packaging: stand-up pouches and flat pouches. With a market value of USD 2,482.2 million in 2021, stand-up pouches will have the biggest market share. With a CAGR of 7.9% during the forecast period, it will reach a value of about USD 4,573.9 million in 2030. Sustainability, lightweight, and increasing printability and seal ability availability will all contribute to the segment's growth. Due to its simplicity and availability in a wide range of materials and seals, the flat pouches market is expected to reach USD 3,693.4 million in 2030.

The market can be divided into three types of closures: tear notch, zipper, and spout. With a market value of USD 1,828 million in 2021, the zipper segment will have the biggest market share during the projected period. In 2030, it will have a market value of USD 3,245.1 million. Due to the possibility to be accessed several times due to its usefulness and increased utilization of e-commerce and on-the-go applications, the CAGR is expected to be 7.3 percent. With an expected market value of USD 3,137.9 million in 2030, the tear-notch sector will account for the second-largest market share.

The market can be divided into food, drinks, pet food, and other categories based on application. With a market value of USD 2,499.6 million in 2021, food will hold the biggest market share over the projected period. It is expected to expand at a CAGR of 7.1 percent. The market will be worth USD 4,123.2 million in 2030, according to estimates. The segment's growth will be aided by factors such as increased temperature resistance and the capacity to be integrated as ready-to-eat packaging. Pet food will have the second-largest market share in 2030, with an estimated value of USD 1,701.3 million.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• Tetra Pak invests in four new recycling plants in February 2022, allowing worldwide packaging recycling to reach fifty billion per year. Tetra Pak has spent approximately €11.5 million in four fully new package recycling solutions in Turkey, Saudi Arabia, Ukraine, and Australia, in collaboration with recyclers and industry stakeholders. This investment contributes to the company's product line and global reach.
• Amcor will introduce more environmentally friendly pharmaceutical packaging in April 2022. High Shield laminates that are more sustainable have been added to its pharmaceutical packaging range. The new low-carbon, recycle-ready packaging choices provide on two fronts: they meet the industry's high barrier and performance criteria while also helping pharmaceutical businesses meet their recyclability goals. This new launch will aid in the expansion of the product portfolio as well as earnings. Increases the company's global presence.