Sustainable Food Service Packaging Market Size, Share, and Analysis By Material (Plastic, Paper, and Aluminum Foil), By Packaging Type (Boxes & Cartons, Plates, Trays, Clamshells, Bowls, and Pouches & Sachets), By End Users (Quick Service Restaurants, Caf & Kiosks, and Full Service Restaurants), and Regional Forecast, 2024-2032

Sustainable food service packaging involves developing and using packaging that enhances sustainability. It is effective in reducing the environmental impact and ecological footprint. The packaging intends to reduce food waste by improving food quality and safety issues such as food chemical contamination or food-borne diseases. Sustainable food service packaging is emerging as a megatrend as customers worldwide are increasingly concerned about environmental and package leaks’ impact. It further results in new and vital sustainability requirements, thus increasing the demand for sustainable food service packaging.

Moreover, the growing concerns about environmental impacts caused by plastic containers have brought a surge in demand for recycled materials for food services. It is thus propelling the global sustainable food service packaging market. The rising popularity of home delivery services and the pick-up-only requirements from customers are other factors that favor the market growth of sustainable food service packaging.

• For instance, in March 2022 – Winpak, a leading manufacturer and distributor of high-quality packaging materials for healthcare, perishable foods, and beverages, announced that it would be offering Winpak with Ultra-Pure Recycled (UPR) Polypropylene (PP) from its newest facility to constructed in Augusta, Georgia. The agreement will expand Winpak's recyclable packaging solutions and the brand and consumer access to recycled plastic.


• In February 2021, Mondi Group launched a new release liner range with the launch of two new paper-based sustainable EverLiner products: EverLiner Labelite and EverLiner M R. Both products are designed using recycled and lightweight material and reduce carbon footprint. They also offer more sustainable solutions in a wide range of applications.

The rapid market expansion is predominantly due to the rapidly growing advancement and an increasing number of food service establishments. The rising disposable income of consumers and the changing living standards favor the demand for pre-packed and frozen food products, further driving the sustainable food service packaging market. It is also considered a critical factor in spicing up the expansion of sustainable food service packaging. In addition, the food service disposable manufacturers have increased their focus on introducing sustainable packaging solutions to increase food's shelf-life, reduce contamination, and retain freshness. Changing consumer lifestyles, buying behaviors, and urbanization positively influences the consumption of packaged meals and boost sustainable food service packaging market sales.

Moreover, the rising concern for the environment among consumers forces manufacturers and consumers to opt for sustainable food service packaging rather than harmful packaging solutions. With a continuously growing number of working people and rising industrialization, these food consumption patterns are expected to drive packed food products across the globe. It is thus projected to propel the demand for sustainable food service packaging significantly during the forecast period.

The cost of using sustainable food service packaging is much higher than conventional packaging, which is a restraining factor for market growth. The high cost is due to the materials involved, their sourcing, and the less-established supply chains in the market. Moreover, the lower economies of scale and low manufacturing processes also hinder the market growth of sustainable food service packaging. The switching cost of packaging from regular to eco-friendly can be quite expensive for many small-scale businesses, which also poses an obstacle to sustainable food service packaging growth.

IMPACT OF COVID-19 ON THE SUSTAINABLE FOOD SERVICE PACKAGING MARKET

The sudden outbreak of the novel coronavirus both positively and negatively impacted the sustainable food service packaging market growth. The lockdown and shutdowns imposed by the government affected all the global industries. The manufacturing activities witnessed declining growth initially due to supply chain disruptions and limited labor staff. The supply chain disruption and the unavailability of raw materials harmed the sustainable food service packaging market during the COVID-19 pandemic. However, after a certain period, the vast production and supply of food and beverages and increasing pharmaceutical supplies caused a surge in demand for sustainable food service packaging. The demand during the pandemic can be attributed to changing dietary patterns and increased health awareness. The trend is thus projected to offer lucrative growth opportunities in the post-pandemic era.

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in the Sustainable Foodservice Packaging Market


• Key Industry Trends


• Regulatory Landscape for Sustainable Foodservice Packaging Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY MATERIAL

Based on the material, the market is segmented into plastic, paper, and aluminum foil. Paper material is the dominant segment driving the global sustainable food service packaging market. The rapid expansion of this segment can be attributed to the cost-effectiveness and the minimum impact of paper on the environment. Moreover, the increasing preferences of key industry players for paper to produce sustainable food service packaging products also drives the growth of this segment. Furthermore, as the paper material is highly compostable and does not break down into microplastics, it can be recycled easily. Such factors all together drive the global sustainable packaging market.

ANALYSIS BY PACKAGING TYPE

Based on the packaging type, the market is segmented into boxes & cartons, plates, trays, clamshells, bowls, and pouches & sachets. The boxes and cartons segment dominates the market growth of the global sustainable food service packaging market. Boxes and cartons are effective in keeping items safe during transportation, which drives the growth of this segment. They have no impact on the environment and are affordable and convenient to use, which thus attracts many end users of the sustainable foodservice packaging market. The material used to prepare the boxes and cartons makes them eco-friendly and the most versatile packaging for food items.

ANALYSIS BY END USERS

Based on the end users, the market is segmented into quick-service restaurants, café & kiosks, and full-service restaurants. Quick-service restaurants dominate the segment growth of the global sustainable food service packaging market. They offer low-cost food options and are focused on the speed of service. The minimal table service and self-service options make them different from traditional restaurants. Moreover, the increasing demand from consumers for healthy, cheap, and quickly available food boosts segment growth. The standardization across food outlet chains by hygiene, ambiance, easy accessibility, and service time fosters segment growth.

REGIONAL ANALYSIS

The sustainable food service packaging market has been studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region dominates the sustainable food service packaging market owing to the presence of emerging economies and densely populated countries such as China and India. The demand for food services is increasing in this region, and the adoption of sustainable packaging is gaining momentum, thus surging regional growth. North America is expected to witness significant growth in the upcoming years due to favorable government policies. Moreover, key players in the North American region are adopting more sustainable food service packaging solutions than traditional packaging. Europe is anticipated to witness the fastest growth owing to the increasing government initiatives to reduce the waste in landfill and high consumer demand for quick food delivery. Latin America and Middle East & African regions will experience steady growth in the forthcoming years.

KEY PLAYERS COVERED

The report will include profiles of key players such as Amcor Plc, Mondi Group, Sealed Air Corporation, Tetra Pak International, Huhtamaki Oyj, Smurfit Kappa Group, Sonoco Products Company, Ardagh Group, Ball Corporation, Crown Holdings Inc., and International Paper Company

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In June 2022, Tetra Pak joined hands with Reliance-owned Milkbasket, which is India's first and largest daily micro-delivery service. It mainly aims to help consumers recycle their used beverage cartons through Milkbasket's app. Under this initiative, Milkbasket users can submit a pick-up request and their usual groceries delivery order through the app. Later they have to leave the used cartons in the Milkbasket bag outside their door. While dropping off groceries, the delivery person will pick up these used cartons and take them back to the central hub.


• In February 2022 - WestRock Company declared to construct a new corrugated box plant in Longview, Washington, to meet the growing demand from Westrock’s regional customers in the Pacific Northwest. The new plant will serve each industry segment and market in the Pacific Northwest to fulfill its sustainability goals. The new plant is considered to replace the company’s existing corrugated operations in Longview.


• In February 2022, a compostable food service ware brand, CHUK, announced the joining of quick commerce firm Blinkit as its sustainability partner. Blinkit delivers CHUK's products to end consumers within 10 minutes, further bridging the gap between end consumers and CHUK. This partnership will enable CHUK to facilitate more accessible access to its range of products for customers worldwide.


• In December 2021, Amcor announced the launch of a high-speed, high-barrier, recycle-ready liquid pouch packaging solution to meet its 2025 sustainability goal. The new product combines critical machinability performance and barrier characteristics for product protection of shelf-stable liquid foods for food service & retail applications.


• In December 2021, a leading longevity packaging manufacturer, Eka Global, announced the opening a new manufacturing plant in India in 2022. The new manufacturing includes an investment of USD 10 million production plant that will enable the company to increase its production capacity to meet rising demand in Asian markets.