About the Report
Sanitary food & beverage packaging is undergoing a significant transformation- with an increased emphasis on incorporating sustainable development initiatives. This is translating into rising adoption of packaging material which is environmentally friendly. Furthermore, digitization of the food packaging supply chain is being undertaken so as to streamline the manufacturing process and avoid unnecessary wastage of raw material.
A combination of stringent regulatory provisions established by competent food & beverage packaging regulatory bodies across all countries as well as national and regional level initiatives to ensure good manufacturing practices are providing substantial leverage to sanitary food & beverage packaging market growth. Preference for paperboard packaging material is expected to acquire center-stage, given its high affordability and flexibility.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for sanitary food & beverage packaging. The report tracks the global sales of sanitary food & beverage packaging in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the packaging industry in general, and sanitary food & beverage packaging in particular.
How do Historical Figures of Sanitary Food & Beverage Packaging Market Compare to Future Projections?
According to Future Market Insights, the sanitary food & beverage market accrued significant gains in the historical period, expanding at a positive CAGR of nearly 5% from 2016-2020. Rapid advancements in food packaging technology in recent years has contributed immensely to the growth of the market. From incorporating various eco-friendly alternatives such as kraft paper and paperboard to digital augmentation of the supply chain, all have played an instrumental role in further growth.
Sanitary food packaging has especially acquired tremendous importance in the midst of the ongoing coronavirus pandemic crisis, as the highly contagious nature of the disease is prompting manufacturers to ensure a highly sterile manufacturing environment. Moreover, consumers are wary of purchasing foodstuffs without assurance from retailers that the packages are regularly sterilized and sanitized, hence augmenting demand.
Future outlook for the market appears extremely bright, with a projected robust CAGR anticipated through the 2021-2031 forecast period. Rising sustainability concerns are especially expected to be at play, with countries striving to drastically reduce landfill dumping of non-biodegradable packaging waste by 2030.
How are Strict Food Safety Regulations Spearheading Sanitary F&B Packaging?
Over the years, food & beverage packaging has acquired tremendous importance, majorly fueled by an increase in consumption in the wake of a rapidly expanding population. This has also highlighted the importance of ensuring high food safety standards while packaging and transporting them to potential end-users. Hence, the popularity of sanitary packaging materials has been inclining significantly.
To that end, the International Food Standard (IFS) has been formulated. This is a common food standard with a uniform evaluation system used to qualify and select suppliers. It helps retailers ensure that food safety of their products and monitors the quality level of producers of retailer branded food products. In addition to this, all countries have established their own regulations to ensure the availability of safe and certified food products.
For instance, the US Food & Drug Administration (FDA) plays an instrumental role in ensuring the availability of safe and good quality food and beverage products across North America. As of 2018, the FDA regulates over US$ 2.5 trillion in consumer food, medical products and tobacco respectively. Besides, the Food Safety and Inspection Service also plays an important role in this regard, while packaging regulations are taken care of by such entities as The Center for Food Safety and Applied Nutrition.
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Why is Sustainability an Important Growth Determinant for the Market?
Statistics indicate that consumer packaging generates the maximum amount of plastic and paper waste, comprising about 20% of all waste in landfills. According to the United States Environmental Protection Agency (EPA), total amount of Municipal Solid Waste (MSW) generated amounted to 82,220 tons in 2018, with over 44,000 tons being recycled and over 30,000 tons being dumped in landfills.
Likewise, paper and paperboard packaging waste amounted to nearly 42,000 tons in terms of generation, most of it originating from the food & beverage industry. Hence, various collaborative efforts are being undertaken to mitigate this incidence, for which incorporating sustainable materials is becoming highly important. Several food & beverage giants are thus incorporating eco-friendly material, providing a tremendous boost to the market.
Manufacturers are increasingly experimenting with alternatives, including kraft paper, carton water bottles, mushroom packaging, recycled plastic, leaf plates and a host of other naturally derived options. International coalitions at the institutional level are being extensively undertaken to promote the use of these materials. Additionally, manufacturers are leverage smart packaging management solutions to mitigate wastage during the manufacturing cycle itself.
High Capital Expenditure to Hinder Uptake of High Grade Packaging Material?
Although investment in sanitary food & beverage packaging is an important facet of prominent food & beverage manufacturers, several small and medium sized corporations are unable to afford doing so owing to the voluminous expenditure it entails. Hence, penetration is likely to remain confined to large-scale multinational corporations.
Expenditure on sanitary packaging solutions not only involves purchasing lightweight and flexible material but also an integration of the entire supply chain of the business, which is an expensive process. Fortunately, leading packaging giants are making efforts to offer product lines which are affordable to all enterprises. Moreover, they are attempting to offer consulting and after sales services to enhance the overall process, thus offsetting any shortfalls.
What Opportunities Lie Ahead for the US Market?
Sanitary food & beverage packaging is expected to garner immense revenue generation opportunities across the US market throughout North America. Stringent packaging regulations imposed by key regulatory authorities such as the Food & Drug Administration (FDA) is likely to be the chief growth driver for the regional market. As per its guidelines, it is the responsibility of the Office of Food Additive Safety and The Center for Food Safety and Applied Nutrition (CFSAN) to ensure the safety of food contact substances.
This means packaging materials like plastics, coatings, papers, food colorants, and adhesives must be regulated and deemed safe for use. The Environmental Protection Agency (EPA) requires that antimicrobial technology be built into plastic and textiles used in food packaging to prevent the growth of bacteria, mold, mildew, fungi, discoloration and odor. Furthermore, allergen labelling is also an important part of packaging safety requirements, with The Food Allergen Labelling and Consumer Act being in prominence.
Owing to such stringent regulations, a number of regional packaging corporations have sprouted across the market. Prominent faces in the US sanitary food & beverage packaging landscape include Owens-Illinois, Sealed Air, Ball Corporation, Crown Holdings Corporation, International Paper Company and WestRock Company to name a few. These companies are majorly focusing on incorporating sustainable packaging material, mostly paperboard and other eco-friendly substances including high-grade plastics, to manufacture their products.
How Lucrative is the Sanitary F&B Packaging Market in the UK?
The UK sanitary food & beverage packaging market is highly reliant on the government’s legal labelling requirements. According to UK law, all prepacked foods require a food label that displays certain mandatory information. All food is subject to general labelling requirements and any labelling provided must be accurate and not misleading.
As per the UK Food Standards Agency, food manufacturers are required to clearly indicate the name of the food as prescribed under law. In the absence of a legal name, a customary name can be used. Furthermore, a list of ingredients must be clearly indicated in the order of weight, as well as information about potential allergens. Recently, in April 2021, the British Soft Drinks Association (BSDA) reinforced its commitment to endorse regulatory provisions requiring energy drink companies to declare high caffeine content if present on their product containers.
Presently, a number of prominent manufacturers operate within the UK landscape. Ilpra S.p.A, for instance, is a prominent face which offers the Ilpra Foodpack Tray Sealer models, manufactured and ranging from table-top semi-automatic machines to fully in line automated models. The sealers usually permit packing and sealing of products in preformed trays made from PP, APET, CPET, aluminum and laminated carton through top sealing. Likewise, Flexipol offers lightweight, flexible, sustainable and stronger packaging material.
Why is Germany expected to Emerge as a Promising Market?
The German sanitary food & beverage packaging market is set to embark on a high growth path, majorly underpinned by a scramble for investigating sustainable alternatives. Beginning 2018, the German Federal Ministry of Food and Agriculture (BMEL) published a call for projects on bio-based plastic food packaging. This has opened up significant growth avenues for the future.
This development follows a 2017 legislation by the Bundesrat, the upper house of the German parliament. This new law was approved in March of that year, and assumed shape in 2019. The objective of this legislation was to set higher recycling targets for packaging waste by 2022, which includes a 63% rate for plastic material and 90% for metal, glass and paper.
The legislation applies to all manufacturers, importers, distributors and online retailers placing goods on the German market. To maintain market access, businesses have to register with the central packaging registry, with companies mandatorily needing to participate in a dual system to arrange for packaging recovery after use to continue trading. Consequently, a host of sanitary F&B packaging manufacturers are likely to enter the German market in the future.
How are Rising Sustainability Concerns Pivoting Growth in Japan?
Japan is expected to be a major beneficiary of the benefits accrued by the global sanitary food & beverage packaging market, as its efforts to curb unwanted packaging waste continues to gather momentum. Despite the fact that 84% of Japan’s plastic waste is recycled, microplastics are becoming more of a pressing issue, with the seas immediately surrounding the island nation containing 27 times more microplastics than the global average.
Japan is also responsible for dishing out approximately 30 billion plastic shopping bags every year. Hence, since July 2020, many retailers have started charging for single-use plastic carrier bags, with some levying small fees for recyclable paper versions to encourage higher uptake of reusable eco-bags. Several retail outlets and major food corporations are thus playing their part in furthering sustainable packaging trends.
For instance, beverage giant Asahi has pledged to boost its sustainability commitment by tackling plastic waste. This is it doing so by introducing label-free bottles for all of its plastic packaged drinks. The company has incorporated plant-based materials and changed the weight of plastic caps to render them more eco-friendly. To further this, Asahi initiated a Twitter campaign which offered 150 randomly selected customers a chance to win a case of 24 bottles if they tweeted using the hashtag #I’vestartedgoinglabelfree.
Will China Emerge as a Lucrative Hub for Sanitary F&B Packaging Market?
Akin to several other regions, health and wellness trends are majorly determining growth of the Chinese food packaging industry. Consumers are exhibiting a higher inclination towards those packaging materials which are beneficial and conducive to the natural environment upon their disposal. Moreover, manufacturers are emphasizing majorly on incorporating flexible packaging solutions.
Studies have concluded that food packaging from different materials is expected to surpass 400 billion units in 2023, with plastic packaging accounting for bulk of all materials. This is expected to be followed by paper, metal and glass respectively. In addition, innovation is given top priority, keeping in mind the growing sustainability concerns being highlighted.
The city of Shanghai has made significant strides in ensuring increased sustainable packaging adoption across the food industry. With over 24 million residents, material sustainability, particularly of plastics, is a major issue. Food delivery services are especially common, representing the primary source of discarded plastic food waste. Hence, key delivery companies such as Saucepan have been combating plastic usage of the online food delivery economy by encouraging customers to recycle their plastic bags and rewarding customers for every 10 bags they return to the company.
Why is Paperboard Packaging Material Highly Preferred?
By packaging type, paperboard is anticipated to emerge as the dominant sanitary food & beverage packaging material, surpassing a revenue share of US$ 3 billion by 2022. Easy availability and affordability is attributed as the primary growth driver behind paperboard packaging material. Moreover, rising demand for lightweight and flexible packaging solutions is also augmenting demand.
Swedish-Swiss multinational food packaging and processing company Tetra Pak® is one of the pioneers in paperboard packaging solutions, offering sustainable carton packages and connected package solutions which are simply designed yet attractive with regard to aesthetics. This is a step in the company’s initiative to achieve a low-carbon circular economy.
Which is the Most Promising Sanitary F&B Packaging Product Type?
By product type, demand for milk & other beverage cartons is expected to incline significantly, accounting for around a quarter of the revenue share through 2021 and beyond. Growth is largely attributed to an increase in milk and milk products consumption around the world, with global per capita consumption of fresh dairy products expected to rise by 1% per annum in the coming decade.
Hassia-Redatron is a prominent face when it comes to milk and liquid cartons and other packaging solutions. It offers three main categories of packages: the 4-side sealed sachet, pouches and StickPack respectively. Additionally, it offers the FlexiBag® machine program, which includes pouch machines, sachet machines, StickPack machines and special executions respectively.
As per FMI’s analysis, key sanitary food & beverage packaging market players are primarily emphasizing on incorporating advanced packaging technologies, including lightweight material, flexibility and sustainability narratives respectively. Additionally, focus is on capacity expansion by means of acquisitions, mergers and collaborations.
Chuo Kagaku Co. Ltd., for instance, majorly emphasizes on manufacturing packaging material from recycled virgin plastic. The company follows a three-tiered approach to ensure food safety and sanitation by observing government laws, voluntary industry standards and their own standards while producing food containers. Some of these provisions include the Food Sanitation Act Ministerial Notification No. 307 of the Ministry of Health, Labor and Welfare and the Japan Hygienic Olefin and Styrene Plastics Association Voluntary Standard.
Also, Karatzis SA offers a broad range of meat processing packaging solutions, including the A Series, B Series, C Series, Chicken Loops, Micromesh Series, Pesante Series and S & STS Series respectively. Additionally, it also offers Agronets, Crop Bailing Solutions and Raschel Bags among other product lines. In 2019, the company unveiled a new light and eco-friendly pallet net-wrapping designed as a superior alternative to stretch films at FACHPACK 2019.
In 2020, Crown Holdings Inc. doled out twenty ambitious environmental, social and governance goals to be achieved by or before 2030 as part and parcel of its Twentyby30. The program identifies five distinct pillars of action- Climate Action, Resource Efficiency, Optimum Circularity, Working Together and Never Compromise. It intends to achieve these by incorporating sustainable sanitary packaging material which would also help restrict global warming to 1.5o C.
Prominent sanitary food & beverage packaging market players profiled by FMI’s report include:
- FP Corporation
- Chuo Kagaku Co. Ltd.
- Karatzis SA
- Crown Holdings Inc.
- Ball Corporation
- Silgan Containers
- Kaira Can Company Limited
- Canfab Packaging Inc.
- Berlin Packaging LLC
*This list is indicative - full details about key sanitary food & beverage packaging market players is available upon request.
Sanitary Food & Beverage Packaging Market - Report Scope
Historical Data Available for
US$ Mn for Value
Key Regions Covered
North America, Latin America, Europe, Japan, APEJ and Middle East & Africa
Key Countries Covered
US, Canada, Germany, UK, France, Spain, Italy, Nordics, Japan, India, China, Malaysia, Thailand, Singapore Australia, Brazil, Mexico, Argentina, GCC, South Africa, Nigeria and Israel
Key Segments Covered
Packaging Type and Product Type
Key Companies Profiled
Market Overview, Segmental Analysis, Regional Profiling and Company Profiles
Customization & Pricing
Key questions answered in the report
How will the sanitary food & beverage packaging market grow in the future?
According to FMI, the global sanitary food & beverage packaging market is expected to post impressive gains through 2021 and beyond, expanding at a strong growth rate. Growth is majorly underpinned by the increasing scramble towards incorporation of sustainable development directives and imposition of stringent regulatory standards governing food packaging hygiene
Which region is likely to account for the maximum growth opportunity?
FMI’s report establishes that the Asia-Pacific market is likely to post impressive gains in the future, with significant packaging improvement initiatives being visible across the Chinese and Japanese markets. However, North America and Europe are expected to contribute equally attractive revenue shares to the global landscape
Which is the most preferred sanitary food & beverage packaging material?
Demand for paperboard packaging is expected to incline significantly over forthcoming years, expected to surpass a value of US$ 3 billion in the forecast period. Greater degree of flexibility and affordability are attributed as key expansion drivers
Which are the prominent sanitary food & beverage packaging market players?
FP Corporation, Chuo Kagaku Co. Ltd., Karatzis SA, Crown Holdings Inc., Ball Corporation, Silgan Containers, Kaira Can Company Limited, Canfab Packaging Inc. and Berlin Packaging LLC are some prominent players operating in the global sanitary food & beverage packaging market
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- Is the market research conducted by Future Market Insights?
Yes, the report has been compiled by expert analysts of Future Market Insights, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
- What research methodology is followed by Future Market Insights?
FMI follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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Key Segments Covered
- Rigid Plastic
- Flexible Plastic
- Other Packaging Types
- Milk & Other Beverage Cartons
- Cups & Liquid Tight Containers
- Folding Food Containers
- Boards & Trays
- Other Product Types
- North America (US and Canada)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Europe (Germany, UK, France, Italy, Spain, Nordics and Rest of Europe)
- APEJ (China, India, Malaysia, Thailand, Singapore, Australia and Rest of APEJ)
- Middle East & Africa (GCC, South Africa, Nigeria, Israel and Rest of MEA)