Press release
Paper Trays Market to Experience Significant Growth during the Forecast Period 2018 - 2027 | Key Players - Mondi Group , International Paper , Huhtamaki Oyj , Pactiv LLC , UFP Technologies , Billerud AB , Stora Enso Oyj , CS Packaging , Proactive Packagin
The paper trays market is likely to grow at a healthy 3.9% value CAGR throughout 2027, according to a latest Fact.MR study. The momentum in the paper trays market can be attributed to growing focus on sustainability, which includes reducing packaging waste and adopting recyclable packaging materials.Growing consumer preference toward greener packaging solutions is driving heavy investments in the paper trays market. Anticipating the lucrativeness of the paper trays market and future growth opportunities, manufacturers are introducing a wide design range of paper trays, which is proving to be a winning product differentiation strategy for paper packaging businesses.
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The Fact.MR study opines that industrial applications of paper trays in food & beverage products collectively account for more than 40% revenue share in the paper trays market. The Fact.MR study remains bullish on burgeoning demand for environmentally-friendly paper trays in the food & beverage industry, leading retail chains and foodservice brands’ commitment to phase out plastic in food packaging. The report also sheds light on increasing demand for paper trays in the consumer electronics industry, which is likely to remain a less-explored end-user industrial sector in the paper trays market.
Soaring Popularity of Frozen Food Products Driving Innovation in Paper trays Market
A majority of paper trays manufacturers are launching microwave-safe and freezer-safe paper trays addressing the soaring popularity of frozen food products among younger consumers. Market players are incorporating advanced technologies, such as modified atmosphere packaging technology, and manufacturing processes, such as thermoforming, to introduce unique features of paper trays suitable for food & beverage products.
“Though the F&B space holds a largest share in the paper trays market, industrial applications of paper trays are not limited to the food industry. A variety of end-user industries, such as consumer durables & electronics, healthcare, and personal care & cosmetic products, contribute greatly to the growth of the paper trays market. Leading manufacturers of paper trays are aware of surging demand for paper trays in the consumer durables & electronics industry, and are adopting strategies to focus enhancing their product portfolio for this segment,” says a lead analyst at Fact.MR.
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The pulp & paper industry is one of the heavily-regulated industries, as it utilizes more than 40% of industrial wood that is traded globally. Such regulations established by governmental and environmental organizations inevitably add to tangible monetary as well as non-monetary costs of manufacturing paper trays. For example, the U.S. Environment Protection Agency (EPA) recommends market players to use recycled fiber and maintain minimum content standards of recovered or virgin fiber. Thereby, government policies and eco-friendly manufacturing strategies adopted by paper trays market players are boosting the use of recycled fiber as the primary source for paper trays.
Market Players Focus on Consolidating their Position in Lucrative Markets
The Fact.MR study finds that Tier I companies in the paper trays market are focusing on consolidating their position in key markets. For example, the Mondi Group recently acquired pulp and paper manufacturers and suppliers across the world, including Powerflute Group Holdings Oy in Finland for approximately €365 million, and National Company for Paper Products and Import & Export S.A.E (“NPP”) in Egypt for €24 million. The company also announced that it has entered the Polish market by expanding its heavy-duty corrugated capabilities, which can help the company to remain competitive in the global market for paper packaging products, including paper trays.
According to Fact.MR, paper trays manufacturers are also focusing on penetrating the lucrative Asia Pacific market. For instance, Huhtamaki Oyj recently acquired packaging companies in Asia Pacific, including International Paper's foodservice packaging operations in China, Ajanta Packaging's business in India and Tailored Packaging – a foodservice packaging distributor in Australia. With the market leaders establishing a stronger foothold in emerging economies, the paper trays markets in developing nations is expected to witness positive growth in the upcoming years.
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