The Israel fresh food packaging market is projected to grow at a CAGR of 3.73% to reach US$249.732 million by 2027, from US$ 193.301 million in 2020. The high vegan population base is the major driver of fresh food packaging in the country. According to data from the Berman Jewish DataBank, the Jewish Federations of North America, Israel is home to around 44% of the world’s total Jewish population, which is adding significantly to the size of the vegan population in the country. Supportive government policies and initiatives to boost the adoption of a vegan diet among the Israeli population are further augmenting the demand for fresh food products. Hence, all these factors are spurring the demand for innovative fresh food packaging in Israel. Increasing production of agricultural crops in Israel is another major factor behind the growing demand for fresh food packaging in the country. Rising health concerns are further fueling the demand for fresh food products, thus positively impacting the market growth of fresh food packaging in the country during the forecast period.
The growing investments by food tech giants and the government are anticipated to boost the fresh food packaging market in the country.
The growing number of investments in the food industry is anticipated to add impetus to market growth in the projected period. The launch of the food tech venture capital fund by Tnuva is the best example of this. Tnuva, an Israeli food behemoth, in February 2022 announced the formation of a new venture capital fund that would invest in innovative food-tech firms and businesses in the country. According to Tnuva, the new fund, Tnuva NEXT, complements the business's overall 2021 investments in food tech businesses, which came to over NIS 30 million over the course of the year. The business stated that it anticipates investing roughly the same sum in 2022. In collaboration with the Israeli beverage company Tempo, the Israeli crowd-funding platform OurCrowd, and the French investment company Finistere, which specializes in food and agriculture, the company now runs Fresh.Start incubator in Kiryat Shmona.
Likewise, the favourable government initiatives deployed in the country are expected to drive the food tech, thereby positively impacting the demand for fresh food packaging in the country. For instance, in February 2022, to help develop the next generation of farmers and care for the nation's uncultivated fields, the Ministry of Agriculture and Rural Development announced the provision of NIS 10 million in initial support for the integration of new farmers in agricultural communities in 2022. The plan's goals are to expand the amount of land used for agriculture in Israel, bring in young, motivated workers, and revitalize the industry to boost food security in the country. Similar factors are expected to boost market growth in the forecasted period.
Market Restraints
However, since the country is known to be a vegan nation, the demand for poultry and meat products, seafood, and dairy products is very limited in the country. This factor is hampering the fresh food packaging market in the country to some extent.
The Israel Fresh Food Packaging market has been segmented on the basis of material and application. By material, the market has been segmented as plastic, paper and board, glass, and metal. By application, the Israel fresh food packaging market has been classified into poultry and meat products, dairy products, produce (vegetables and fruits), seafood, and others. By material, plastic accounted for a significant market share in 2019 and will grow at a decent CAGR during the forecast period. However, rising environmental concerns regarding increasing plastic waste are shifting the market towards sustainable packaging solutions. As such, the market for paper and board is projected to witness a substantial CAGR during the forecast period. Furthermore, rising R&D to develop innovative paper packaging solutions also contributes to the market growth of paper and board packaging in Israel. New startups are entering the Israel fresh food packaging market, which increases the market competition, thus fueling the growth of the fresh food packaging market in the country. By application, the produce (fruits and vegetables) packaging market holds a significant market share. This growth is attributed to the increasing vegan population in the country, which is continuously escalating the demand for fresh fruits and vegetables. Increasing investments to increase the domestic production of various fruits and vegetables is further driving the market growth of fresh food packaging in Israel.
Competitive Insights
Prominent key market players in the Israel fresh food packaging market include Mondi, Johnson Matthey, Plastopil, and Tipa LTD, among others. These companies hold a noteworthy share of the market on account of their good brand image and product offerings. Major players in the Israeli fresh food packaging market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments by different market players over the last two years.
Product offerings launched by the key players in the Market
COVID-19 Impact
COVID-19 had a negative impact on Israel's fresh food packaging market. The mandated lockdown and social distancing measures deployed by the country's government to stop the spread of the virus led to the closure of multiple production facilities across the country, reducing production efficiency. Furthermore, the border restriction also impacted the imports and exports in the country.
Segmentation