Food Packaging Market Trends

Growth Drivers

• Skyrocketing Trend of Online Food Delivery – Since 2020, the food delivery trend has boosted a lot, owing to the social distancing that followed during that time. People are tending to order online food as a result of their busy lifestyle, and for keeping the social distancing. Moreover, the introduction of food delivery apps has accelerated and simplified the process of obtaining favorite foods. Such factors are expected to drive the demand for food packaging market over the forecast period. For instance, in 2022, worldwide revenue of online food delivery segment is expected to reach approximately USD 324 billion.
• Upsurge in Dairy Industry – Dairy industry is one of the most sector that use packaging for their products such as milk, cheese, and others. Moreover, there has been a growing awareness related to the plant-based products, that is further predicted to increase the growth of the global food market. For instance, the organized dairy industry in India is projected to witness around 11% revenue growth by the end of 2022.
• Worldwide Escalating Trend of Online Grocery Shopping – It was observed in research, around 29% of European preferred to choose online method to purchase grocery items.
• Increase in Working Population – Nowadays, consumers are opting for convenient food options, thereby, good packaging can protect the freshness of the food item, which in turn, is anticipated to rise the market’s growth. For instance, globally, the count of employed people was reached approximately 3 billion in 2019.
• Rise in Urbanization – The purchasing power of the population has improved, followed by the rise in the urban population. Thus, it is expected to increase the growth of the global food packaging market. According to the World Bank, currently, more than 50% of the world's population resides in cities. The number of people living in urban areas is estimated to rise more than double to 6 billion by 2045.

Challenges

• The increasing Cost of Raw Materials - The raw materials used for the manufacturing of food packaging keep fluctuating, which affects the packaging industry. Moreover, the cost of skilled labor is another factor contributing to the surge in the price of the final products. Therefore, it is expected to hamper the growth of the global food packaging market.
• Rapidly Changing Technology of Food Packaging
• Environmental Concern Related to the Use of Plastic for Packaging