The global compostable food service packaging market is experiencing vital growth and can grow significantly in a few years. A compostable packaging material is created from organic substances that does not comprise plastic, thus making it biodegradable. Increase in the number of food service establishments is considered the major factor for spicing up the expansion of the compostable food service packaging market within the forecast period. Furthermore, rise in acceptance of sustainable materials is anticipated to propel the expansion of the compostable food service packaging market. Moreover, the rise in demand from several end users is expected to cushion the expansion of the compostable food service packaging market.
Market Scope and Structure Analysis
Compostable materials are known to be biodegradable materials. Compostable food service packaging was identified as a feasible solution as it is made from plant-based materials that decompose with waste products and turn into compost. These materials are catching the attention of the food service industry because of their sustainability and zero waste gain traction. Compostable packaging does not require petroleum during production because it is created completely from organic matter and has no plastic in it. Disposable service ware, which includes single-use disposable cups, meal trays, and bowls, is predicted to be the fastest growing segment within the market.
Covid-19 Impact Analysis
- The COVID-19 crisis is likely to affect the compostable food service packaging market negatively, as a result of halted manufacturing and a massive reduction in demand for luxury and nonessential services globally.
- The COVID-19 crisis had a mixed impact on the packaging industry, mainly due to the closure of physical retail stores globally. However, the availability of online retailing has absorbed the high impact of this shutdown.
- The demand for e-commerce-specific packaging is likely to remain high, though e-commerce companies are required to focus on product protection and package sanitization.
- In addition, the food packaging industry is on the frontline within the global packaging market, owing to the demand for essential products such as groceries and fresh food, mainly from local e-retail sites.
- Industrial, transportation, and bulk packaging have faced a sharp decline, owing to decreased demand for nonessential goods during 2020.
- Owing to the lowered disposable income of the maximum population and weak demand for packaging from industrial goods, the packaging industry might face significant pressure for reduction in both wholesale as well as retail costs.
- Consumers are likely to stay hesitant about the consumption of luxury products, travel, and hospitality services, which is expected to hinder the packaging industry’s growth in the future after the COVID-19 crisis.
Top Impacting Factors
The major factors that are expected to spice up the expansion of the compostable food service packaging market within the forecast period are increase within the number of food service establishments. Furthermore, rise in acceptance of sustainable materials is anticipated to propel the expansion of the compostable food services packaging market. Moreover, rise in need from several end users is estimated to cushion the expansion of the compostable food service packaging market. On the other hand, strict rules and regulations are projected to impede the expansion of the compostable food service packaging market within the timeline period. In addition, environmental advantages of compostable food service packaging will provide potential opportunities for the expansion of the compostable food service packaging market within the coming years.
Market Trend
- The foodservice industry is predicted to witness growth during the forecast period, owing to improvements in the economic conditions of developing countries, fast paced lifestyles, and rapid urbanization. The “on the go” meal trend is increasing across plenty of nations.
- Disposable service ware, which incorporates single-use disposable cups, meal trays, and bowls. It is predicted to be the fastest growing segment within the market. Global compostable foodservice packaging growth is fuelled by the expansion of quick-service restaurants, which rely heavily on compostable foodservice packaging.
Key Benefits of the Report
- The study provides an extensive analysis of the current trends and future estimations to determine the imminent investment pockets in the compostable foodservice packaging market.
- A detailed analysis of the compostable foodservice packaging market and information related to key drivers, restraints, and opportunities is provided in this report.
- The report contains in-depth quantitative analysis of the growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers in the market.
- The report provides a detailed compostable foodservice packaging market analysis based on competitive intensity and how the competition will take shape in coming years.
Compostable Food Service Packaging Market Report Highlights
| Aspects | Details |
 By Packaging Type |
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 By Material |
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 By End User |
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 By Region |
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 Key Market Players | WestRock Company, Kruger Inc, Huhtamaki Oyj, Smurfit Kappa Group, Mondi Plc, Georgia Pacific LLC, Stora Enso Oyj, Fabri Kal, Ultra Green Packaging Inc., Berry Global Group Inc |
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