Market Trends of Europe Food Contract Manufacturing & Packaging Industry
This section covers the major market trends shaping the Europe Food Contract Manufacturing & Packaging Market according to our research experts:
Increasing demand of Processed food segment will drive the market
- Milk and dairy product consumption in Russia has expanded dramatically, providing chances for contract manufacturers to cooperate with important dairy product food product producers to boost income.
- Furthermore, contract bakery product manufacturing is gaining traction in the Netherlands. De Banketgroep B.V. and Hearthside Food Solutions LLC are two companies that are active in the Netherlands market. These companies always concentrate on expanding their R&D capabilities to get a competitive edge in the European FPM contract manufacturing industry.
- According to Food Drink Europe, Data & Trends 2021, the EU food and drink industry employs 4.5 million people, generates EUR 1.1 trillion in turnover, and generates EUR 222 billion in value-added, making it one of the EU's top industrial industries. The food and beverage business employs the most people in half of the EU's 27 member states. With extra-EU exports totaling EUR 145 billion and a trade surplus of EUR 67 billion, the EU is also the world's top exporter of food and beverage items.
- Under the EU Pact for Skills, the agriculture and food industry presents a skills partnership with the support of the European Commission. The partnership's purpose is to upskill and reskill people in the agri-food sector, Europe's largest producing and manufacturing industry. This will make the agri-food ecosystem more appealing to young people while providing opportunities for employers and employees to learn throughout their lives.
- When demand for ready-to-eat food products skyrocketed during COVID-19 early waves, food processors couldn't keep up, so they turned to contract producers. Due to the limited manufacturing capacity of OEMs and rising food producers, outsourced manufacturing is on the rise. Food contract manufacturers have started offering various value-added services like packaging, research, consulting, and warehousing, allowing food companies to expand swiftly.
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Secondary Packaging to Show Significant Growth
- Secondary packaging has become more popular as the demand for physical and barrier protection, secondary containment, adherence to standards, and safety has grown in the Food and Beverage industry. Secondary packaging includes cardboard cartons, boxes, cardboard/plastic crates, film wraps, miniature inflatable air pillows, loose-fill, and labels.
- Flexible Packaging Europe (FPE) shows that healthy growth in most end-user categories, including pet food, coffee, and fresh goods, has pushed production higher. The general shift from rigid to flexible packaging, which offers greater convenience and fits better into today's lifestyle needs, is fueled by customer demand for more product variety.
- As paper board packaging keeps moisture away from products and withstands long shipping times, brands are increasingly being adopted to offer better outcomes to their customers, especially as a means of secondary or tertiary packaging. Processed foods, such as bread, cakes, and other perishable items, need these packaging materials to be used just once, thereby driving the demand.
- Also, as the box consists of over 97% paper, it is an environmental alternative to insulation packaging made from polystyrene. The customer can easily dispose of the environmental insulating box with waste paper and is expected to attract other industries due to growing awareness of environmental-friendly products.
- According to Amcor's research, 80 percent of European consumers have changed how they consume meat or meat alternatives after the Covid-19 epidemic, with 50 percent eating more meat alternatives. Consumers of meat substitutes are more inclined to pay attention to food packaging. More specific information on food packaging is desired by 20% of respondents, and 95% want to be able to grasp the finer nuances of what they're eating. Meanwhile, 89 percent want the goods to be visible.
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