Europe Dairy Packaging Market - Growth, Trends, Forecasts (2020 - 2025)

The Europe Dairy Packaging Market is segmented By Material (Plastic, Paper & Paperboard​, Glass​, Metal​), Product Type (Milk​, Cheese​, Frozen Products​, Yogurt​), Packaging Type (Bottles​, Pouches & Bags​, Cartons and Boxes​, Cups, and Tubs​), and Country.

Market Snapshot

europe dairy
Study Period:

2020-2025

Base Year:

2019

CAGR:

5.2 %

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Market Overview

The Europe Dairy Packaging Market is expected to reach a CAGR of 5.2% during the forecast period (2020 - 2025). Factors such as growing preference for Protein based products, increasing adoption of innovative packaging are responsible for the growth in the dairy packaging market in Europe.

  • In April 2020, carton giant SIG was selected to supply one of the largest European greenfield UHT milk projects, spearheaded by Hochwald, one of the largest German dairy cooperatives. As part of the mega project, Hochwald will build a new plant with a capacity of more than 800 million litres of milk per annum. Milk will be processed and sold as UHT milk, cream, condensed milk and flavoured milk for the European market and export to China, Middle East and Africa from 2022. Such developments leading to the increase in the production of milk is expected to provide a boost to the dairy packaging market in the region.
  • Moving forward to recyclability, the structure proposed for the European region is highly complex. Multiple stakeholders, especially converters and recyclers have been witnessed to expand operations, collaborate and launch technologies aiding the Circular Economy Initiative.​
  • For instance, ALPLA, a major Austrian converter, and recycler of plastics have a core product, a bottle made from PET which is recycled plastic to be used again and again. The firm collaborated with other businesses, including Nöm, an Austrian dairy company to supply ALPLA 100% recycled PET bottles for its milk products. ALPLA, additionally, is a signatory to the Circular Plastics Alliance, an initiative supported by the European Commission to boost plastic recycling inside the EU to 10 million tons by 2025. ​
  • However, the regulations regarding the use of plastic for packaging aided the growth of the glass packaging format for milk. Countries, like Russia and the United Kingdom, embraced this format of packaging for fresh milk.​
  • The COVID-19 pandemic has caused a significant reduction in demand for dairy products from the EU and non-EU countries. This represents a serious threat to the EU dairy sector. The situation on this market, which remained stable over the last year, has shifted: a drastic fall in prices, difficulties in exporting products, a steep increase in packaging prices, and an increase in freight prices make exports to third countries uneconomic The reduction in consumption caused, among other things, by the total loss of the HoReCa market, is posing a real threat to farmers and processors. According to European Parliment it is estimated that the European dairy sector is currently losing EUR 120 million.
  • In April 2020, the European Dairy Association (EDA) has called on the European Commission for support in protecting the sector against the impact of the Covid-19 outbreak. The association called for "immediate action" to help the milk processing industry deal with the ongoing crisis.

Scope of the report

As people seek out products that are healthy and all-natural, dairy is often positioned as an attractive option. Dairy proteins are often regarded as the ‘gold standard’ in protein, due to their amino acid profile, easy digestibility, and satiety benefits. Furthermore, dairy proteins are increasingly used for fitness and weight management. The report provides a detailed analysis of the dairy industry in European countries. It also provides a detailed analysis on the basis of material, Product type, Packaging type, and Country.

Material
Plastic
PET
LDPE
HDPE
Other Plastics
Paper & Paperboard
Glass
Metal
Product Type
Milk
Cheese
Frozen Products
Yogurt
Other Product Types
Packaging Type
Bottles
Pouches & Bags
Cartons and Boxes
Cups, and Tubs
Other Packaging Types
Country
United Kingdom
Germany
Italy
France
Poland
Rest of Europe

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Key Market Trends

PET is Expected to Witness Significant Growth

  • The primary factor behind expanding the sales of dairy products are the different forms of packaging available nowadays. Earlier, milk was available only in gable-topped cartons. At present, milk is delivered in portable, brand-friendly PET bottles, which is an attractive option for increasingly busy consumers.​
  • Some of the newest milk and drinkable dairy products, such as yogurts and smoothies, are presented in single-serve and sleek PET bottles. While PET bottles allow brands to differentiate themselves from competitors on store shelves, it can be molded into a wide variety of sizes and shapes, thus offering more possibilities than cartons in promoting brand recognition.​ The increasing demand of dairy products thus is resulting in increased demand for PET packaging.
  • For instance, in April 2020, UK ice cream brand Magnum launched its ice cream tubs range in the UK using packaging made with recycled plastic. Following a successful pilot last year, Magnum became one of the first ice cream brand to use recycled polypropylene plastic in packaging. According to the company, the tubs will be rolled out in Europe in 2020 and globally in 2021.
  • Also, compared to high-density polyethylene (HDPE) packaging, the glossy appearance of PET bottles with ultraviolet barriers often stand out for extending the shelf life of dairy products, making the glass-like transparency a standard for premium fresh milk.​
  • Moreover, due to the introduction of high-density polyethylene (HDPE) and polyethylene terephthalate (PET) polymers, plastic bottling applications have increased. High-density polyethylene plastic bottles are the popular packaging choice for fresh juice and milk. For instance, around four billion HDPE milk bottles in the United Kingdom are produced and purchased each year.​
europe dairy g1.png

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United Kingdom is Expected to Grow Significantly

  • The market for dairy plastic packaging in the United Kingdom is anticipated to register a significant revenue due to substantial manufacturing facilities. ​Further, the increase in regulations against the use of plastic is anticipated to lay a significant effect on the market. For instance, in March 2020, the UK Chancellor of the Exchequer revealed that the plastic packaging tax would see companies paying EUR 200 per metric ton of packaging made from less than 30% recycled plastic from April 2022.​
  • The tax was created to encourage the use of more recycled plastic. The announcement was delivered as part of Budget 2020, which the government of UK describes as the first budget of a new government, the first of a new decade, and the first since the UK's departure from the European Union (EU).​
  • Among various industries using plastic, the dairy industry is focusing on reducing plastic use. The UK's Food and Farming Minister, Lord Rooker, called for the country's dairy industry to become more sustainable, targeting a 50% reduction in the number of plastics used in milk packaging as a critical goal for 2020. This indicates even more growth for greener packaging in a country that has already shown innovative diversity.​
  • In the latest instance, Leeds-based waste and recycling sack supplier Cromwell Polythene purchased Derbyshire-based Moorgreen Flexible Packaging, which recycles and manufactures polythene, films, bags, and sacks. ​
  • Moreover, the region has been witnessing a switch in the use of plastic from fossil-based to other types. For instance, Arla, a dairy product packaging firm, switched from fossil-based plastic to bio-based plastic derived from sugar cane or forest waste for the 600 million Arla milk cartons that make them 100 renewable. They also contribute 25% less carbon dioxide into the atmosphere compared to their fossil-based plastic predecessors.​
europe dairy g2.png

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Competitive Landscape

Packaging manufacturers in the dairy industry have the potential to shift rivalry, opening up numerous new avenues for differentiation and value-added services. As the market is characterized by the concentration of distinguished brands, as well as new players, the firm concentration ratio is quite high. All in all, the overall dairy packaging market is shaped by moderate barriers of exit, high preference for established brands, moderate level of advertising expense, and a high level of competitive advantage through innovation.

  • July 2020 - Dairy company First Milk announced to aim for a 65% reduction in greenhouse gas emissions by 2025 by investing EUR 5 million into boost capacity at its various factories.
  • December 2019 - Niederosterreichische Molkerei (NOM) partnered with ALPLA for establishing a new benchmarks in environmentally beneficial packaging for milk products with its debut of a milk bottle made of 100 percent recycled PET. ALPLA created these bottles and made them at the Steinabruckl site.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Market Drivers

      1. 4.4.1 Increasing Consumer Preference Toward Protien-Based Products

      2. 4.4.2 Increasing Adoption of Packages Incorporating Small Portion Sizes

    5. 4.5 Market Challenges

      1. 4.5.1 Greenhouse Gas Emission Due to Dairy Activities Leading to Legislative Issues

    6. 4.6 Impact of Covid-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Material

      1. 5.1.1 Plastic

        1. 5.1.1.1 PET

        2. 5.1.1.2 LDPE

        3. 5.1.1.3 HDPE

        4. 5.1.1.4 Other Plastics

      2. 5.1.2 Paper & Paperboard

      3. 5.1.3 Glass

      4. 5.1.4 Metal

    2. 5.2 Product Type

      1. 5.2.1 Milk

      2. 5.2.2 Cheese

      3. 5.2.3 Frozen Products

      4. 5.2.4 Yogurt

      5. 5.2.5 Other Product Types

    3. 5.3 Packaging Type

      1. 5.3.1 Bottles

      2. 5.3.2 Pouches & Bags

      3. 5.3.3 Cartons and Boxes

      4. 5.3.4 Cups, and Tubs

      5. 5.3.5 Other Packaging Types

    4. 5.4 Country

      1. 5.4.1 United Kingdom

      2. 5.4.2 Germany

      3. 5.4.3 Italy

      4. 5.4.4 France

      5. 5.4.5 Poland

      6. 5.4.6 Rest of Europe

  6. 6. COMPETITOR INTELLIGENCE

    1. 6.1 Company Profiles

      1. 6.1.1 Huhtamaki Group

      2. 6.1.2 Berry Global Group, Inc.

      3. 6.1.3 Amcor Limited

      4. 6.1.4 Consolidated Container Company LLC (Loews Corporation)

      5. 6.1.5 Saudi Basic Industries Corporation (SABIC)

      6. 6.1.6 International Paper Company

      7. 6.1.7 Winpak Ltd.

      8. 6.1.8 Sealed Air Corporation

      9. 6.1.9 Schur Flexibles Holding GesmbH

      10. 6.1.10 Stora Enso Oyj

      11. 6.1.11 Greiner Packaging International GmbH

      12. 6.1.12 DS Smith Plc

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Europe Dairy Packaging Market market is studied from 2020 - 2025.

The Europe Dairy Packaging Market is growing at a CAGR of 5.2% over the next 5 years.

  • Huhtamaki Group​
  • Schur Flexibles Holding GesmbH
  • Stora Enso Oyj
  • Greiner Packaging international GmbH
  • Sealed Air Corp.

Are the major companies operating in Europe Dairy Packaging Market.

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