Dairy Packaging Market to reach USD 85.8 Billion by 2027 | Market Research Future (MRFR)

Key companies profiled are Amcor Limited , E. I. du Pont de Nemours and Company (U.S.), Ball Corporation (U.S.), Bemis Company Inc. (U.S.), Berry Plastics, Inc. (U.S.), TetraPak Ltd (Switzerland), International Paper (U.S.), Sealed Air Corporation (U.S.), MeadWestvaco Corporation (West Rock) (U.S.), Mondi PLC , Nampack Plastics, Rexam PLC (U.K.), and Ardagh Group (U.K.)., among others.


New York, June 14, 2021 (GLOBE NEWSWIRE) -- Biodegradable Pots & Packaging are Triggering Demand in Global Dairy Packaging Market

Dairy Packaging Market is expected to reach USD 85.8 Billion by 2027, growing at a CAGR of 4.4% from 2020 to 2027.

The dairy packaging market is growing promisingly, witnessing the rising demand. Dairy packaging is specially developed to minimize the effect of variable temperature and protect the product from physical damage. The sustainable packaging Industry is growing exponentially, witnessing a rapid demand rise supported by robust growth in dairy products and processed foods & beverages.

A systematic evaluating process is used to develop a statistically relevant temperature profile that can meet regulatory, logistics, and performance requirements for the distribution environment. Dairy products are temperature-sensitive, requiring an effective packaging solution that can preserve the cold chain for shipping these products. 

Witnessing increasing investments in product developments, the market is projected to garner significant traction in the years to come.

The availability of a range of packaged dairy products through various retailing channels and increasing consumer preference towards protein-based products are major dairy packaging market trends. Moreover, the increasing popularity of smaller multipacks and rising consumer preference substantiates the consumption of dairy-based packaging across the globe.

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Furthermore, brands are focusing on capturing a major share of the global market by providing best-in-class international export and local production capabilities, defining the growing landscape of the dairy packaging market. Conversely, environmental legislation is a major factor expected to hamper market growth. Greenhouse-gas emissions from dairy activities account for a considerable share of the total emissions. Also, changes in related policies could affect dairy production.

COVID-19 Impact

The COVID-19 outbreak severely hit the dairy packaging industry, causing huge revenue loss. Concerns related to safe processing, packaging, and transport of dairy products, along with constant monitoring and innovation, have become even more important due to the Coronavirus pandemic. Also, lockdown mandates halted the production of a number of key raw materials globally, which not only spiked the product prices but also lowered the demand for dairy packaging. 

Besides, manufacturers faced various problems, such as obtaining raw materials required for the production, attract workers from quarantines, and deliver end products. Dairy food and product packaging is generally a sterile process as it requires the utmost care to stave off contamination and avoid compromising quality or safety. The viral element of the pandemic ensured that people worldwide became more aware and concerned about the way food packaging takes place.

They are keen on buying dairy products packed in an aseptic package protecting them from light, oxygen, moisture, air, and microorganisms. Therefore, the dairy packaging market is rapidly returning to normal, witnessing the steadily increasing demand. High consumption of packaging materials due to rising production activities, storing, and distributing is estimated to offer robust market opportunities. 

Industry Trends

The growing need for temperature-controlled packaging impact the dairy packaging market growth positively. Quality demands increase as more temperature-sensitive products face logistics complexity and a huge risk of product damage. These complexities expand as products move further through more climatic zones. 

Besides, high awareness of temperature-controlled requirements, increasing complex local, regional, and international connections that need a broad range of transport modes, and pressure to optimize the total cost of ownership (TCO), relentless competition, and margin pressures push the market growth.

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The dairy packaging market analysis is segmented into types, materials, end-uses, and regions. The types segment is sub-segmented into bottles, cans, pouches, boxes, and others. The material segment is sub-segmented into glass, paper & paperboard, plastic, and others. The end-uses segment is sub-segmented into milk, cheese, butter, frozen products, and others. Based on the regions, the market is segmented into Americas, Europe, Asia-Pacific, Middle East & Africa and the rest-of-the-world.

Regional Segmentation

North America dominates the global dairy packaging market, witnessing continual growth. Factors such as the growing demand for dairy products, high disposable income, and rising population fuel the demand for dairy products in this region. Furthermore, the high standard of living and aging population drive the market growth, increasing the popularity of dairy items in the region. The US dominates the regional market.

The Asia Pacific region holds the second position in terms of the dairy packaging market revenue. Factors such as the growing dairy businesses and vast investments in packaging technology developments drive dairy packaging market growth. China and India are leading markets for dairy packaging solutions globally, increasing the region's dairy packaging market share. 

The European dairy packaging market accounts for a profitable market in terms of the dairy packaging market value globally. Increased demand and consumption of packaging materials increase the region's dairy packaging market share. Furthermore, the vast adoption of bio-degradable packaging solutions for dairy items propels market growth. 

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Competitive Analysis

The dairy packaging market witnesses several strategic approaches, such as mergers & acquisitions, collaboration, expansion, and product launches. Key industry players make strategic investments in research and development activities and foster their expansion plans. Suppliers strive to simplify processing with new automated offerings using robotic packers offering maximum flexibility to run multiple flexible packaging styles with various in-feed options.

Packagers are looking to upgrade from hand packing or moving from another package style equipped with high-payload two-axis robotics that can be programmed for virtually any packing configuration. 

Brands aim to provide the purest quality dairy products and work extensively by proactive maintenance and optimization of production and logistical chains, such as robotic machines, processing, and packaging line automated by sensors for rapid chemical and microbial analysis with improved and real-time data management. 

For instance, recently, on June 07, 2021, Al Fayoum For Food Industries (Egypt), a leading dairy company, announced expanding its product line with aseptic packaging following a recent move to a new facility.

In another instance, on May 27, 2021, ReThink Ice Cream (the US) rebranded its better-for-you ice cream brand with added health benefits. The company unveiled new packaging and a reformulation of its better-for-you ice cream.

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