Edible Oil Packaging Market

2021 Analysis and Review: Edible Oil Packaging Market by Material – Plastic, Glass, Metal (Aluminium), and Paper for 2021 – 2031

Edible Oil Packaging Market Snapshot

A recent study by Future Market Insight opines the sales of edible oil packaging solutions to grow by 1.7x to reach 3.7 billion units in 2031. Global edible oil packaging market is expected to register year-on-year growth of 4.1% in 2021.

FMI predicts, sales of drums to reach nearly US$ 5 billion by 2025.  In 2021, the U.S. edible oil packaging market is projected grow by 1.7%, in terms of value. Overall sales in North America is expected to increase by 4.7% CAGR through 2031.

Key Points Covered in Edible Oil Packaging Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Edible Oil Packaging Market and How to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Global Edible Oil Packaging Market Outlook Compared to 2021-2031 Forecast

As adoption of packaged foods continues increasing along with the expansion of food processing industry, the demand for various essential ingredients such as cooking (edible) oil, spices and dairy products will surge.  

According to FMI, sales in the global edible oil packaging market are expected to grow at 5.8% CAGR between 2021 and 2031, registering an increase of 2.7% than demand registered in 2016-2020.

Recent change in lifestyle of consumers has contributed towards the growing demand for consumables with added preservatives with longer shelf life. With the expansion of food industry, sales of edible oil have recorded a sharp rise across the globe.

Demand for ready-to-eat foods, along with the frozen foods will increase the consumption of edible oil globally, resulting in high demand for edible oil packaging solutions. 

How are Favorable International Trade Regulations Encouraging Edible Oil Packaging Sales?

Government authorities for trade and commerce are favoring edible oil manufacturers, along with exporters by reducing the tariffs on export and import of oils, categorizing it under the essential consumable items.

For example- The Government of India, has made the export of all edible oils free except mustard oil without any quantitative ceiling and pack sizes. Such initiatives from government will boost the exports of edible oils in India in the coming future.

Statutory provisions favoring exports and free trade of edible oils without any restrictions of packaging sizes will result in greater demand for edible oil packaging solutions of all sizes.

How is Demand for Sustainable Raw Material in Edible Oil Packaging Favoring Growth?

Due to growing environmental concerns, key players are offering ecological alternatives for toxic pollutant raw materials. Hence, they are investing heavily in the research and development of bio-degradable substitutes, causing no harmful effects on the eco-system.

Increasing environmental awareness among the consumers has compelled manufacturers to switch from traditional pollutant materials to recyclable and sustainable raw materials such as, Polyethylene Terephthalate (PET), HDPE (Low-Density Polypropylene), and other 100% recyclable plastics, which are not harmful for environment.

Adoption of sustainable raw materials offers lucrative growth opportunities for manufacturers, helping them expand their consumer base. This will in turn create opportunities for the expansion of the edible oil packaging market.

Will Bulk Packaging Solutions to Reduce Transportation Costs?

Large scale producers in the food industry are engaged in food processing that require all essential ingredients in larger quantity. Using small quantity packaging for spices, vegetables and oil might results in increased transportation overheads for these manufacturers.

To overcome the long-standing problem for food industry players, key players from the packaging industry introduced bulk packaging solutions. These solutions also facilitate easy and damage-free transportation of edible oils for large industrial and institutional users.

Large-sized packaging solutions including drums, cans, and jerry cans that carry more than 5 liters of edible oil, are mainly made up of steel and plastic and are trending in the market. Hence, adoption of these packaging solutions to reduce the transportation cost are stimulating market growth.

What Is the Impact of the COVID-19 on the Edible Oil Packaging Market?

Due to the outbreak of COVID-19, regulatory authorities across the globe were forced to impose either complete or partial lockdown in major parts of the globe. The lockdown restricted movement of people and manufacturing activities along with causing disruption in supply-chains.

Production and movement of only essential commodities such as food & beverages and medical supplies were allowed across continents.

Since, edible oils are considered an essential commodity for household consumption and for the food industry, consumers were seen buying larger quantities than usual as a result of panic.

On the back of this, demand and consumption of edible oils increased exponentially during the FQ-20. As per FMI, demand for edible oil packaging registered an increase of 1.03% in 2021, with market value reaching nearly US$ 5 Bn in 2021.

Eventually, the increased demand for edible oils created greater demand for edible oil packaging solutions of all types and sizes, made from different types of raw materials. Thus, the demand for edible oil packaging solutions remained largely unaffected by the unprecedented pandemic outbreak.

Country-wise Insights

Why is the U.S. Considered Lucrative Market in North America?

According to the Federal Food Drug and Cosmetic Act, materials used for packaging any type of food item must comply with the safety standards set by Food and Drug Administration, and it should not release harmful contamination when it comes to direct contact with the food item. 

Requirement of food-grade materials for production of edible oil packaging solutions in the country is fuelling the demand for packaging solutions.

Packaging solutions made from FDA approved food-grade materials such as aluminum, high-density polyethylene (HDPE), and glass are declared safe for coming in direct contact with edible oils and other consumable items.

Statutory regulations regarding strict laws of quantity to be filled in a specific container carrying edible oils, either for storage or transportation have encouraged manufacturers to use recycled raw materials to produce edible oil packaging solutions.

Owing to these factors, the U.S. is expected to be the largest market for edible oil packaging solutions in North America.

Moreover, the U.S. will account for approximately 73.5% of sales of edible oil packaging solutions in North America in 2021. Expansion of ready-to-eat foods & packaged food industries also are aiding the expansion of edible oil packaging market in the country.

How will the Edible Oil Packaging MarketGrow in the U.K.?

Sales of edible oil packaging solutions in the U.K. market is anticipated to grow at 3.0% CAGR over the upcoming decade. Along with that, the market will register incremental opportunity of US$ 59 Mn between 2021 and 2031 for the manufacturers engaged in the production of edible oil packaging solutions.

Presence of key manufacturers introducing innovative edible oil packaging solutions made from sustainable raw materials offering 100% recyclability is accelerating the demand. 

Will the Edible Oil Packaging Manufacturers Will Overcome the Single-Use Plastic Ban in Germany?

The European Union has imposed a ban on the usage of all types of single-use plastics, including food & beverages containers made up of expanded polystyrene and packaging products made up of Oxo-degradable plastics, to reduce the hazardous impact of such toxic materials on the eco-system.

Key players in the edible oil packaging market have come up with a variety of sustainable packaging solutions made up of aluminum, paper & paperboard, such as metal cans, and bag-in-box to comply with the latest regulations imposed by regulatory authorities.

Germany accounts for approximately 16% of sales of edible oil packaging solutions in the Europe. The market value of edible oil packaging solutions in Germany is estimated to expand by 1.4 times over the forecast period between 2021 and 2031.

Why is India Considered an Emerging Market for Edible Oil Packaging?

According to the Food Safety and Standards Authority of India (FSSAI), all packaging containers used for packaging of edible oils and fats should comply with the standard premium grade quality set by Bureau of Indian Standards (B.I.S) Standards. These regulations are aimed at encouraging the use of sustainable raw materials for producing recyclable edible oil packaging in India.

Government policies encouraging exports and manufacturing units located in various special economic zones enjoying several tax benefits are   creating conducive environment for key players to increase their production capabilities and provide cost-effective packaging solutions

Ease of doing business in the country is attracting global packaging industry players towards India. As per FMI, India accounts for 29% of sales of edible packaging solutions in the South Asia. The rise in consumption of edible oils by the food and pharmaceutical sectors will offer incremental opportunity of US$ 256 Mn between 2021 and 2031.

What Makes China Key Market Across East Asia For Edible Oil Packaging Solutions?

According to the United States Department of Agriculture (USDA), China is the largest producer and consumer of soybean oil, and second-largest producer of edible oils across the globe. China also exhibits the highest consumption of all types of edible oil among all countries globally. 

As a result of large scale production, the demand for edible oil packaging solutions has increased in recent years. Also the easy availability of latest technologies and access to cheaper raw materials to produce packaging solutions are propelling the market growth.

Furthermore, availability of low-cost labor is expected to make China one of the fastest growing markets across East Asia.

China accounts for almost 50% of the total sales of edible oil packaging solutions in the East Asia, offering total incremental opportunity of US$ 426 Mn between 2021 and 2031.

Category-wise Insights

Which Type of Edible Oil Packaging is Trending across the Globe?

Drums are made up of steel and plastics that are durable for transporting the edible oils for long distances and have the strength to withstand the weight of edible oils stored in it.

As the packaging in drums does not release any harmful chemicals into the packaged oils when exposed to the higher temperature of harsh weather conditions, they are considered preferred packaging solution for edible oils.

Most packaging industry manufacturers produce drums in compliance with international safety standards and having superior quality making them best suited for exports of edible oils across the globe. Drum's account for almost 86% of packaging solutions and is anticipated to register growth at 5.9% CAGR between 2021 and 2031.

Global players are aiming for expansion in developing regions with drums made up of sustainable raw materials offering easy re-usability. It is estimated to offer a total incremental opportunity of US$ 3.4 Bn over the upcoming decade.

Why Plastic is the Highly Sought-After as Raw Material in Edible Oil Packaging Solutions?

As per FMI, plastic will be used for manufacturing approximately 43% of edible oil packaging solutions in 2021. Several packaging solutions such as bottles, pouches, drums, cans and bag in box solutions are made up of using food-grade plastics, which is declared safe by regulatory bodies such as the Food and Drug Administration (FDA).

Manufacturers are focusing on the increased usage of eco-friendly plastics which are 100% bio-degradable or recyclable to position themselves as sustainable packaging producers.

Alongside this, plastic is easily available to producers at cheaper rates compared to aluminum and glass, which is resulting in increased its increased sales.  According to Future Market Insights, the plastic segment is expected to register highest growth, reaching US$ 1.5 Bn over the forecast period.

 Why is Demand for 501 to 1000ml Capacity Packaging Solution Continuously Rising?

In the advanced retail facilities, the size and look of the package stimulates the consumer to make a buying decision. Hence, packaging solution of 501-1000 ml is the most preferred by consumers.

By sales volume, demand for 501 to 1000ml capacity is estimated to expand 1.6x between 2021 and 2031.

Due to changes in lifestyle and consumption patterns, people prefer to buy smaller quantities of daily essentials. Among these, edible oil packaging solutions between 501 to 1000ml with attractive graphics and eye-catching shapes are gaining traction among the millennials.

Additionally, edible oil packages having a capacity between 501 to 1000ml are easy to carry, offers easy storage to retailers and does not pose major logistical challenges for the supply chain partners.

501 to 1000ml edible oil packaging segment is anticipated to create the total incremental opportunity of US$ 1.7 Bn over the next decade.

Which Oil Type Will Exhibit Maximum Demand for Edible Oil Packaging Solutions?

In terms of oil type, palm oil will lead the segment, as it is the most produced, consumed and internationally traded edible oil in the world.

As per FMI, the palm oil type accounts for approximately 21% of edible oil sales across the globe in 2021.

Palm oil is a necessary ingredient used in diverse end-use sectors such as food & beverages, pharmaceutical, cosmetics and personal care, biofuel and energy industries. In addition to that, palm oil is witnessing high demand due to their usage in production of animal feed. 

Technological innovations have allowed manufacturers to produce biodiesels using palm oil.  This will result in greater demand for edible oil packaging solutions for both industrial and household uses. Palm oil segment is anticipated to register growth at 5.2% CAGR over the upcoming decade.

Competitive Landscape

Companies operating in edible oil packaging market are investing heavily in research & development activities to develop innovative edible oil packaging solutions, to cater the advanced retail and manufacturing industry needs.

  • In December 2020, Vetropack Holding Ltd. acquired Moldovan Glassworks, a company based in Chisinau to strengthen its market presence in the region.
  • In November 2020, Colep Packaging was awarded for the Gold Award for ‘Food-Three-Piece’ at cans of the year in 2020.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value, Million Units for Volume

Key Regions Covered

North America, Latin America, Europe, South Asia, East Asia, Oceania, Middle East and Africa

Key Countries Covered

US, Canada, Brazil, Mexico, Germany, Italy, France, U.K., Russia, GCC Countries, South Africa, China, Japan, India, Australia

Key Segments Covered

Packaging Type, Material, Capacity, Oil Type and Region

Key Companies Profiled

  • Tetra Pak International S.A.
  • Berry Global Group Inc
  • Scholle IPN Corporation.
  • Glenroy, Inc.
  • Crown Holdings, Inc
  • Sealed Air Corporation
  • DS Smith Plc
  • Smurfit Kappa Group
  • Technocan S.A. 
  • Amcor Plc
  • ASA Group
  • Colep Packaging
  • Vetropack Holding Ltd
  • Baralan International S.p.A.
  • Vidrala, S.A.
  • Uflex Ltd
  • TPAC Packaging India Private Limited (Sunpet)
  • Neo Sun Industries Limited
  • Duropack Industries
  • Parekhplast India Limited

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current value of the global edible oil packaging market? 

    The global edible oil packaging market will reach US$ 4.96 Bn in the year 2021.

  • At what rate did the edible oil packaging market register growth in the preceding 4 years?

    The global edible oil packaging market registered growth at 3.1% CAGR between 2016 and 2020.

  • What is the demand outlook for the edible oil packaging market between 2021 and 2031? 

    The global edible oil packaging market is anticipated to register positive growth, exhibiting growth at 5.8% CAGR between 2021 and 2031.

  • What are major trends prevailing in the edible oil packaging market? 

    Global players in the edible oil packaging market are focusing on developing bulk packaging solutions for edible oils to curb transportation costs, which will drive the market growth. .

  • What are key drivers increasing sales of edible oil packaging solutions globally? 

    Favourable international trade regulations encouraging edible oil exports and shelf-ready edible oil packaging solutions are driving demand for edible oil packaging solutions across the continents.

  • What is North America’s contribution towards the global edible oil packaging market? 

    North America is the largest market for edible oil packaging solutions, holding a major market share of 28% in 2021.

  • How much market share does the top five companies operating in the edible oil packaging market hold? 

    The top five key players in the edible oil packaging market are Crown Holdings Inc., Colep Packaging, Smurfit Kappa Group, Tetra Pak International S.A. and Vidrala S.A. These players are estimated to hold approximately 25%-30% market share of the global edible oil packaging market.

  • At what rate will edible oil packaging market grow in Europe between 2021 and 2031? 

    As per the FMI analysis, the edible oil packaging market in Europe is projected to register growth at a CAGR of 4.1% between 2021 and 2031. 

  • Which are the 5 key countries accounting for maximum demand for edible oil packaging solutions?

    The U.S., Canada, China, Germany and Mexico are among major markets for edible oil packaging solutions, recording constantly high demand. 

  • At what rate, South Asia edible oil packaging market will grow over the next decade?

    According to the survey conducted by FMI, the South Asia edible oil packaging market is estimated to grow at 8.6% CAGR over the next decade.

Edible Oil Packaging Market by Category

By Packaging Type:

  • Bottles
  • Pouches
  • Jerry Cans
  • Cans
  • Drums
  • Bag in Box
  • Others (Liquid Carton, etc.)

By Material:

  • Plastic
  • Glass
  • Metal (Aluminum)
  • Paper

By Capacity:

  • 50 to 500 ml
  • 501 to 1000 ml
  • 1001 to 5000 ml
  • Above 5000 ml

By Oil Type:

  • Soybean Oil
  • Coconut Oil
  • Olive Oil
  • Cottonseed Oil
  • Sunflower seed Oil
  • Peanut Oil
  • Mustard oil
  • Others (Palm Oil, Corn Oil, Rice Bran Oil, etc.)

By Region: 

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa (MEA)

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