Edible Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Edible Packaging Market size is estimated at USD 1.04 billion in 2024, and is expected to reach USD 1.44 billion by 2029, growing at a CAGR of 6.68% during the forecast period (2024-2029).

Edible packaging, made from plant-based ingredients, can be eaten directly, eliminating the need to process or recycle. With more people caring about the environment, this new type of packaging is an excellent alternative to traditional options. It meets the demand for eco-friendly products and helps reduce waste in landfills.

Edible packaging protects food from carbon dioxide, fats, moisture, oxygen, and smells. It keeps food fresh and extends its shelf life. One significant advantage is that it can include various active ingredients that improve food safety and nutrition. Edible packaging materials include soybean protein, wheat gluten, whey, and gelatine, attracting businesses to invest in this area.

In October 2023, Gousto (SCA Investments Limited) introduced the world's first edible pea protein-based packaging, developed with Xampla, a spinout from Cambridge University. This packaging works like plastic, preserving food taste and shelf life, but it is vegan, gluten-free, and eco-friendly.

Governments and major manufacturers are investing in edible packaging for food and pharmaceutical products. For example, the U.S. Department of Agriculture and the American Chemical Society are developing edible packaging from casein, a milk protein film. This material is 500 times better at protecting food from oxygen.

With the global ban on plastic, eco-friendly options like edible bags, straws, and containers are becoming more popular. This has increased demand and growth in the packaging sector. Companies making edible products are expanding to meet this demand, leading to more investments in the field.

A Non-Resident Indian (NRI) from Mangalore, based in Qatar, has created EnviGreen, an eco-friendly carrier bag. These bags look like plastic but are made from natural starch and vegetable oil derivatives. They dissolve in room-temperature water within a day and in boiling water within 15 seconds. Such innovations are expected to boost market demand in the coming years.

However, edible packaging is more expensive to produce than traditional packaging. The higher cost and the need for secondary packaging to protect against contamination are challenges for the market. Manufacturers have to spend more on protective measures, increasing overall packaging costs.

Edible Packaging Market Trends

The Increasing Demand for Sustainable Solutions and the Need for Extended Product Shelf-Life are helping drive market growth

Food packaging uses glass, paper, cardboard, metals, and plastic. However, plastic packaging causes many environmental problems. To address this, manufacturers are now focusing on biodegradable and edible food packaging from films and coatings.

Edible packaging materials vary, including starch, collagen, zein, and gluten-based options. Additives are often added to these materials during film formation to improve their protective qualities. Each type of film has a specific function, mainly acting as a barrier to extend the food's shelf life. The main benefit of edible packaging is that it can be eaten along with food, reducing waste and environmental impact. It also offers physical and nutritional benefits compared to synthetic packaging.

Consumers are becoming more health-conscious and interested in plant-based foods. In response, food manufacturers are working harder to extend shelf life and improve packaging technology to ensure food safety and preservation.

At the same time, researchers and technological institutions are developing new edible films using different components, which helps the market grow. For example, in August 2023, the food tech startup Foodberry created plant-based edible coverings from fruit skins. These coverings help extend the shelf life of moisture-sensitive foods like ice cream and hummus.

With growing concerns about climate change, plastic pollution, and other environmental issues, sustainable packaging is the best option. Businesses can significantly reduce their environmental impact using biodegradable or renewable materials like plant-based options.

Additionally, more consumers are willing to pay extra for sustainable packaging. According to the National Association of Convenience Stores (NACS), a leading global trade association for convenience and fuel retailing, about 80% of consumers are now concerned about the environmental impact of their purchases, up from 68% in 2023 and 66% in 2022. This is expected to have a fair effect on the studied market.

A Sustainable Revolution in the European Region Aids the Market Growth

Research and development (R&D) efforts are growing, particularly in regions like the United Kingdom. These efforts focus on creating edible packaging, often from materials like seaweed. The main goal for these innovators is to make packaging that's useful and safe to eat, avoiding traditional landfills and ocean pollution. Notpla Limited, a UK-based sustainable packaging company, is a great example. Notpla's work in seaweed-based packaging earned it the prestigious Earthshot Prize, a well-known award in the sustainable packaging field.

Showing the practicality of these innovations, in April 2023, Notpla's product, Ooho, was a hit at a marathon in Gothenburg. Ooho replaced over 20,000 regular plastic cups, giving runners an eco-friendly way to hydrate on the go. Its all-natural, edible design improved the runners' experience and significantly reduced single-use plastic use.

For example, Traceless, a German startup, has developed a new process that turns agricultural waste, like starch and brewery residues, into various products, from plastic films to hard materials. These materials, made from plant residues, are fully compostable. Depending on their thickness, they can break down in 2-9 weeks, either in a home compost bin or through anaerobic digestion, producing biogas. Such innovations are expected to boost the edible packaging market.

The European Union's ban on single-use plastic products, including cups and straws, has dramatically affected market trends. Packaging manufacturers have quickly responded by introducing edible straws as a sustainable alternative. In April 2023, EdibleStraws, a leader in sustainable food solutions, launched its latest product, edible straws, further supporting the move away from traditional plastic and paper straws.

The edible packaging market is significantly changing as the region faces growing sustainability concerns and stricter rules on single-use plastics. The market is set for solid growth with many players and increased R&D investments.

Edible Packaging Industry Overview

The edible packaging market is semi-consolidated due to limited market players. The key players operating in the market include Nagase America LLC (Nagase & Co. Ltd), Evoware (PT. Evogaia Karya Indonesia), Notpla Limited, Tipa Corp Ltd, TSUKIOKA FILM PHARMA CO. LTD, Devro PLC (Saria Nederland BV), and JRF Technology LLC, among others. The players focus on expanding their market share and investing in research and development (R&D) to develop innovative products.

July 2023 - Notpla Limited expanded its presence in Europe by scaling up the availability of seaweed-based coated boards and launching into the Benelux region. The availability of seaweed-based coated boards would gain traction among environmentally-conscious businesses.

May 2023 - Nagase America LLC announced the formation of its Emerging Technologies Team that will focus on exploring and de-risk new business opportunities with high potential and drive the exploratory phase of product development. The formation of a new team will help the company Deliver the Next technology, products, and services in the Americas and drive the business's transformation.

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