Fresh food packaging is a type of packaging solution which is used to fresh food in order to protect it from external environmental conditions. With growing volume of international trade of fresh food items, the demand for fresh food packaging solutions is growing tremendously as these packaging solutions help to preserve the freshness and quality of the food product during transportation. As such, fresh packaging solutions allows to reduce wastage as well as transportation cost, thereby bolstering the fresh food packaging market growth. Increasing demand for freshly packed food items in order to stay healthy is positively impacting the market growth of fresh food packaging globally. Furthermore, the increasing investments by key players of the market in the development of new packaging solutions is one of the key opportunities for the market to surge in the near future.
The major factor that is fueling the demand for fresh food packaging solutions is the growing concern regarding the shelf life of food products. Although processes food is still a viable alternative for many customers who seek healthy food products with high ease of consumption, fresh food products hold a strong position in this landscape. Both consumers as well as manufacturers across food industry are increasingly demanding good quality packed food items with prolonged shelf life and better packaging which is shifting their demands toward packed fresh food. Increasing number of supermarket and hypermarket stores in both developed and developing economies is also boosting the adoption of fresh food packaging solutions with manufacturers demanding various kinds of packaging solutions to meet the growing requirements with an aim to capture a greater market share. This, in turn, is propelling the growth of the fresh food packaging market during the forecast period. Rising awareness about harmful impacts of additives in packed food is further shifting consumers to opt for fresh food products. There are many food additives which the European Union (EU) has prohibited but are widely used in American foods including BHA, BHT, potassium bromate, and azodicarbonamide (ADA). As such, according to the latest United States Department of Agriculture (USDA) statistics, per capita availability of fruit for canning (product weight) has declined from 12.2 in 2011 to 11.5 in 2017 while per capita availability of vegetables for canning (product weight) has come down to 84.8 in 2017 from 91.4 in 2011. Rising shift towards protein-rich diet is another factor behind the growing market for fresh food packaging for poultry and meat products across the globe.
Supportive government initiatives to increase the local production of fresh food products will continue to bolster the demand for fresh food packaging during the forecast period. In January 2017, USDA funded the Healthy Food Financing Initiative (HFFI) through Reinvestment Fund to improve access to fresh, healthy food in rural areas. Programmes such as Know Your Farmer and Know Your Food Initiative have led to a dramatic rise in consumer demand for local fresh food products. As per Saudi Arabia’s Vision 2030 plan, the NFDP (National Fisheries Development Program) has been allocated a budget of US$400 million over the next five years to support the development of the country’s seafood sector, out of which US$106 million has been designated specifically for developing the aquaculture infrastructure in the country.
Another factor that is ramping up the demand for fresh food packaging solutions is the growing volume of trade of fresh food items among various countries. Fresh food packaging offers several benefits such as optimum atmospheric levels and specific gas requirements for the fresh produce to maintain its freshness and quality over a longer period of time. With countries exporting fresh food items to other countries and strict regulations and guidelines regarding the packaging of food items, the demand for fresh food packaging solutions will continue to increase during the next five years.
The fresh food packaging market is segmented on the basis of material, application, and geography. By material, plastic accounted for a significant market share in 2019 as manufacturers are increasingly investing in R&D to develop innovative, effective, and sustainable plastic packaging solutions. However, growing environmental concerns regarding growing global plastic waste is driving the preference towards paper and paperboard material to be used as a fresh food packaging material.
By application, produce (vegetables and fruits) segment dominates the global fresh food packaging market owing to the high global trade volume of fresh fruits and vegetables. However, sea food will witness a substantial CAGR during the forecast period owing to the growing investments in aquaculture industry to fulfil the emerging demand for sea food items across the globe. According to the FAO data, the seafood production in Brazil is estimated to increase from 1,299 KT in 2016-18 to 1,523 by 2028, with the export volume increasing from 47 KT to 62 KT during the same period.
Geographically, the market is segmented as North America, South America, Europe, Middle East and Africa, and Asia Pacific. APAC accounted for the major market share in 2019 and will continue its dominance till the end of the forecast period. Increasing production of fresh food items in countries like China and India, growing investments in seafood industry in Japan, and entry of global supermarket chains in the region are some of the factors that contributes to the growth of this regional market. The European market is witnessing growth owing to rising pork and poultry meat consumption in different European countries. Furthermore, growing investments by key players in the region in order to expand their facilities in the region also drives the market growth in Europe.
There is a high volume of companies working in the fresh food packaging market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better services to their customers worldwide, which is further expected to propel the growth of the market in the coming years. Some of these are:
The global fresh food packaging market is headed towards a significant growth with the rising investments by key market players in the industry for R&D and expansions and new product launches, which are estimated to augment this growth further in the coming years. According to the analysis by Knowledge Sourcing Intelligence the global fresh food packaging market is estimated to grow at a CAGR of 4.22% to reach US$101.942 billion by 2025.