Global Reusable Food Packaging Market Size (2024-2030)

The market size of Reusable Food Packaging is projected to increase from USD 4.13 billion in 2023 to USD 6.17 billion by 2030. From 2024 to 2030, the market is experiencing a healthy Compound Annual Growth Rate (CAGR) of 5.9%.

Industry Overview:

The global reusable food packaging market is on the rise, driven by its durability and cost efficiency. The primary objective of utilizing reusable consumer packaging materials is to minimize waste generation, aligning with the trending approach of zero waste or zero discharge.

The principles of Reduce, Reuse, and Recycling are being actively adopted and implemented by businesses to conserve essential resources, which are finite and nearing depletion. There is an increasing concern for the environment due to global warming, influencing consumer demand for reusable packaging materials. This, in turn, is expected to contribute to the potential growth of the reusable consumer packaging market.

Examples of reusable food packaging include collars, dunnage, wraps & straps, bottles, jars, boxes, bags, and trays. The reusable food packaging market not only aids in boosting the economic growth of developed nations but also involves a one-time manufacturing investment. With the ability to be used over a period with regular monitoring and cleaning, reusable food packaging maintains product quality without compromise.

COVID-19 Impact on the Reusable Food Packaging Market

COVID-19, caused by the novel coronavirus, has had a significant impact on global economies. Emerging from Wuhan, China, in December 2019, COVID-19 swiftly escalated into a worldwide pandemic, putting immense strain on healthcare systems worldwide. Companies have intensified their research and development endeavors to create vaccines and treatments against the virus.

As the coronavirus outbreak unfolded, industries supporting essential needs such as food and necessary supplies faced increasing challenges. Food packaging, being a vital sector within the packaging industry, with its $900 billion annual global enterprise, found itself on the front lines of this crisis. The pandemic has led to sharp declines in the demand for certain types of packaging while accelerating the need for others, such as packaging for e-commerce shipments—a lifeline in this evolving landscape. These changes present new challenges for many packaging companies, and in this article, we present a three-step approach to help them navigate through these turbulent times.

The impact of the coronavirus crisis on the packaging industry is expected to be diverse, mirroring trends observed in countries like China and South Korea, which were among the first to confront the pandemic. There is expected to be a sharp rise in demand for packaging for groceries, healthcare products, and e-commerce transportation. Conversely, demand for industrial, luxury, and some B2B transportation packaging could decline. These shifts will affect packaging players, emphasizing the importance of portfolio management and strategic use of packaging and substrates.

MARKET DRIVERS:

Growing Demand in End-Use Industries for Food Packaging is Boosting Market Growth

The market is poised for significant expansion during the forecast period, as reusable packaging plays a crucial role in food packaging across various end-user industries. These include containers, crates, pouches, tubes, bottles, drums, barrels, and IBCs, efficiently and securely transporting food-grade products throughout the supply chain. The robust materials, such as metal, plastic, or wood, used in reusable or recyclable food packaging make it ideal for enduring the rigors of traditional logistics systems. This type of packaging is in high demand, particularly due to its ability to resolve issues like old-fashioned cardboard hindering production lines.

Reduction in Material Waste Drives Market Growth

Companies employing returnable packaging witness a reduction in material waste and overall organizational costs by reusing packaging materials. This not only enhances corporate profitability but also ensures the protection of high-quality components. Additionally, well-designed, ergonomic packaging protects the contents from tampering or damage. The availability of containers in various shapes, sizes, and material compositions enables their use across multiple industries.

MARKET RESTRAINTS:

Lack of Awareness Regarding Sustainable Development Hampers Market Growth

The prevailing lack of awareness among consumers, particularly in developing countries, regarding the value of sustainable packaging is a significant restraint on market growth. Consumers who are conscious of packaging's environmental impact, recycling, and their sense of responsibility are more inclined towards environmentally friendly options such as paper, glass, cardboard, and, to a lesser extent, plastic and wood. The reasons for consumer reluctance towards spending more on green initiatives include the overall cost of commodities, which often strains consumer budgets, and a general lack of knowledge. Moreover, consumers interested in purchasing environmentally friendly products require access to information, which can sometimes be challenging to obtain.

Reusable Food Packaging Market - By Type

Varieties of Packaging

• Boxes and Containers
• Crates and Pallets
• Pouches and Tubes
• Bottles and Jars
• Drums and Barrels
• Intermediate Bulk Containers (IBC)

The largest market share in 2022, amounting to 23.7%, belongs to the Box & Containers segment. It is progressing steadily with a Compound Annual Growth Rate (CAGR) of 5.7% throughout the projected period. The dominance of the Box & Containers sub-category in the market share is credited to its convenience in managing packed foods, coupled with its exceptional protection against mechanical damage during transportation. This has led to its widespread preference among various end-user industries.

Reusable Food Packaging Market - By End-Use

Utilization in Various Industries

• Bakery and Confectionery
• Convenience Food
• Raw Meat and Fish
• Fruits and Vegetables
• Dairy Products and Beverages
• Other Applications

As of 2022, the Bakery & Confectionery segment holds the largest market share at 22.7%, displaying the fastest CAGR of 6.7% for the forecast period. End-users encompass Bakery & Confectionery, Convenience Food, Raw Meat & Fish, Fruits & Vegetables, Dairy Products & Beverages, along with other sub-segments. The food & beverage sector notably adopts this packaging due to its efficacy in transporting diverse food-grade materials to suppliers.

Reusable Food Packaging Market - By Region

Geographical Distribution

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Europe commands the highest market share of 34.5% in 2022, foreseeing a growth rate of 6.0% for the forecasted period. The market in Europe is thriving due to factors such as the presence of major market producers, a significant emphasis on a zero-waste lifestyle, innovative startups with a focus on reusable-as-a-service, and the expansion of end-user industries related to take-out ingredients.

Asia Pacific is anticipated to experience the most rapid CAGR of 7.0% throughout the forecast period. The increasing adoption of packaging in growing end-user industries such as Bakery & Confectionery and Dairy Products & Beverages, coupled with a rising demand for recyclable or returnable food packaging and the burgeoning online food delivery sector, are driving market growth in this region.

Market Share in Reusable Food Packaging by Companies

1. Amcor Limited
2. Bemis Company, Inc.
3. Tetra Laval International S.A.
4. Mondi PLC
5. Westrock Company
6. BASF SE
7. Sonoco Products Company
8. Smurfit Kappa Group PLC
9. Sealed Air Corporation
10. Huhtamaki OYJ.

These enterprises are expanding significantly due to continuous product innovations supported by the swift adoption of cutting-edge technologies. To effectively establish themselves in the market, emerging firms in the region are concentrating on vertically integrating their operations. Collaboration with renowned brands is also aiding in bolstering their global corporate presence. Major corporations are investing heavily in research and development endeavors to create innovative products and broaden the applications for their offerings. Moreover, these entities have employed various strategies such as mergers and acquisitions to foster growth.

Significant Developments in the Reusable Food Packaging Market Recently

Product Launch: In August 2022, SchoellerAllibert unveiled the Combo Excelsior IBC. This new standard foldable intermediate bulk container is tailored for international logistics purposes.