RETORT PACKAGING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The retort packaging market size is expected to reach US$ 64.76 Bn by 2030, from US$ 35.43 Bn in 2023, at a CAGR of 9% during the forecast period.

Retort packaging refers to specialized, high-barrier packaging used for shelf-stable, sterilized food and beverage products. It enables aseptic processing and sterilization of pre-packaged food inside retort pouches and containers. Retort packaging provides high barrier properties to oxygen, light, and moisture and can withstand high temperatures and pressures during processing. The growing demand for shelf-stable and convenient food and beverage products is driving market growth.

The retort packaging market is segmented by product type, material type, end-use industry, retort type, and region. By product type, the pouches segment accounts for the largest market share owing to their wide usage for ready-to-eat meals, pet food, seafood, etc. Pouches are lightweight, convenient, and provide efficient sterilization.

Retort Packaging Market Regional Insights:

• AsiaPacific is the largest market for retort packaging, with a market share of over 40%. This is due to the region's large and growing population, rising disposable incomes, and increasing demand for convenient and ready-to-eat food products.
• North America is the second-largest market for retort packaging, with a market share of over 30%. This is due to the region's high disposable incomes, growing demand for convenience foods, and increasing awareness of the health benefits of retort-packaged food products.
• Europe is the third-largest market for retort packaging, with a market share of over 20%. The region has a strong focus on food safety and quality, which is driving the demand for retort packaging.

Figure 1. Global Retort Packaging Market Share (%), By Region, 2023

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Retort Packaging Market Drivers:

• Surging demand for packaged and ready-to-eat foods: The demand for packaged and ready-to-eat foods is increasing rapidly worldwide, driven by busy lifestyles, a rising middle-class population, and evolving food habits. Consumers are seeking convenient, healthy, and safe food products that can be consumed on-the-go. Retort pouches, trays, and cartons offer efficient sterilization and extended shelf life for such foods without requiring refrigeration. Key food categories driving retort packaging include meat snacks, ready meals, pet food, baby food, soups, and sauces. Retort packaging ensures product safety and quality during distribution while providing convenience to consumers. For instance, as per data by the Food and Agriculture Organization, between 2018 and 2020, the production of prepared snacks such as potato chips and extruded snacks went up by over 13% globally.
• Growth of online food delivery services: The rapid growth of online food delivery services such as foodtech and e-commerce is boosting the demand for retort packaging. To enable delivery of hot and chilled foods while maintaining quality and safety, sturdy and high-barrier retort packaging solutions are ideal. Retort pouches with insulation properties are gaining popularity. Online delivery services rely on the long shelf life offered by retort packaged foods. The rise in nuclear families, urbanization, and tech-savvy millennials depending on online food delivery will continue to drive retort packaging demand.
• Sustainability and innovation driving new product developments: Sustainability is a key priority in the packaging industry. Retort packaging manufacturers are focusing on innovative solutions that enhance recyclability, use renewable materials, and reduce carbon footprints. For instance, mono-material pouches, paperboard cans, and PET/PP trays allow easier recycling and waste management. Bio-based materials like Polylactic acid PLA and cellulose are also being evaluated. Smart packaging features like oxygen scavenging films, leakage indication, and track-and-trace solutions also provide sustainability benefits. Such innovations expand the applications of retort packaging.
• Growing usage in emerging industries: Retort packaging is gaining prominence in emerging industries beyond food, like pet food, baby food, pharmaceuticals, and beverages offering sterile solutions. Pharma companies use retort packaging for drugs, nutraceuticals, and medical equipment requiring sterility. The nutraceuticals segment is also utilizing retort pouches for sports nutrition and supplements. Such applications provide significant expansion opportunities for retort packaging vendors.

Retort Packaging Market Opportunities:

• Rising demand from developing economies: Developing nations in Asia Pacific, Latin America, and the Middle East & Africa offer strong growth opportunities for retort packaging driven by rapid urbanization, rising incomes, and changing lifestyles. Higher spending on packaged and processed foods in these regions is increasing retort packaging uptake. Key target countries include China, India, Brazil, ASEAN, GCC nations, where food retail sector is booming. Local vendors are entering these markets supported by partnerships and expansions. Domestic demand offers huge potential for retort packaging penetration. For instance,  as per data from The Indian FMCG Market Outlook Report 2022, the FMCG sector in India was valued at over US$100 Bn in 2021 and is projected to reach US$220 Bn by 2026, indicating substantial potential for retort packaging.
• Entry in flexible packaging providing diversification: Many rigid packaging companies are diversifying into flexible retort pouches to capitalize on their high growth potential. Pouches offer benefits like lightweight nature, efficient sterilization, convenience, and recyclability. Large players as well as smaller regional vendors are launching retort pouches to expand their product portfolio beyond metal cans and containers. The expertise in sterilization and processing further helps companies to enter retort pouches segment. Partnerships with pouch manufacturers also enable market entry. For instance, as per the United Nations World Food Programme, over 78 million people globally will be  displaced due to conflicts and climate related disasters in 2022 alone, fueling demand for lightweight and portable food packages.
• Rising pet food demand supporting premiumization: The pet food segment is fast emerging as a key end-use industry for retort packaging. Owners are willing to pay a premium for high-quality foods with attractive and convenient packaging. Retort pouch suitable for pet food that can be packed in small quantities . Premiumization through packaging innovations such as spouts, zippers, and convenient shapes is gaining popularity. Natural and organic pet food products also leverage the anti-counterfeiting features offered by smart retort packaging solutions. For instance,  according to data from the American Pet Products Association, over 70% of U.S. households now own a pet. Growing pet ownership and humanization in key regions like North America and Western Europe indicate a strong future demand for premium nutrition.
• Growing food processing industry and contract manufacturing: The expanding food processing and contract manufacturing sector offers substantial scope for retort packaging uptake. Food manufacturers are increasingly outsourcing production to third-party contract manufacturers. This is driving installations of large-scale, high-speed automated retort sterilizers by contract manufacturers to cater to varying customer requirements. Retort packaging suppliers provide customized solutions and services to such processors to enhance market presence.

Retort Packaging Market Trends:

• Lightweighting and downgauging of packaging materials: Lightweighting is an important trend in the retort packaging industry aimed at enhancing sustainability and reducing material costs. Manufacturers are focusing on downgauging or using thinner layers of plastic films and boards. Advances in polymer technology allow thinner PP and PET films to retain strength and barrier properties. Strategic downgauging across non-critical areas is also employed. Lightweighting also decreases transportation costs and carbon footprints. For instance, as per Food & Agriculture Organization  FAO 2022, food loss during processing and packaging in Europe amounts to 8 million tons annually. Lightweighting plays a big role in reducing this wastage.
• Growing adoption of mono-material structures: Mono-material structures like PP and PE based pouches, PET containers are gaining preference owing to their easier recyclability and waste management. They have the same polymer throughout, with minimal use of adhesives or coatings. This enhances the reusability and recyclability of pouches and containers. Eco-friendliness and circular economy goals are driving adoption of mono-materials. For instance, according to the U.K.'s Association for Packaging and Processing Technologies (Packaging & Processing), over 70% of the material from mono-material retort trays could be recycled, which is a sizable increase from composite packaging.
• Active and intelligent packaging solutions: Active and intelligent retort packaging solutions are emerging, incorporating features like oxygen scavengers, moisture control, leakage indicators, etc. Oxygen absorbers enhance product stability and minimize food wastage, while leakage indications alert consumers regarding package integrity. Time-temperature indicators monitor food freshness end-to-end. RFID and NFC enabled track-and-trace features provide supply chain transparency. Such smart packaging capabilities are attracting consumer interest.
• Recyclable paperboard cans gaining prominence: Recyclable retort paperboard cans are rising in popularity as sustainable substitutes for steel cans. Paperboard cans offer branding, shelf appeal and sustainability. The high product visibility promotes consumer trust and engagement. Recent technology improvements have enhanced paperboard’s functional properties. Recyclable barrier coatings, circular design, and renewable materials make paperboard ideal for brand owners eyeing sustainability.

Retort Packaging Market Restraints:

• High capital investment requirements: Retort packaging lines involve high capital expenditures pertaining to filling machines, sealing equipment, retort sterilizers and autoclaves and ancillary systems. Complex production lines are required to handle diverse containers like pouches, trays, cups, etc. High-speed automation also calls for sizable investments. Lack of financial resources can deter the entry of small and regional players. Large established companies hold advantage regarding capital investments. For instance, as per a UNIDO report from 2021, a basic automated filling and sealing line for retort pouches can cost between US$ 500,000 and US$ 1 million. Similarly, a retort processing machine capable of sterilizing ~5000 pouches/hour which  costs around US$ 750,000.
• Technical limitations of packaging materials: Retort packaging materials like plastics and paperboards have certain technical limitations inhibiting adoption. Plastics have low melting points, requiring careful heat control during retorting. Paperboards need optimized coatings to prevent the absorption of fats and oils and enhance their barrier properties. Aluminum has high thermal conductivity demanding control mechanisms. New plastic grades, coatings, and structural designs are being developed to address such constraints.
• Counter balance: Bio-based plastics or recyclable materials can be used to address environmental concerns.
• Shelf life restrictions of products: While retort packaging enhances product shelf life significantly, limitations still prevail depending on the food matrix. High-moisture foods last for shorter periods compared to low-moisture foods . Fat oxidation and vitamin loss during processing further reduce shelf life. Optimum thermal processes and the use of oxygen scavenging films help maximize shelf life. But the inherent constraints of foods restrict widespread adoption of extremely long-shelf-life products. For instance, according to the guidelines issued by Food Safety and Standards Authority of India (FSSAI) in 2021, the shelf life granted for different varieties of packaged foods processed through retorting ranges from 6 months to 18 months.
• Counter balance: Retort packaging extends the shelf life of food products without the need for refrigeration and preserves the quality, taste, and nutritional value, which can be a strong selling point for food manufacturers and appeal to consumers.

Analyst View

The retort packaging market is expected to grow steadily, driven by the increasing demand for convenient and long shelf-life food products. The ability of retort packaging to kill microorganisms at high temperatures provides shelf stability for longer durations without any refrigeration. This makes it suitable for remote locations with limited cold chain infrastructure. The demand for ready-to-eat meals and pet food has also fueled the need for retort packaging.

However, factors such as stringent regulations regarding packaging material quality and recyclability are restraining market growth. Moreover, retort processes require high energy consumption, which adds to production costs. Switching to alternative packaging types can be a challenge for some companies due to investment requirements.

On the opportunity side, product innovation will aid market prospects. The development of new packaging formats, graphic designs, and contents is expanding applications. A focus on plant-based packaging solutions presents an area of opportunity. Emerging markets of Latin America and Asia-Pacific provide tremendous scope for market penetration owing to rising disposable incomes and changing lifestyles. Within Asia, countries like India dominate global retort packaging consumption.

In conclusion, while regulations and costs pose challenges, the retort packaging market is expected to grow steadily, supported by new product ranges, expanding applications, and a focus on emerging economies like Asia-Pacific and Latin America where the market is most rapidly expanding. Innovation and increased sustainability efforts will further aid the market.

Recent Developments:

New product launches:

• In March 2022, Huhtamaki launched a new recyclable retort packaging solution called SteamFresh for ready meals. It allows retorting and is made of mono-material PP, allowing easy recycling. Huhtamäki Oyj is a global food packaging specialist headquartered in Espoo, Finland.
• Huhtamaki focuses on providing packaging solutions for various industries, including food and beverage, quick-service restaurants, retail, healthcare, and personal care.
• Some of its key products and services include Paper cups, plates, trays, and containers for quick service restaurants, coffee shops, and retail stores .Flexible packaging and labels for food and drink, pet food, pharmaceuticals, household, and hygiene brands .Egg cartons, fruit trays, and cup carriers ,Coated paper cups for fast food chains such as Burger King
• In January 2021, Proampac launched the Clerk Retort Pouch to provide moisture and oxygen barrier for sterile packaging. It is used for pet food, seafood, etc. ProAmpac is a leading global flexible packaging company that provides creative packaging solutions, industry-leading customer service, and award-winning innovation to a diverse global marketplace . The company offers a comprehensive product offering, including fiber-based packaging formats that preserve food and elevate branding, creating a captivating shelf presence ProAmpac's ProActive Sustainability delivers flexible packaging products that help brands achieve sustainable goals.
• In September 2020, Sonoco launched EnviroSense sustainable temperature-controlled packaging solution for home delivery of perishable foods. It uses recyclable and compostable materials.
• Sonoco Products Company is a global provider of diversified consumer packaging, industrial products, protective packaging, and packaging supply chain services. The company offers a wide range of packaging solutions, including composite cans, tubes, and cores, as well as thermoformed plastic packaging, molded and extruded plastic products, and rigid paperboard containers. Sonoco serves various markets, including automotive, food and beverage, healthcare, home and garden, and industrial. The company is committed to sustainability and has set ambitious goals to reduce its environmental impact

Acquisition and partnerships:

• In July 2023, Wendel signed an agreement to sell Constantia Flexibles, a global leader in the flexible packaging market, to an affiliate of One Rock Capital Partners, LLC.
• In July 2021, Proampac acquired Ultimate Group, expanding its flexible packaging capabilities. Ultimate Group is a U.K.-based independent flexible packaging manufacturer that provides packaging solutions to various industries, including food and beverage, healthcare, and personal care. Ultimate Group is the parent company of Ultimate Packaging, which is one of the largest independent flexible packaging manufacturers in the U.K. Ultimate Packaging offers a range of printed, flexible packaging formats to U.K. supermarkets, including horizontal flowrap, vertical form fill and seal, resealable pouches, lidding films, top web, and barrier films.
• In August 2020, Sonoco acquired Can Packaging, a designer and manufacturer of sustainable paperboard cans and end closures. This expanded Sonoco’s sustainable packaging solutions capabilities.

Figure 2. Global Retort Packaging Market Share (%), By Material Type, 2023

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Top Companies in Retort Packaging Market:

• Amcor
• Mondi
• Sonoco
• Clondalkin Group
• Coveris
• Huhtamaki
• Winpak
• Berry Plastics
• Proampac
• Flair Flexible Packaging
• Constantia Flexibles
• Tetra Pak
• Sealed Air
• Plastipak Packaging
• Printpack
• Bryce Corporation
• Floeter India Retort Pouches
• HPM Global
• Sopakco Packaging
• Fujimori Kogyo

Definition: Retort packaging refers to specialized high barrier packaging used for shelf stable sterilized food and beverage products. It involves processing the filled and sealed packages at high temperatures to achieve commercial sterility. Retort pouches, cartons, trays, cans and bottles made of plastic, metal and paperboard materials are commonly used. Retort packaging provides convenience to consumers by offering ready-to-eat foods with long shelf life without refrigeration. It is gaining popularity over conventional canning methods owing to light weight nature, efficiency and recyclability of plastic pouches and containers. The market is driven by the rising demand for convenient packaged foods and beverages globally.

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