Food Service Packaging Market Size, Share, and Trends 2024 to 2034

Food Service Packaging Market Size to Reach USD 223.52 Bn by 2034

The global food service packaging market size was USD 131.51 billion in 2023, calculated at USD 138.01 billion in 2024 and is expected to reach around USD 223.52 billion by 2034, expanding at a CAGR of 4.94% from 2024 to 2034. The rising demand for sustainable food products across the world is driving the growth of the food service packaging market.

The global food packaging market size accounted for USD 377.05 Billion in 2023 and is projected to surpass around USD 679.71 Billion by 2033.

Food Service Packaging Market Key Takeaways

• Asia Pacific led the food service packaging market with the largest share in 2023.
• Europe is expected to attain the fastest rate of growth during the forecast period.
• By product type, the cups and lids segment led the market in 2023.
• By product type, the plastic bottles segment is expected to be the fastest-growing segment during the forecast period.
• By end-user industries, the QSR segment dominated the market in 2023.
• By end-user industries, the institutional segment is expected to grow with the highest CAGR during the forecast period.

Asia Pacific Food Service Packaging Market Size and Growth 2024 to 2034

The Asia Pacific food service packaging market size was exhibited at USD 52.60 billion in 2023 and is projected to be worth around USD 90.53 billion by 2034, poised to grow at a CAGR of 5.05% from 2024 to 2034.

Asia-Pacific held the largest food service packaging market share in 2023. The market's growth in the Asia-Pacific region is mainly driven by the rising development of food industries in countries such as Japan, India, China, and others. The rising developments in the beverage sector, along with the rising demand for alcoholic and non-alcoholic drinks, have increased the demand for packaging solutions across the region, which, in turn, boosts the market growth. For instance, in December 2023, Coca-Cola launched Lemon Duo in India. Lemon Duo is an alcoholic drink that is manufactured using crushed lemons, infused in alcohol, and mixed with bubbles that deliver a unique taste to consumers.

Moreover, several local market players in food service packaging, such as Amcor PLC, Detpak, Takigawa Corporation, and others, are constantly engaged in developing food service packaging solutions and adopting strategies such as product launches and business expansions, which in turn drives the growth of the food service packaging market in this region.

• According to a recent report published by the Indian government under the Vision 2030 initiative in February 2023, India’s food industry is one of the largest industries in the world, and its output is estimated to reach US$ 535 billion by the year 2025-26.
• In December 2023, Detpak launched Vanguard. Vanguard is a collection of compostable bowls, plates, and containers for the food service packaging industry in Australia.

Europe is expected to be the fastest-growing region during the forecast period. The growing number of restaurants and food chains has increased the demand for sustainable food containers, which, in turn, boosts market growth. Also, the rising number of corporate offices, colleges, hospitals, and others has increased the demand for food products, which in turn increases the demand for packaging services associated with it, which is likely to drive market growth. Also, the governments of several countries, such as the UK, France, Germany, and some others, have increased their emphasis on developing the food and beverage industries as they are major contributors to the GDP, which in turn drives market growth. For instance, in February 2024, the government of the UK announced that the food and drink manufacturing sector is prominent for the nation’s growth. It also stated that this sector contributed around 38 billion euros to the overall GDP of the United Kingdom.

Moreover, there are several local companies of food service packaging such as Hinojosa, Faerch, and some others, are constantly engaged in developing parenteral packaging solutions and adopting several strategies such as product launches and others, which in turn drive the growth of the food service packaging market in this region.

• According to the HIT Horizons statistics of companies in the UK, the number of corporate companies in London reached 3,127,272 in June 2024.
• In March 2023, Hinojosa launched a new portfolio of 100% recyclable primary packaging solutions. This packaging solution mainly includes three ranges: beverage, dairy, and food containers.

Market Overview

The food service packaging market is important in the packaging domain. This industry mainly deals in developing several packaging solutions for food products around the globe. This industry consists of several products, such as corrugated boxes and cartons, plastic bottles, trays, clamshells, and others. There are several materials that are used in the manufacturing of food packaging, such as aluminum, paperboard, molded fibers, and others. The food service packaging industry consists of several end-users, including QSR, institutional, full-service restaurants, hospitality (dine-ins, coffee and snacks, etc.), and others. This industry is expected to grow exponentially with the growth in the food and beverage industry.

Silgan Holdings announced that it had become the leading supplier and manufacturer of metal containers in North America and Europe, with net sales of US$3.1 billion for the metal containers segment in 2023, which represents a CAGR of around 7.2 % since 1987.

Food Service Packaging Market Growth Factors

• The growing developments in the packaging industry are expected to drive the growth of the food service packaging market.
• The rising government initiatives for strengthening the beverage industry have driven the market growth.
• The increasing demand for convenience food among people across the world fosters market growth.
• The rising funding from public and private sector entities for developing high-grade food packaging materials propels market growth.
• The growing developments in the thermoforming processes across the world boost the market growth to some extent.
• Increasing number of food service outlets around the world is expected to boost the market growth.
• The rising advancements in food packaging technologies across the world boost market growth.
• The ongoing research and development activities related to the production of sustainable food containers have impacted the market growth positively.
• The rising trend of cloud kitchen services across the world is driving market growth.
• The growing advancements in the food & beverage industry around the globe have boosted the food service packaging market growth.

Food Service Packaging Market Scope

Market Dynamics

Driver

Rising demand for sustainable packaging solutions

The food and beverage industry has grown rapidly in recent times with the changing food habits and lifestyle transitions among people around the world. With the increased demand for ready-to-eat food, the demand for sustainable packaging solutions has increased due to the growing awareness among people regarding environmental protection along with government initiatives to mitigate pollution around the world. Thus, the growing demand for sustainable packaging solutions is likely to boost the growth of the food service packaging market during the forecast period. Moreover, several food service packaging companies are developing superior quality sustainable packaging solutions for various end-user industries that, in turn, drive market growth.

• In February 2024, the United Nations Environment Program (UNEP) launched an initiative to fight three major planetary crises that mainly include pollution, climate change, and biodiversity loss.
• In April 2024, FoodChain ID launched several new sustainable packaging services. These services include a collection of products and superior services for helping food companies and their supply chains meet industry demands for sustainable packaging.
• In April 2024, Parkside launched Recoflex. Recoflex is an all-new range of recyclable paper-based flexible packaging materials that offer high durability, barrier performance, and superior heat sealability that find applications in food industries.

Restraint

High cost and stringent rules

The applications of food service packaging are very important for storing and transporting food products across the world. Although the application of food service packaging in the food & beverage industry is worth mentioning, the problems associated with the prices of raw materials and the rising labor charges working in this industry have increased rapidly, which in turn increases the overall manufacturing cost of packaging. In addition, there are several rules and regulations in various countries that forbid the use of plastic packaging due to the growing burden of plastic waste across the world. Thus, the high cost associated with the manufacturing of food service packaging, along with strict rules regarding plastic waste, is expected to restrain the growth of the food service packaging market.

Opportunity

Integration of AI in food service packaging

The applications of AI have increased rapidly in the fields of labeling and packaging of food products due to its ability to provide accurate labeling and a superior level of packaging associated with food products. Currently, AI is being integrated into food service packaging industries to achieve superior outcomes and increase the brand awareness of the product among consumers. Thus, the growing integration of AI technology in food service packaging activities is expected to create ample growth opportunities for the food service packaging market players in the future.

• In March 2024, Tomra launched a new AI-based technology for developing packaging solutions. Tomra’s AI technology is powered by its proprietary deep learning-based technology named “GAINnext,” which enhances the sorting capabilities of its auto-sort units and helps in swift and efficient differentiation on a large scale for the production of sustainable packaging materials.

Product Insights

The cups and lids segment held the largest market share in 2023. The growing applications of cups and lids from the food and beverage industries for maintaining the hygiene of various beverages are likely to boost the market growth. Also, the rise in the number of restaurants and cafes across the world has increased the demand for cups and lids, thereby driving market growth. Moreover, the demand for eco-friendly cups among consumers, along with the growing application of cups and lids in the quick service restaurant (QSR) sector and the fast-food sector, has driven the growth of the food service packaging market during the forecast period.

• In May 2024, Quit Plastic launched a sustainable lid in India. This lid has a diameter of 70mm and is eco-friendly, and it finds applications in the food and beverage industry.
• In April 2024, Starbucks launched an eco-friendly single-use cold cup. This cup aims to reduce Starbucks' carbon footprint by 2030 and ensure sustainable packaging across the U.S. and Canada.

The plastic bottles segment is expected to grow with the highest compound annual growth rate during the forecast period. The rising demand for sustainable plastic bottles that are bio-degradable and recyclable has driven the market growth. Also, the growing application of plastic bottles for storing food products such as sauce, vinegar, mayonnaise, oil, ghee, and some others is likely to boost the market growth. Moreover, the demand for plastic bottles from the beverage sector for storing water, coffee, alcoholic drinks, cold drinks, and some others has propelled the growth of the food service packaging market. Furthermore, the rising developments in polyethylene terephthalate (PET) and high-density polyethylene (HDPE) polymers for manufacturing plastic bottles are boosting the market growth.

• In January 2024, the Defence Food Research Laboratory (DFRL) in Mysuru, India, launched a biodegradable water bottle. This biodegradable bottle is manufactured using a material known as polylactic acid (PLA).
• In May 2024, Alpha launched a new recyclable wine bottle. This bottle is manufactured using polyethylene terephthalate (PET) that reduces around 50% carbon footprint, and these bottles are available in sizes of 750 ml and 1 liter.

End-User Industry Insights

The QSR segment held the dominant share of the food service packaging market in 2023. The growing demand for bakery products, meat-based cuisines, burgers, pizzas, and some others has increased the demand for quick-service restaurants, which drives the market growth. Moreover, the rising popularity of global fast-food chains such as McDonald's, KFC, and Domino's around the world has boosted market growth. For instance, in December 2023, McDonald’s announced that it is the leading global food service retailer around the world with nearly 40,000 locations across 100 countries. Also, quick-service restaurants provide food items for a shorter duration of time than conventional restaurants, thereby boosting market growth.

Food service packaging companies have also started developing sustainable packaging items for QSR companies such as Domino, Mcdonald's, KFC, and others, which, in turn, drive market growth. For instance, in February 2023, Chuk launched a compostable delivery container. This container was launched with the aim of stopping the use of single-use plastic products for food delivery, and this container comes in four different sizes such as 350 ml, 500 ml, 750 ml, and 1000 ml.

• Additionally, advancements in the design of food delivery apps and websites that allow people to order food items by sitting at their places are driving the growth of the food service packaging market.
• In May 2023, Sunil Shetty launched a new food delivery app called ‘Waayu’. This app aims to provide restaurants with a zero-commission model.

The institutional segment is estimated to be the fastest-growing segment during the forecast period. The growing number of higher education institutes, corporate offices, hotels, and others across the world has increased the demand for food service packaging solutions, which is driving market growth. The rising application of coffee cups in corporate offices, along with the growing demand for food containers in schools and colleges, has boosted the market growth. Moreover, rising partnerships among coffee providers and delivery service providers worldwide are driving the growth of the food service packaging market. For instance, in June 2024, Starbucks announced a partnership with GrubHub. This partnership aimed to strengthen the coffee delivery chain in the cities of Colorado, Pennsylvania, and Illinois in the U.S. region.

• Additionally, the growing collaboration among corporate companies and food providers to maintain sustainable food chains across the world has driven market growth. For instance, in June 2024, Deloitte collaborated with DSM Firmenich. This collaboration aimed at strengthening the sustainable food value chains across the U.S. region.
• According to the Annual Head Office Survey, 2022 of Canada, the number of corporate headquarters in Canada reached 2,654, and the majority of headquarters are located in Toronto, followed by Montréal, Vancouver, and Calgary.
• According to a report published by the IDP (International Development Programme), in May 2024, there are around 4,500 higher educational institutions in the U.S. region including colleges and universities.

Food Service Packaging Market Companies

• Pactiv Evergreen Inc.
• Dart Container Corporation
• Amhil North America
• Genpak LLC
• Huhtamaki Oyj
• Berry Global Inc.
• Novolex Holdings LLC
• Sabert Corporation
• Silgan Plastic Food Container
• B&R Plastics Inc
• Graphic Packaging International Inc
• Amcor PLC
• Sonoco Products
• Winpak Limited
• Mondi

Recent Developments

• In April 2024, Sabert launched the pulp 2S produce tray. This tray finds applications in serving chicken, steak, beef, seafood, and plant-based alternatives.
• In March 2024, IMEX Vision launched Adama. Adama is a range of sustainable paper cups for both hot and cold beverages that find applications around the areas of the U.S. & Latin America.
• In February 2024, Berry launched the all-new reusable tableware range. This reusable tableware will help the food service industry to meet the demand for sustainable packaging solutions.
• In February 2024, Faerch launched a new range of tumbler for the foodservice industry. This tumbler is manufactured using 30% post-consumer recycled (PCR) materials.
• In January 2024, Genpak launched a new harvest fiber line. The new fiber line consisted of food service containers, trays, and tableware that found applications in restaurants.
• In December 2023, Melodea launched MelOx Ngen. MelOx Ngen is a barrier product approved by the U.S. Food and Drug Administration (FDA) and the German Federal Institute for Risk Assessment (BfR) for use in the food service packaging industry.
• In April 2022, Solenis announced partnership with Zume. This partnership is done for launching a comprehensive line of PFAS-free packaging solutions for replacing plastic and styrofoam with a sustainable alternative for various food service applications.

Segments Covered in the Report

By Product

• Corrugated Boxes and Cartons
• Plastic Bottles
• Cups and Lids
• Clamshells
• Trays, Plates, Food Containers, and Bowls
• Other Product Types

By End-User Industries

• QSR
• Institutional
• Full-service Restaurants
• Hospitality (Dine-ins, Coffee, Snack, etc.)
• Other End-user Industries

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa