Global Compostable Foodservice Packaging Market to Grow at a CAGR of 9.2% during Forecast Period
Published | 21 June 2022
Global Compostable Foodservice Packaging Market is flourishing owing to the expanding foodservice packaging, rising environmental concern among consumers, and rising initiatives as well as innovations in food packaging as along with changing business model of Food and Beverages service providers…
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Global Compostable Foodservice Packaging Market was worth USD 17.85 billion in the year 2021. The market is projected to grow at a CAGR of 9.2% earning revenues of around USD 32.43 billion by the end of 2028. The Global Compostable Foodservice Packaging Market is booming because of the increasing demand for bio-degradable packaging for the green environment. Also, compostable packaging can be recycled and is the best alternative to plastic. Moreover, compostable food packaging can be disposable and can return to earth quickly and safely as soil when disposed off in the right environmental conditions. Furthermore, Global Compostable Foodservice Packaging Market is one of the most emerging markets that grow continuously owing to the lower petrol consumption, compostability, reduction of emission of greenhouse gas levels, and others. However, some biodegradable plastics produce methane, when decomposing in landfills. Methane is 84 times more potent than carbon dioxide, and it absorbs heat faster, which accelerates climate change. This may act as a huge restraining factor for market growth.
Rising Environmental Concern among Consumers Drives the Market Growth
The increasing concern among consumers regarding environmental pollution, and the harmful impact of traditional plastic on the environment are creating lucrative opportunities for manufacturers in the Global Compostable Foodservice Packaging Market. Moreover, compostable packaging materials consume less energy during their manufacture. Also, they are non-toxic since they have no chemicals and are made organically. In addition, compostable plastic breaks down in less time and is absorbed by the soil or converted into compost, depending on the materials used to make the bioplastic. Thus, compostable foodservice packaging is the best eco-friendly solution to enhance the freshness of food products and to reduce the harmful impact of traditional plastic. All these factors and rising health concerns, as well as environmental awareness, attract consumers to adopt the sustainable food packaging materials.
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Rising Initiatives and Innovations in Compostable Foodservice Packaging
The increasing focus of the government on recycling packaging helps to improve packaging processes. Also, the food service packaging key industry players are working on eco-friendly packaging formats that are made from natural plants and biop[polymers, which can be easily compostable. For instance, Huhtamäki freshly launched a disposable food tray, which is microwaveable and a green solution for customers. It has the same functionalities as the traditional plastic tray. Thus, product advancement is crucial for companies as it makes the product more attractive and increases the market growth. Moreover, these increasing initiatives and innovations by the manufacturer toward compostable plastic products mean cutting down the harmful plastic products from the environment. All in all making way for a better and healthier future for the generations to come.
CHALLENGES/REGULATORY/Trends in Global Compostable Foodservice Packaging Market
Challenges: Compostable Plastic Needs to be Compost Appropriately
Although, it is a fact that compostable plastics can compost or decompose very easily and even in a short period. Still, it is also true that it should be composted in a very appropriate method. Failing to do this might hamper the decomposition process. Moreover, compostable plastics cannot compost or decompose in ocean waters as it is too cold. Thus, the plastics will either float on water or create micro-plastics which pose health hazards to marine life. This might be very challenging for the Compostable Foodservice Packaging Market.
Trends: Changing Business Model of Food and Beverages Service Providers
Globally, expanding multinational quick-service restaurants (QSRs), such as KFC and McDonald’s are leading the world to augmented demand for foodservice packaging solutions. These QSRs generally do not show any interest in investing in resources for maintenance and cleaning of business containers, which helps these QSR chain owners and operators reduce labor costs and utilize available resources for enhancing the quality of service and providing better customer support. Thus, rising disposable incomes, urbanization, and changing eating habits continue to bolster the demand for eco-friendly compostable packaging thereby, reinforcing the Foodservice industry.
Segmental Coverage
Based on the end-user, the Global Compostable Foodservice Packaging Market is segmented into Restaurants, Delivery Catering, Independent Stalls & Kiosks, and Others. Delivery Catering dominates the market owing to the rising use of compostable containers, bowls, plates, cups, utensils, and trays. Moreover, restaurants are expected to hold the largest market share owing to the rising consumption of on-the-go food products. Also, increasing dependency on single-use plastic containers, trays, plastic bags, and utensils due to health concerns prompted by the coronavirus pandemic is considerably impacting the market growth. All these factors boost the growth of the Global Compostable Foodservice Packaging Market during the forecast period (2022-2028).
Impact of COVID-19 on Global Compostable Foodservice Packaging Market
The unprecedented COVID-19 pandemic both positively and negatively impacted the growth of the Global Compostable Foodservice Packaging Market. Initially, the market faced a huge decline due to a halt in the production and manufacturing of compostable plastics. As a result, many producers were forced to shut down their operations. Thus, both demand and supply in the Global Compostable Foodservice Packaging Market declined significantly, negatively impacting market growth in a short period. However, the market started to recover post the COVID-19 pandemic owing to the demand for essential services, such as packed food, catering, and pharmaceutical products. A spike in products, such as compostable containers, cups, and trays has been witnessed.
Competitive Landscape
The leading market players in the Global Compostable Foodservice Packaging Market are Huhtamaki Oyj, WestRock Company, Stora Enso, Georgia Pacific LLC, Be Green Packaging, Berry Global, Inc., Pactiv LLC, TIPA Compostable Packaging, Genpak, LLC., Virosac S.r.l., Dart Container Corporation, Anchor Packaging Inc., D&W Fine Pack, and Gold Plast SPA. The market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Global Compostable Foodservice Packaging Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Compostable Foodservice Packaging Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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