According to the report by Global Market Insights Inc., the global foodservice packaging market was valued at over USD 118 billion in 2021 and will surpass a revenue collection of USD 186 billion by 2028 with an annual growth rate by 5% from 2022 to 2030.
The value of the foodservice packaging industry will increase at a tremendous rate as the processed food sector is witnessing a notable expansion. The demand for processed and packaged foods is increasing rapidly among the younger generation due to their hectic lifestyles, which leaves them no time to prepare home-cooked meals.
The take-out and home delivery trend has accelerated significantly, especially during the COVID-19 pandemic. As restaurants closed at the height of the outbreak, people turned to online food delivery platforms. Hygienic packaging also took center stage during this period.
As of March 2021, nearly 47% of US citizens had used a food delivery app during the pandemic period. Additionally, 53% of respondents to a 2021 survey by the US National Restaurant Association said food delivery and takeout were an important part of their lifestyle. These factors have positively influenced the use of foodservice packaging products to ensure safer and more hygienic delivery of food.
Here is a detailed list of global factors that will accelerate product adoption:
Prepared meals to meet high demand
Ready meals are gaining popularity among young people because they are easy to transport and do not require much preparation effort. The convenience store chain is also growing at a steady pace due to the growing demand for these foods. Instant noodles, canned soups, frozen fruits and vegetables, and processed meats and cheeses are widely consumed around the world.
The COVID-19 pandemic helped boost sales of these food products because they were pre-made, readily available and cheaper. According to South Korea’s Rural Development Administration (RDA), the country’s overall spending on consuming processed foods or convenience foods has increased by 18.4% throughout the period of the COVID outbreak. -19. Catering packaging items are a crucial part of these foods as they keep them warm and hygienic. They also facilitate easier, long-term storage.
Environmentally conscious customers will prefer cardboard-based packaging
The food packaging industry is constantly evolving to accommodate the unique preferences of its customers. Plastic and glass are among the most popular packaging materials for food and beverages.
However, over the years, customers have become more aware of the harmful effects of disposing of single-use plastic and glass cups and cutlery in the environment. This prompted them to look for food products packaged using sustainable raw materials, such as cardboard.
Because cardboard-based food packaging is highly recyclable, it can be reused for a long time, reducing waste. Cardboard-wrapped foods prevent them from being crushed or dislodged, making them safe for transport over long distances.
Rigid packaging materials gain traction
Rigid food packaging materials are important for products that have a high risk of spillage during transport. These materials provide greater stability and support for ready-to-eat foods, such as cereals, canned soups and spirits.
Plastic is one of the most common materials used in rigid packaging because it provides protection against heat, inhibits the growth of harmful microorganisms in food, and prevents spillage. According to the UN, approximately 36% of all plastics manufactured are used for packaging, indicating widespread use in the food packaging industry.
European customers will increase their preference for green packaging
Europe is becoming an attractive market for catering packaging manufacturers as demand for takeout and food delivery has exploded in the region. The total number of food app installations reached around 170 million in Europe in the first nine months of 2021.
Additionally, a growing percentage of customers are willing to pay more for food deliveries that use sustainable packaging and come with eco-friendly cutlery. Companies are also responding to this demand by introducing innovative food packaging solutions.
Sustainability is the future of the foodservice packaging market as more and more companies around the world are becoming more environmentally conscious when it comes to the raw materials they use to package food products. With constant innovations aimed at improving the reliability and performance of these products, the future of the industry looks quite bright. Emerging countries in Asia-Pacific and Africa could be among the fastest growing markets for food service providers and online food delivery apps, indicating strong potential for packaging manufacturers.