US Egg Packaging

Report Overview

Featuring 77 tables and 43 figures

What is a key driver of the egg packaging market?

• Continued growth of molded fiber packaging

Packaging for eggs in the US is forecast to grow 2.5% per year to $1.5 billion in 2028, with unit volume rising 1.1% annually to 5.9 billion units. New challenges and opportunities related to sustainability goals, material choice, and product innovation are having a notable impact on packaging demand across a range of products and markets.

Environmental Concerns & Product Innovation Shake Up Egg Carton Demand

Egg cartons have long been the dominant shell egg packaging format, especially in the vast retail market, generally providing steady reliable growth over time. However, recent trends are spurring significant change for this mature product line:

• Sustainability initiatives, including bans on foam egg cartons, will drive the use of more environmentally friendly materials, such as molded fiber and recycled plastic.

• Molded fiber is seeing renewed growth after years of market share losses, aided by bans on foam but also product innovations such as the use of colorful paperboard lids on cartons to boost shelf appeal.

• Major egg carton suppliers continue to invest in new US-based manufacturing operations to meet shifting product demand.

Sustainability Initiatives Will Impact Product & Material Choice in All Markets

Sustainability is a strong focus of US manufacturers, retailers, and consumers and this will continue to have a notable impact on the egg packaging market in terms of both the packaging products and materials being used:

• Molded fiber, used in mostly egg cartons and trays, will see renewed interest due to its strong record of recyclability and compostability coupled with the growing use of agricultural waste materials in its production.

• Foam packaging will continue to fall out of favor with consumers and producers alike, with new regulations being passed to restrict foam use. To date, four states have passed legislation banning foam egg carton sales.

• Manufacturers of rigid plastic containers, while not facing the regulatory restrictions seen in foam, continue to be proactive by increasing recycled content to improve their environmental image.

• Flexible packaging such as pouches, while still a niche part of the overall egg packaging market, benefits not only from its lower cost but also its source reduction capabilities compared to rigid containers.

New Opportunities Emerge in Foodservice & Food Manufacturing Markets

While the retail market dominates overall egg packaging demand, foodservice and food manufacturing applications provide opportunities for a much wider array of packaging products beyond basic egg cartons. These establishments are heavily invested in maximizing cost and efficiency, which is boosting demand for products such as pouches and bag-in-box systems.

In food manufacturing, artisan food producers continue to gain market share and this is boosting overall demand for egg packaging, as these smaller companies are more likely to buy packaged eggs than large food processors who buy eggs by tanker truck. This trend will drive growth in a number of smaller volume packaging products.

Historical Market Trends & Growth Factors

Yearly shifts in egg packaging demand are determined by a number of factors, primarily those related to the production and marketing of shell and processed eggs, as well as their end uses. These activities, in turn, are influenced by:

• demographic trends like age, average household size, and disposable income

• consumer spending on food and the balance between at-home and away from home cooking

• consumer food preferences like enhanced convenience and “organic” labelling

• restaurant and other foodservice industry activity

• trends in the production of processed foods such as baked goods, ice cream, and dressings that use eggs as a key ingredient

In addition, a number of competitive variables determine the mix of packaging types used and their costs, including:

• changes in the mix of the types of egg products being packaged

• environmental and regulatory factors, including trends like product bans, source reduction, the use of recycled content, and recyclability

• consumer preferences and concerns about quality and product safety

• changes in packaging prices, which impacts trends in market value

Historically, egg packaging demand has experienced relatively steady, healthy growth in most market categories due to the continued popularity of eggs as an economical, nutritious, and easy-to-prepare food, as well as the importance of processed eggs in food manufacturing and the development of products that are convenient to prepare or – in the case of packaged egg whites – offer health benefits.

Demand for total egg packaging was affected by offsetting factors in 2020 as the COVID-19 pandemic heavily restrained the foodservice industry, although those losses were more than offset by demand for retail egg packaging, which was boosted by an increase in at-home cooking.

In 2021, real egg packaging demand was restrained by continued egg production challenges and a gradual shift in egg sales from retail to foodservice as restaurants reopened. However, rising prices of plastic and paper led to increased egg packaging prices, boosting demand in value terms. Then, in 2022, prices were pushed even higher as inflationary pressures compounded. Additionally, egg production dropped following a decline in the chicken population due to a bird flu outbreak, further restraining packaging sales.

In 2023, real egg packaging demand ticked upward as production stabilized and egg prices returned closer to historical norms.

Egg Packaging Trends by Packaging Category

Packaging for eggs is forecast to grow 2.5% per year to $1.5 billion in 2028, with units rising 1.1% annually to 5.9 billion. Egg cartons will continue to account for most of the absolute growth due to their dominance of the shell egg market and recovery in shell egg production from recent weakness. However, growth in market value will be somewhat held back by normalizing packaging prices.

Egg cartons are the dominant packaging type for eggs due to their cushioning properties and well-established use in retail markets.

Gable top cartons are the leading primary packaging product for processed eggs, due to their widespread use with liquid eggs, especially in retail and foodservice markets. Demand for gable top cartons will be supported by the continued popularity of liquid eggs as a convenient alternative to shell eggs.

Corrugated boxes are pervasively used as secondary packaging for both shell and processed egg shipments. As such, growth will largely track the overall average. However, competition from pallets with wrap and reusable containers will restrain new gains.

Egg trays and flats account for 9% of unit demand and are widely used with larger quantities of shell eggs. Egg trays and flats see significant use in the foodservice market due to the large volume of eggs these establishments require and the value of buying in bulk. Market value growth will be somewhat mitigated by the rising popularity of molded fiber trays that tend to be less expensive than rigid plastic trays.

Packaging products used exclusively for processed eggs include gable top cartons, plastic containers, bags and pouches, and other smaller product formats. Pouches, as well as corrugated boxes, will be boosted by the growing popularity of bag-in-box packaging. Additionally, above average growth is expected for stand-up pouches, which offer improved performance for liquid, dried, and pre-cooked products.

Inflation & Pricing Trends

Pricing is an important factor in selecting packaging for a particular food application such as eggs. Price competition in the industry is intense, due to the prevalence of relatively low-technology, commodity-type products.

In 2021, the price of raw material inputs used in the production of food packaging, especially plastic, grew due to shortages caused by supply chain issues, leading to higher pricing of egg packaging end products, with a dramatic increase occurring in 2022 as these issues were compounded.

In 2023, price growth for most types of egg packaging moderated. Beginning in the latter part of the forecast period, plastic and paperboard products are forecast to see price growth more in line with historical trends.

However, pricing of molded fiber – a popular material for egg cartons and flats – is expected to reflect diverging trends:

• 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.

Prices for egg cartons, trays, and flats – which together comprise 85% of egg packaging demand in unit terms – will see average gains, due to offsetting changes in the material mix of these products.

Among small volume egg packaging products, pouch prices will be boosted by increasing demand for ready-to-eat hard boiled eggs, which are often packaged in higher value stand-up pouches.

Report Details

This study analyzes the US market for egg packaging. Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are presented for egg packaging demand in units and current US dollars (including inflation) by product, packaging material, egg format, and market. Annual data for 2020 to 2027 are also presented.

Products covered in this report are broadly divided into flexible and rigid categories.

Rigid packaging includes types made of plastic, paperboard, and molded fiber and comes in the following formats:

• egg cartons

• corrugated boxes

• egg trays and flats

• gable top cartons

• bag-in-box systems

• plastic containers, such as bottles, jugs, jars, cups, and pails

• paperboard sleeves

• composite cans

Flexible packaging includes:

• pouches (e.g., pillow, stand-up, and side seal)

• bags

• skin packaging

• wrap

Both retail and commercial foodservice packaging are included, as well shipments to food manufacturers. However, bulk liquid egg shipments to food manufacturers in tanker trucks or totes are excluded.

In addition, demand is segmented by material:

• molded pulp/molded fiber

• rigid plastic

• paper and paperboard

• expanded polystyrene (EPS) foam

• flexible plastic

For products packaged in combination formats – such as a tray of eggs enclosed in a corrugated box – the value of each type of packaging is counted separately and included within each respective product segment.

Eggs formats include:

• shell eggs

• liquid and frozen eggs

• dried eggs

• ready-to-eat (pre-cooked) eggs

Excluded from the scope of this report are the following:

• bulk packaging such as shipping sacks, intermediate bulk containers, strapping, drums, bulk pails, and material handling containers

• shipping and transit packaging, defined as packaging that does not touch the food itself and is used solely for the purposes of shipping or storage.

• protective packaging

• retail-ready packaging

• in-store packaging used for self-service in groceries

• separately sold caps and closures

• packaging accessories such as tags, tape, and labels

• single-use foodservice products such as cups, lids, and other containers and such used by restaurants or other non-retail foodservice establishments

• unconverted materials sold to food manufacturers for captive packaging production (although the value of the finished packaging produced captively by end users does count)