Dairy Product Packaging Market Size Anticipated to Attain USD 51.96 Billion by 2032

Dairy Product Packaging Market Size, Share and Companies

The global dairy product packaging market size to rise from USD 31.45 billion in 2022 to reach an estimated USD 51.96 billion by 2032, growing at 5.2% between 2023 and 2032.

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Report Highlights: Important Revelations

• Current Market Size (2022): USD 31.45 billion.
• Projected Market Size (2032): Land up at USD 51.96 billion.
• Compound Annual Growth Rate (CAGR): Anticipated growth rate of 5.2%.
• Growth Period: The growth is expected to occur between 2023 and 2032.
• Asia Pacific’s dominant force in the growing dairy product packaging market.
• Shaping consumer preferences in North America's dairy product packaging.
• Significance of continuous packaging innovation in the evolving cheese market.
• How packaging innovations shape the future of the dairy industry.
• Plastic packaging solutions for dairy distribution and storage.

The dairy product packaging market defines the industry that creates, manufactures, and distributes packaging materials specifically designed for dairy products. This market includes diverse packaging solutions designed to maintain the freshness, quality, and safety of dairy products such as milk, cheese, yoghurt, and butter throughout the supply chain.

Dairy product packaging serves several purposes: contamination prevention, shelf-life extension, product quality preservation, and consumer convenience. Dairy product packaging commonly used includes cartons, bottles, pouches, tubs, and wrappers, each designed to satisfy the specific needs of different dairy products. Furthermore, advances in packaging technology frequently contribute to sustainability initiatives by emphasising eco-friendly materials and innovative designs that lessen environmental effects.

Dairy Product Packaging Market Trends

Asia Pacific’s Dominant Force in the Growing Dairy Product Packaging Market

The Asia Pacific region has emerged as a dominant force in the dairy product packaging market, enjoying rapid growth and contributing significantly to the total expansion of the sector. The region's importance in the dairy product packaging market is due to several factors. Asia is the top milk-producing region in the globe. In 2022, it is predicted to increase by 2.1% annually to around 419 million tonnes, with a large portion of this rise forecast in India, China, Japan, Pakistan, Uzbekistan, and Kazakhstan are a few of the nations.

The growing population and increased disposable incomes in many Asia Pacific countries have increased dairy consumption. As demand for dairy goods, such as milk and various cheese varieties, grows, so does the need for effective and efficient packaging solutions. Second, urbanisation and changing lifestyles in the Asia Pacific region have resulted in a trend towards convenience-oriented packaged dairy products. This shift has compelled dairy product packaging makers to develop and adjust their offers to satisfy changing consumer tastes for on-the-go and ready-to-eat dairy products.

The Asia Pacific area has seen tremendous developments in packaging technologies and materials. To address global environmental concerns, manufacturers invest in cutting-edge facilities and use sustainable packaging procedures. The varied range of dairy products eaten in the region, from traditional milk to dairy-based snacks, has created a desire for adaptable and customised packaging options. This variety of product options needs an adaptable and responsive dairy product packaging market.

The Asia Pacific region's dairy product packaging market leadership can be ascribed to several factors, including population growth, rising disposable incomes, changing lifestyles, technical improvements, and various dairy product preferences. As the region's economy and culture evolve, the Asia Pacific dairy product packaging market is expected to remain a dynamic and influential participant in the global landscape.

For Instance,

• In September 2021, the "National Milk" product line, which comes in SIG's transportable carton packs composed of SIGNATURE Full Barrier packaging material, was introduced by the Dairy Farming Promotion Organisation of Thailand (DPO). As certified forest-based renewable materials are linked to the few polymers, this is a first for Asia.

North America is the second-largest market for dairy product packaging, with a vibrant business environment and numerous factors that have fueled its rise to prominence. The region's sophisticated customer base, which prefers various dairy products, propels the region's significant market share. North American consumer preferences change due to several variables, including sustainability, convenience, and health concerns. The market for creative and helpful dairy product packaging solutions has increased due to this change. Because of the region's technological and manufacturing expertise, innovative packaging techniques have been developed to meet these shifting needs.

For Instance,

• In February 2022, the plant-based Silk brand from Danone North America recently launched Silk Enhanced Almond Creamers and Silk Sweet Oat Latte Creamer to its lineup of creamers.

The North American dairy industry has witnessed a surge in premium and speciality dairy product consumption. This trend has heightened the need for packaging that preserves product freshness and enhances the brand experience. As a result, packaging manufacturers in the region are investing in research and development to create solutions that align with the premiumization trend in the dairy sector. North America's position as the second leading region in the dairy product packaging market is underpinned by a combination of consumer-driven trends, technological innovation, and a responsive packaging industry that caters to the evolving demands of the dynamic North American market.

Significance of Continuous Packaging Innovation in the Evolving Cheese Market

Cheese is the dominating category in the speciality foods sector in the United States, with sustained market growth year after year. The country has approximately 600 cheese kinds, with over 1,000 licenced artisan, speciality, and farmstead cheesemakers contributing to producing handmade, naturally flavoured, and farm-fresh cheeses. This diversification of cheese offers is gaining appeal among Americans, showing a preference for artisanal and unusual dairy products. When assessing the current market conditions for both traditional and speciality types of cheese, it is worth noting that cheese ranks 112th among all traded items globally. Despite its low ranking, the cheese sector has risen significantly, and packaging innovations have played a critical role in meeting customer needs.

One notable example of packaging innovation is Sargento's successful launch of Balanced Breaks, on-the-go cheese nibbles. This creative packaging approach connects with changing customer lifestyles, offering handy, portable solutions that increase sales. The success of such goods emphasises the significance of adjusting packaging tactics to accommodate changing customer demands. Insights indicate fascinating patterns when diving into consumer preferences for package size and kind. Respondents preferences vary, with a clear preference for containers for shredded (34%), sliced (35%), and cottage/ricotta (36%). Block (36%) and spread (41%) cheeses are preferred; nevertheless, containers are preferred.

For Instance,

• In December 2023, Premium cheeses were launched by a French brand in recyclable paper packaging from Amcor. French family-owned cheese manufacturer has received supplies from Amcor, a flexible and paper packaging powerhouse.

Those who buy shredded cheese (47%) prefer plastic bags, while those who purchase cottage/ricotta (50%) prefer white plastic containers. Furthermore, a sizable minority of respondents (39%) do not prefer the packaging of block cheeses, indicating a potential for novel packaging solutions that meet consumer expectations. The cheese market in the United States is dynamic, driven by a diverse offering and a growing desire for speciality and artisanal goods. Packaging plays an essential influence in customer decisions. Therefore, continual innovation is required to accommodate changing preferences and lifestyle trends.

How Packaging Innovations Shape the Future of the Dairy Industry

Packaging is crucial in the entire food and beverage value chain from production to consumption; packaging is essential to developing and maintaining strong food supply networks. This information sheet highlights the importance of packaging in the dairy supply chain and consumers' daily lives to promote sustainability and robustness. Its compatibility with a circular economy model and environmental effect are essential factors. The goal is to create packaging that minimises environmental impact while enhancing the whole food supply network's ability to function effectively. Instead of using a one-size-fits-all approach, the emphasis is on comprehending the factors influencing the dairy industry's decision to choose specific packaging solutions, especially when selecting packaging materials.

The main focus is finding the best possible balance between the essential purposes of packaging and its environmental impact. No one packaging material is right or wrong in general since choosing one requires striking a careful balance between meeting basic packaging needs and reducing environmental effects. Dairy products must be packaged with inert materials to avoid interactions with the contents inside. However, new developments in container design are showing a move towards adding customised interactions to increase dairy products' shelf life. This development is captured in "smart, active, or intelligent packaging" where creative methods improve packaging's usefulness beyond simple containment.

For Instance

• In August 2023, an all-polyethene (PE) yoghurt pouch was launched by materials science company Dow in collaboration with Chinese dairy manufacturer Mengniu.

Plastic Packaging Solutions for Dairy Distribution and Storage

Plastics combine strength, lightweight, stability, ease of sterilisation, and flexibility (from film to rigid applications) in packaging products. For example, dairy product packaging made of plastic does not affect the product's flavour or quality. Currently, plastic makes up more than 75% of dairy product packaging. Food is shielded from outside contamination and retains its natural flavour thanks to the barrier qualities of plastics. Additionally, plastic packaging offers practical options for distribution and storage and is highly resistant to heat, cold, and moisture. Perishable food has an extended shelf life due to multi-layered plastic films. Packaging made of plastic can be recycled, repurposed, or utilised to recover energy.

For Instance,

• In November 2023, Sidel introduced a new PET dairy product bottle. Sidel's "ultra-light" and "ultra-small" PET bottle aims to give producers of liquid dairy products a more decisive competitive edge.

The finest containers for pasteurised milk storage are made of high-density polyethene (HDPE). For milk packaging, another plastic substance utilised is polyethene terephthalate or PET. Pigmented polymer-emulsion (PET) coating shields food taste from light-induced lipid oxidation. Products for drinking yoghurt are packaged in HDPE bottles and sealed with PE-LD caps or aluminium foil laminate heat-seal closures. Other types of plastic bottles, such as PET ones, can also be utilised.

Competitive Landscape

The competitive landscape of the dairy product packaging market is characterized by established industry leaders such as Mondi Group, Sealed Air Corporation, WestRock Company, ELOPAK, Nampak Ltd., Bemis Company Inc., Airlite Plastics, Ahlstrom, Huhtamaki Group and Tetra Pak. These giants face competition from emerging direct-to-consumer brands, leveraging digital platforms for market entry. Key factors influencing competition include innovation in product offerings, sustainable practices, and the ability to adapt to changing consumer preferences. Additionally, the sector sees dynamic collaborations, acquisitions, and strategic partnerships as companies strive to capture market share in this highly competitive and evolving industry.

Market Players

Mondi Group, Sealed Air Corporation, WestRock Company, ELOPAK, Nampak Ltd., Bemis Company Inc., Airlite Plastics, Ahlstrom, Huhtamaki Group and Tetra Pak.

Recent Developments:

• In September 2023, Heartisan Foods, a manufacturer and most extensive online U.S. speciality and flavoured cheese seller, acquired North Country Packaging.
• In November 2023, Mondi and Skånemejerier collaborated on PP-based mono-material cheese packaging, while Sidel created a PET bottle for liquid dairy products. Eco-Products expanded its line of fibre-based packaging to include two sets of lids in the interim.
• In January 2022, The purchase of PACCOR, a provider of protective packaging to the dairy industry, was announced by Faerch. The rigid food packaging company asserts it is the world's first integrated recycler of PET food packaging. This purchase strengthens its plan to promote circularity in food packaging by hastening the conversion of necessary materials to sustainable packaging.
• In October 2022, Leading Canadian dairy company Lactalis Canada, which produces well-known brands like Balderson speciality cheeses, Siggi's and Lactantia butter, recently purchased the specialised brand Khaas, which is now sold as Khaas Dahi and Khaas Halal.
• In November 2022, The sixth-largest gelatin producer in the world, Sterling Biotech Limited, was purchased by Perfect Day, a developer of ingredients for precision fermentation. The Food Safety and Standards Authority of India approved Perfect Day's plant-based whey proteins, creating a new market for its components.

Market Segments

By Material

• Plastic
• Glass
• Paper & Paperboard
• Metal
• Others

By Type

• Bags and Wraps
• Films
• Bottles
• Cans
• Pouches
• Boxes
• Carton

By Product

• Cheese
• Yoghurt
• Butter
• Frozen Products
• Cream
• Others

By Region

• North America
• Europe
• Asia Pacific
• LAMEA