The global food container industry has shown decent growth over the recent years, valued at USD 172.31 Bn in 2024. The industry is expected to grow at a CAGR of 4.3% between 2024 to 2031. This growth can be attributed to several factors. Let’s understand them in detail.
Growth Drivers
Firstly, lifestyles are getting busier, urbanization is increasing, and more and more people are now working, especially women. All these factors have created the demand for convenience and packaged food. Having no time to cook, people often choose to have takeout food or ready-to-eat meals. This is naturally also driving the demand for food containers.
The growing population is also affecting the industry positively. With more people to feed, there is an increased focus, both from the government as well as manufacturers, on increasing food production to fulfil the demand. With the growing demand for food, naturally, the need for food containers is also increasing.
Emerging Trends
As is with most industries today, sustainability is becoming an area of focus in the food containers industry as well. Plastic containers, especially single-use plastic ones, are harmful for the environment as they are not biodegradable. But it's not like we can’t just stop using food containers. They are essential for transporting, storing, and packing food products. So what can we do? Well, the solution is to find better options. Manufacturers have started making biodegradable food containers from sustainable materials that enable eco friendly food storage. Some examples of these materials are corrugated paper, cardboard, aluminum, and even bioplastics.
For example, Chuk, Pakka’s flagship brand, added new products to its 100% compostable tableware series in September 2024. The additions included a 4-inch dona, a beverage cup, and a 3cp snack tray. The products in this series are made from bagasse, an agri-residue of sugarcane.
Apart from this, they are developing innovative manufacturing techniques to reduce material usage without compromising on the properties. Recyclability is another important focus among government policy makers and manufacturers.
Regional Insights
North America has a strong presence of industry leaders, thus holding the largest share (34.8%) in the industry in 2024. The region is leading due to a number of reasons. First, the consumption of packaged and processed food is tremendously high in countries like the U.S. and Canada. Also, the regulatory framework for food safety is well-established and stable in this region, making manufacturing easier for the players.
And the manufacturers operating in these countries are not only catering to the domestic demand but also have well-established export networks, helping them lead the industry.
In terms of growth, however, Asia Pacific is the fastest. Growing populations in countries like India, China, and Japan is a very strong driver. Also, there’s a rise in the disposable income among people. This has resulted in an increased consumption of packaged food, creating demand for food containers as well.
Also, food exports from some southeast nations is also on the rise, benefitting the region’s food container industry.
