Produce Packaging Market - Forecasts from 2023 to 2028

The produce packaging market is expected to grow at a CAGR of 5.07% from US$72.443 billion in 2021 to US$102.443 billion in 2028.

Produce packaging refers to the specialized process of creating packaging materials and solutions designed specifically for fresh fruits and vegetables. The primary purpose of produce packaging is to protect, preserve, and present these perishable items during storage, transportation, and display in the retail environment. The packaging is tailored to maintain the quality, freshness, and safety of the produce, preventing damage, contamination, and spoilage, while also meeting consumer demands for convenience and information about the product.

Introduction:

The produce packaging market refers to the industry involved in producing and supplying packaging materials and solutions specifically designed for fresh fruits and vegetables. This market aims to preserve the quality, freshness, and safety of produce during storage, transportation, and retail display. Produce packaging encompasses a variety of materials, such as trays, bags, cartons, and wraps, which offer protection against physical damage, contamination, and spoilage. Market drivers for the produce packaging industry include the increasing global demand for fresh produce, growing consumer awareness of food safety and hygiene, the need to reduce food waste, advancements in packaging technologies for better preservation, and the shift towards sustainable and eco-friendly packaging options in response to environmental concerns.

Drivers:

• Increasing global demand for fresh produce: As the world's population grows the demand for fresh fruits and vegetables rises. Consumers are becoming more health-conscious, leading to higher consumption of produce, driving the need for efficient and effective packaging solutions to handle larger quantities.
• Food safety and hygiene concerns: With growing awareness of food borne illnesses and contamination risks, consumers, retailers, and regulatory bodies demand packaging that ensures the safety and cleanliness of produce, protecting it from external factors and maintaining its quality throughout the supply chain.
• Reducing food waste: Food waste is a significant global issue, and produce packaging can play a crucial role in extending the shelf life of fruits and vegetables, minimizing spoilage, and increasing their chances of reaching consumers in optimal condition, thus reducing waste.
• Advancements in packaging technologies: Constant innovation in packaging materials and technologies offers new possibilities for produce packaging. These include modified atmosphere packaging (MAP) that helps regulate gas composition, smart packaging with sensors to monitor freshness, and biodegradable materials that contribute to sustainability.
• Retail and supply chain requirements: Retailers often have specific packaging preferences to enhance the visual appeal of produce, provide product information, and optimize shelf space. Additionally, packaging solutions must be designed to withstand the rigors of the supply chain, protecting produce during transportation and handling.
• Consumer convenience: Packaging that offers easy handling, portion control, resealability, and on-the-go consumption options aligns with consumers' busy lifestyles and contributes to the overall consumer experience.
• Sustainability and eco-friendly initiatives: Increasing environmental consciousness has led to a demand for eco-friendly packaging options. Biodegradable, compostable, and recyclable packaging materials help reduce the environmental impact of produce packaging, aligning with consumer preferences and regulatory requirements.
• Urbanization and lifestyle changes: As more people live in urban areas and have limited access to traditional markets, the demand for packaged produce increases. Packaging allows for longer shelf life, easier transportation, and the availability of fresh produce in urban retail settings.

Products offered by key companies:

• World Centric has launched a new line of produce bags made from 100% recycled materials. The bags are compostable and biodegradable, and they are also certified by the Sustainable Packaging Coalition.
• Apeel Sciences has developed a new type of produce packaging that is made from plant-based materials. The packaging is designed to extend the shelf life of fruits and vegetables by up to 50%, which can help to reduce food waste.
• Looop has developed a new type of produce packaging that is made from recycled paper and water-based inks. The packaging is 100% recyclable, and it is also compostable at the end of its life.

Positive growth in the modified atmosphere packaging (MAP) segment:

The modified atmosphere packaging (MAP) segment of the produce packaging market is experiencing rapid positive growth. This is driven by the growing demand for fresh produce with a longer shelf life. MAP utilizes gases to create a modified atmosphere inside the package, extending the freshness of the produce. As people become more health-conscious and seek convenient food options, the demand for fresh produce continues to rise. MAP's ability to prolong the shelf life of produce by up to 50% reduces food waste and increases profits for producers. Additionally, the convenience of easy-to-open and resealable MAP packages further contributes to its market growth, especially for on-the-go consumption of items like apples and bananas.

The Asia-Pacific region is expected to hold a significant share:

The Asia Pacific region is poised to lead the produce packaging market share in the coming years. This is attributed to factors such as the region's high population growth and increasing disposable incomes, driving the demand for fresh fruits and vegetables. With a growing health-conscious population seeking convenient and healthy food options, the demand for fresh produce is expected to rise. The presence of major produce producers like China, India, and Indonesia, investing in new packaging technologies and expanding production capacity, further contributes to the region's dominance in the produce packaging market. Overall, the Asia Pacific region is expected to be at the forefront of the produce packaging industry due to these key drivers.

Key developments:

• In January 2023, Cascades introduced a new closed basket made of recycled and recyclable corrugated cardboard for the produce sector. This eco-friendly packaging supports a circular economy approach and offers flat shipping, reducing transportation costs and storage space.
• In December 2022, BASF and StePac have collaborated to develop sustainable packaging for the fresh produce industry. BASF will supply StePac with its Ultramid® CcycledTM, a chemically recycled polyamide 6, allowing for the advancement of contact-sensitive packaging formats with higher sustainability standards.

Key Segment:

By Packaging Material Type

• Plastic Containers
• Corrugated Boxes
• Bags and Pouches
• Film Lidding and Laminates
• Trays

By Application

• Food Grains
• Fruits
• Vegetables

By End-users

• Growers/Shippers
• Re-Packers
• Retail Stores

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others