Retort Packaging Market Size and Trends
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.
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 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.
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.