Fresh Food Packaging Market Is Estimated To Witness High Growth Owing To Growing Consumer Demand For Fresh And Conveniently Packaged Food

The Fresh Food Packaging Market is estimated to be valued at US$ 93.71 Bn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights’ The growing consumer demand for fresh and conveniently packaged food products is expected to drive the growth of the fresh food packaging market over the forecast period.

Consumers prefer food that has a longer shelf life and does not require much preparation at home. Fresh food packaging such as modified atmosphere packaging, vacuum packing helps extend the shelf life of fruits and vegetables without use of preservatives. Fresh ready-to-eat meals demand is growing among consumers with busy lifestyles who want to save time on cooking. Various innovations in packaging materials such as antimicrobial films and coatings also help increase the lifespan of fresh food items. Such factors are estimated to boost the fresh food packaging market growth.

Key Market Trends: Growing popularity of transparent and flexible packaging: Consumers are increasingly demanding packaging that allows visibility of the product. Transparent packaging builds customer trust regarding product quality and freshness. Flexible pouches and bags made of materials like polyethylene and polypropylene provide visibility as well as resealability which is driving their adoption. Fresh food packaging producers are focusing on developing innovative packaging solutions made of clear materials.

Rising adoption of reusable and recyclable packaging: There is rising environmental concern among consumers regarding use of single-use plastic packaging. Fresh food producers are responding to this by adopting sustainable and eco-friendly packaging options. Reusable containers and pouches made of recycled content are gaining traction. Bio-based and compostable packaging use renewable materials which decompose without harming the environment. This trend is expected to continue and boost the fresh food packaging market growth over the forecast period.

Fresh Food Packaging Market Opportunities: The plastic material segment dominated the fresh food packaging market in 2019 and captured around 35% of the overall market share. Plastic packaging provides excellent barrier protection from moisture, oxygen, and other environmental contaminants. It is lightweight and less expensive than other materials. The increasing demand for packaged and preprocessed food products is driving the growth of plastic packaging.

The flexible packaging segment accounted for over 40% share of the global fresh food packaging market in 2019. Flexible packaging, such as stand-up pouches and bags, are highly suitable for various food products. They offer excellent barrier protection, are easily printable and sealable. Their light weight and sustainability also contribute to their widespread use in the fresh food packaging industry. The segment is anticipated to grow steadily during the forecast period.

Key Market Takeaways: The global fresh food packaging market is anticipated to witness a CAGR of 4.1% during the forecast period 2024-2031, owing to the rising demand for fresh and convenient food among consumers across the world.

On the basis of material type, the plastic segment is expected to hold a dominant position, owing to its excellent barrier properties, lightweight, and cost-effectiveness. Plastic packaging accounts for around 35% of the total market share.

By packaging type, flexible packaging led the market with over 40% share in 2019 due to benefits like light weight, ease of printing and sealing. The flexible packaging segment is projected to grow steadily over the next few years.

Regionally, North America dominated the fresh food packaging market and accounted for over 30% share in 2019. This is due to busy lifestyles, high disposable incomes and preference for convenient packaged food in the region.

Competitor Insights:Some of the leading players operating in the fresh food packaging market include Rexam PLC., DuPont, Amcor Limited, Mondi Group, Smurfit Kappa Group, Coveris Holdings S.A, Sonoco Products Company, Sealed Air Corporation, and DS Smith PLC. These companies account for approximately 60% of the global fresh food packaging market share.

Recent Developments: In June, leading snacks brand Frito-Lay announced plans to transition all its packaging to more sustainable options by 2025. The company is currently testing paper-based bags for chips and compostable film wrappers for individual products. Major foodservice brands like McDonald’s and Starbucks have also committed to shifting away from non-recyclable plastic straws and lids by offering paper-based alternatives. Retailers Target and Walmart now require suppliers to provide recycling information on all new private label packaging. These initiatives are expected to drive further growth in the sustainable packaging sector through 2023-2024. More information in full report.