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Food Contact Paper Market is projected to grow at a CAGR of 4.5% during the forecast period 2028
Transparency Market Research delivers key insights on the food contact paper market in its published report, which include global industry analysis, size, share, growth, trends, and forecast for 2020-2028. In terms of revenue, the global food contact paper market is projected to grow at a CAGR of 4.5% during the forecast period, owing to several factors, about which TMR offers detailed insights and forecasts in the food contact paper market report.Food contact paper is predominately used in the food service industry in the packaging of a wide range of food items. The growing demand for paper-based packaging solutions for food is anticipated to bolster the sales of food contact paper during the foreseeable future. TMR team segmented the food contact paper market based on material, thickness, application, and end use. Based on thickness, up to 30 GSM segment of the global food contact paper market is estimated to account for a major market share, and expected to drive the overall food contact paper market during the forecast period.
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High Demand for Fast Food to Supplement Sales of Food Contact Paper
The global food contact paper market is significantly driven by the demand generated from and food service industry. Food contact paper is used for packaging of several food items such as burgers, pizza, wraps & rolls, sandwiches, and others. The global fast food segment has experienced robust market growth in the past couple of years as a result of increased consumer inclination toward readymade and pack food items due to busier lifestyles. The growing demand for on the go and fast food items worldwide is creating massive demand for food packaging solutions, including food contact paper. Furthermore, increasing number and rapid penetration of food service retailers across the emerging economies are further offering lucrative opportunities for food contact paper manufacturers to maximize sales. All these factors are anticipated to positively impact the food contact paper market.
Preference for Eco-friendly Packaging to Bolster Market Growth
The rising demand for eco-friendly packaging has led to increase in demand for packaging solutions that can be recycled. Leading as well as small-scale industry players operating in the global food service industry are inclining toward sustainable packaging and promoting environment-friendly packaging. These market players are actively planning to eliminate harmful plastic packaging products from their food packaging needs. This can be attributed to the increasing pressure from governmental and non-governmental organizations to reduce plastic waste globally.
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Food contact paper is highly sustainable and gaining immense traction in the market, owing to its ecofriendly characteristics. Packaging companies are providing efficient and sustainable packaging solutions to leverage opportunities generated in the food contact paper market. This shifting inclination of manufacturers and end users toward environment-friendly packaging solutions is likely to accelerate market growth.
Strict Regulations on Food Contact Materials Affects Market Growth
Regulations by regional food & drug administration in different countries may lead to a change in consumption pattern of various food contact materials, such as paper, plastic, and metal. For small-scale manufacturers, it becomes difficult to comply with government regulations and manufacture packaging solutions. Furthermore, chemicals and additives are used during the manufacturing of paper to achieve different functional characteristics. These additives and chemicals must be treated properly to eliminate the violation of food contact material regulations. These stringent regulations on food contact materials, including paper and paperboard may affect the food contact paper market growth.
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Food Contact Paper Market: Competition Landscape
The global food contact paper market is projected to witness strong competition among key players. This market includes few well established market participants. Along with this, several other local and small scale manufacturers are also entering into food contact paper market attributing to significant revenue creation with the raising demand of food contact paper. Some of the key players operating in the global food contact paper market are Mondi Plc, Twin River Paper Company, PT. Indah Kiat Pulp & Paper Tbk, Nordic Paper AS, Westrock Company, Pudumjee Paper Products, SCG Packaging PCL, Ahlstrom-Munksjo, Asian Pulp & Paper Group and among others.
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The tier structure is formulated on the basis of segmental revenue and market share of the company. As per tier structure, Mondi Plc, Ahlstrom-Munksjo, and PT. Indah Kiat Pulp & Paper Tbk are tier 1 players in the food contact paper market. These leading companies are adopting key strategies such as business expansions, acquisitions, and products launch to strengthen their position in the food contact paper market. Moreover, tier 2 players are Westrock Company, Metsä Group, Nordic Paper, and SCG Packaging.
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