Fresh Food Packaging Market Size, Share & Trends Analysis Report By Material (Polypropylene, Polyethylene, Paper, Aluminum, Others), By Packaging Type (Rigid Packaging, Flexible Packaging), By Application (Meat and Seafood, Fruits and Vegetables, Dairy Products, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global Fresh Food Packaging Market size was valued at USD 79.80 Billion in 2022. It is estimated to reach USD 104.12 Billion by 2031, growing at a CAGR of 3% during the forecast period (2023–2031). A rising number of food service operators and retail chains in North American and European economies are expected to move from plastic packaging to a sustainable solution to attract a region's environmentally concerned consumer base, resulting in market growth.

Fresh food packaging is an important part of the food supply chain because it protects and preserves the quality, safety, and freshness of perishable food products like fruits, vegetables, meat, fish, dairy, and prepared meals. Fresh food packaging's major purpose is to extend the shelf life of these products, eliminate spoiling, avoid contamination, and ensure they reach consumers in ideal form.

Fresh food packaging market share is expected to rise 6.7% CAGR due to diet and health-conscious customers' increasing demand for organic fresh food goods such as fruits, vegetables, and dairy. Furthermore, a rising number of food service operators and retail chains in North American and European economies are expected to move from plastic packaging to a sustainable solution to attract a region's environmentally concerned consumer base. As a result, the reasons above are projected to stimulate demand for environmentally friendly fresh food packaging.

Market Dynamics

Global fresh food packaging market drivers:

Food safety and quality assurance

Consumers, retailers, and regulatory authorities are vested in ensuring the safety and quality of fresh food items. Packaging is critical in protecting food from numerous risks, such as infection, spoiling, and degradation. Packaging protects the product's freshness, flavor, texture, and nutritional value while preventing exposure to infections, allergies, and external environmental variables. The World Health Organization (WHO) states that foodborne infections are a global public health concern. Contaminated food causes more than 600 million illnesses and 420,000 deaths yearly. Proper packing can dramatically lower the risk of foodborne illness. The FDA's FSMA promotes preventive actions in the United States to improve food safety. This includes laws on packing, shipping, and storage methods to reduce contamination concerns. Effective packing decreases food waste by minimizing spoiling and extending shelf life.

According to the United Nations, one-third of all food produced for human consumption is lost or wasted, making packaging's function in food preservation crucial. According to fresh food packaging market insights, the importance of food safety and quality assurance in fresh food packaging cannot be emphasized. Packaging innovations continue to emerge to solve safety problems and meet consumer expectations for safe, fresh, and high-quality food products. Stringent laws and changing customer tastes are driving the use of sophisticated packaging solutions that improve food safety and quality across the supply chain.

Global fresh food packaging market restraints:

Environmental concerns and sustainability challenges

Traditional packaging materials, notably single-use plastics, have caused considerable environmental concerns due to their non-biodegradability, contribution to pollution, and negative impact on ecosystems. Consumers and regulatory bodies worldwide are increasingly seeking sustainable and eco-friendly packaging choices. According to the Plastics Industry Association, worldwide plastic production hit 368 million metric tons in 2019, with packaging accounting for a sizable share of this total. This manufacture has contributed to the growth of plastic garbage.

Governments and regulatory agencies worldwide are decreasing single-use plastics and encouraging sustainable packaging. For example, the European Union's Single-Use Plastics Directive seeks to prohibit or limit the use of certain single-use plastic goods. While there is a clear need for more sustainable options, making the move requires cost, performance, and market acceptance considerations. Many businesses actively attempt to reduce their environmental impact by implementing sustainable packaging solutions and investing in research and development to identify new alternatives to standard plastics. However, developing a circular economy for packaging materials remains a long-term aim that would necessitate collaboration across businesses and stakeholders.

Global fresh food packaging market opportunities:

E-commerce and home delivery growth

The growing popularity of e-commerce platforms and home delivery services for fresh foods such as fruits, vegetables, Meat, and dairy products presents a substantial opportunity for packaging solutions that maintain product integrity during transit, storage, and last-mile delivery. The fresh food packaging market trend has been accelerated by changing customer behaviors, particularly the desire for convenience in metropolitan areas. Many businesses invest in innovative packaging technology to keep fresh food products at the proper temperature while in transit. For example, insulated packaging with cooling or heating elements conveys temperature-sensitive commodities such as seafood and dairy.

According to a poll conducted by the International Food Information Council (IFIC), 45% of consumers prefer online grocery shopping owing to convenience. This trend is projected to continue, increasing the demand for suitable packaging. U-Pack, a packaging company specializing in e-commerce and delivery solutions, has seen increased demand for its services. They provide unique packaging solutions tailored to the needs of online retailers and food delivery services.

Regional Analysis

The global fresh food packaging market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-pacific dominates the global market

Asia-Pacific is the most significant global market shareholder. The region has several fast-growing economies, including India, China, South Korea, Japan, and Indonesia. The growing demand for fresh food products in countries such as India and China drives demand for fresh packaging over the anticipated period. Furthermore, Asia Pacific was the greatest manufacturer of plastics. Large production of glass and metals such as aluminum and steel has resulted in plentiful raw material availability. It is responsible for a considerable share of other categories in the material section.

However, the plastic material industry will likely face several problems due to rising consumer awareness and stringent government laws on plastic pollution. South Korea's market is increasing because of developed end-user sectors, enormous demand for fresh produce packaging, rising urban population levels, and retail infrastructure development. Fresh food packaging market growth is aided by rising consumer demand for natural and organic products and rising usage of rigid fresh food packaging materials.

North America is anticipated Grow over the forecast period. Due to developed application sectors in the United States and Canada. The increased emphasis on reducing plastic usage by the food and beverage industry is due to the demand for eco-friendly and fresh food packaging solutions in the United States. The need for biodegradable materials and recyclable packaging applications is expected to rise due to severe environmental safety legislation and increased demand for swiftly disposable solutions. The growing emphasis on minimizing the use of plastics in the food and beverage industries will likely increase demand for sustainable solutions in the region. Stringent environmental restrictions and the growing desire for easily disposable solutions will stimulate demand for recyclable and biodegradable materials in packaging applications.

Growing trade activities, led by Europe's single-market policy that permits free commerce throughout the zone, are likely to be one of the key reasons driving the expansion of the European market for fresh food packaging. Cartons and folding boxes convey various fruits, vegetables, and eggs. As a result, demand for paper packaging materials in food exports is predicted to rise over the forecast period.

Segmental Analysis

The global fresh food packaging market is segmented based on material, packaging type, application, and region.

Material is further segmented into Polypropylene, Polyethylene, Paper, Aluminum, and Others.

Polyethylene occupied the major share of the market.

Polyethylene

Polyethylene is a common plastic material used in the packaging of fresh foods. It is well-known for its flexibility, durability, and resistance to moisture. It comes in various shapes and sizes, including low-density polyethylene (LDPE) and high-density polyethylene (HDPE). PE is commonly used in packaging fresh fruit, frozen foods, and liquids like milk and juice. Plastic bags and wraps are frequently made from LDPE, while bottles and containers are made from HDPE.

Polypropylene

Polypropylene is a versatile plastic recognized for its high moisture resistance and ability to keep products fresh. It has a good oxygen barrier and is suitable for rigid and flexible packaging. PP is extensively used in packaging various fresh food goods, such as snacks, bakery items, deli meats, and dairy products. It is frequently seen in microwaveable and resealable packages.

Based on packaging type, the market is sub-segmented into Rigid and flexible packaging.

Rigid packaging is the most common packaging type in the market.

Rigid packing

Rigid packing refers to stiff and inflexible materials that keep their shape even when empty. Examples of rigid packaging materials are glass, plastic containers, metal cans, and carton boxes. Rigid packing protects well against physical damage, moisture, and contaminants. It can also improve the shelf appeal of products by using appealing designs and branding.

Flexible packaging

Pliable materials that can be easily shaped or distorted are called flexible packaging. Flexible packaging is lightweight, decreases shipping costs, and provides convenience through resealability and ease of opening. It can also be printed with eye-catching designs and logos to entice customers.

The segment can be bifurcated by application into Meat, seafood, fruits, vegetables, dairy, and others.

Dairy influenced the market growth.

Dairy

Dairy packaging should provide a barrier against light, oxygen, and pollutants to preserve the freshness and taste of dairy products. It may also contain convenience features such as resealable lids.

Fruit

Fruit packaging must keep the fruit fresh, protect it from physical damage, and allow for adequate airflow to prevent mildew and decay. Breathable packaging materials, such as perforated plastic films or clamshells, are frequently employed.

Recent Developments

• August 2023- Amcor introduced high-barrier performance paper packaging in North America.
• February 2023- PPC Flexible Packaging LLC, a leading producer of specialized flexible packaging, announced the purchase of StePac, MAPfresh Holdings (StePac), situated in Tefen, Israel.
• September 2023- DS Smith and Coca-Cola ditched plastic handles in favor of the "LIFT " cardboard packaging innovation.
• August 2023- Mondi and Fressnapf launched recyclable packaging for their dry pet food line.