Global food packaging market set for major growth, reaching €506.6 Billion by 2030
According to a report from Grand View Research, Inc., the global food packaging market is expected to reach a staggering €506.6 billion by 2030, registering a compound annual growth rate (CAGR) of 5.7% between 2023 and 2030.
Factors driving this expansion include evolving eating habits, lifestyle shifts and a surge in demand for convenience foods. The report predicts the highest revenue CAGR (6.3%) in flexible packaging, attributed to cost-effectiveness, superior performance and consistent innovations from industry leaders. Paper and paper-based packaging emerges as the fastest-growing segment, with a projected CAGR of 6.4% owing to cost efficiency and sustainability. The bakery and confectionary sector is anticipated to lead in terms of application, propelled by an escalating demand for ready-to-eat bakery products and confectioneries.
Geographical dominance and sector specific growth
In terms of geographical dominance, the Asia Pacific region is expected to maintain its leading position in the food packaging industry, largely due to its growing population, increasing urbanisation, and the rising disposable income of consumers. On a more granular level, the report indicates that the bakery and confectionery segment is set to become the largest application area, recording a market value of €90.6 billion in 2022 due to the growing demand for cakes, candies, and ready-to-eat bakery products.
Market trends and challenges
The food packaging market does face potential hurdles, with the fluctuation in raw material prices being a key issue. However, the advent of sustainable packaging materials and increased awareness amongst consumers promise to keep the industry’s momentum intact. Factors such as growing concerns about food safety, a rise in the number of retail food chains, and a surge in demand for food delivery services are expected to continue propelling the demand for food packaging. Future-focused investments, such as capacity expansion projects, further underline the market’s robust growth potential.