Global sales of compostable foodservice packaging are expected to reach US$ 19.9 billion in 2022 and US$ 28.8 billion by 2029, with a CAGR of 5.5 percent from 2022 to 2029.
Future Market Insights has released a new report that forecasts the growth of the biodegradable foodservice packaging market between 2019 and 2029. According to the report, global sales of compostable foodservice packaging totaled 6,400 thousand tones in 2018, generating US$ 16.7 billion in revenue. Manufacturers are anticipated to see a period of continuous demand in the future as end users’ desire for sustainable packaging grows.
The expansion of the food service business, as well as the rise of “takeaway” and “grab-and-go” services, will continue to provide the market with new growth opportunities. However, the cost of generating biodegradable packaging materials remains greater than that of conventional materials, posing a challenge to the growth of the compostable foodservice packaging market.
Compostable foodservice packaging is becoming more affordable because of technological advancements, and according to FMI’s research, worldwide initiatives to become a more sustainable society will be essential in providing new growth prospects for market suppliers.
Trays are still preferred over other packaging formats.
The composite foodservice packaging market is expected to develop at a CAGR of around 5% through 2029, according to the analysis. A noticeable increase in the number of quick-service restaurants (QSRs), especially in emerging nations, is one of the primary development factors, as they correspond with today’s convenience and on-the-go mentality. Furthermore, increasing acceptance of foodservice disposables in response to rising demand for pre-packaged food has been laying the groundwork for biodegradable foodservice packaging penetration.
According to the survey, a wave of “customization” is coming to compostable foodservice packaging. Manufacturers are focused on producing unique goods of various sizes, assuring food safety, and minimizing leakage to meet particular packaging needs while encouraging sustainability. Non-chain restaurant demand continues to drive expansion strategies, and industry stakeholders are capitalizing on opportunities in chain cafés and independent foodservice operators, according to the FMI survey. The rapid expansion of international chain cafés in developing nations, as well as rising customer desire for eating out, particularly from food trucks and street stalls, is anticipated to support manufacturers’ growth strategies.
According to the analysis, the EU5 and the US have strong growth possibilities for biodegradable foodservice packaging. Stakeholders have benefited from increased awareness and easy access to new solutions, as well as a favorable legal environment and greater availability of compost facilities in certain locations. Furthermore, market consolidation in the Asia Pacific, particularly in the southern area, will continue to be vital to creating a distinct competitive edge, since eating out and online ordering trends have exploded across the region.