Food Contact Paper Market Size, Share & Industry Analysis, By Type (Kraft Paper, Greaseproof Paper, Glassine Paper, Parchment Paper, Others), By Application (Fresh Produce, Dry Groceries, Bakery Products, Liquid Food and Drinks, Takeaway and Vending Foods, Others), and Country Forecast, 2024-2032

The global food contact paper market was valued at USD 78.98 billion in 2023 and is projected to be worth USD 82.54 billion in 2024 and reach USD 119.74 billion by 2032, exhibiting a CAGR of 4.7% during the forecast period. Asia Pacific dominated the food contact paper market with a market share of 35.26% in 2023. Moreover, the food contact paper market in the U.S. is projected to grow significantly, reaching an estimated value of USD 25.35 billion by 2032, driven by the growth in food service and takeout industries.

Papers that are expected to come in contact with the food product while manufacturing, processing, serving, or storing are considered food contact paper. This mainly includes kraft paper, greaseproof paper, and parchment paper, among others. Paper can be considered one of the oldest packaging materials used in food packaging. Paper is produced using cellulose fibers that are primarily derived from wood. Since paper is manufactured using wood, it is categorized as a biodegradable and renewable material. Traditionally available, untreated paper is highly porous and has very low barrier properties. Thus, to cater to modern-day packaging needs, paper is treated using coatings, fillers, coatings, and synthetic binders. The physical and chemical treatments enhance the material properties, making it suitable for a wide range of applications, including those involving contact with liquid and semifluid foods. A few of the major types of food contact paper include the packaging of dry food products such as flour, sugar, and dried fruits, along with semisolid products such as lard and butter.

The paper product manufacturing companies witnessed severe fluctuations in demand during the pandemic. Companies reported a decrease in sales volume owing to abrupt shutdowns imposed to curtail the spread of the virus during the initial phase of the pandemic. However, the paper packaging industry was considered essential by various governments, providing some degree of relief to food packaging manufacturers. Growth in e-commerce shipments during the pandemic with proper precautionary measures positively affected the market growth. Thus, growth in e-commerce deliveries were the primary drivers for the market that resulted as a consequence of the COVID-19 outbreak.   

Food Contact Paper Market Trends

Growing Demand for Online Delivered Food to Drive Market Growth

The e-commerce industry has gained a significant amount of growth in the past few years, and it is expected to remain the same in the near future. In e-commerce portals, demand has sharply increased for fresh produce, dry groceries, bakery products, liquid food and drinks, and more. Licious, Swiggy, Foodpanda, UberEats, and other such online food delivery companies are penetrating the food industry by changing eating habits. Consumers are ordering food and beverages, meat, fish, and poultry products through these online food delivery companies. These companies are using food contact paper as an effective marketing tool to attract more customers through their effective, sustainable, and eco-friendly packaging.

Moreover, the food industry, including restaurants, hotels, and others are adopting online food ordering systems to attract more customers. Therefore, customers can now easily order food online and get delivery to their homes in the shortest time. In the last five years, online food ordering and restaurant delivery have increased at an average growth rate of 20%. Thus, increasing demand for online-delivered food products across the globe is creating an opportunity for the global market.

Food Contact Paper Market Growth Factors

Growing Demand for Eco-friendly Packaging to Drive Market Growth

The increasing demand for eco-friendly packaging is expected to drive the market during the forecast period. Paper for food contact is a versatile and cost-efficient packaging solution to protect, preserve, and transport a wide range of food products. The key players, as well as small-scale industry players operating in the food industry, are adopting sustainable packaging and promoting eco-friendly packaging to their food products are positively impacting the market. Paper packaging can be customized to fulfill the customers or product-specific needs. The rise in demand for the product is attributed to features such as lightweight, biodegradability, and recyclability. These attributes are the advantages of food contact paper packaging, which make it an essential component for the food contact paper market growth. Increasing customer awareness related to sustainable packaging and the strong standards & regulations imposed by environmental protection agencies across the globe (related to the use of environment-friendly packaging products) is also driving the global market.

Globalization of Food Trade to Prompt Higher Demand Driving Market Growth

The globalization of food trade necessitates the production of food contact paper that adheres to diverse international regulations and standards. With different countries imposing their own specifications for food packaging materials, manufacturers need to create products that comply with the requirements across different countries. This involves rigorous testing and certification processes to ensure the safety and quality of food contact paper.

The paper that offers efficiency in storage, transportation, and handling within the supply chain, such as lightweight and easy to handle packaging, contributes to operational efficiency for food traders. Consequently, manufacturers capable of producing versatile solutions that satisfy regulatory and consumer demands on a global scale are expected to gain a competitive advantage in the dynamic and evolving landscape of the food packaging industry. Thus, as the food industry expands globally, the demand for food packaging solutions is expected to rise, driving the market growth. 

RESTRAINING FACTORS

Increasing Concerns Regarding the Use of Chemicals is Anticipated to Hinder Market Growth

Packaging is majorly used to protect and preserve food during transportation. In addition, it includes elements that are used to make food products more attractive and appealing. Due to its functional nature, the packaging is frequently done to meet specific needs. While producing food contact paper, chemicals are often used to improve the functional nature of packaging.

Chemical compounds are often found in fast food packaging, cookware, and other food packaging materials, which resulted in increasing serious health concerns. The chemicals used in food contact paper that have adverse effects on human health are unknown. It can be associated with serious health concerns, including cancer, liver disease, immune dysfunction, reproductive harm, and hormonal dysregulation. Therefore, chemicals found in food packaging and other materials that come in contact with food are restraining the market during the forecast period.

Food Contact Paper Market Segmentation Analysis

By Type Analysis

Kraft Paper Segment to Dominate the Market Owing to Rising Adoption in Food Packaging

Based on type, the market is classified into kraft paper, greaseproof paper, glassine paper, parchment paper, and others.

Among these, the kraft paper segment dominated the market in 2023. The segment maintained its dominance during the forecast period. Kraft paper is a primary choice for food packaging owing to its strong and long-lasting packaging solution. Kraft paper is increasingly used to manufacture paper plates, paper bags, grocery bags, wrapping paper, and more.  

After kraft paper, greaseproof paper and parchment paper are the second and third largest types, respectively. These papers have non-stick and moisture-resistant properties. Due to this, both papers have increased demand for bakery products. Glassine paper has a strong density compared with other common papers. The strong density makes it more durable than any other type of paper. Glassine paper is preferably used by consumers for wrapping cheese, meat, and fries.

By Application Analysis

Fresh Produce Segment to Hold a Substantial Share Due to Increase in Demand for Eco-based Packaging from Consumers

Based on application, the market consists of fresh produce, dry groceries, bakery products, liquid food and drinks, takeaway and vending food, and others.

Among these, the fresh produce segment is expected to dominate the application segment during the forecast period. It includes fresh fruits, vegetables, and more. Consumers are preferably using eco-friendly grocery bags to carry fresh fruits and vegetables due to environmental awareness for food packaging.

In the application segment, dry groceries registered as the second largest segment in 2023. Sugar, wheat, rice, and so on are some examples of dry groceries. Kraft paper and greaseproof paper are primarily used for packaging of these dry groceries. After the dry groceries segment, liquid food and drinks, bakery products, and takeaway and vending foods are expected to have positive growth in the global market. In the bakery sector, parchment paper is the majorly consumed type owing to its heat-resistant quality and non-stick surface.  Growing demand for online-delivered bakery products is anticipated to positively influence market growth.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 27.85 billion in 2023. Asia Pacific dominated the global market in 2023 and is anticipated to maintain its leading position in the near future due to the growing food industry. The growth of the food service industry in developed and developing countries such as China, India, and Japan is contributing to the growth of the market. In addition, consumers and manufacturers of food products are moving toward eco-friendly and sustainable packaging solutions that are propelling the market. Moreover, rising awareness about the environment and various Asian governments have started to ban plastic packaging solutions, thereby influencing the consumption of paper for food contact. China is planning to ban all single-use plastic by 2025, and replace them with bio-based products and non-plastic products. China is the world's largest plastic producer. It produces 5-12 million metric tons of plastic. Such a plastic ban decision helps countries to produce more bio-based packaging solutions, and this results in the growth of the market during the forecast period.

North America is projected to gain growth owing to key players operating in the region. New technologies in food packaging solutions, including laminated and coated papers will further prevent leakages and are estimated to increase the market growth during the forecast period. In the North America region, the U.S. is projected to have the largest food contact paper market share during the forecast period due to changing lifestyles of individuals and rising demand for eco-friendly packaging in that region.

Europe holds an impressive share of the market. The market in Europe is predicted to display average growth over the forecast period. The growth can be linked with the growing consumer awareness of sustainable packaging materials, rising awareness toward global ecological issues, cost-effectiveness, environment-friendly nature, and others.

Latin America’s food sector is expected to emerge over the forecast period as a result of surged foreign investment since the last decade. Numerous nations in the region are anticipated to grow in significance as manufacturing hubs owing to their close proximity to Canada and the U.S. The demand for paper packaging is expected to witness growth to support the growth of the industries in this region. This is predicted to drive the regional market growth.

The market in the Middle East & Africa also witnesses a significant revenue share due to the rising food industry in countries such as the U.A.E. and Saudi Arabia. Favorable government regulations toward bio-based packaging in Saudi Arabia have included a program for food product packaging, which, in turn, supports the market growth in this region.

List of Key Companies in Food Contact Paper Market

Tactical Planning Adopted by Companies to Reinforce their Market Share

The key companies in this market include Mondi Plc, Twin Rivers Paper Company, Westrock Company, Asian Pulp & Paper Company, and Nordic Paper, among other players. Growing demand for eco-friendly food packaging from various end-use industries is likely to foster market players to enhance the quality of products. This can fundamentally be done by dynamic financing in R&D and lowering costs through process innovation. Various companies, such as Schweitzer-Mauduit International, Inc., KRPA PAPER, a.s., SCG Packaging PCL, Ahlstrom-Munksjo, PT. Indah Kiat Pulp & Paper Tbk, Pudumjee Paper Products, BPM Inc., Seaman Paper Company, and UPM Global, are active contributors to the market.

LIST OF KEY COMPANIES PROFILED:

• Mondi Plc (U.K.)


• Twin Rivers Paper Company (U.S.)


• Westrock Company (U.S.)


• Asian Pulp & Paper Company (Indonesia)


• Nordic Paper (Sweden)


• Schweitzer-Mauduit International, Inc. (U.S.)


• KRPA PAPER, a.s. (Europe)


• SCG Packaging PCL (Asia Pacific)


• Ahlstrom-Munksjo (Finland)


• BPM Inc. (U.S.)


• Seaman Paper Company (U.S.)


• UPM Global (Finland)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – Mondi and Syntegon launched a new paper packaging solution made using recycled fibers. The product is made using Mondi’s EcoVantage kraft paper, which is spot coated to create dust-tight, heat-sealable packaging. This paper packaging can be used for packing dry foods such as sugar, pasta, and flour.


• October 2022 – Mondi Plc invested funds in a new paper machine at its flagship Štětí mill in the Czech Republic. Such investment helps the company to capture the growing demand for paper-based flexible packaging. This development will contribute to increasing companies’ range of innovative, sustainable packaging, and paper solutions.


• July 2022 – Nordic Paper developed new natural greaseproof papers for the food industry without the addition of fluorochemicals. The company has achieved natural barrier properties in its new developed product (paper) without the addition of fluorochemicals. Such product developments are helpful for the company to gain more customer base by offering more sustainable alternatives to packaging manufacturers.


• June 2022 – Mondi launched Grow&Go, a range of consumer-friendly trays and carry-packs to produce pallet-ready bulk shipping boxes. The Grow&Go solutions are made using readily recyclable paper. The company claims that this product solution can reduce vegetable and fruits damage while maintaining hygienic packaging.


• March 2022 -  Wipak UK announced its plans to launch a recyclable paper wrap for butter made using renewable, FSC-certified paper. The product offers superior grease resistance and is made using ultra-thin natural coatings. The company claims that its new paper wrap will reduce carbon footprint by 68% relative to standard wraps used for butter packaging.


• December 2021 – Nordic Paper completed the acquisition of Glassine Canada Inc. This acquisition helped the company to make a strong footprint in the North America market.


• April 2021 – Twin Rivers Paper Company expanded its product portfolio of PFAS-free and fluorochemical-free grease resistant food packaging. These products are marketed under the brand name EcoBarrier. By expanding its product line in the EcoBarrier segment, the company aims to support the initiatives of fast food service businesses trying to phase out FC-based grease-proofing agents in food packaging.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies and products. Also, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation