Produce Packaging Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Produce Packaging Market is segmented By Packaging Type (Corrugated Boxes, Bags & Liners, Plastic Containers, Trays, Plastic Film, Wooden Crates, Moulded Pulp Containers, and Others), By Material (PE, CPP, OPP, PA, PET, Others), By Application (Food Grains, Vegetables, Fruits, Others), By End-User (Growers/Shippers, Re-Packers, Retail Stores, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Produce Packaging Market Report Overview

The global produce packaging market report analyzes the market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for produce packaging is increasing due to the growth of the food and beverage industry and the need for sustainable and eco-friendly packaging solutions. The market is witnessing a surge in demand from the Asia-Pacific region. The competitive rivalry intensifies with major players such as Smurfit Kappa Group, Mondi Group, and others actively operating in the market.

The market for produce packaging is experiencing strong growth as an increase in fresh produce production and the growing role of packaging in the traceability, marketing, and protection of fresh vegetables and fruits. Also the growing presence of dry-cut, ready-to-eat produce will provide extra suitability and use more value-added produce packaging. Moreover, increased nutritional awareness and increasing interest in fresh fruits such as produce, as a key element of a healthy lifestyle, are trends currently followed among consumers expected to increase the demand for products with product packaging.

Produce Packaging Market Scope

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Produce Packaging Market Dynamics and Trends

The increasing inclination of consumers toward the ready-to-eat product is triggering the demand for produce packaging in recent times. Growing demand for gluten and meat-free meal creates a strong opportunity for the produce packaging market growth.

The increasing population and availability of ready-to-eat food are expected to increase the market size.

Population growth, grown availability of ready-to-eat food, and trends towards healthier eating habits are some of the drivers for the fruit application segment, and it will outpace the overall produce packaging average during the forecast period. New product introduction in producing packaging for vegetable application in nontraditional categories is expected to assist the production advancements for most vegetable types. The use of overwrap trays for fresh produce is also expected to grow with a significant CAGR during the forecasted period, but the growing use of plastic bags and stand-up pouches used for product packaging may reduce the demand for trays and clamshells.

Produce sales reached $69.58 billion in 2020, an 11.38% increase according to “Power of Produce 2021,” a recent report from the Food Industry Association (FMI). The report also noticed that grocery shoppers are purchasing more products than before the COVID-19 pandemic, with consumers purchasing more fresh fruit (up 8.87%) and more vegetables (up 14.15%).

Growing awareness of gluten and meat-free meal option is expected to boost the market growth.

Furthermore, with the growing awareness of gluten and meat-free meal options, fresh produce has gained popularity in both food service industries and retail stores, as these seek ways to appeal to consumers with dietary restrictions. Moreover, the demand for organic and natural food is experiencing high demand. Keeping such factors in mind, identified players in the market like Amcor plc, Berry Global Inc., Mondi Group, and Ball corporation are focusing on the incorporation of tactics including business agreements, strategic alliances, sales contracts, diversifications, innovative launches, mergers & acquisitions, R&D, technological upliftments, product line extensions, hiring technical expertise, joint ventures, collaborations, product approvals, etc. for gaining a competitive edge over others in the market.

The high cost of product packaging is expected to hinder market growth.

However, the high cost of producing packaging materials is expected to hinder the growth of the global produce packaging market. The cost of packaging materials plays an essential role in the supply chain and logistics sector. As a result, the demand for developed packaging materials is low in this sector. In addition, limited commercial applications of certain types of product packaging will also hamper the overall market. For instance, antimicrobial packaging has limited applications in the commercial sector and hence, the demand for this type of packaging is low.

Produce Packaging Market Segment Analysis

By application, the market is segmented into food grains, vegetables, fruits, and others.

Lightweight established recycling infrastructure, comparatively low cost, decent protective performance, and graphics capabilities make the corrugated boxes segment a leader by packaging type in the produce packaging market. The development of many applications raises moderate prices, and competition from reusable plastic containers for product packaging is expected to hinder the demand for boxes in the middle of the forecast period. But at the same time, it is expected that demand for expensive box structures such as modeler boxes, white top-line board boxes, recyclable boxes, and moisture-resistant boxes will increase significantly in the produce packaging market. Among the packaging type segment, plastic containers used for product packaging are expected to experience the fastest growth. Berry applications and widening use with other produce stuff will help propel the growth of this sub-segment in the produce packaging market. Competitive products used for product packaging, such as stand-up pouches, can restrain the box segment. Because pouches are less expensive than rigid containers, higher demand is anticipated for pouches.

The majority of consumers buying local food are seeking product freshness as well as support for the local economy. With rising demand for gluten- and meat-free meal options, fresh produce has gained popularity in both food service industries and retail stores, as these seek ways to appeal to consumers with dietary restrictions. In retail stores, demand for packaging of products provided, which is display-ready and being sold ready-to-eat, will gain an uptick in a bid to extend the shelf-life of these product offerings. Similarly, demand for produce packaging in food service industries will also remain higher while offering healthier food options while cutting down on labor costs and meal preparation time.

Produce Packaging Market Geographical Share

Based on geography, the produce packaging market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa. The demand for produce packaging in the North American market is expected to remain at the dominant position in sales and value generation due to the growing volume of trade and e-commerce in countries such as the U.S.

APAC is expected to dominate the produce packaging market during the forecast period

APAC dominates the produce packaging market due to the high production rates of fresh produces in the region. Besides, the increasing demand for efficient packaging solutions due to the high exports of produces in India and China acts as another driving force for the regional market's growth. Vast investments in product upgrades and developments of packaging technology in the region raise the market share. Moreover, growing e-commerce businesses in the region drive market growth.

North America acquires the second position in the produce packaging market. The region observes superior product development as far as packaging is concerned due to vast R&D innovations and investments. Additionally, strict food safety policies drive the demand for smart packaging in Canada's food & beverage sector, and the U.S. substantiates the market growth. The U.S., with its burgeoning eCommerce sector, dominates the regional market. The region anticipates a significant share in the market due to rising trends like the packaging of unpackaged produce items such as apples, pears, and sweet potatoes and rising demand for shredded and cut produce that deploys convenience packaging.

Moreover, the U.S. export value of fresh vegetables in 2018 stood at USD 2,159.8 million according to USDA and Import & Export & value for fresh fruit, vegetables & nuts, and pulse crops together in Canada accounted for 542.4 million & 703.3 million respectively, as per the latest data released by Statistics Canada. Such increased activity in the region is leading to the growing adoption of product packaging. With growing trends towards reducing food waste in the trend, the produce industry is expected to adopt the packaging due to the convenience it gives to retailers by providing smaller portions and excreting packaging costs at multiple levels.

Further, another significant driver for produce packaging is the organic food market in this region. According to the FiBL survey in 2017, organic food revenue is highest in the U.S. at EUR 40,010.89 million and Canada at EUR 3,001.99 million, making North America lead the distribution of retail sales value. This creates a tremendous demand for produce packaging in the region. The European produce packaging market has appeared as a profitable market globally. Risen demand for fresh vegetables and fruits increases the region's produce packaging market share. Furthermore, the vast adoption of produce packaging solutions propels the market growth. Produce packaging manufacturers in the region continually offer new, sustainable packaging that can minimize environmental footprint at every point in the supply chain.

Produce Packaging Market Companies and Competitive Landscape

The produce packaging market is fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream applications. Amcor Limited, Coveris Holdings S.A, Smurfit Kappa Group, E. I. du Pont de Nemours and Company, Mondi Plc, Bemis Company Inc., International Paper Company, D.S. Smith Plc, Silgan Holdings Inc., Sealed Air Corporation are the major player in the packaging market. The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the produce packaging market globally.

Amcor Limited

Overview: The company is a growing global organization producing and developing responsible packaging for beverage, food, medical, pharmaceutical, home & personal care, and other products. The company has 230 sites with approx. 47,000 employees in more than 40 countries and had sales of US$ 12.5 billion.

Product Portfolio: 

• P-Plus Retail MAP for fresh produce
  • The company product offers various significant features such as:
    • Tightly controlled size and density of micro-perforations guarantee the specified permeability every time
    • Tailored-gas permeability of the layers creates a modified atmosphere naturally; it does not need gas flushing
    • Available with laminated films
  • Customer benefits
    • Product Freshness - Conserves nutritional quality by slowing down the maturation
    • More sustainable - Significant food waste minimization
    • Versatile - Applicable to almost all formats and substrates
    • Excretes moisture loss and withering of fresh produce
  • End consumer benefits
    • Product Freshness - Optimum texture and taste/appearance longer
    • Convenience - The season is prolonged as food can be harvested as soon as ripe
• P-Plus Liners MAP for fresh produce
  • The company offers significant applications for this product, including food, fruits & vegetables, and offers some significant features such as:
    • Tightly controlled size and density of micro-perforations guarantee the specified permeability every time
    • Tailored-gas permeability of the layers creates a modified atmosphere naturally; it does not need gas flushing
    • Can be sea freighted to different markets remaining in peak condition
    • It can be utilized with Amcor VapourPlus films
  • Customer benefits
    • More sustainable - Significant food waste minimization
    • Easy to Run - No expense in machinery and comes with Amcor’s patented closing system
    • Excellent Seal Properties - Conserves the nutritional quality by slowing down the maturation
    • Enables storage during seasonal gluts to maximize market prices; therefore, sales values of produce maintained
    • Convenience - Easy-to-use sealing system, mobile and flexible: ideal for packing at source
  • End consumer benefits
    • Product Freshness - Optimum texture and taste/appearance longer
    • Convenience - The season is prolonged as food can be harvested as soon as ripe

The global produce packaging market report would provide an access to approx. 69 market data tables, 72 figures, and 180 pages.