Report

The Europe food packaging market grew at a CAGR of 4.8% during the forecast period. With increasing urbanization, the rising demand for eco-friendly packaging of products, and user safety concerns, the Europe food packaging market is anticipated to grow lucratively. European countries have seen strong demand for fresh fruits & vegetables owing to a paradigm shift toward organic variants and the introduction of packaging that enhances shelf life.

Key Highlights
Packaging has now become an essential part of daily life. The primary requirement for packaging is to protect food products from outside influences and damage while preserving freshness and taste. Food packaging aids in the prevention of product deterioration, the retention of the beneficial effects of processing, extending shelf-life, and improving and preserving food quality and safety. Food packaging advancements significantly impact everything from food logistics to food logistics to maintenance.
Europe has placed a comprehensive support system through the regulatory framework to strengthen regional produce and support stakeholders in the agricultural sector. An increase in fresh food production, along with favorable government norms, augment the growth of the fresh fruits & vegetable market, which, in turn, drives the food packaging growth in the region.
The fluctuation of raw material prices can stifle market growth. According to European Plastics Converters, the European market for polymers has been under pressure for several months, and the negative consequences of raw material shortages and price increases seriously affect EU plastic product production.
The need for efficient and eco-friendly technologies to supply fresh food has recently attracted significant demand. The primary goal of food packaging, in many companies and countries, especially in European countries, is to emphasize reducing the waste material and tamper detection facilities to ensure that the provided service meets the predetermined standard protocol.
The COVID-19 outbreak has positively impacted the European food packaging market. As the coronavirus outbreak spreads and its humanitarian impact grows, industries that help meet basic needs, such as getting food and supplies to consumers safely, are becoming increasingly impacted. Food packaging is the most important segment of the packaging industry. The packaging industry's most important activity is food packaging.
The European paper packaging sector is witnessing huge uncertainties related to energy due to Russia and Ukraine wars. The supply and prices of raw materials and disturbances in transport and logistics this is causing margin pressure for paper packaging producers. The already stressed downstream supply chain will feel this pressure via additional paper packaging price increases. Russian gas makes up around a third of all European natural gas. Locally, energy prices and availability might be further impacted by the dependence of certain countries on the supply of Russian gas.


Europe Food Packaging Market Trends

Rapidly Growing Foodservice Industry


Growing urbanization, changing food habits due to lack of leisure hours, and increasing disposable income are some factors driving the growth of the food service industry and, thus, the demand for food packaging solutions. Further, dine-out has witnessed a switch towards online food deliveries and take-outs, increasing the need for various food packaging products.
The growing focus on digital sales channels encourages packaging vendors to ideate new solutions for the industry. For instance, in December 2021, Syntegon developed paper-based trays and cups for sensitive food products. It partnered with Fraunhofer Institute for Process Engineering and Packaging in Dresden, Colruyt Group, Strauss Group, and the University of Reading to implement its EIT project "PACK4SENSE" (Paper packaging for paper packaging) SENSitive foods) to develop a sustainable packaging concept.
Further, in October 2021, The European division of US-based food packaging company Sabert bought British food service packaging manufacturer KeCo. The company produces folded carton packaging products for the food service sector, including sandwich and deli packaging, fast food and takeaway packaging, children's meal boxes, catering platters and inserts, cartons, trays, and containers with a manufacturing facility in the green belt area of Kimbolton, Cambridgeshire.
As lifestyles change and food distribution channels increasingly rely on online food applications, food packaging trends are subject to quick change. The popularity of the typical fast food meal and an expanding population push the food service packaging market.


High Demand for Sustainable Packaging Solutions Such as Paper and Paperboard


The escalating demand for sustainable and recyclable packaging solutions is a primary factor that strengthens the sustainable packaging solution in the market. Apart from this, as it is a viable and cost-effective solution, its demand is escalating across the region. Apart from this, the increasing sales via e-commerce platforms positively influence the demand for tertiary and secondary paper packaging products in the area.
Food packaging can be made from various materials, including paper and board. For packing loose goods, paper packaging can be constructed of parchment paper or in the shape of bags. Liquid and dry, frozen, and fast food are often packaged in carton board. Corrugated board is often used in direct contact with food (for example, pizza boxes) and as secondary packaging. Paper packaging is frequently opted for by manufacturers because it offers simple storage and practical packaging that is attractive and easy to handle. Furthermore, it is made from recycled materials, comes in various forms and sizes, and is environmentally friendly.
According to Cepi figures, after significant investments by the sector, paper recycling is increasingly executed in Europe, surpassing 50 million tonnes for the first time in 2021, while exports of paper for recycling decreased by 18% compared to 2020.
In 2021, pulp and paper showed signs of a strong post-Covid recovery, with paper and board consumption increasing by 5.8%, outperforming the eurozone GDP recovery overall. Paper and board production increased by 6.1% due to these positive trends. The sector's operating rate, or the capacity at which paper mills are used, has increased to 90% this year, up from 85% in 2020. Positive trends are also observed for the first quarter of 2022, with the sector exceeding its first-quarter production levels in 2021.
Furthermore, the growing number of quick-service restaurants has increased demand for paper-based packaging, both corrugated and folding cartons, across Europe. In 2021, for example, France was the European country where McDonald's operated and franchised most of its establishments. In 2021, Germany had the second-highest number of McDonald's restaurants, with 1,432 units.


Europe Food Packaging Market Competitor Analysis

The food packaging market is highly fragmented owing to the presence of a large number of players operating in the market, constituting a significant share. Leading players operating in the market are undergoing acquisitions, mergers, technological advancements, expansion, and ground-breaking marketing tactics to strengthen their positions.

In November 2022 - Amcor Plc announced its investment of USD 3 million in PulPac, a Swedish company providing disruptive manufacturing technology for low-cost, high-performance fiber-based packaging. Amcor is one of several strategic investors in a cross-industry alliance aimed at driving the deployment of PulPac's technology globally. This cross-industry investment will help PulPac achieve its global commercialization goals by allowing it to deploy its solutions across markets and potentially provide applications in Amcor's product lines. Also in November 2022 - Huhtamaki, a sustainable packaging company, inaugurated a 12,500m� expansion of its paper-based packaging manufacturing site in Nules, Spain, with an investment of EUR 20 million (USD 20.8 million) with a grant of EUR 2.2 million (USD 2.3 million) from the Ministry of Finance and Economic Model. The company said the expansion would begin production this January and double the site's capacity.

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