Sustainable Foodservice Packaging Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)
Sustainable Foodservice Packaging Market was valued at USD 52.93 Billion in 2021 and is projected to reach USD 74.67 Billion by 2027, registering a CAGR of 6.12% over the forecast period 2022-2027.
New York, July 5 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Sustainable Foodservice Packaging Market – Growth, Trends, Impact of COVID-19 and Forecast (2022 – 2027)” – https://www .reportlinker.com/p06290951/?utm_source=GNW
With customers increasingly concerned about the environment and the impact of packaging leakage, packaging sustainability is a mega trend impacting the packaging industry. As a result, new, more stringent sustainability requirements have regularly emerged on various fronts. Growing concern for the environmental impacts caused by these plastic containers among the food service industries, leading to multiple companies using recycled materials for food service, is driving the market studied.
The increase in urban population growth has increased the demand for prepared and ready-to-eat food products, which has a significant impact on the demand for catering packaging market, thereby increasing the demand for sustainable packaging solutions for catering services, thereby driving the market over the forecast period.
In major regions, urbanization, lifestyle changes, managing hectic work lives and reliance on online food platforms are rapidly changing the dynamics of the restaurant industry, which in turn has increased demand for sustainable food service packaging solutions.
In March 2020, according to Packaging News, KFC, Pizza Hut and Taco Bell expanded their commitments to sustainable packaging. Brands announced plans to expand sustainable packaging, step up action on plastic waste and move its offices to renewable energy.
Packaging innovation, including new materials, refill systems and recycling solutions, is another major challenge on the road to a zero-waste future. In addition to its extensive in-house research through the Nestlé Institute of Packaging Science, the company will launch a CHF250 million sustainable packaging venture capital fund to invest in start-ups that focus on these areas.
The cost of using sustainable packaging is naturally higher than that of conventional packaging. This is due to the materials involved and their sourcing (virgin and used materials) – but also less established supply chains, manufacturing processes and lower economies of scale.
The COVID-19 pandemic has driven up demand for safe, resealable food and beverage packaging as food safety and food safety concerns rise, according to a new report from heavyweight Tetra Pak. According to the Tetra Pak Index Report 2020, which surveyed over 9,000 consumers globally to assess current consumer concerns, COVID-19 emerged as the top concern (64%) when it comes to current consumer priorities in 2020, heightening food security concerns. and beating environmental sustainability concerns from 63% in 2019 to 49%.
As users emerge from COVID-19, consumers see sustainability becoming increasingly important: marine litter is a priority in Europe and Japan, while pollution is more of a concern in other Asian countries and the Americas. Most consumers around the world say they are willing to pay more for sustainable packaging.
Main market trends
QSR is expected to drive sustainable foodservice packaging over the forecast period
Quick-service restaurants (QSRs) offer low-cost dining options, with an emphasis on speed of service. Minimal table service and an emphasis on self-service differentiate this group from traditional restaurants. The relationship between quick service restaurants and sustainability is inconsistent.
The industry is not exceptionally environmentally friendly among polystyrene cups and packaging, plastic lids, cardboard carriers, genetically modified vegetables, and inorganic meat. However, as environmentally friendly services become more attractive to customers, many companies are turning to greener options that are less harmful to the environment.
Some quick-service restaurants, known for their “organic” options, are adapting to more eco-friendly alternatives to reduce their carbon footprint. For example, in June 2022, KFC India unveiled ‘KFConscious’, marketed as the most sustainable restaurant in Chennai, as the outlet aims to use eco-friendly materials. KFC India has also drawn up plans to open 20 more outlets across the country by the end of 2022. Such cases are driving the demand for sustainable foodservice packaging in QSRs.
Additionally, in October 2021, McDonald’s Canada announced its commitment to eliminate single-use plastic items from its restaurants. Paper straws are replacing single-use plastic items in restaurants.
Asia-Pacific accounts for the largest market share
The Asia-Pacific region includes densely populated countries and emerging economies, such as China and India. The demand for foodservice is growing rapidly and the adoption of sustainable packaging is gaining momentum and is expected to be highest during the forecast period.
Plastic is an essential part of the packaging industry that forms the foundation of the culture of consumer convenience. Due to their cost/performance ratio, traditional packaging materials, such as corrugated cardboard, glass, metals, etc., have been replaced by plastics in catering and many applications in the food industry. However, the qualities that make plastic convenient to use also make it non-degradable and have an everlasting presence in the environment, contributing 43% of pollution in India alone.
In February 2022, CHUK, a brand of compostable catering items, joined fast-trade company Blinkitas, its sustainability partner. Blinkit delivers CHUK’s products to end consumers within 10 minutes, bridging the gap between end consumers and CHUK. The partnership helps CHUK aim to serve one crore of coins to end consumers on the platform in the fiscal year 2022-23. Blinkit, as a sustainability partner, CHUK seeks to create a pan-Indian online presence. This partnership will allow CHUK to facilitate access to its product line for customers in all geographies.
Indian Railways and Air India have announced the replacement of plastic packaging with eco-friendly paper and will use wooden cutlery to take a step towards sustainability. Many brands are now shifting their packaging from single-use packaging to packaging made from recyclable, reusable and compostable materials.
Also, Yash Papers, a Faridabad-based company, has invested INR 60 crore in setting up its new biodegradable factory to manufacture a compostable tableware factory. It is the largest modern paper brand made from agricultural residues in India, which manufactures kraft packaging materials for chains such as McDonalds, KFC and Pizza Hut.
The sustainable food packaging market is moderately fragmented as most of the market is still dominated by several major players. With new innovations in sustainable foodservice packaging and market demand, the market is attractive for new players. Some of the major players in the market are Amcor Limited, Sealed Air Corporation, and Mondi Plc., among others.
June 2022 – Tetra Pak has partnered with Reliance-owned Milkbasket, India’s first and largest daily micro-delivery service, to help consumers recycle their used beverage cartons through the Milkbasket app. As part of the initiative, Milkbasket users can submit a pickup request with their regular grocery delivery order through the app and simply leave the used cartons in the Milkbasket bag outside their door. The delivery agent, while dropping off the groceries, will then collect these used boxes and bring them back to a central hub.
December 2021 – Amcor introduced a high-barrier, high-speed, recycle-ready liquid pouch packaging solution as it continues to work its way towards its 2025 sustainability goal. This product combines critical machinability performance and barrier characteristics for the protection of shelf stable liquid food products for retail and foodservice applications.
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