Dairy product packaging market players explore new materials for sustainable packaging formats

In its latest report, Future Market Insights (FMI), an ESOMAR-certified market research and consulting firm, has estimated steady growth in the dairy product packaging market for the period of assessment between the years 2022 and 2030. Widespread milk consumption on a global scale, applications of dairy products in the food and beverage sector, and strict food safety regulations are aiding growth.

The growing awareness about the importance of packaging in the dairy industry to minimise the risk of adulteration and contamination is a key driver, according to the report. The report also states that logistics and transport requirements and roles in boosting shelf-life is positively influencing growth prospects.

Demand for smaller-portion packaging options coupled with higher disposable incomes and standards of living have significantly bolstered demand. Research into eco-friendly packaging solutions are likely to benefit the industry in the long-term, according to FMI.

Key takeaways of the Dairy Products Packaging Market report:

  • Flexible packaging formats are expected to display fast growth on the back of logistics benefits provided to dairy producers, particularly in developing economies.
  • Paper and paperboard materials are likely to reflect high demand with applications in Tetra Pak formats and benefits of printing substrate.
  • Packaging for milk will remain the key revenue contributor in the industry, owing to higher consumption by a health-conscious consumer base.
  • North America is a leading market aided by a massive milk production sector, and high consumption of cheese, yogurt, and flavored milk products.

“Dairy packaging has transitioned from glass bottles to polyethylene pouches, paper cartons, and tins, to tetra packs and aluminum cans. The growing demand and distribution of dairy products through organized and robust retail supply chain channels has also bolstered the demand for dairy product packaging on a global scale,” says a senior research analyst at FMI.

Covid-19 Impact Analysis

The Covid-19 pandemic has had adverse effect on the global dairy product packaging market. Widespread lockdown restrictions have hurt supply chains in the dairy industry, which has resulted in large-scale wastage of milk resources in many parts of the world. This in turn has hurt short-term demand for packaging.

Also, the foodservice industry has faced severe restrictions, cutting into the demand for dairy products, consequently affecting the dairy product packaging industry. Furthermore, the demand for dairy-based desserts, yogurt, and ice-cream has fallen sharply during the pandemic, limiting packaging supply chains. The recovery of the market will be gradual as concerns over the economic ramifications of the pandemic remain uncertain, states FMI.

Who is Winning?

Leading players in the dairy product packaging market include but are not limited to Mondi Group, WestRock Company, CKS Packaging, Sealed Air Corporation, Nampak Ltd, Saint-Gobain S.A., Ahlstrom, Airlite Plastics, Saudi Basic Industries Corporation, Elopak, Rexam, and Clondalkin Group Holdings.

Market leaders are largely focused on investments into product research, especially in exploring the new materials with objective of functionality, and sustainability. According to the report, adoption of eco-friendly materials and formats, and efforts towards aesthetics will remain important for market players through the assessment period.

In November 2020, Greiner unveiled its range of packaging for dairy products made from recycled PET. Norway-based dairy producer TINE has launched sustainable packaging solutions to cut annual plastic consumption by 700 tons, with a research initiative on fiber-based solutions. M&S has unveiled its Innovation Hub to research on plastic-free packaging materials, for varied commodities including dairy products.

To access the Dairy Products Packaging Market report by Future Market Insights, click here.

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