Growth Highlights based on Region during 2018-2027
The global molded fiber packaging for food service market is estimated to attain a CAGR of 5.0% over the forecast period, i.e. 2020-2027. The market in Asia Pacific is anticipated to occupy the largest market share for molded fiber products, owing to primary factors being the growth of the food services and restaurant-to-go packaging, wherein such packaging materials using molded fiber products are in demand in large quantities in Asia Pacific region, especially in the developing nations, which are reporting consumption of higher quantities in this region. The markets in North America and Europe are anticipated to follow behind Asia Pacific market in terms of growth over the next decade. The market in North America is anticipated to grow significantly, owing to rise in demand for protective packaging in the region, apart from another vital factor being environment concerns becoming an important issue that is forcing especially the retail and food serving sector to shift from plastic packaging to molded fiber packaging for food service market that is considered to be reusable and sustainable. The market in Europe is estimated to witness steady growth over the forecast period, owing to several requirements that are required to be followed for food safety, product quality as well as the brand image.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Mold Type
On the basis of mold type, the global molded fiber packaging for food service market is segmented into thick wall, transfer, thermoformed & processed. Thick wall falling under mold type segment is estimated to grow at the largest CAGR of 5.7% over the forecast period. The underlying factors behind the growth of the thick wall segment over the forecast period can be attributed to the fact that these heavy-walled molded products that are made using recycled paper which is mixed with Kraft paper as raw material are more commonly in demand for use in heavy item packaging.
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By Source
The market is segmented on the basis of source into wood pulp based and non-wood pulp based. The wood pulp-based segment is projected to grow at a steady rate over the forecast period and is anticipated to reach a market size of USD 1924.50 million by the end of forecast period. Wood pulp is compostable and can improve the carbon levels that can balance the nitrogen content in the composted food. Besides, use of cellulose based fibers that are sourced from wood, by which paper and cardboard is made, is common in many countries which is anticipated to boost the growth of the molded fiber packaging for food service market over the next few years.
By Product
On the basis of product, the market is further segmented into trays, bowls, cups, plates, clamshell containers and others. Clamshell containers are estimated to hold the largest market size over the forecast period, owing to their heavy demand in food and beverage industry globally. There are multiple benefits associated with packaging using molded fiber clamshells containers, as they are appealing to the eyes of individuals and provide enough protection, including providing other benefits such as transparent packaging, versatility and can be used by consumers easily. Moreover, another important feature that comes with this product is that packaging can be done in such a way as to mold them in order to fit into objects that comprise of different shapes which are also finding their utilities spanning across a wide range of applications.
Market Drivers and Challenges
Growth Indicators
Growing Demand for Sustainable Packaging Products
Molded fiber is a paper-based material, with packaging using molded fiber experiencing a faster growth in the past few years, owing to a significant shift in consumption of individuals towards packaging that is environment-friendly for their product purchases. Additionally, a growing consumer goods industry along with rise in consumption of FMCG goods is anticipated to drive the demand for sustainable methods of packaging such as molded fiber packaging for food service market in the coming years. Further, greater awareness on damages that can be caused to the environment and the importance of protecting food from being wasted, including the presence of various laws and regulations associated with packaging are all anticipated to drive the growth of the market over the next decade.
Growth of the Food Services Industry and Restaurant-To-Go Packaging
The food services industry has been experiencing a notable growth rate over the past decade, particularly in developing nations such as India, Indonesia and South Africa. The rise in disposable incomes of individuals as well as consumer spending, increase in the number of females entering the workforce, high technology usage in consumer related industries, growing urbanization and hectic lifestyle of consumers are all some major factors that are anticipated to contribute to the growth of the market over the forecast period.
Barriers
High Initial Investment and Huge Costs of Raw-Materials
The molded fiber packaging for food service market is anticipated to suffer from a few limitations in the process of its growth, due to challenges faced by individuals such as the huge fluctuations involved in the costs of purchasing raw-materials that are normally high and which are being used in the case of molded fiber packaging for food service market. In addition to the same, high initial investment is required to be made in the process of shifting towards sustainable packaging methods such as molded fiber packaging for food service market which is not easily attainable. All of these factors are anticipated to hinder the growth of the market over the forecast period.
Competitive Landscape
Some of the renowned industry leaders in the global molded fiber packaging for food service market are Heracles Packaging Co. S.A., James Cropper Plc, Huhtamaki, Brodrene Hartmann A/S, Southern Champion Tray, Henry Molded Products, Inc., Buhl Paperform, Enviropak, UFP Technologies and Keiding, Inc. Moreover, other market players have been coming up with various environment-friendly solutions in the market, in order to gain a competitive advantage over other competitors in the global molded fiber packaging for food service market.
