Food Packaging Market to Reach USD 613.7 Billion by 2033

Introduction

The Global Food Packaging Market is projected to reach approximately USD 613.7 billion by 2033, rising from an estimated USD 359.3 billion in 2023. This growth is expected to occur at a compound annual growth rate (CAGR) of 5.5% during the forecast period of 2024 to 2033. In 2023, the Asia-Pacific region led the market, capturing a 39.3% share and generating USD 141.2 billion in revenue within the food packaging sector.

Food packaging refers to the process of enclosing, protecting, and preserving food products to ensure their safety, quality, and shelf life during transportation, storage, and consumption. It involves the use of various materials, such as plastics, paper, glass, and metals, designed to meet the specific requirements of different food types.

Modern food packaging also incorporates features such as convenience, branding, and sustainability, responding to consumer expectations for functionality and environmental responsibility.

The food packaging market encompasses the global industry focused on the production, distribution, and innovation of packaging solutions tailored for food products. This market covers a wide spectrum of applications, including fresh produce, processed foods, beverages, and ready-to-eat meals, across diverse retail and distribution channels.

The industry is driven by advancements in packaging technologies, such as vacuum sealing, modified atmosphere packaging (MAP), and biodegradable materials, which enhance the safety, shelf life, and consumer appeal of food products.

The food packaging market is experiencing sustained growth due to several key factors. The rising global population and increasing urbanization are fueling demand for packaged and processed foods, especially in emerging economies. Shifts in consumer behavior, such as the preference for convenient, on-the-go food options, and the growing focus on food safety, are also major contributors.

Additionally, the demand for sustainable and eco-friendly packaging solutions has intensified due to heightened environmental awareness and government regulations aimed at reducing plastic waste. Innovations in smart packaging, which can monitor freshness and improve traceability, further catalyze market growth.

The demand for food packaging is being driven by changing lifestyles, particularly among urban populations, and the expansion of e-commerce platforms specializing in grocery delivery. Packaged foods, such as frozen meals, snacks, and beverages, are seeing increased consumption as they cater to busy schedules and provide convenience.

Additionally, the rise in global food exports is boosting demand for durable and tamper-proof packaging that ensures the integrity of food during transportation. Increasing disposable incomes in developing nations and the trend toward premiumization in food products are also elevating the demand for high-quality, aesthetically appealing packaging.

The food packaging market offers significant opportunities for innovation and growth. The rising consumer interest in sustainable living creates a lucrative space for companies investing in biodegradable, compostable, and recyclable packaging materials. Similarly, the integration of digital technologies, such as QR codes and RFID tags, into packaging designs enables better tracking, transparency, and consumer engagement, presenting opportunities for differentiation in competitive markets.

The expansion of ready-to-eat and plant-based food categories provides additional scope for specialized packaging solutions tailored to these emerging segments. Moreover, companies adopting circular economy principles and exploring reusable packaging systems are well-positioned to capture long-term value in a market increasingly focused on sustainability and resource efficiency.

Key Takeaways

• The Global Food Packaging Market is expected to be worth around USD 613.7 billion by 2033, up from USD 359.3 billion in 2023. It will grow at a CAGR of 5.5% during the forecast period from 2024 to 2033.
• In 2023, Flexible held a dominant market position in the By Type segment of the Food Packaging Market, with a 44.3% share.
• In 2023, Plastics held a dominant market position in the By Material segment of the Food Packaging Market, with a 40% share.
• In 2023, Bakery & Confectionery held a dominant market position in the By Application segment of the Food Packaging Market, with a 28.3% share.
• Asia Pacific dominated a 39.3% market share in 2023 and held USD 141.2 Billion in revenue from the Food Packaging Market.

Food Packaging Statistics

Plastic Packaging Waste Overview

• Plastic packaging waste accounts for 83% of household waste in the UK.
• Globally, plastic packaging represents 40% of all plastic waste.
• Approximately 141 million tonnes of plastic packaging are produced annually worldwide.
• Only 14% of global plastic packaging is recycled.
• Reusing just 10-20% of plastic packaging could cut ocean plastic waste by half.

Impact of Fast Food and Single-Use Plastics

• Fast food packaging contributes to 88% of global coastline litter.
• Just 10 plastic items, including coffee cup lids, account for 75% of ocean waste.
• Straws, stirrers, and lolly sticks make up 2.5% of ocean litter.
• Over 50% of all plastic waste comes from short-use plastics, with 40% from packaging alone.

Packaging Waste by Region

European Union

• EU nations generate about 84 million tonnes of packaging waste yearly.
• EU residents produce an average of 7kg of packaging waste per person annually.
• Paper and cardboard lead EU packaging waste materials (34 million tonnes), followed by plastic (16.1 million tonnes).
• The EU recycles 84.2% of its total packaging waste.

United Kingdom

• The UK creates 11 billion items of packaging waste every year.
• Plastic accounts for 2 million tonnes, while glass and paper/cardboard each make up another 2 and 5 million tonnes respectively.
• The UK recycles 72% of glass, 69% of paper/cardboard, but only 44% of plastic packaging waste.

United States

• Containers and packaging are a major part of municipal solid waste, reaching 2 million tonnes.
• 63% of the USA’s municipal solid waste comes from packaging materials.

E-commerce and Cosmetic Packaging Waste

• Packaging waste from e-commerce is eight times higher than offline purchasing.
• Worldwide, e-commerce generates 942 million kilograms of plastic packaging waste annually.
• China’s e-commerce industry produces 5 million kilograms of plastic waste, while the USA produces 7 million kilograms.
• The global cosmetics industry creates 120 billion units of packaging annually, with 95% of it discarded.
• Packaging accounts for 70% of the cosmetics industry’s waste and 30% of global plastic waste.

Consumer Behavior and Sustainability

• 64% of consumers prefer brands using sustainable packaging.
• 50% are willing to pay more for products with eco-friendly packaging.
• 43% of consumers consider environmental impact critical in purchasing decisions.
• Despite commitments, fewer than 30% of companies are adequately prepared for sustainable packaging regulations.

Sustainability Efforts by Businesses

• Up to 75% of companies have pledged to use more sustainable packaging.
• 80% of consumer goods companies have embraced sustainable packaging compared to only 66% of B2B businesses.
• Reusing packaging materials can significantly reduce the environmental impact of industries.

Key Insights on Waste Reduction

• Recycling rates for plastic packaging remain low globally, at just 14%.
• Single-use plastics dominate global waste streams, often used once and discarded.
• Sustainable packaging and material reuse offer significant opportunities to reduce ocean and landfill waste.

Emerging Trends

• Sustainability as a Core Driver: The shift toward eco-friendly packaging is accelerating. Brands are adopting biodegradable, compostable, and recyclable materials in response to growing consumer demand for sustainability. For instance, over 60% of global consumers actively seek out food packaging that reduces environmental impact.
• Smart Packaging Innovations: Intelligent packaging systems, such as QR codes and near-field communication (NFC), are enabling consumers to access real-time information about product freshness, origins, and nutritional data. Smart packaging adoption is expected to rise as technology costs decline and consumers demand greater transparency.
• Rise of Edible Packaging Solutions: Edible food packaging, made from materials like seaweed or rice starch, is emerging as a novel solution to reduce single-use plastics. Startups are already developing edible wrappers for items like single-serve coffee or snack bars, catering to markets looking for zero-waste solutions.
• Growth in Flexible Packaging: Flexible packaging formats, including pouches and resealable bags, are gaining traction due to their lightweight and space-efficient nature. Flexible packaging uses up to 30% less material compared to traditional rigid options, making it cost-effective and attractive to brands focused on reducing transportation and storage costs.
• Personalization Through Digital Printing: Advances in digital printing are enabling brands to offer personalized packaging at scale. For example, limited-edition packaging designs or localized messages are being used to increase brand loyalty. The ability to print directly onto packaging materials is improving efficiency while catering to specific consumer preferences.

Top Use Cases

• Extending Shelf Life with Modified Atmosphere Packaging (MAP): Modified atmosphere packaging is widely used for fresh produce, dairy, and meat products. By altering the gas composition inside packaging, this method extends shelf life by up to 300%, reducing food waste and ensuring product quality during transportation.
• Portion Control for On-the-Go Lifestyles: Single-serve and portion-controlled packaging are increasingly popular among urban consumers. Over 40% of consumers now prefer single-serving options for snacks, beverages, and ready meals, as they fit busy, on-the-go lifestyles while maintaining portion management.
• Barrier Packaging for Perishable Foods: High-barrier packaging materials such as multilayer films are extensively used to protect perishable foods, including frozen and refrigerated products, from moisture, oxygen, and contamination. This use case is critical for reducing spoilage in transit, especially for international supply chains.
• Packaging as a Marketing Tool: Food packaging is not just about protection but also about storytelling and branding. Eye-catching designs, innovative shapes, and functional features (like resealability) have proven to increase sales by as much as 20% in competitive retail environments.
• E-commerce-Ready Packaging: The growth of online food delivery and grocery services has spurred the need for sturdy, tamper-proof, and temperature-controlled packaging. Insulated containers and vacuum-sealed bags are particularly valuable for maintaining product integrity in transit, with global online grocery sales surpassing $150 billion annually.

Major Challenges

• Plastic Waste Management: Despite innovation, over 300 million tons of plastic waste is generated annually, and food packaging is a significant contributor. Recycling rates remain low, with only about 9% of all plastic ever produced being recycled globally, putting immense pressure on environmental systems.
• Compliance with Stringent Regulations: Food safety and labeling regulations vary widely across regions. For instance, materials that are safe in one country may not meet the compliance standards of another. Companies face challenges in adapting packaging designs and materials to meet global food safety standards.
• High Production Costs for Sustainable Packaging: While consumers demand eco-friendly packaging, the cost of producing biodegradable or compostable materials is up to 50% higher than traditional plastics. This price gap creates a barrier for widespread adoption, particularly among smaller businesses.
• Challenges in Packaging for Emerging Markets: Emerging markets, particularly in Asia and Africa, often lack the infrastructure for proper waste management and recycling. This complicates efforts to implement sustainable packaging solutions in regions where demand for packaged goods is growing rapidly.
• Balancing Functionality and Sustainability: Packaging materials must meet multiple requirements such as durability, food safety, and cost efficiency. Achieving this balance with eco-friendly options remains difficult, as many sustainable materials do not yet match the performance of traditional plastics.

Top Opportunities

• Scaling Biodegradable Material Solutions: As technology advances, biodegradable materials such as polylactic acid (PLA) and plant-based fibers are becoming more affordable. Companies investing in scalable solutions for these materials can gain significant competitive advantages in the eco-conscious market.
• Expansion of Reusable Packaging Systems: Reusable packaging models, such as deposit-return schemes for food containers, are gaining momentum. These systems could reduce waste by up to 50% in industries like fast food and grocery delivery, offering long-term savings and customer loyalty benefits.
• Advanced Barrier Technologies for Global Logistics: With the rise of global food trade, advanced barrier technologies like vacuum-sealing and multilayer films present an opportunity to reduce spoilage during long-distance transportation. This is especially relevant for frozen or perishable products, a segment that’s expected to grow steadily.
• Localized Packaging Production for Supply Chain Efficiency: Nearshoring packaging production can reduce costs and improve supply chain efficiency. By producing packaging closer to their end markets, companies can lower transportation emissions and increase responsiveness to localized demand fluctuations.
• Integration of Circular Economy Models: The transition to circular economy packaging systems—where materials are reused or recycled indefinitely—presents enormous growth potential. Globally, over 70% of consumers indicate they would pay more for products with recyclable or zero-waste packaging, opening opportunities for brands to lead in this transformation.

Key Player Analysis

• Mondi Group: Mondi Group is a global leader in innovative and sustainable packaging solutions. With operations in over 30 countries, Mondi generated revenues of approximately €8.9 billion in 2022. The company focuses heavily on eco-friendly packaging, offering paper-based alternatives to plastic and driving innovation through its EcoSolutions portfolio. Mondi’s investment in recyclable materials and collaboration with customers for tailored solutions solidify its market leadership.
• Amcor PLC: Amcor PLC, a leading provider of flexible and rigid packaging. The company emphasizes sustainability, aiming for all its packaging to be recyclable or reusable by 2025. Amcor invests heavily in R&D to create lightweight materials and reduce carbon emissions, which aligns with consumer demand for sustainable products. Its global footprint across over 40 countries ensures a strong market presence.
• Tetra Pak International S.A.: Tetra Pak is renowned for its innovative carton-based food and beverage packaging. Sold 179 billion packages the company achieved net sales of approximately €12.7 billion in 2023. Tetra Pak focuses on renewable and low-carbon materials, pioneering solutions like plant-based plastics and aseptic packaging. Its strong presence in both developed and emerging markets reinforces its reputation as a sustainability-driven leader.
• Berry Global Inc.: Berry Global Inc., a key player in the plastic packaging segment, reported revenues of approximately $14.5 billion in 2022. The company serves diverse markets with a focus on advanced plastic technologies and circular economy solutions. Berry’s commitment to sustainability includes increasing recycled content and reducing single-use plastics, aligning with the industry’s push for greener practices.
• Smurfit Kappa Group PLC: Smurfit Kappa is a global leader in corrugated packaging, with 2022 revenues of approximately €12.8 billion. The company is distinguished by its focus on sustainable fiber-based packaging solutions. Smurfit Kappa’s innovations in e-commerce packaging, such as its Safe&Green portfolio, cater to growing online retail trends. Its integrated supply chain and recycling initiatives make it a preferred partner for sustainable solutions.

Future Outlook of the Food Packaging Industry

The food packaging industry is poised for transformative growth, driven by evolving consumer preferences, sustainability imperatives, and advancements in technology. Rising demand for eco-friendly and biodegradable materials, propelled by stringent global regulations, is reshaping the market landscape. Major investments are being funneled into sustainable packaging innovations, with companies like Tetra Pak pledging over $100 million towards renewable materials development.

Additionally, smart packaging technologies incorporating QR codes and IoT sensors are gaining traction, enhancing supply chain traceability and consumer engagement Startups and investors are actively driving funding rounds, with Loop securing $25 million to expand reusable packaging models. The industry’s future lies at the intersection of circular economy principles and cutting-edge technology.

Asia Pacific Food Packaging Market

Asia Pacific Leads the Food Packaging Market with Largest Market Share of 39.3%

The Asia Pacific region emerged as the leading market for food packaging in 2023, capturing a dominant 39.3% share of the global market and reaching a valuation of USD 141.2 billion. This impressive market leadership is driven by the region’s rapidly growing population, urbanization trends, and increasing disposable incomes in key economies such as China, India, and Southeast Asia. The rise in demand for convenient, ready-to-eat, and sustainable packaging solutions has been further amplified by the expanding e-commerce sector and changing consumer preferences.

Additionally, favorable government policies promoting sustainable packaging and advancements in biodegradable and recyclable materials contribute significantly to the region’s growth. Asia Pacific’s dominance is supported by the region’s robust food production and export industry, as well as its high consumption levels of packaged food products. This strong performance solidifies the region’s position as a critical hub for innovation and growth in the global food packaging landscape.

Recent Developments

• In November 19, 2024 – Amcor plc announced a definitive merger agreement with Berry Global Group in an all-stock transaction. Berry shareholders will receive 7.25 Amcor shares for each Berry share, with Amcor and Berry shareholders owning 63% and 37% of the combined company, respectively. The deal, unanimously approved by both boards, values Berry’s common stock at $73.59 per share.
• In August 14, 2024 – Mars, Incorporated announced plans to acquire Kellanova for $83.50 per share in cash, valuing the deal at $35.9 billion including assumed debt. The transaction represents a 44% premium to Kellanova’s 30-day volume-weighted average price and 33% to its 52-week high. The acquisition multiple is calculated at 16.4x LTM adjusted EBITDA.
• In June 24, 2024 – Sonoco Products Company announced an agreement to acquire Eviosys, Europe’s leading food cans, ends, and closures manufacturer, for $3.9 billion. Eviosys is currently owned by KPS Capital Partners, and the acquisition reinforces Sonoco’s focus on sustainable packaging solutions.
• In December 09, 2024 – Novolex and Pactiv Evergreen announced a definitive agreement to combine operations. The merger creates a leader in food, beverage, and specialty packaging, with a diverse product portfolio and an expansive manufacturing and distribution network to serve a broad customer base, from major brands to small businesses.
• In 2023 – Kerry Group announced its intent to acquire the global lactase enzyme business of Chr. Hansen and Novozymes. The deal is subject to European Commission approval and is part of the regulatory approval process for the merger of Novozymes and Chr. Hansen. This acquisition strengthens Kerry’s portfolio in enzymes and specialty nutrition solutions

Conclusion

The global food packaging market is poised for sustained growth, driven by evolving consumer preferences, advancements in packaging technologies, and increasing demand for sustainable solutions. As urbanization and e-commerce continue to reshape food consumption patterns, packaging innovations that enhance convenience, safety, and environmental responsibility are becoming critical differentiators for businesses. The focus on eco-friendly materials, smart packaging, and functionality-driven designs reflects the industry’s alignment with global sustainability goals and consumer expectations. Moving forward, companies that successfully balance performance, cost efficiency, and environmental impact are likely to secure a competitive edge in this dynamic and rapidly evolving market.

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