Report

The Sustainable Foodservice Packaging Market size is estimated at USD 65.73 billion in 2025, and is expected to reach USD 88.46 billion by 2030, at a CAGR of 6.12% during the forecast period (2025-2030).

Key Highlights
- With a rising customer focus on environmental concerns and the repercussions of package leaks, sustainability in packaging emerges as a pivotal trend shaping the industry. Consequently, stringent sustainability mandates are emerging across various sectors. The foodservice industry, alarmed by the environmental impact of plastic containers, is pivoting toward recycled materials, propelling the market studied. Companies are increasingly adopting recycled and biodegradable materials to meet these new standards, which not only help in reducing the carbon footprint but also cater to the eco-conscious consumer base.
- The surge in urban population growth is fueling the demand for prepared and ready-to-eat foods, consequently bolstering the need for sustainable packaging solutions in the foodservice sector. This, in turn, is set to drive the market in the coming years. Urbanization leads to a higher concentration of people in cities, which increases the demand for convenient food options. This trend is particularly evident in metropolitan areas where busy lifestyles necessitate quick and easy meal solutions, thereby increasing the reliance on foodservice packaging.
- Across major regions, urbanization, evolving lifestyles, the rush of modern work life, and a growing reliance on online food platforms are reshaping the food service and landscape. This shift is amplifying the call for sustainable packaging solutions in the sector. The convenience of online food delivery services has led to a surge in single-use packaging, prompting a need for more sustainable alternatives. Companies are responding by developing innovative packaging that is not only eco-friendly but also maintains the quality and safety of food during transit.
- As the industry steers toward a waste-free future, challenges like packaging innovation, encompassing novel materials, refill systems, and recycling solutions, come to the forefront. Nestle, bolstering commitment, conducts extensive in-house research via the Nestle Institute of Packaging Sciences, earmarking a CHF 250 million sustainable packaging venture fund to back startups focusing on these pivotal areas. This fund aims to accelerate the development and adoption of cutting-edge sustainable packaging technologies, ensuring that new solutions are both effective and scalable.
- While the benefits of sustainable packaging are evident, it is crucial to note that its costs are notably higher than traditional foodservice alternatives. This cost disparity is attributed to the sourcing of materials, both virgin and recycled, and the industry's nascent supply chains and manufacturing processes, all of which currently lack economies of scale, thus impeding market growth. The higher costs are also due to the advanced technology and research required to develop sustainable packaging solutions that meet industry standards and consumer expectations.


Sustainable Foodservice Packaging Market Trends

Quick-service Restaurants are Expected to Drive the Market Among End Users


- Quick-service restaurants (QSRs) prioritize fast service and affordability, distinguishing them from traditional dining establishments with their minimal table service and self-service focus. However, the industry's stance on sustainability has been inconsistent.
- While QSRs have historically been associated with less eco-friendly practices, such as styrofoam cups, plastic lids, cardboard holders, genetically modified vegetables, and inorganic meat, the tide is turning. With customers increasingly valuing eco-conscious services, many QSRs are pivoting toward greener, more eco-friendly options.
- Some QSRs, particularly those known for their organic offerings, are actively adopting eco-friendly practices to shrink their carbon footprint. These practices include sourcing organic and locally grown produce, using biodegradable packaging, and implementing energy-efficient operations.
- Moreover, the sector is witnessing a surge in partnerships, largely driven by the growing demand for sustainable packaging solutions. These collaborations often involve working with suppliers who specialize in eco-friendly materials and technologies, further promoting sustainability within the industry. For instance, in June 2024, Saica Group, a packaging solutions company, and Mondelez, a leading fast-moving consumer goods manufacturer, collaborated to introduce an innovative paper-based product. This product is specifically designed for multipack offerings in the confectionery, biscuits, and chocolate markets. The new packaging is recyclable within the paper waste stream and compatible with heat-seal processes. Additionally, it offers the flexibility of being produced either coated or uncoated, depending on the desired final appearance.


Asia-Pacific Accounts for the Largest Market Share


- The Asia-Pacific region, home to densely populated and emerging economies like China and India, is witnessing a surge in the demand for food services. Concurrently, there is a notable shift toward sustainable packaging, with the region poised to lead this trend in the coming years. This shift is driven by increasing consumer awareness about environmental issues and stringent government regulations to reduce plastic waste.
- While plastic has long been the cornerstone of consumer convenience in packaging, its dominance is being challenged. Despite its cost-effectiveness, plastics have edged traditional materials like corrugated paper boards, glass, and metals in the food industry. Yet, the very durability that makes plastic appealing also renders it non-degradable, leading to a concerning 43% pollution contribution in India. The environmental impact of plastic waste has prompted both public and private sectors to seek sustainable alternatives.
- Recognizing the urgency, entities like the Indian Railways and Air India have pledged to swap plastic for eco-friendly paper and wooden cutlery, signaling a broader industry shift. These initiatives are part of a larger movement toward sustainability, which includes efforts to reduce carbon footprints and promote circular economies. From major corporations to local brands, there is a palpable momentum toward ditching single-use plastics in favor of recyclable, reusable, and compostable alternatives. This transition is expected to not only mitigate environmental damage but also align with global sustainability goals.


Sustainable Foodservice Packaging Industry Overview

In the sustainable foodservice packaging market, prominent companies like Amcor Limited, Sealed Air Corporation, and Mondi PLC are driving growth through strategic partnerships, collaborations, and innovative initiatives. These efforts encompass the development of eco-friendly packaging solutions, investment in research and development, and the expansion of product portfolios. Such activities are enhancing the market's momentum and meeting the rising demand for sustainable packaging options.


- March 2024: SEE introduced an innovative paper-based bottom web designed to assist food processors and retailers in reducing plastic usage while meeting the growing consumer demand for paper packaging. Marketed under the CRYOVAC Barrier Formable Paper brand, this product is composed of 90% FSC-certified fibers. According to SEE, replacing traditional PET/PE webs with this Barrier Formable Paper can achieve a significant 77% reduction in plastic usage in bottom web packaging.


Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support