The global fresh food plastic containers market is expected to grow at a compound annual growth rate of 3.34% over the forecast period to reach a market size of US$45.816 billion in 2026, from US$36.403 billion in 2019. Plastic containers are used to store fresh produce, meat, seafood, and dairy products for a specific period. Moreover, these types of containers are available in many shapes, styles, and sizes. The market is expected to surge in the coming years, due to the rise in consumption, storage, and packaging of fresh foods, increasing developments to increase the shelf life of the fresh food products, increasing recyclability of the material, and other related factors.
Major companies have been making significant developments in the market, in the past few years. For instance, in February 2021, Walmart announced that it had entered into a multilayer agreement with IFCO systems, intending to package fresh produce in IFCO reusable plastic containers. Under the novel deal, Walmart suppliers would deliver or send their produce to Walmart's locations, using reusable plastic containers from IFCO. This development is expected to have a positive impact on the market, in the coming years. Other players are also making significant developments in the market. For instance, in December 2020, Argos Pro-duce LLC, a tomato production company in advanced greenhouses in Mexico, had announced a partnership with IFCO Systems, for the transfer of the company's fresh tomato to retail grocery stores in Canada and the United States.
The tomatoes would be transferred by IFCO's Re-usable Plastic Containers. The increasing usage of reusable plastic containers is intended to reduce plastic waste, due to plastic’ severe environmental concerns. The market is expected to show restraint due to increasing regulations against the use of plastics. Various countries and organizations have been developing and introducing several measures to reduce the impact of plastic waste, in the coming years.
Increasing Demand for fresh food
The market is expected to surge in the coming years, due to the increasing demand for fresh food products. According to the Institute of Food Technologists, worldwide demand for fresh food products had witnessed a surge of approx. 3% in terms of volume, in the past three years. The demand for organic fresh food products has also been on the surge, especially in the developed markets, such as the United States and the United Kingdom.
The Asia Pacific and the Middle East and Africa market witnessed a significant surge in the demand, due to the rise in disposable income and growth in population. According to the Labor Bureau of Statistics and “Consumer Expenditure Survey”, approximate fresh food sales grew by around 4.1%, between the months of October 2015 to October 2018, from approx. US$171 billion to around US$178 billion. In China, sales of fresh organic products also witnessed a significant surge in the year 2019.
The majority of the fresh parameter was driven by the produce. These developments are expected to increase the demand for plastic containers for the packaging and storage of fresh food products, in the coming years.
Extended Shelf-life of the Products
One of the major drivers of the fresh food plastic container market is the rising demand for the extended shelf life of fresh food products. After packaging, it takes a considerable amount of time for freshly packaged food to reach its customers and consumers, globally. There are substantial chances of packaged foods to reduce and lose its aroma and taste before it reaches its customer and consumer. This eventually results in the loss of quality of fresh food products and impacts the capital and resources invested in the production of fresh foods. It has become imperative to store or package plastic containers for salads, and pre-cut vegetables and fruits.
Moreover, for niche vegetables such as exotic potato varieties, and others such as citrus, grapes, and sliced apples, the demand for plastic containers is likely to surge, during the forecast period. Various companies have been providing various solutions for the extended shelf life of food products. For instance, COEXPAN, one of the major players in the market has been providing plastic containers for fresh fruits and vegetables, for the past few years. The company has also been making significant developments in the overall market growth. These trends are expected to have a positive impact on the market, during the forecast period.
Growing Food Packaging Waste
Waste disposal has become one of the major global problems. According to the United States Environmental Protection Agency, food packaging accounted for approx. 45% of the waste materials landfilled in the United States, with most of the discarded materials are food plastic packaging, and containers. Food providers and service establishments register a significant amount of wasted food and its packaging. Around 4 to 10% of food purchased by the USA’s foodservice operators is discarded or thrown before reaching its customer or consumer.
According to the Food and Agriculture Organization (FAO), approx. 1.3 billion metric tons of all food produced for consumers is wasted, globally, every year. The usage of plastics as a packaging material is a major factor, related to environmental impact. Various countries and regions, worldwide, have been making and introducing stringent regulations related to plastic waste, which had the potential to impact the growth rate of the fresh food packaging market. For instance, in Europe, single-use plastics packaging and other related products would be banned from July 2021. The ban would severely impact the fresh food containers and packaging market, which are made from expanded polystyrene.
Moreover, other measures such as the Plastic Pact NL in Holland and the Plastic Pact in the United Kingdom have been striving to make the plastic recyclable by the year 2025. Furthermore, according to several official surveys in Europe, 87% of consumers and customers are concerned about the impact of plastics on the environment. There has also been a surge in the demand for paper, glass, and biodegradable packaging which is expected to harm the plastic container market, in the coming years. The increasing usage of glass and wooden crates for the transfer and storage of fresh produce is likely to hinder the overall market growth.
|Market size value in 2019||US$36.403 billion|
|Market size value in 2026||US$45.816 billion|
|Growth Rate||CAGR of 3.34% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||IFCO Systems, COEXPAN, IKEA, ACE Packs, Ambica Tech, AVI Global Plast, Milton, Huhtamaki, Tupperware, Biopac India Corporation Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the fresh food plastic containers market size by 2026?
A1. The global fresh food plastic containers market is expected to reach a market size of US$45.816 billion by 2026.
Q2. What is the size of global fresh food plastic containers market?
A2. Fresh Food Plastic Containers Market was valued at US$36.403 billion in 2019.
Q3. What are the growth prospects for fresh food plastic containers market?
A3. The fresh food plastic containers market is expected to grow at a CAGR of 3.34% during the forecast period.
Q4. What factors are anticipated to drive the fresh food plastic containers market growth?
A4. The market is expected to surge in the coming years, due to the rise in consumption, storage, and packaging of fresh foods, increasing developments to increase the shelf life of the fresh food products, increasing recyclability of the material, and other related factors.
Q5. Who are the major players in the fresh food plastic containers market?
A5. Prominent/major key market players in the fresh food plastic containers market include IFCO Systems, COEXPAN, IKEA, ACE Packs, Ambica Tech, AVI Global Plast among others.