US Food Packaging

Report Overview

Packaging of food is something we see every day, but what drives the decisions of consumers and manufacturers?

• Cutting costs and attracting customers

• Sustainability conversions with transitions to molded fiber and bioplastics

• Source reductions with use of flexible packaging like pouches

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This study examines the US market for food packaging, defined as primary and secondary packaging materials sold to food manufacturers, primarily for products targeted at retail or foodservice markets. Historical data are provided for 2012, 2017, and 2022, with forecasts through 2027. Annual data is provided for 2018-2026. Data are provided in current dollar value and units. Also provided is an analysis of key industry players.

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This report includes data from 2011-2031 in 5 year intervals and tables featuring year-by-year data for 2018-2025.

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Demand for food packaging is forecast to increase 2.5% per year to $58.1 billion in 2027, with real growth of 1.2% per year to 540 billion units. While growth in unit terms will remain relatively steady, market value growth will be affected by an easing of high raw material prices and supply chain issues that caused pricing for most products to surge in 2021 and 2022. In general, the food market is challenging for packaging suppliers due to the vast number of distinct applications in which packaging must not only meet specific performance criteria, but also be cost effective and fall in line with changing sustainability goals and consumer preferences:

• Premium, high-performance products – such as aseptic cartons, skin packaging, and bag-in-box formats – will see the strongest advances.
• Fresh and frozen food formats continue to see the fastest growth, with conventional shelf-stable formats somewhat lagging.
• Plastic will continue to be the largest and fastest growing of the major food packaging materials, although sustainable materials like molded fiber will experience faster growth overall as they penetrate new applications.
• The outlook for paper-based packaging will be mixed, with sluggish gains in products like folding cartons overshadowing healthy gains in growth areas like aseptic cartons and food cups.

Sustainability Remains Top Concern for Packaging Products, Drives Innovations

Convenience & Performance Remain the Most Important Factors for Food Packaging

Historical Sales Trends

• demographic trends such as age, average household size, and levels of disposable income
• consumer spending on food and the balance between at-home and away-from-home meals
• food preferences (e.g., demand for enhanced convenience or for organic products)
• restaurant and other foodservice industry revenues

• raw material and conversion costs
• changes in the mix of foods being packaged, particularly in terms of food format (canned, dried, frozen, fresh)
• trends in packaging size and format, such as shifts toward smaller single-serving packages, family size units, or multipacks
• the proportion of food that is sold via retail channels versus foodservice establishments
• environmental and regulatory factors, including trends such as source reduction, the use of recycled content, and recyclability

Applications Overview

• meat, poultry, and seafood
• fresh produce
• prepared foods
• dairy and dairy alternatives
• baked goods
• sauces, dressings, and condiments
• processed fruits and vegetables
• savory snack foods
• candy and confections
• other processed foods (including dry coffee and tea, baby food, flours and grains, sweeteners and syrups, spices and seasonings, eggs, fats and oils, meat alternatives, soft drink syrups, meal replacements and protein powders, and other a variety of other food items)

• Prepared foods, which include ready-to-eat and ready-to-heat items, are expected to see among the fastest growth among major food categories due to their convenience and the growing availability of fresh product offerings, as well as continued strong growth in frozen variants.
• Candy and confections will also experience fast growth, owing to the trend toward smaller individually wrapped versions of larger candies and continued inroads by higher value packaging that provides better performance or sustainability advantages, increasing both real and nominal demand.
• Demand for processed fruits and vegetables – primarily canned products – will see below average gains due to market maturity and limited opportunities for new product development (exceptions being riced and spiralized frozen vegetables).

Packaging Pricing Trends

• the degree of lightweighting and downsizing activity – efforts that cut costs per unit by reducing the packaging size
• the presence of value-added features such as spouts and reclosable zippers
• the packaging product mix, both in terms of package size and material composition
• supply chain pressures – packaging producers are often squeezed between large raw material suppliers on one end and large food processors on the other, leaving them less options for pricing flexibility
• pressure to improve sustainability, which can result in the use of higher cost packaging materials

• Advancements in manufacturing and tooling processes will decrease the price of production.
• Increased focus on performance and aesthetic of molded fiber products will increase average price.
• Growth in domestic production will initially increase pricing as manufacturers switch to newer manufacturing processes. However, this will lead to decreasing production costs and lower average prices over time.

Food Production Trends

• Snack food will see favorable growth, boosted by the trend toward more, smaller meals throughout the day and continued new product introductions.
• Meat, poultry, and seafood will account for the highest share of output value, aided by a renewed focus on proteins for healthy lifestyles, although competition from meat alternatives will limit advances to some degree.
• Frozen fruit, vegetables, and specialty foods will see favorable growth, boosted by their convenience and improved nutritional profile compared to shelf-stable products.
• Fresh produce will see above average growth following declines in 2021 and 2022.