Service Packaging Market Size, Share & Industry Analysis, By Material (Plastic, Paper & Paperboard, and Others), By Product Type (Bags & Pouches, Boxes & Cartons, Trays & Clamshells, Films & Wraps, Mailers, and Others), By End Use (Food & Beverages, Consumer Goods, Personal Care & Cosmetics, Fashion Apparel & Accessories, and Others), and Regional Forecast, 2024-2032

The global service packaging market size was valued at USD 115.70 billion in 2023 and is projected to be worth USD 120.65 billion in 2024 and reach USD 173.77 billion by 2032, exhibiting a CAGR of 4.67% during the forecast period. Asia Pacific dominated the service packaging market with a market share of 39.25% in 2023. Moreover, the service packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 33.53 billion by 2032, driven by the increasing consumer demand for packaging solutions that are both convenient and eco-friendly.

Service packaging is the type of packaging that is generally not filled with the products or items until it reaches the final supplier or distributor. It involves bags, pouches, boxes, and others, such as cups for beverages, wrapping films for fruits and vegetables, and many more. The increasing demand for service packaging in industries and their wide applications is boosting the market expansion. The massive expansion of the e-commerce industry has played a crucial role in accelerating the market development.

The COVID-19 pandemic affected the market with the shortage of labor and the unavailability of raw materials. The food & beverage sector witnessed moderate growth, and the pharmaceutical sector remained untapped from the acute impacts of the pandemic due to the constant demand & supply of medicinal drugs. The augmented growth in this sector thus boosted the e-commerce industry, which, in turn, contributed to the market’s growth.

Service Packaging Market Trends

Consumer Inclination Toward Ready-to-eat Food Bolsters Market Growth

Nowadays, food service covers everything from fancy-dining restaurants to small food trucks. The convenience and experience in quick service restaurants are the key drivers fueling growth in food service packaging. Convenience stores ensure high-quality offerings within the fast-paced retail with environmentally friendly product offerings. Some of the leading global players in manufacturing and designing are committed to packaging food products while protecting the environment by using materials that reduce food and packaging waste to conserve valuable natural resources.

An escalating trend within the ready-to-eat food industry is surging consumer interest toward natural, healthier options. This wave implies that manufacturers are left with no choice but to engineer products that resonate with consumers' evolving likings for clean labels and organic ingredients in addition to plant-based and vegan acceptance in the ready-to-eat market. The two perspectives that can be observed, one being that people are willing to adopt plant-based diets or reduce their meat intake, resulting in a significant rise in those yearning for plant-based or vegan-friendly standard meals. The other perspective is that this trend is expected to continue growing globally.

Service Packaging Market Growth Factors

Rapid Growth in the E-commerce Sector Has Played a Vital Role in the Market’s Growth

E-commerce has boosted the global packaging industry and also promoted the development of the large-scale service packaging sector. Packaging must be designed to withstand the challenges of shipping and ensure the safety of products. The expansion of e-commerce and online shopping encourages demand for different packaging types, such as bags and pouches, mailers, and others. Furthermore, manufacturers' increased investment in high-quality packaging to enhance brand recognition is also driving market growth. Major market players are also collaborating with key e-commerce players to increase their presence, thereby contributing to the growth of the market. Furthermore, the increase in online retail and growth in e-commerce sales are also contributing to the service packaging market growth.

Increasing Consumer Demand for Packaging Solutions that are Both Convenient and Eco-friendly to Aid Market Growth

In Asia Pacific, recent research suggests that consumers are inclined toward spending extra on eco-friendly products, and this has ranked sustainable packaging as the most important factor in purchase conditions. Luxury packaging and sustainability are now considered synonymous with people's choice of lifestyle changes. Brands focus on using exotic materials and consider themselves to be an elegant blend between two different concepts that is sustainability and convenience. The rising need for sustainable packaging is an opportunity for both manufacturers and retailers to work together, innovate collectively, and respond positively to the demand for innovation that addresses changing customer preferences due to compliance with regulatory limitations.

RESTRAINING FACTORS

Cost Fluctuations due to Unavailability of Raw Materials is Restraining Market Growth

Unique and special raw materials needed for service products are only sometimes available, which can fluctuate their costs. Moreover, strong competitors in the domestic market are hampering the growth of the market as the number of innovation and different product offerings is increasing. In addition, the strict rules regarding the disposal of plastic is another factor impeding the service packaging market share. In addition, there is a rising penetration of counterfeit services that are used in packaging products that look original but are counterfeited and manufactured from cheap materials. It thus hampers the importance of packaging and makes it challenging for customers to differentiate between counterfeit and original products, further restraining market growth. Many customers settle for such counterfeit products as they are sold at a low price, which further limits market growth. Moreover, the high initial costs associated with service packaging are also hampering the growth.

Service Packaging Market Segmentation Analysis

By Material Analysis

Lightweight Nature of Paper & Paperboard Makes it the Leading Material in the Market

By material, the market is classified into paper & paperboard, plastic, and others. The paper & paperboard is the leading material segment and is expected to observe massive growth during the forecast period. This material is mostly preferred among manufacturers due to its moisture-resistant properties and lightweight. It can withstand changing pressure and temperature, which are factors that influence segment growth.

Plastic is the second-dominating packaging material and is studied to grow at a steady rate over the forecast period. The ease of manufacturing and carrying service packaging products from one place to another are factors driving the segment’s growth. 

By Product Type Analysis

Bags & Pouches Dominate Owing to its Rising Adoption Due to Ease in Transport and Storage

In terms of product type, the market is categorized into bags & pouches, boxes & cartons, trays & clamshells, films & wraps, mailers, and others. The bags & pouches segment accounts for the largest share in the product type segment. The pouches are convenient to store and easy to transport due to their sturdy design and lightweight factor. They come in a wide variety of shapes and sizes and provide an effective means of preserving shelf-life.

The boxes & cartons hold the second largest market share in the product type segment. Boxes & cartons provide exceptional protection for a range of dry food and semi-solid products. The product is conveniently accessible to transport and store, which is boosting the segment’s growth.

By End Use Analysis

Rising Demand for Primary Packaging Solutions to Spur the Food & Beverages Segment Growth

By end use, the market is divided into consumer goods, personal care & cosmetics, food & beverages, fashion apparel & accessories, and others. Food & beverages is the dominating end use segment and is anticipated to expand vigorously in the upcoming years. This can be attributed to their versatility, durability, and wide range of applications across various industries, including various packaging types. Escalating demand for primary packaging solutions such as service packaging owing to such potential benefits further drives the segment’s growth.

The fashion apparel & accessories segment holds a substantial share of the service packaging market. The fashion apparel & accessories industry heavily relies on the solution to ensure the safe and hygienic delivery of products to consumers, which is driving the segment growth.

REGIONAL INSIGHTS

The market for service packaging is analyzed across Latin America, Asia Pacific, Europe, the Middle East & Africa, and North America.

Asia Pacific is the dominating region of the global service packaging market. The expansion of the e-commerce industry and rising online shopping trends in the region are majorly intensifying the demand for luxury services. The increasing preference for processed food, driven by a growing hectic lifestyles, rising disposable incomes, and working population along with the shift in population dynamics from urban to rural areas, is also propelling the market.

North America accounts for the second largest share of the global market with the presence of leading manufacturers along with the continuous product innovations by key players. In addition, the presence of the largest service exporting and importing countries in Europe, such as France, Italy, and others, also enhance market growth. The region is experiencing massive growth due to the changing lifestyle trends, coupled with the luxurious way of living and significant demand for services from the Gen Z population. The presence of top manufacturers of service brands and packaging solutions in the region also contributes to the market growth.

Latin America is projected to witness steady growth during the forecast period due to growing urbanization, rising e-commerce sales, and growing expansion of players in various parts of the region.

The Middle East & Africa is slated to grow moderately over the projected period due to the rising demand for luxurious packaging from millennials and the working women population.

List of Key Companies in Service Packaging Market

Top Companies Provide Innovative Solutions to Enhance Their Position

The global service packaging market is highly competitive and fragmented. A few significant companies are leading the market by providing innovative packaging solutions in the packaging industry. These key companies consistently emphasize expanding their customer base across regions by innovating their existing range of products. Major players in the service packaging industry include Amcor Ltd., Nippon Paper Industries Co. Ltd., Sonoco Products Company, AptarGroup Inc., and others. Many other players present in the market are focused on market scenarios and offering advanced packaging solutions.

List of Key Companies Profiled:

• Amcor Ltd. (Australia)


• Anchor Packaging (U.S.)


• Nippon Paper Industries Co. Ltd. (Japan)


• Sonoco Products Company (U.S.)


• AptarGroup Inc (U.S.)


• Crown Holdings, Inc (U.S.)


• DS Smith Plc. (U.K.)


• Mondi Group (U.K.)


• Graphic Packaging International Inc (U.S.)


• International Paper (U.S.)


• Smurfit Kappa Group (Ireland)


• Huhtamaki (Finland)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 – IMEX Vision (IMEX) introduced Adama, a range of paper cups that are completely sustainable for hot and cold beverages typically found in quick-serve and takeaway sectors. The cups are made using APP Group’s (APP) Foopak Bio Natura base paper. In addition, they do not contain PFAS, can be easily recycled at curb-side, and meet composting standards.


• February 2024 – AptarGroup, Inc., a leader in active material science food safety solutions, has obtained the North American license to manufacture and distribute the Halopack Tray system. This innovative packaging solution aims to improve sustainability for a wide range of food applications, including fresh, frozen, reheatable, grab-and-go, and oven-able products.


• April 2023 – Hinojosa Packaging Group introduced its primary packaging line Foodservice, which is paper-based and recyclable— specifically crafted for hot and cold beverages and 4th and 5th range prepared foods. In unveiling the new product line, Hinojosa declared a bold step in its pledge to minimize single-use plastics by catering to the foodservice industry. This sector ranks high among those who seek eco-friendly materials due to large consumption rates driven by their operational activities.


• April 2022 – Mondi launched a semi-rigid tray made with plastic & paper at Anuga FoodTec to protect the fresh food contents from manufacturing to the delivery of products. This packaging provides solutions for sliced food such as meat or cheese.


• March 2022 – Placon, the leading thermoforming company in sustainable packaging, launched two food preparation trays, a bakery clamshell, and a pie liner into their PET stock food lineup.

REPORT COVERAGE

The research report provides a detailed market analysis and focuses on key aspects, such as top market players, competitive landscape, product/service types, market segmentation, Porter's five forces analysis, and leading segments of the product type. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market growth in recent years.

Report Scope & Segmentation