Food Packaging Market Soars USD 27.12 Bn at 5.7% CAGR

Food Packaging Market Strategic Growth, Innovation and Investment Trends

Analysts project the food packaging industry to expand from USD 401.69 billion in 2024 to USD 746.98 billion by 2034, marking a CAGR of 5.7% through the decade.

Last Updated: 09 April 2025 Category: Food Packaging Insight Code: 5056 Format: PDF / PPT / Excel

The food packaging market is projected to reach USD 746.98 billion by 2034, growing from USD 427.40 billion in 2025, at a CAGR of 5.7% during the forecast period from 2025 to 2034.

Food Packaging Market Size 2023 - 2034

Major Key Insights of the Food Packaging Market

  • Asia Pacific dominated the food packaging market in 2024.
  • North America is expected to grow at a significant rate in the market during the forecast period.
  • By type, the flexible segment registered its dominance over the global food packaging market in 2024.
  • By material, the plastics segment dominated the market with the largest share in 2024.
  • By packaging type, the bottles segment registered its dominance over the global food packaging market in 2024.
  • By food type, the frozen food segment dominated the food packaging market in 2024.
  • By application, the bakery & confectionery segment dominated the food packaging market in 2024.

Key Metrics and Overview

Metric Details
Market Size in 2024 USD 401.69 Billion
Projected Market Size in 2034 USD 746.98 Billion
CAGR (2025 - 2034) 5.7%
Leading Region Asia Pacific
Market Segmentation By Material, By Type, By Application, By Packaging Type, By Food Type and By Region
Top Key Players International Paper Company, Mondi, Smurfit Kappa Group, Eastern Pak Limited, Packaging Corporation of America

Food Packaging Market: Storage & Preservation of Food Items

The methods and materials utilized to protect, contain, preserve, transport, and present food products is known as food packaging. It acts as a barrier between food and external factors like moisture, contamination, light, air, and physical damage ensuring the food remains fresh, safe, and appealing from production to consumption. The food packaging serves as practical purposes like: providing information (nutritional facts, expiry date, ingredients), facilitating storage and handling, supporting marketing and branding through design and messaging.

The food packaging provides protection from chemical, physical and biological damage. The food packaging offers preservation and helps to extend shelf-life by controlling exposure to air, moisture, and microorganisms. The food packaging holds the food in a convenient form for transport, storage, and use.

Eco-Friendly & Sustainability Packaging

Growing demand for biodegradable, recyclable, and compostable materials (like paper, cardboard, plant-based plastics). Shift away from single-use plastics due to environmental concerns and government regulations. Lightweight packaging to reduce carbon footprint and transportation costs.

Rise of Convenience Packaging

Consumers prefer packaging that is easy to open, resealable, microwavable, and portable. Growth of on-the-go food packaging solutions for busy lifestyles. Single-serve and portion-controlled packaging are increasingly popular, especially for snacks and ready-to-eat meals.

Smart & Intelligent Packaging

QR codes and NFC tags for traceability and product information. Active packaging with oxygen absorbers or moisture control to extend shelf life. Time-temperature indicators (TTI) to monitor freshness and ensure food safety.

Aesthetic and Premium Packaging

Brands are investing in high-quality, visually appealing designs to stand out on shelves and online platforms. Utilization of natural textures, earthy tones, and eco-friendly inks to communicate sustainability values. Transparent packaging to allow consumers to see the product inside, building trust.

Health and Safety Focus

Post-pandemic, consumers expect hygienic, tamper-evident packaging. Increased demand for contactless delivery packaging that ensures food safety.

Personalization & Customization

Customized packaging solutions for limited edition, seasonal promotions, or personalized messages. Brands using packaging as a tool for direct consumer engagement and storytelling. Packaging that highlights local culture works well, especially for genuine goods and regional delicacies that have strong ties to their home location.  Highlighting the product's advantages and building a closer relationship with the audience can be achieved by including local designs, images, and cultural components.

Technological Advancements in Materials

Development of edible packaging and water-soluble films. Utilization of nanotechnology for better barrier properties and antimicrobial coatings. Flexible packaging replacing rigid packaging for many food products due to its light weight and adaptability.

Life cycle assessments (LCA) Trends

Manufacturers are taking into account the environmental impact at every level of the production process, not just how to enhance packaging at the end of its useful life.  Manufacturers are beginning to view the entire process more holistically, from acquiring raw materials and the production stage to shipping items to customers.

How Can AI Improve the Food Packaging?

AI-powered vision systems can detect defects in packaging (like tears, leaks, poor sealing, or incorrect labeling) much faster and more accurately than manual inspections. Real-time monitoring ensures consistent packaging quality, reducing waste and recalls. AI-driven robots streamline packaging lines, improving speed and reducing human error. Predictive maintenance of machinery using AI can prevent breakdowns and reduce downtime. Dynamic adjustment of packaging processes based on real-time data (like material availability or order flow).

AI enables interactive packaging - QR codes or smart labels connected to AI systems can give consumers real-time info on freshness, ingredients, traceability, and sustainability. Personalized consumer experiences through AI algorithms that tailor information and promotions based on consumer behavior. AI can predict demand fluctuations, optimize inventory levels, and reduce overproduction or understocking of packaging materials. The AI integration improved logistics planning to ensure timely delivery of packaging materials and finished goods. AI models help companies design eco-friendly packaging, optimizing material use while maintaining durability and aesthetics. Lifecycle analysis tools powered by AI can evaluate the environmental impact of different packaging materials and designs. AI enables mass customization of packaging, allowing brands to create personalized designs or targeted messages based on customer data. AI-driven design tools can generate innovative packaging concepts faster than manual methods. Integration with AI chatbots and apps that allow consumers to scan packaging and get instant answers about product origin, nutritional value, allergens, and eco-credentials. AI-enhanced AR experiences via packaging for interactive marketing.

AI in packaging design helps extend shelf life by developing smarter barrier properties and monitoring freshness. Smart sensors integrated with AI algorithms can alert suppliers and consumers when food is nearing spoilage. AI can make the food packaging industry smarter, faster, safer, and more sustainable. From production efficiency to consumer engagement and eco-friendly innovations, AI is unlocking new levels of performance across the packaging lifecycle.

Driver

Globalization of Food Trade & Innovation of New Food Packaging Material

Rising awareness of health and nutrition drives demand for clear, informative packaging showing nutritional facts and ingredients transparency. As international trade expands, food packaging must ensure product integrity during long-distance transport, increasing the need for high-performance packaging.

For instance, in March 2025, Ahlstrom Oyj, a company focused on combining fibers into innovative and sustainable specialty materials, revealed the introduction of the LamiBak Flex, the new addition to its LamiBak range of high-performance base papers. Ahlstrom provides brands and converters with a flexible platform for flexible packaging made of paper.  LamiBak Flex offers exceptional barrier qualities for a variety of food applications, such as pouches, sachets, and flow packs, and is perfectly suited for additional processing techniques like coating, metallization, or extrusion.  Because of its sophisticated design, less primer coating is required, resulting in outstanding barrier qualities, cost optimization, and a recyclable and sustainable profile.

Restraint

Strict Regulatory Compliance and Recycling & Waste Management Challenges

The key players operating in the market are facing issue due to stringent regulatory affairs and waste management challenges, which has estimated to restrict the growth of the food packaging market in the near future. The food industry faces tight regulations on packaging safety, labeling, and material usage. Meeting these evolving standards requires investment in R&D and compliance, which can delay product launches. Even recyclable packaging often ends up in landfills due to lack of proper recycling infrastructure in many regions. This limits the impact of sustainable packaging efforts and creates skepticism among eco-conscious consumers.

Market Opportunity

Urbanization & Growth of Online Food Delivery

Rapid urbanization means smaller households and higher demand for portion-controlled and single serving packaging. Growth of fast food and takeaway culture boosts the demand for smart packaging solutions. The growth in online grocery shopping and food delivery apps has developed high demand for tamper-proof, durable, and insulated packaging. Safe, hygienic packaging is essential for transporting and ready-to-eat food items.

eGrocery Market Gross Merchandise Value (GMV) in India (In Billion U.S. Dollars)

Segmental Analysis

Flexible Segment to Led the Market in 2024

The flexible segment held a dominant presence in the food packaging market in 2024. Flexible packaging is much lighter than rigid alternatives like glass or metal. It takes up less space during transportation and storage, reducing logistics costs. Flexible packaging materials (like plastic films, foils, and laminates) are cheaper to produce and transport. Lower material usage means lower production and shipping costs. Suitable for a wide range of food items: snacks, frozen foods, baked goods, dairy, sauces, beverages, pet food, and more.

Advanced barrier properties protect food from oxygen, moisture, UV light, and contaminants. Flexible packaging can be designed in varied shapes, sizes, and functionalities — pouches, sachets, wraps, vacuum packs, stand-up pouches, etc. Increasing use of recyclable and compostable films improves environmental impact. Flexible packaging is popular in food packaging because it offers the perfect balance of cost-efficiency, convenience, protection, and branding potential, all while supporting modern manufacturing needs and sustainability goals.

Plastics Segment Show Significant Share in 2024

The plastic segment accounted for a significant share of the food packaging market in 2024. Plastics provide strong protection against moisture, oxygen, light, and contaminants. This extends the shelf life of food products and preserves quality, taste, and safety. Plastic materials are cheaper to produce compared to alternatives like glass, metal, or biodegradable materials. Suitable for mass production and helps keep overall packaging costs low, especially for large-volume food producers. Plastics are lightweight yet strong, making them ideal for transportation and reducing shipping costs. Clear plastic packaging allows consumers to see the product inside, which builds trust and enhances shelf appeal. Plastic packaging supports resealable options, easy-open designs, and microwaveable solutions.

Growing Bakery & Confectionery Industry to Promote Dominance

The bakery & confectionery segment registered its dominance over the global food packaging market in 2024. Bakery products (bread, cakes, pastries) and confectionery items (chocolates, candies, sweets) are consumed daily worldwide. Rising trends of snacking culture, indulgence, and gifting fuel constant demand. Bakery and confectionery items are perishable and require effective packaging to maintain freshness, texture, and flavor. Brands invest in premium packaging to stand out, particularly during festivals, holidays, and special occasions.

Flexible pouches, wrappers, boxes, tins, trays, and flow wraps, bakery and confectionery use diverse packaging formats. Rise of online bakeries and chocolate delivery services fuels demand for protective and attractive packaging solutions. Growing shift toward eco-friendly packaging solutions, especially paper-based and biodegradable wraps for bakery products. Advanced techniques like modified atmosphere packaging (MAP), vacuum sealing, and anti-fog films help preserve bakery freshness.

Bottles Segment Led the Market in 2024

The bottles segment to segment dominated the food packaging market globally. Bottles provide an airtight seal, which protects food from contamination, oxidation, and spoilage. Extends shelf life, especially for sauces, oils, syrups, beverages, and dairy products. Suitable for a wide range of food products: juices, milk, dressings, oils, honey, ketchup, sauces, yogurt drinks, and condiments. Bottles are easy to carry, pour, and reseal, making them perfect for on-the-go consumption and household use. Bottles (especially PET, glass, and certain bio-plastics) are strong and shatter-resistant, ensuring safe transportation and handling.

Many bottles (like clear PET or glass) allow consumers to see the product, which builds trust and attracts buyers. Bottles come in various shapes, sizes, and designs, allowing brands to stand out. Labels and embossing make them an excellent medium for brand identity and marketing. Bottles help with measured dispensing — especially useful for dressings, oils, and beverages. Bottle packaging works seamlessly with automated filling and capping lines, increasing efficiency for large-scale food production.

Frozen Food to Dominated the Market

The frozen food segment led the global food packaging market. Frozen food aisles are competitive, and visual appeal matters. Frozen food includes vegetables, fruits, meat, seafood, snacks, ready meals, and desserts. Each category requires specialized packaging to cater to specific needs (e.g., steamable vegetable bags, vacuum-sealed meat packs). Frozen foods are distributed over long distances and require strong packaging to handle temperature fluctuations and rough handling. Frozen food packaging ensures a long shelf life, making it viable for long-term storage. Frozen foods are exposed to cold, dry air that can cause freezer burn (dry, tough, discoloured spots). Specialized packaging acts as a moisture barrier, keeping the food sealed and preventing dehydration.

Regional Insights

Asia’s Expanding Online Shopping to Promote Dominance

Asia Pacific region held the largest share of the food packaging market in 2024, owing to rising online food ordering culture in the region. Asia Pacific region’s food processing industry is growing fast due to increasing demand for processed, dairy, snacks, frozen and beverages. This directly rises the demand for efficient and attractive packaging solutions. Huge growth in online food delivery services and e-commerce grocery platforms in China, India and Japan has driven the market growth. Asia-Pacific is home to major packaging material manufacturers-paper, plastics, metal, and flexible packaging suppliers. Government across Asia Pacific are promoting food safety standards and hygienic packaging, which rise demand for advanced packaging solutions. Growth of local packaging companies and international players setting up production in Asia Pacific.

China Food Packaging Market Trends

China food packaging market is growing owing to china’s massive population (over 1.4 billion people) creates immense demand for packaged food. Rising middle-income group is increasingly seeking premium, hygienic, and branded food products, which boosts packaging demand. China has the world’s largest e-commerce market, with giants like Alibaba, JD.com, and Meituan. China is investing in smart packaging technologies like QR codes for traceability and anti-counterfeiting measures.

North America’s Well Equipped Infrastructure to Support Growth

North America is anticipated to grow at the fastest rate in the food packaging market during the forecast period. Stringent U.S. FDA and CFIA (Canada) regulations for food safety and labelling has set high food safety standards and regulations. This necessitates advanced packaging solutions that ensure hygiene, freshness, and traceability. North America has an advanced cold chain logistics network supporting the packaging of dairy, meat, frozen foods, and seafood. The North America region requires insulated and moisture-resistant packaging. The U.S. and Canada are major exporters of packaged food products.

U.S. Food Packaging Market Trends

U.S. food packaging market is growing at rapid rate owing to expansion of cold chain infrastructure. In the U.S. region there is growth in frozen and refrigerated food sales, especially post-pandemic, drives demand for insulated and moisture-resistant packaging. The U.S. packaging industry invests heavily in automation, sustainable materials, and design innovation. Strong demand for U.S. made packaged food in global market boosts durable and compliant packaging solutions for export.

The rise of online grocery shopping and meal delivery services (Instacart, DoorDash, Amazon Fresh) demands packaging that enables product protection, freshness, and tamper evidence. Growth of meal kits also increases demand for individual and recyclable packaging solutions. U.S. consumers increasingly prefer environmentally responsible packaging, driving growth of biodegradable, compostable materials, recyclable and lightweight packaging solutions.

Global Food Packaging Market Players

Food Packaging Market Companies

Latest Announcements by Food Packaging Industry Leaders

  • In March 2025, Guillaume Latourette, Vice President of Ahlstrom's Global Food Packaging division, stated that with LamiBak Flex, the Ahlstrom’s global food packaging division address the critical challenge of delivering high- barrier paper for flexible packaging while supporting sustainability goals. This innovation represents the future of functionalized base paper for converters and brands alike.
  • In January 2025, according to Peter Voortmans, Commercial Director of Consumer Products Flexibles at Borealis, this new rLLDPE grade is a significant step towards a circular economy for plastics because of its remarkable 85% post-consumer recyclate content.  As one of the ways the company is reimagining necessities for sustainable living, Borcycle M CWT120CL will assist Borealis company’s clients in reaching their sustainability goals while upholding the high performance standards necessary for demanding flexible packaging applications.

New Advancements in Food Packaging Industry

  • In March 2025, Placon, a pioneer in sustainable, creative thermoformed food packaging, announced the debut of its new Fresh 'n Clear Dip Cup line for dips, spreads, and hummus.  In response to growing consumer demand for more environmentally friendly food packaging choices for the expanding market for hummus, spread, and dip, the dip cup line was created.  The dip cups and matching lids are constructed from Placon's exclusive EcoStar material, which has a #1 resin code and at least 10% recycled PET.  Stacking and retailing are made simple by the product line's circular shape and recyclable crystal-clear packaging.
  • In February 2025, Berry Global Group, Inc. partnered with Mars, a leader in snacks and sweets, to switch all of the packaging for its pantry jars for the M&M'S, SKITTLES, and STARBURST brands to 100% recycled plastic, excluding the jar lids.  Building on the 2022 launch of the pantry jars with 15% recycled plastic, this accomplishment furthers Berry and Mars' ongoing partnership to create packaging with recycled material.  Now, the revised jars are being distributed nationwide.  The pantry jars, which come in three sizes (60, 81, and 87 ounces), are extensively recyclable.  This shift to 100% recycled plastic will eliminate about 1,300 metric tons of virgin plastic each year, which is the equivalent of roughly 238 African elephants' weight. It also includes mechanically processed recycled content.
  • In December 2024, The Lucid Infinity, created by Lucid Corp, is a ray of hope for the sustainability dilemma facing food packaging worldwide.  The Lucid Infinity product line provides 100% recyclable, pad-less, and leak-proof food packaging choices that are both economical and environmentally beneficial.  The unique two-piece tray design is designed to work without the use of conventional soaker pads or additives, and it captures purge at the bottom—a problem that soaker pads typically try to address.  Made in-house, Lucid Infinity is a blend of PET (the world's most recycled plastic) and PCR (post-consumer recycled plastic), which directly enters the recycling process and promotes a more circular economy.
  • In March 2025, Green Lab, the top producer of environmentally friendly packaging in Southeast Asia, has formally joined the American market.  The company offering its eco-friendly packaging options in North America in 2025, Green Lab is a division of Frasers & Neave Group, one of the biggest SGX-listed corporations in Southeast Asia.  With many container shipments already underway, the company provides eco-friendly food packaging that is competitively priced and performs as well as conventional solutions, along with FSC-certified, 100% recycled paper bags.

Food Packaging Market Segments

By Material

  • Plastics
  • Paper & Paper-based
  • Glass
  • Metal
  • Others

By Type

  • Flexible
  • Rigid
  • Semi-rigid

By Application

  • Bakery & Confectionery
  • Dairy Products
  • Fruits & Vegetables
  • Meat & Seafood
  • Sauces & Dressings
  • Others

By Packaging Type

  • Bottles
  • Cups
  • Cans
  • Pouches
  • Trays
  • Others

By Food Type

  • Frozen Food
  • Chilled Food
  • Canned Food
  • Shelf Stable Food

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
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  • Insight Code: 5056
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 09 April 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Deepa Pandey is a market research expert in packaging with 3+ years of experience, specializing in regulatory compliance, design innovations, sustainable packaging, and delivering insights to enhance safety and efficiency.

Learn more about Deepa Pandey

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The main function of food packaging is to protect food from damage, spoilage, and contamination, extend shelf-life, offer information to consumers, and aids in branding and marketing.

The key players operating in the food packaging market have been mentioned here as follows: WestRock Company; Packaging Corporation of America; Nippon Paper Industries Co., Ltd.; International Paper Company; Mondi; Smurfit Kappa Group; and Graphic Packaging International, among others.

Food Service Packaging Association, Packaging Industry Association of India (PIAI), Food Packaging Forum, Advanced Packaging Association, World Packaging Organisation, and EUROPEAN PAPER PACKAGING ALLIANCE among others.