On-the-go Food Packaging Market Report

According to NRDC’s  2024 report, it states that global plastic production increased by around 460 million metric tons, accounting for between 21% to 31% of the global carbon, and industries are responsible for four times more greenhouse gas emissions, leading to rising demand for products that offer naturally derived alternatives to toxic chemicals. As a result, market players are introducing different varieties of packaging made from post-consumer recycled material to address the demand for sustainable alternatives to traditional plastic containers. For instance, in February 2024, Faerch Group announced the introduction of recyclable on-the-go beverage containers made with at least 30% post-consumer recycled material. The fully recyclable cups offer sustainable and seamless supply chain integration, supporting circular economy principles. This can help brands improve customer loyalty and differentiate themselves in a competitive market.

Further, the shift toward refillable and reusable packaging is growing across multiple sectors driven by the desire to minimize environmental footprints.  As consumers are willing to spend on cost-effective easy-to-use reuse food packaging, resulting, in the introduction of similar solutions for quick meals and snacks by market players. For instance, in August 2024, Ocado Retail launched the UK’s first major online reusable packaging scheme in collaboration with the UK Refill Coalition to reduce single-use plastics. The trial offers refillable containers for pantry staples and laundry products, and pre-filled reusable vessels, which can be washed, and refilled, reducing waste and cost and creating a closed-loop system where packaging has a longer lifecycle and is not discarded after a single use.

However, growing awareness among consumers about environmental impact makes eco-friendly packaging an important consideration. Packaging must preserve product quality, ensuring freshness and safety. Due to this companies are balancing innovation with cost-effective solutions to maintain profitability. Creating appealing and unique products that stand out in a competitive market. Aligning with increasing consumer and regulatory demand.

For instance, in April 2024, Nutifood, a leading Vietnamese dairy company, announced the launch of its Varna brand premium adult nutrition milk in SIG’s new DomeMini carton bottle. The on-the-go carton pack, combines the convenience of a plastic bottle with the sustainability of the carton, marking a shift from plastic packaging. Potentially reducing packaging material costs and offering a better plastic-to-product ratio and a sleek, distinctive design. Supporting consumers and government policies encouraging environmentally friendly packaging solutions and promoting a circular economy.

The growth of the on-the-go food packaging market is affected by several factors one of the major factors is the high cost associated with sustainable packaging. Additionally, the user-friendly and convenient packaging makes the design and material selection process more difficult, resulting in limiting the market’s affordability and accessibility to consumers. Another concern affecting the market growth is the lack of awareness and reliable recycling infrastructure about the disposable technique hindering widespread adoption and accessibility.

However, to meet the functional and sustainability requirements such as maintaining food freshness and safe transportation. Furthermore, the adoption of new packaging technologies may be slowed down by regulatory obstacles and regionally disparate standards, as companies may find it challenging to comply with various environmental regulations and requirements in international markets.

With the growing demand to prevent the use of virgin fossil-based plastics in food packaging to reduce carbon footprint as high carbon emissions occur in the production process. This led market players to introduce bio-based on-the-go food packaging material for consumers and cater high-quality, food-safe packaging. For instance, in March 2024, PepsiCo announced collaboration with GreenDot, Plastic Energy, INEOS, IRPLAST, and Amcor to launch sunbite snack packaging in the UK. This food package is made using advanced recycling technology from 50% post-consumer recycled material to meet consumer preferences for sustainable products and comply with evolving regulations.

Furthermore, the demand for packaging that provides a gas barrier for modified atmosphere packaging (MAP) is rising for preserving freshness and extending the shelf life of perishable, on-the-go food items like sliced meats.  Trays offering high stability and rigidity, making them easier to handle and stack, address consumer needs for portable and mess-free food packaging solutions. For instance, in April 2024, Graphic Packaging partnered with Pilgrim’s Food Masters to launch PaperLite trays for cooked sliced meats. The tray is made with 90% fiber, and is under the OPRL scheme, offering first-rate gas barrier and stability, ensuring freshness and safety of food for consumption. Making it a viable solution for ready-to-eat and on-the-go food products and meeting growing regulatory and consumer demand for eco-friendly packaging.

The North American on-the-go food packaging market is dominating driven by increasing consumer demand for convenient, and ready-to-eat food options, due to the high working population. Moreover, rising environmental concerns and strict government regulations to minimize plastic use and increase the adoption of recyclable and biodegradable food packaging are becoming popular among consumers.

Furthermore, the presence of major market players like Graphic Packaging and Amcor is focused on addressing these challenges through state and federal policies promoting the use of recyclable materials, with initiatives like extended producer responsibility playing a significant role. However, Europe's on-the-go food packaging market is witnessing rapid growth propelled by the EU's stringent Circular Economy Package and other sustainability initiatives.

Countries like Germany, France, and the UK have set high targets for recycled content and recycling rates, driving significant market activity. However, the European market is also characterized by a high level of consumer awareness and regulatory pressure, fuelling demand for sustainable packaging.  Many major market players like Unilever and Nestlé highlight the environmental benefits of recyclable packaging and engage consumers through transparent communication.

Furthermore, the Asia-Pacific region is witnessing rapid growth in the on-the-go food packaging market, driven by increasing environmental awareness and industrialization.  Countries such as China, India, and Japan are emerging as significant markets through regulatory frameworks.

Some Asian-Pacific nations are implementing stricter recycling policies to effectively enter this diverse market. Furthermore, rising consumer awareness related to the advantages of eco-friendly food packaging aligns with international sustainability standards by involving upgrading manufacturing capabilities to process recycled materials and establishing reliable supply chains. Additionally, the Latin American on-the-go food packaging market is growing, driven by rising environmental concerns and gradual improvements in recycling infrastructure. The increasing interest of Brazil and Mexico consumers in sustainable food packaging, results in the development of regulatory environment policies. Further, encouraging the use of recycled materials, due to which companies are increasing focus on local market research, and adapting products that meet the emerging standards.

Increasing partnerships for incorporating sustainable packaging into existing systems are increasing in local recycling facilities for adaptation of manufacturing processes to handle recycled materials. Key needs include enhancing recycling infrastructure, fostering consumer education on sustainability, and staying abreast of regulatory changes to align with market demands and ensure long-term growth.

Furthermore, the on-the-go food packaging market of the Middle East region is in its nascent stages and is poised for significant growth driven by increasing environmental awareness and regulatory developments. Due to this, market players are incorporating sustainable practices in food packaging material and increasing focus on waste management. Resulting, in strengthening the regulatory frameworks, improving recycling infrastructure, and enhancing educational programs in order to support the growth of the on-the-go food packaging market.

While demand for food packaging materials such as plastic remains high due to fast food chains, convenience stores, and food delivery services. However, increasing interest in sustainable alternatives in response to global sustainability trends and local regulations is growing. As a result, government restrictions on single-use plastics can raise production costs and adoption of environmentally friendly food packaging is hampering.