ACTIVE AND MODIFIED ATMOSPHERE PACKAGING MARKET ANALYSIS

Global active and modified atmosphere packaging market was valued at 23.0 Billion in 2022, exhibiting a CAGR of 6.23% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 37.3  Billion by 2030.  

Freshly cut fruits and vegetables are packaged using modified atmospheric packing, in oder to  make product with a fresh-like freshness and great nutritional content. Active and modified atmospheric packaging is used in food packaging. Pharmaceutical and dietary supplement industries are using active and modified atmospheric packaging to decrease the amount of oxygen and moisture in products, to extend the shelf life of product, and to enable consumers to store medications and dietary supplements for a long time

Global Active and Modified Atmosphere Packaging Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 outbreak majorly impacted negatively the global active and modified atmosphere packaging  market, owing to the strict lockdown and stringent regulations that led to decrease in demand for active and modified atmosphere packaging. Moreover, the production process of the active and modified atmosphere packaging was disrupted due to social distancing and lack of manpower. Measures such as nationwide lockdowns, owing to Coronavirus (COVID-19) pandemic led to panic buying  of active and modified atmosphere packaging  products, and this is expected to drive the global active and modified atmosphere packaging market during 2023-2030.

Global Active and Modified Atmosphere Packaging  Market- Growth Drivers

• Increasing Demand for Processed Food Around The Globe

Increasing demand for processed food around the globe coupled with growing food and beverage industry is expected to drive the market growth. Active and modified atmosphere packaging is a preferred food packaging solution for increasing the shelf life of fresh food products, and thus, it is used in the self-venting microwave packs and respiring trays. Hence, rising demand for processed food is expected to drive the market growth.

• Advantage of The Active and Modified Atmosphere Packaging

The advantages offered by the active and modified atmosphere packaging, in terms of fresh food packaging, is expected to drive the market growth. It offer sustainability advantages such as lower carbon presence and reduced energy consumption as compared to rigid packaging. Moreover, this packaging technology does not require any preservatives to extend the shelf-life of the food product. Hence, these advantage of the active and modified atmosphere packaging is expected to drive the market growth. 

Figure 1. Global Active and Modified Atmosphere Packaging Market, By Material Type, 2022

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Global Active and Modified Atmosphere Packaging Market - Restraints

• Concerns Associated with the Physical Protection of the Thin Films

Concerns associated with the physical protection of the thin films is expected to hinder the market growth. The thin films of flexible packaging that are used in active and modified atmosphere packaging does not offer much physical protection as rigid packaging. Moreover, flexible packaging bags designed for liquid products can get easily punctured, and thus, requires handling with care over the production process. Hence, concern associated with the stability and handling of the packaging is expected to hamper the market growth over the forecast period. Moreover, the rising demand for active and modified atmospheric packaging is expected to witness significant market growth in the upcoming forecast period.

• Modified Atmosphere Packaging Limits the Growth of the Bacteria in the Food Product

The modified atmosphere packaging limits the growth of the bacteria in the food product, as it does not slow down the growth of some harmful bacteria. In order to tackle this situation, modified atmosphere packaging is used along with the other preservative method such as refrigeration, and this expected to hamper the market growth. Moreover, the rising demand for active and modified atmospheric packaging in food industry is expected to witness significant oppournities among active and modified atmospheric packaging market global key players.

Figure 2. Global Active and Modified Atmosphere Packaging Market, By Region, 2022

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Global Active and Modified Atmosphere Packaging Market- Opportunities

• Growing Food and Beverage Industry Coupled with Rising Number of the Consumers

Growing food and beverage industry coupled with rising number of the consumers is expected to drive the market growth. According to GlobalData Quick Service, Restaurant & Fast Food category is expected to witness an average annual growth in sales during 2017-2020, at 5.9%. Moreover, according to the same sources the U.S. was the largest food and beverage market in the Americas as well as globally, with consumer spending on eating out  US$ 729 billion (PPP) in 2016.

• Increasing Spending by the Government on the Food Sector

Increasing spending by the government on the food sector in the U.S region is expected to drive the market growth over the forecast period. According to the Additionally, according to the Food and Agriculture Organization of the United Nations (FAO), nearly one-third of all food produced for human consumption is wasted globally each year, amounting to about 1.3 billion metric tons. Since 795 million people, or about 11% of the world's population, go hungry, there is already a lot of pressure on the world's food supply, making it urgent to reduce food waste.

Global Active and Modified Atmosphere Packaging Market- Trends

• Investment by Manufacturer in new packaging solutions to Reduce Usage of Plastic

Manufacturers are developing novel packaging solutions in order to reduce plastic consumption, and this trend is expected to drive the market growth over the forecast period. For instance, in April 2018, RAP fusion food private limited, a manufacturer of food-to-go packaging, launched the world’s first Modified Atmosphere (MA) RapTray that provides an alternative to full plastic trays and reduces plastic usage by 85%. It is the world’s first hermetically sealed carton food tray that removes virtually all oxygen from inside the tray, and extends product shelf life and maintains food freshness.

• Increasing Number of Partnerships Among Manufacturers of the Active and Modified Atmosphere Packaging

Increasing number of partnerships among manufacturers of the active and modified atmosphere packaging is expected to drive the market growth. For instance, in August 2018, StePac, an Israel-based packaging firm, partnered with Tadbik to produce a modified atmosphere re-sealable lidding film, in order to extend the shelf life of fresh produce in aesthetic and functional retail packaging, as well as  to reduce waste. This collaboration is part of the company’s aim to implement a comprehensive supply chain solution for the delivery of fresh cherries.

Global Active and Modified Atmosphere Packaging  Market- Segmentation

By Material Type segment, the global active and modified atmosphere packaging market is segmented into ethylene vinyl alchol, ethylene vinyl acetate, polyethylene terapthalate, polyamide, polypropylene, polyvinyl chloride, polyethylene, and others. The polyethylene segment held the largest market share in 2022, and is further projected to exhibit the highest CAGR during the forecast period, owing to rising demand for stringent environment regulations and sustainable packaging solutions.

 Popularity of water-based active and modified atmosphere packaging is growing, due to its low volatile organic compound emissions and environmental friendly nature. Moreover, also it  provides excellent print quality, and is simple to clean. The inks are utilized in several applications including corrugated boxes, labels, and food packaging. Moreover, the thermoplastic polymer polyethylene that  has good chemical and moisture resistance, strength, and flexibility, is frequently used in packaging. Furthermore, it is used in a wide range of packaging  products such food, drink, personal care, and healthcare.

Global Active and Modified Atmosphere Packaging Market– Recent Developments

• In May 2022, Avery Dennison,partnered with Wiliot, a provider of digital ID technologies, to expand the Internet of Things through the integration of atma.io and the creation, design, and manufacture of Wiliot tagsthat will help the IoT become smarter and completely networked.
• In April 2022, Amcor PLC, invested to increase the capacity of its healthcare packaging business in Sligo, Ireland, for thermoforming medical packaging. This multi-million dollar investment helped Amcor's sterile packaging division to grow while providing customers in Europe and North America with yet another location with all-inclusive healthcare offerings.
• In March 2022, Graphic Packaging, expanded its range of sustainable packaging choices for the beverage industry. EnviroClip is created by the company as part of its commitment to continued product innovation in support of a more circular economy. It is a paperboard alternative to plastic rings and shrink film for regular beverage cans.
• In January 2021, Amcor Plc, announced that Amcor packaging can be printed with the Carbon Trust's "Reducing CO₂ Packaging" Label for carbon footprint reductions. It is a component of the business' lifecycle assessment service that enables businesses to gauge the carbon footprint of their packaging from raw materials to end of use.
• In February 2021, Berry Global Group, Inc., invested more than US$ 70 million in expanding its wiping substrate capabilities in the U.S. This investment includes a new line that provides more capacity, improves the company's ability to serve its international customers, and supports the continued expansion of its business.

Global Active and Modified Atmosphere Packaging Market– Regional Insights

Asia Pacific held the largest revenue share of 37.51 % in the global active and modified atmosphere packaging  market in 2022 and is expected to maintain its dominance over the forecast period. furthermore, asia pacific region is expected to be the fastest-growing region in the global active and modified atmosphere packaging  market during the forecast period. Rising demand from the packaging industry in countries like China and India is expected to drive the market growth in Asia Pacific regionduring the forecast period. Moreover, Asia Pacific is expected witness significant market growth in the upcoming forecast period, due to growing consumer awareness regarding health advantages of active and modified atmosphere packaging (MAP), and rising disposable income levels.

For instance, according to the Plastics Industry Association of India, India's packaging sector is the fifth-largest in the world and is expanding at a rate of 22-25% annually. Due to highly skilled labor and low labor costs, food packaging and processing prices are 40% lower than in Europe. The market for active and modified atmosphere packaging is expected to expand as a result of the country’s rising need for food packaging, processed food, and food delivery services. These factors along with government assistanceare boosting demand for active and modified atmosphere packaging in the Asia Pacific region during the forecast period.

Global Active and Modified Atmosphere Packaging  Market – Key Players

Major players operating in the global active and modified atmosphere packaging  market include Amcor Limited, LINPAC Packaging Limited, Bemis Company Inc., Berry Plastics Corporation, Coveris Holdings S.A, Winpak Limited Company, Sealed Air Corporation, ULMA Packaging S. Coop, and Ilapak International, S.A.

*Definition: Active and modified atmosphere packaging is a smart and intelligent packaging technology that is used to enhance the shelf-life of the food products. It has the ability to sense or measure an attribute of the product such as the status of the inner  atmosphere of the package or the shipping environment. This packaging solution ensures the extended shelf-life of the product without requiring any preservative chemical or stabilizers. It is used in meat, poultry and seafood, dairy products, fruits and vegetables, bakery and confectionery, processed food products, and others.