US Dairy Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.21 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Dairy Packaging Market Analysis
The US dairy packaging market is expected to register a CAGR of 2.21% over the forecast period. The country's dairy packaging business is significantly impacted by the quickly evolving customer tastes and economic environment. The import-export operations are driven by the considerable development of dairy product portfolios, particularly in sports nutrition, and an increase in casual consumers. Most consumers prefer to utilize goods from well-known brands. Additionally, most of the milk produced in North America was in the United States.
- Especially among the younger population, packaged food items are being adopted at a significantly greater rate. Additionally, the need for dairy packaging materials has grown due to growing health problems caused by malnutrition. In 2021, 13.5 million US households (10.2%) experienced food insecurity, according to the USDA Economic Research Service. Furthermore, it is expected that the increased significance of packaging materials in preventing contamination and adulteration would boost product demand in the country.
- Dairy products must be properly and effectively packaged since they are perishable to make storage and shipping easier. The market is anticipated to grow as a result of rising consumer demand for small packaging due to its convenience. The need for dairy packaging in the country has increased due to growing consumer choice and awareness of fresh foods, rising disposable income, and urbanization.
- A recent trend indicates that producers are concentrating on selling the items in smaller amounts. Lightweight pouches and films are frequently used in the country for packaging goods like snack packs of cheese and drinkable yogurt. This package is simple to use and dispose of.
- Further, the variety of flavored milk products is a significant factor in expanding the dairy packaging market. Major trends in the dairy food packaging market in the country include rising urbanization, increased health consciousness, and consumption of various dairy products due to increased demand for fresh foods as part of a balanced diet.
- However, consumers and producers are concerned about the harmful consequences of plastics and other non-biodegradable packaging materials. As a result, businesses are switching to environmentally friendly and biodegradable packaging options. Additionally, due to greenhouse-gas emissions, environmental legislation is predicted to impede the growth of dairy products. In some regions of the country, gas emissions from dairy operations make up a sizeable portion of all emissions. Any changes to the rules surrounding them might impact dairy output. Strict rules are being implemented by the United States EPA (Environmental Protection Agency) to reduce carbon gas emissions.
- The COVID-19 pandemic negatively impacted the dairy product packaging industry across the nation. Widespread lockdown limitations have harmed dairy sector supply networks, leading to significant milk resource wastage in many regions of the country. Thus, the demand for packaging in the short term has been impacted.
- Additionally, the food service sector has been subject to strict regulations that have reduced the demand for dairy products, impacting the dairy product packaging sector. As a result of the pandemic, demand for dairy-based sweets, yogurt, and ice cream has dropped significantly, which has restricted supply chains for packaging. The market is anticipated to gradually recover as concerns about the pandemic's potential economic effects persist. Further, the Russia-Ukraine war has had an impact on the overall packaging ecosystem.
US Dairy Packaging Market Trends
This section covers the major market trends shaping the US Dairy Packaging Market according to our research experts:
Increasing Consumer Preference Toward Protein-based Products
- The market is expanding due to the rising number of health-conscious customers and fitness facilities nationwide. Dairy protein supplements are predicted to increase in demand due to the millennial generation's growing interest in improving health via a balanced diet and the popularity of protein supplements among this generation. Due to changing lifestyles, there will be an increased dependence on supplements to meet daily nutritional needs, which would increase demand for protein supplements derived from dairy.
- Growing demand among consumers for protein-based goods, combined with an expansion in the availability of packaged dairy products through various retailing channels, is predicted to raise the acceptance of dairy-based products countrywide and propel the market.
- As an additional source of protein, protein supplements are becoming more and more popular among customers of all ages and genders due to the advantages of regular, appropriate supplement use. Clean protein consumption in traditional diets across cultures has significantly dropped in the modern era. Moreover, medical practitioners advise people to have some protein in their meals throughout the day. These trends would create more opportunities for the country's dairy packaging vendors.
- According to the Food Insights Survey, in 2021, approximately 62% of American consumers stated that they usually make an effort to eat protein, although generational variations persist. Compared to the Millennials and Generation X's 55% and 58%, over two-thirds of Baby Boomers (70%) said they were willing to eat proteins. The significant share of protein consumption drives the country's dairy-based-protein packaging products market's growth.
Plastic Segment to Hold a Significant Market Share
- Plastics combine flexibility (from film to rigid applications), strength, lightweight, stability, and ease of sterilizing as a packing material. For instance, the flavor and quality of food are unaffected by plastic food packaging. In reality, the barrier qualities of plastics guarantee that food retains its original flavor while protecting it against outside contamination.
- In addition to offering practical storage and distribution choices, plastic packaging is particularly resistant to moisture, heat, and cold. Perishable food has a long shelf life because of multi-laminated plastic films. Plastic packaging can be recycled, repurposed for energy recovery, or all three. Composting is another option for some plastic types.
- The ideal container for keeping pasteurized milk is a high-density polyethylene (HDPE) bottle. Another plastic substance utilized for milk packaging is polyethylene terephthalate (PET). Food is shielded from light by pigmented PET, which also aids in preserving flavor against light-induced lipid oxidation. Further, drinking yogurt products are primarily sold in HDPE bottles closed with PE-LD caps or aluminum foil laminate heat-seal closures. Other plastic bottles, such as PET bottles, can also be utilized.
- Moreover, plastic-based packaging is a desirable option for dairy-based goods due to the increased need for tamper-evident and child-resistant packaging. The market for plastic-based lidding, containers, and films is rising as consumers desire dairy goods like yogurt, cream, and cheese to keep longer on the shelf since these items have better barrier qualities and shelf lives than traditional packaging. Dairy product manufacturers emphasize the personalization of goods to engage consumers and satisfy demands for a wide variety of dairy products, which has prompted the use of packaging made of plastic.
- Further, according to ITC, in 2021, the imports of plastics in the United States were valued at around USD 82.46 billion, a 32.27% rise in the imports from the previous year, 2020, which recorded imports of approximately USD 62.34 billion. The significant demand for plastic across various industries would be responsible for rising imports. Dairy packaging primarily uses flexible and rigid plastic, which would be a considerable utilizer of imported plastics.
US Dairy Packaging Industry Overview
The United States dairy packaging market is highly consolidated owing to the presence of a few major players with significant market shares. With innovative and sustainable packaging, many companies are increasing their market presence by securing new contracts and tapping new markets. Some of the major players in the market are Huhtamaki Oyj, Berry Global Group Inc., Amcor PLC, Ball Corporation, and Smurfit Kappa Group PLC, among others.
- October 2022: Icon, a 95% renewable bio-based, paper-based packaging solution for ice cream containers and lids, was introduced by Huhtamaki to enable recycling in localities across the United States with paper product recycling programs. Consumers may discover more about environmental sustainability by scanning a linked packaging QR code. Incorporating its water-based barrier coating and paperboard that has received Sustainable Forest Initiative (SFI) certification, Huhtamaki claims the launch will provide customers with an environmentally friendly option. The ice cream containers and lids are recycled alongside paper goods like folded carton packing.
- May 2022: Berry Global Group introduced a new transparent, all-plastic cup that contains mechanically recycled post-consumer resin (PCR) in partnership with the American chain of fast-food restaurants Taco Bell. The 30-ounce transparent polypropylene (PP) cup, created to promote a more circular approach to sustainable packaging, will be tested in a few US Taco Bell restaurants later this year. According to Berry Global, food-grade material from recycled milk jugs and other goods has been incorporated into the recovered HDPE. Taco Bell's virgin plastic cup and lid set will be changed, reducing waste exposure to landfill and incineration and lowering its carbon footprint.
US Dairy Packaging Market Leaders
Huhtamaki Oyj
Berry Global Group, Inc.
Amcor Plc
Ball Corporation
Smurfit Kappa Group PLC
*Disclaimer: Major Players sorted in no particular order
US Dairy Packaging Market News
- September 2022: The DairySeal range from Amcor Rigid Packaging (ARP) contains ClearCor, an advanced PET barrier. The DairySeal series of packaging may be produced using up to 80% recyclable materials while still providing the brand with better flavor and function. The DairySeal line in PET provides businesses with simple access to e-commerce and convenience store distribution channels, where round, firm plastic bottles are intended to fit on refrigerator shelves.
- August 2022: The Vermont Agency of Agriculture, Food and Markets, which hosts the Northeast Dairy Business Innovation Center (NE-DBIC), announced the names of five players who received the Dairy Product Packaging Innovation Grant. The NE-DBIC emphasized that investments in such initiatives would minimize the usage of virgin plastics and the environmental effects of dairy products and supply chain packaging as consumer demand for sustainable packaging alternatives rises. The dairy processors will use this USD 1.1 million in funding to assist in research, packaging creation, and customer receptivity analysis at various scales and product varieties. All award recipients distributed the study and findings to increase accessibility and understanding of innovative sustainable packaging options for the dairy industry, particularly for small and medium-sized processors.
US Dairy Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porters Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Consumer Preference Toward Protein-based Products
5.1.2 Increasing Adoption of In-house Packaging Methods
5.1.3 Increasing Adoption of Packages Incorporating Small Portion Size
5.2 Market Restraints
5.2.1 Greenhouse Gas Emission due to Dairy Activities Leading to Legislative Issues
5.3 Global Dairy Packaging Market Overview
6. MARKET SEGMENTATION
6.1 By Material Type
6.1.1 Plastic
6.1.2 Paper and Paperboard
6.1.3 Glass
6.1.4 Metal
6.2 By Product Type
6.2.1 Milk
6.2.2 Cheese
6.2.3 Frozen Products
6.2.4 Cultured Products
6.2.5 Other Product Types
6.3 By Packaging Type
6.3.1 Bottles
6.3.2 Pouches
6.3.3 Cartons and Boxes
6.3.4 Bags and Wraps
6.3.5 Other Packaging Types
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Huhtamaki Oyj
7.1.2 Berry Global Group Inc.
7.1.3 Amcor Plc
7.1.4 Ball Corporation
7.1.5 Smurfit Kappa Group PLC
7.1.6 Altium Packaging LLC (Loews Corporation)
7.1.7 Polytainers Inc.
7.1.8 International Paper Company
7.1.9 Winpak Ltd
7.1.10 Sealed Air Corporation
7.1.11 Tetra Pak International SA
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Dairy Packaging Industry Segmentation
The use of various packaging products that protect dairy products against light, in-pack ripening, and spoilage and provide easy-to-open and peelable materials is called dairy packaging. Vendors provide packaging systems that combine custom thermoformed containers, heat-sealable membranes, die-cut lids, and filling machines used by the dairy industry for single-serve products such as coffee creamers, margarine, margarine blends, sour cream, and yogurts.
The market for the study defines the revenues generated from the sales of dairy packaging products in the country. The study tracks the demand for the dairy packaging market based on the relative consumption of various product types considered under the scope. The market covers the major factors impacting the growth of dairy packaging products in terms of drivers and restraints. The study analyzes the impact of COVID-19 and other significant regional developments to identify their relative impact on the demand for the dairy packaging market.
The US dairy packaging market is segmented by material type (glass, paper and paperboard, metal, plastic), product type (milk, cheese, frozen products, cultured products, and other product types), and packaging type (bottles, pouches, cartons and boxes, bags and wraps, and other packaging types). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Material Type | |
| Plastic | |
| Paper and Paperboard | |
| Glass | |
| Metal |
| By Product Type | |
| Milk | |
| Cheese | |
| Frozen Products | |
| Cultured Products | |
| Other Product Types |
| By Packaging Type | |
| Bottles | |
| Pouches | |
| Cartons and Boxes | |
| Bags and Wraps | |
| Other Packaging Types |
US Dairy Packaging Market Research FAQs
What is the current United States Dairy Packaging Market size?
The United States Dairy Packaging Market is projected to register a CAGR of 2.21% during the forecast period (2024-2029)
Who are the key players in United States Dairy Packaging Market?
Huhtamaki Oyj, Berry Global Group, Inc., Amcor Plc, Ball Corporation and Smurfit Kappa Group PLC are the major companies operating in the United States Dairy Packaging Market.
What years does this United States Dairy Packaging Market cover?
The report covers the United States Dairy Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Dairy Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Dairy Packaging Industry Report
Statistics for the 2024 United States Dairy Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Dairy Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
