Sustainable Foodservice Packaging Market Size

Sustainable Foodservice Packaging Market Analysis

The Sustainable Foodservice Packaging Market size is estimated at USD 61.94 billion in 2024, and is expected to reach USD 83.37 billion by 2029, growing at a CAGR of 6.12% during the forecast period (2024-2029).

With customers becoming increasingly concerned about the environment and package leaks' impact, packaging sustainability is a mega trend impacting the packaging industry. As a result, new, stronger sustainability requirements regularly surfaced on various fronts. The increase in concern for environmental impacts caused by these plastic containers among the food service industries, leading to multiple companies using recycled materials for food services, is driving the studied market.

• The increase in the growth of the urban population has increased the demand for prepared and ready-to-eat food products, which has a significant impact demand of the food service packaging market, thus increasing the demand for sustainable food services packaging solutions, thus driving the market in the forecast period.
• In the major regions, urbanization, lifestyle changes, coping with fast-paced work life, and dependence on online food platforms are rapidly changing the dynamics of the foodservice industry, which in return has increased the demand for sustainable foodservice packaging solutions.
• Packaging innovation, including new materials, refill systems, and recycling solutions, is another key challenge on the path toward a waste-free future. In addition to its significant in-house research through the Nestlé Institute of Packaging Sciences, the company will launch a CHF 250 million sustainable packaging venture fund to invest in start-up companies that focus on these areas.
• The cost of using sustainable packaging is understandably higher than conventional packaging. This is due to the materials involved and their sourcing (both virgin and used materials) - but also due to the less-established supply chains, manufacturing processes, and lower economies of scale, hampering the market growth.
• The COVID-19 pandemic has driven up demand for food and beverage packaging that is secure and resealable, owing to rising concerns about food safety and security. Also, it has impacted the global packaged food products market progressively. The unexpected demand for packaged food products during the pandemic is attributed to the increased consumption of snacks and beverages, chocolates, chips, and frozen food products during the lockdown period.
• As users emerge from COVID-19, consumers see sustainability as becoming increasingly important: marine litter is top of mind in Europe and Japan, while pollution is more of a concern in other Asian countries and the Americas. Most consumers worldwide claim to be willing to pay more for sustainable packaging.