The global vacuum packaging market is set to enjoy a valuation of US$ 7.5 Bn in 2022, and further expand at a CAGR of 4.9% to reach US$ 12.1 Bn by the year 2032. The vacuum packaging market revenues are estimated to boost with the top 3 countries anticipated to hold 25-30% of the global vacuum packaging market by the end of 2022.
The Polyethylene (PE) segment by the material is expected to hold the major portion of the global vacuum packaging market due to its benefits such as high clarity, oxygen barrier, and excellent seal. The target segment is projected to grow 1.5 times the current market value during the forecast period.
Attributes
Details
Market Size 2022
US$ 7.5 Billion
Market Size 2032
US$ 12.1 Billion
Value CAGR (2022 to 2032)
4.9%
Collective Value Share: Top 3 Countries (2022E)
25 to 30%
The global vacuum packaging market reached US$ 7.1 Bn for the year 2021, according to FMI analysis. The demand for vacuum packaging is estimated to accelerate with the top 5 companies estimated to hold around 20-25% of the global vacuum packaging market by the end of the estimated year.
The vacuum packaging market is anticipated to witness a positive growth outlook during the forecast period. A new forecast by FMI anticipates that vacuum packaging sales will rise during 2022-2032 and is projected to offer an absolute growth opportunity of US$ 5.0 Bn.
The Europe and North American regions are anticipated to augment the sales of vacuum packaging by showing high demand for the same. The same regions collectively are anticipated to hold around half portion of the market by the end of 2032.
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Vacuum Packaging Market Outlook
The nature of the business world is shifting. Individually, the shifts aren't particularly noteworthy, but the cumulative effect of many small shifts over time is starting to become apparent. The trend toward more industrial consolidation has been significant across a variety of subsectors, and the same holds true for the vacuum packing market.
Certain players in the vacuum packing market have set themselves up for future expansion by maintaining healthy profit margins and negligible levels of debt. According to FMI's analysis, some of these companies have five to 10 times the capital resources of other market leaders, making them ideal candidates for strategic capital investment.
The next few years will be fascinating as we observe how these businesses allocate their resources considering this potentially disruptive factor. It may be difficult for some of these corporations with big cash reserves and annual cash flows deployable for strategic capital expenditures to discover opportunities on a scale commensurate with their financial strength.
Most vacuum packing market players, even those with in-depth knowledge of substrates, nonetheless need to carefully consider a plethora of potential actions and strategies, paying special attention to the following concerns:
Spending on research and development and new product development to ensure a range of strategic possibilities
Improving collaboration with fast-moving consumer goods companies and input suppliers, including technology suppliers, shifting the product mix (and processes) towards greater sustainability
Redistributing assets and initiating mergers and acquisitions — say, to create a hybrid global-local presence — are all viable options.
Increasing coordination with fast-moving consumer goods firms and input suppliers, notably those in the technology sector
Modifying the range of products offered (and the methods used to produce them) to be more eco-friendly
All the improvement levers implied by these focal points present opportunities; the challenge is in determining the optimal order in which to implement them. Although it will be necessary to adjust as the trip progresses, paying close attention to these five factors now will lay the groundwork for a successful strategy.
In the future, vacuum packing companies will require the following three elements if they want to aid customers in innovating and seizing possibilities to make up for current gaps in sustainability.
A clear process on how to truly benchmark their packaging items in terms of sustainability, affordability, and ease
Recognizing the full opportunity and value at stake for the entire product line as a result of rising sustainability standards.
Having a clear and innovative packaging and technology roadmap, as well as the necessary partnerships in place to meet the evolving packaging needs of consumers and businesses, is essential.
Historic Market Outlook for Vacuum Packaging Market
The vacuum packaging market noticed a CAGR of 4.1% during the historic period and reached US$ 7.1 Bn in 2021.
Vacuum packaging is a form of packaging that removes the air around the food & non-food products and seals the product in waterproof containers that are used to pack and store the products. Vacuum packaging primarily functions by minimizing the oxygen levels in the package thus reducing the oxygen degradation of products and enhancing the overall quality of the product. Vacuum packaging commonly consists of pouches & bags or films which are sometimes lidded over thermoformed trays in order to facilitate better product presentation. With the increased need for prolonged shelf-life and enhanced quality, the demand for vacuum packaging augmented. Also, vacuum packaging offers a sealed barrier against external factors which gains traction among the food industries. It eliminates the use of chemical preservations which keeps the food or the product natural. Overall, the demand for vacuum packaging is projected to bolster during the forecast period.
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How does the Preference for Pro-longed Shelf-life Drive the Demand for Vacuum Packaging?
The prolonged shelf-life of the items is one of the main elements boosting the sales of vacuum packaging in the market. In terms of extending the shelf life of food products, vacuum packaging performs better than MAP. If not consumed within a month of packaging, a sizable percentage of packaged goods, such as candy, meat, and other dairy products, are wasted globally, resulting in financial loss.
Retailers and suppliers favor packaging options that guarantee long shelf life. Additionally, this enables vendors to extend the transit time for packaged goods, improving their ability to export and expanding their global operations. As a result, vacuum packaging is quickly becoming one of the most popular methods for storing food.
How does the Demand for Convenient Packaging Augment the Sales of Vacuum Packaging?
Companies across the globe are switching to modern packaging techniques such as vacuum packaging, attracted by the benefits associated with these techniques in comparison to conventional methods. Vacuum packaging offers a clear and transparent view of the food, and therefore scores high in terms of consumer satisfaction. Also, almost 2/3rd of households in the European Union comprise only one or two people.
Therefore, the number of consumers that want case-ready meals with a single serving is more in number. Also, due to the benefit of the extended shelf-life of vacuum-packed food, consumers can eat a meal over multiple days, without worrying about spoilage. These factors are expected to increase the preference for vacuum packaging.
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Category-wise Insights
Which Material is majorly preferred by Vacuum Packaging Manufacturers?
According to FMI market research, Polyethylene (PE) material is majorly preferred by vacuum packaging manufacturers due to its features such as clear product visibility, excellent sealing, barrier protection, and others. The Polyethylene (PE) segment is expected to hold 40% of the market value share by the end of 2032.
Which Product Type Segment is estimated to remain Lucrative in the Global Vacuum Packaging Market?
The film segment by product type is estimated to remain the lucrative segment in the global vacuum packaging market. The reason behind the same is the wide application of these films with various packaging options such as trays and others which gains traction among the end-use industry. The film segment is estimated to grow 1.4 times the current market value during the forecast period.
Country-wise insights
How does the U.S. Drives the Demand for Vacuum Packaging?
The growing frozen food consumption in the U.S. is projected to drive the demand for vacuum packaging in the U.S. The U.S. is expected to hold around 81% of the North American vacuum packaging market. According to the American Frozen Food Institute (AFFI), the sales of frozen food in the U.S. remained 23.0% positive compared to 2019. This drives the demand for food packaging offering pro-longed shelf-life which directly impacts the sales of vacuum packaging.
How does the U.K. Create a Growth Opportunity for the Vacuum Packaging Market?
The U.K. vacuum packaging market is anticipated to register a CAGR of 3.3% during the forecast period. The high preference for barrier packaging for seafood products in the U.K. creates a growth opportunity for the vacuum packaging market. According to the European Commission (EC), around 24 kg of fish or seafood is consumed by an individual per year in Europe. Besides this, the household spending on the purchase of meat and fish in the U.K. was Euro 23 Bn and Euro 4 Bn respectively in 2020. Thus, the increasing consumption of seafood in the U.K. is projected to create a growth opportunity for the vacuum packaging market in the U.K.
Competitive Landscape
The key players operating in the vacuum packaging market are trying to focus on increasing their sales and revenues by expanding their capabilities to meet the growing demand. The key players are trying to adopt a merger & acquisition strategy to expand their resources and are developing new products to meet customer needs. Also, the players are focusing on upgrading their facilities to cater to the demand. Some of the recent key developments by the leading players are as follows –
In August 2022, Amcor plc expanded its presence in Europe by acquiring a world-class flexible packaging plant located in the Czech Republic.
In April 2022, Klockner Pentaplast expanded its capacity by adding rPET/PET capacity to its Beaver site which will help the company grow its sustainable healthcare and food packaging market in North America.
Scope of the Report
Attribute
Details
Growth Rate
CAGR of 4.9% from 2022 to 2032
Base Year for Estimation
2021
Historical Data
2015 to 2020
Forecast Period
2022 to 2032
Quantitative Units
Revenue in USD Billion, Volume in Tonnes, and CAGR from 2022 to 2032
Report Coverage
Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered
Material
Product Type
End use
Region
Regions Covered
North America
Latin America
Europe
East Asia
South Asia
Oceania
Middle East & Africa
Key Countries Covered
USA
Canada
Mexico
Brazil
Germany
UK
France
Italy
Spain
Russia
China
Japan
India
GCC countries
Australia
Key Companies Profiled
Sealed Air Corporation
Amcor plc
Berry Global Group
Schur Flexibles Holding GesmbH
Winpak Ltd.
Klöckner Pentaplast
Allfo GmbH & Co. KG
Nemco Machinery A/S
Plastissimo Film Co., Ltd.
Plastopil Hazorea Company Ltd.
Coveris Holdings S.A.
The Vacuum Pouch Company Ltd.
Vacuum Packaging Market by Category
By Materials, Vacuum Packaging Market is Segmented as:
Polyethylene (PE)
Polypropylene (PP)
Polyamide (PA)
Ethylene Vinyl Alcohol (EVOH)
Polyethylene terephthalate (PET)
Other Plastics (PS, etc.)
By Product Type, Vacuum Packaging Market is Segmented as:
Pouches & bags
Films
By End Use, Vacuum Packaging Market is Segmented as:
Food
Non-Food
By Region, Vacuum Packaging Market is Segmented as:
North America
Latin America
Europe
East Asia
South Asia
Oceania
Middle East & Africa
Frequently Asked Questions
What was the value of the vacuum packaging market in 2021?
The global vacuum packaging market was US$ 7.1 Bn in the year 2021.
What is the future growth outlook for the global vacuum packaging market?
The global vacuum packaging market is projected to expand at a CAGR of 4.9% during 2022-2032.
What will be the value of the global vacuum packaging market by the end of 2032?
By 2032, the global vacuum packaging market is projected to reach US$ 12.1 Bn.
What propels the demand for vacuum packaging?
The increasing demand for longer shelf life and hygienic packaging for food products is increasing the demand for vacuum packaging.
Which are the top players in global vacuum packaging?
Sealed Air Corporation, Amcor plc, Berry Global Group, Schur Flexibles Holding GesmbH, Winpak Ltd., and Klöckner Pentaplast are the top players operating in the vacuum packaging market.
