Milk Packaging Market

Market Overview

The global milk packaging market size was valued at USD 8 billion in 2023 and is projected to reach USD 10.84 billion by 2032, registering a CAGR of 3.9% during the forecast period (2024-2032). Factors such as the growing need for plant-based plastics, the integration of smart packaging and rapid response (QR) codes, and enforcing various rules concerning food safety, labeling, and packaging materials are driving the market forward.

Milk packaging encompasses the materials and techniques employed for storing and transporting milk from the dairy farm to the end customer. Preserving the freshness, quality, and safety of milk is crucial. Common milk packaging styles include cartons, bottles, pouches, and tetra packs, which are widely accessible. These packaging solutions are commonly composed of plastic, glass, or paperboard materials and may include multiple layers or coatings to offer protection against light, air, and contamination. In addition, milk packaging is precisely engineered to provide effective sealing, prevent any leakage, and preserve the nutritious quality and longevity of the milk until it is consumed.

The industry is experiencing significant expansion due to the rising demand for milk in various dairy products such as ice cream, cheese, butter, and curd. The increasing adoption of environmentally friendly materials such as bamboo and trees in the production of milk products is a significant opportunity for market expansion, as it helps to limit the consumption of non-renewable resources.

Key Highlights

• Pouch generates the highest revenue share based on type.
• Paperboard accounts for the largest market share by material.

Market Dynamics

Global Milk Packaging Market Drivers

Increasing Consumption of Milk

The growing demand for milk is substantially impacting the milk packaging market, leading to several changes and trends in the industry. The increase in demand can be ascribed to various factors, such as population expansion, evolving dietary choices, and the growing recognition of milk's nutritional advantages. FAO predicts worldwide milk output will increase by 177 million metric tons by 2025. As a result of changing lifestyles and expanding urbanization, there is a growing consumer inclination towards obtaining proteins from dairy products instead of grain sources. The predicted period is anticipated to stimulate the demand for products such as milk. 

Furthermore, there is a heightened emphasis on preserving the freshness and quality of the product while it is on the shelf. The significance of packaging in maintaining the quality of milk is crucial as it shields it from external elements, including light, air, and microbial contamination. Consequently, the adoption of packaging solutions with superior barrier qualities is increasing to prolong the shelf life of milk and reduce the likelihood of spoiling.

Escalating Demand for Convenient and User-friendly Packaging Formats

The increasing need for package formats that are practical and easy to use dramatically impacts the market. In contemporary times, customers prioritize convenience as a crucial factor, influenced by their hectic schedules, habits of consuming while on the move, and the requirement for packing solutions that minimize inconvenience. The changing customer tastes have led to notable advancements in milk packaging to meet these developing demands. 

In addition, customers are looking for milk products that are convenient to consume in non-traditional circumstances, such as at work, when traveling, or during leisure activities. Consequently, milk packaging options such as individual-sized cartons, pouches, and bottles with resealable lids have become increasingly popular. An example of a bio-degradable milk bag pack is made from a flexible polymer film. This milk bag comprises multiple layers, with 60% polypropylene polyethylene and 40% calcium carbonate. The package is significantly lightweight, with a 40% reduction in material utilization compared to a traditional carton. Although lightweight, this product remains stable on a flat surface and includes an air-filled handle that allows for a secure grasp, preventing any spills during pouring. These formats provide convenience, precise portion control, and the capability to consume milk without requiring extra utensils or refrigeration. 

Moreover, packaging solutions incorporating ergonomic features, such as spouts, flip caps, and easy-grip handles, are offered to improve use and reduce spillage or waste, driving market expansion.

Global Milk Packaging Market Restraints

Limitations Of Diverse Milk Packaging Techniques 

The milk packaging market encounters various constraints that may hinder its expansion. An essential obstacle lies in the ecological consequences of different packing materials. However, affordable and convenient, conventional plastic containers contribute substantially to accumulating plastic trash and pollution. Paper-based packaging is susceptible to moisture and damage from tearing. Although glass is durable, it is both heavy and fragile, And it can pose a potential hazard. The perishability of milk may diminish when stored in glass bottles. Plastic sachets containing milk can be easily contaminated. The plastic must be exclusively virgin polyethylene, including LDPE, LLDPE, HDPE, or EVA. The duration of shelf life is limited. Maintaining a stable temperature in cold chains for storage is necessary. The transition towards environmentally sustainable alternatives, such as biodegradable plastics or reusable glass bottles, frequently entails increased manufacturing expenses and logistical complexities.

Another concern is the durability and ability to maintain the freshness of various packaging options. For instance, whereas cartons and aseptic packaging enhance the longevity of milk by shielding it from light and air, they are frequently less recyclable and more costly compared to simpler packaging alternatives. Consumer tastes and market developments exert a substantial influence. Companies are compelled to invest heavily in research and development due to the rising awareness about health and sustainability, which drives the demand for innovative products. Small and medium-sized firms may need help managing these expenses, which might restrict their ability to compete effectively. Therefore, the drawbacks associated with various types of milk packaging impede the expansion of the milk packaging industry.

Global Milk Packaging Market Opportunity

Implementation of Government Policies

The enforcement of government rules about food safety, labeling, and milk packaging materials is increasing the need for milk packaging. These policies aim to safeguard consumers, enhance transparency, and uphold the quality and authenticity of milk products. Furthermore, it sets forth criteria and protocols to guarantee the safety of dairy products. 

In addition, governments are implementing regulations and directives on using specific substances in milk packaging to safeguard the well-being of consumers and the environment. This motivates producers to transition to alternate packaging materials that comply with regulatory standards, such as plastics devoid of BPA or other options like paperboard or glass. Government rules also prioritize the assessment of the ecological consequences of milk packaging materials. Regulations have been implemented to decrease the utilization of non-recyclable or non-biodegradable substances, promote the adoption of sustainable packaging alternatives, and encourage recycling and waste management practices.

For example, the UK government implemented a tax in 2022 aimed explicitly at plastic packaging with less than 30% recycled material. This tax proposal is strategically designed to offer firms a financial motivation to include recycled plastic materials in their packaging. This promotes higher rates of waste plastic recycling and collecting, ultimately decreasing the waste sent to landfills or incinerated. Implementing the fee is expected to lead to a 40% increase in the use of recycled plastic and a reduction in carbon emissions of approximately 200,000 tonnes between 2022 and 2023. These regulations stimulate market expansion. 

Regional Analysis

The global milk 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 milk packaging market shareholder and is estimated to grow at a CAGR of 3.7% over the forecast period. The Asia Pacific dominates the market due to its rapid urbanization and significant population growth, especially in China and India. The increase in population and evolving lifestyles resulted in an upsurge in milk consumption. Consequently, there is a substantial requirement for milk packaging in the area to fulfill the demands of the growing consumer population. 

In addition, the swift advancement of contemporary retail infrastructure, including supermarkets, hypermarkets, and convenience stores, throughout the Asia Pacific region has led to a rise in the need for packaged milk products. Reliable and effective packaging solutions are necessary for these retail channels to guarantee product quality, shelf life, and consumer convenience. According to research by the Ministry of Commerce (MOC), the emerging retail business in China has consistently grown at an average annual rate of over 50 percent in recent years. In 2022, the market size of this sector reached 504 billion yuan (about 70.3 billion US dollars). According to the survey, the projected growth of China’s instant retail market volume by 2025 is expected to be three times greater than that of 2022. China’s prominent e-commerce businesses have made investments in the expanding market. Consequently, the need for milk packaging has experienced a significant increase due to the development of the retail industry. 

Moreover, the Asia Pacific region provides a conducive business milieu for milk packaging makers, characterized by advantageous government policies, investment incentives, and friendly trade rules. Furthermore, the Asia Pacific region’s industrial capabilities, economic advantages, and supply chain infrastructure make it a highly appealing location for milk packaging production and distribution.

North America is estimated to grow at a CAGR of 4.2% over the forecast period. This rise can be attributed to factors such as the presence of the United States, a prominent global producer and consumer of milk in the North American region. The increasing consumption of milk products such as flavored milk and flavored low-fat yogurt, which are often packaged in plastic containers, along with the growing preference of consumers for diet options like pizza, macaroni, and cheese, and packaged cheese slices, are contributing to the growth of the milk packaging market in North America. The presence of significant firms such as INDEVCO also influences the regional expansion. INDEVCO Flexible Packaging (IFP) division, in partnership with INDEVCO Global Communications & Sustainability Management department, launched a PET bottle recycling project with Collège des Soeurs des Saints-Coeurs Kfarhbab (SSCC) and Collège Saint Joseph Antoura (CSJA) in Lebanon.

Europe is expected to showcase significant market growth. The milk packaging market in Europe is influenced by various factors, such as consumer preferences for convenience, growing demand for eco-friendly packaging materials due to sustainability concerns, technological advancements that allow for innovative packaging designs, regulatory measures that promote food safety and hygiene standards, and the expansion of e-commerce, which facilitates the distribution of packaged milk products. Furthermore, alterations in lifestyles, urbanization, and the rise in disposable incomes are exerting an impact on purchase behaviors. As a result, customers are increasingly choosing on-the-go and single-serve packaging alternatives. Additionally, producers’ focus on product differentiation and branding tactics intensifies competition and stimulates innovation in the milk packaging market.

Segmental Analysis

The global milk packaging market is segmented based on product type and material.

Based on the product type, the market is segmented into Cups, Cans, Bottles, Pouches, and Others.  

The pouch segment dominated the market in 2023. Pouches have been prevalent in the market because of their advantages over other packaging types, including their lightweight nature, convenience, and flexibility, making them easy to handle and transport. They are conveniently portable, readily kept, and may be poured without extra tools or utensils. These qualities make them especially popular for on-the-go consumption, as they are compact and take very little room. In addition, they have exceptional barrier capabilities that shield milk from light, air, and moisture, thereby preserving the milk’s freshness, flavor, and nutritional content for an extended duration.

In addition, pouches are seen as more ecologically sustainable than alternative packaging options, such as plastic bottles or cartons. Typically, they necessitate less resources and energy throughout the manufacturing process, leading to reduced carbon emissions. In addition, pouches are lightweight, reducing transportation costs and energy use. Additionally, specific pouches can be recycled, further improving their ecological credentials.

The cartons segment is the fastest growing. This is attributed to the widespread use of cartons in milk packaging, which offers various advantages such as excellent presentation, convenience for both customers and sellers, affordability, eco-friendliness, lightweight nature, and easy accessibility. In contrast, other milk packaging methods, such as plastic containers, lack these benefits.

The bottles segment is the second largest. Bottles are essential for the growth of the milk packaging market because they are convenient, long-lasting, and effective in maintaining the freshness of milk. Consumers prefer them due to their convenience in terms of handling and storage. Using advanced bottle materials, such as lightweight plastics and eco-friendly alternatives, improves sustainability and attracts environmentally conscious consumers. Moreover, the growing need for flavored and fortified milk products enhances the requirement for flexible and visually appealing bottle packaging. Bottles play a vital role in the growth and variety of the milk packaging industry.

Based on the material type, the market is segmented into Glass, Plastic, Metal, Paper, Paperboard, and Others.  

The paperboard segment dominated the market in 2023. The primary growth drivers in this market include sustainability, as paperboard is widely recognized as an eco-friendly packaging material sourced from renewable resources, primarily wood pulp obtained from well-managed forests. This material can be recycled, broken down naturally, and has a minor impact on the environment regarding carbon emissions compared to numerous other packaging materials. The growing consumer inclination towards sustainable packaging has stimulated the need for paperboard in milk packaging.

Moreover, paperboard has exceptional printability, enabling the creation of visually appealing and attention-grabbing packaging designs. Paperboard milk packaging can be personalized with vibrant designs, logos, nutritional details, and branding components. This feature renders it a potent instrument for establishing brand awareness and promoting, distinguishing milk goods on retail displays, and enticing consumers. In addition, paperboard milk packaging is user-friendly and convenient for consumers. Paperboard milk packages are frequently equipped with user-friendly features such as easily accessible spouts, resealable closures, and ergonomic forms for pouring. These characteristics enhance the user experience and make the packages more convenient and user-friendly.

The plastics segment is the fastest growing. Plastics are essential in expanding the milk packaging industry because they are long-lasting, economical, and adaptable. They provide exceptional safeguarding against contamination and spoiling, prolonging milk's shelf life. Plastic packaging’s lightweight quality decreases transportation expenses and carbon emissions compared to conventional glass bottles. The appeal of plastics is further enhanced by advancements in plastic technology, which include improved barrier characteristics and recyclability. In addition, the practicality of plastic containers, which include features like resealable and ergonomic designs, fulfills consumers’ desire for convenience. These factors collectively contribute to the growth of the market for plastic milk packaging.

Recent Developments

• May 2024 – Amcor established its European Innovation Center in Belgium. The facility will collaborate with brands and merchants throughout the region to create packaging that achieves improved consumer and environmental outcomes.
• May 2024 – Amcor (NYSE: AMCR; ASX: AMC), a prominent company specializing in the creation and manufacturing of sustainable packaging solutions, partnered with AVON, a long-standing industry leader in cosmetics, skincare, and personal care products with a rich history spanning 135 years. Together, they have introduced the AmPrima™ Plus refill pouch for AVON’s Little Black Dress classic shower gels in China. When the recycle-ready packaging is recycled, it will lead to a significant decrease in carbon footprint by 83%, as well as reductions of 88% in water consumption and 79% in renewable energy usage.