Press release
Global Foam Trays Market to Pegged At US$3 bn by 2021
The global foam trays market is dominated by three leading players, namely Genpak LLC, Pactiv LLC, and Sealed Air Corporation. These three companies are likely to account for around 40% of the global foam trays market through till 2021. Apart from these three market leaders, though, the global foam trays market is extremely fragmented and features several smaller players who could potentially rise to an important position in the global market in the coming years.The competitive scenario in the foam trays market is especially complicated in regions where small regional players have established a strong operating base. As leading entities in the global foam trays market look to make inroads into emerging markets, collaboration activities such as mergers and acquisitions as well as research collaboration could become a vital strategy for both multinational and regional parties.
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Polystyrene to Remain Leading Revenue Generator for Foam Trays Market
The global foam trays market is segmented by polymer type into polystyrene, polyethylene, polypropylene, and polyester. Of these, polystyrene is likely to retain its current position as the leading revenue generator in the coming years due to its sturdy nature, excellent thermal and electrical resistance, and versatility of form. The polystyrene segment is likely to account for a majority share in the global foam trays market through the forecast period, with the segment expected to be valued at close to US$2 bn by 2021. However, the rising use of biodegradable polymers could pose a threat to the dominance of polystyrene in the global foam trays market.
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By application, the global foam trays market is segmented into food packaging, the pharmaceuticals industry, industrial packaging, and others. The food and beverage industry has traditionally held a dominant share in the global foam trays market and is likely to exhibit strong growth in the coming years. Of the various segments of the food and beverage industry, food chains are likely to be a leading contributor due to the rising demand for food packaging materials.
Rising Demand for Biodegradable Utensils could Alter Foam Trays Market
The most influential factor affecting the growth trajectory of the global foam trays market is the rising awareness about the adverse environmental effects of plastic products and the growing availability of alternative materials. While conventional foam trays present immense convenience in their diverse range of applications, they remain nonbiodegradable due to the use of plastic polymers. Rising consumer awareness on this matter has led to growing government support for environmental movements in the last few years, making it a key factor for the foam trays market. The foam trays industry has thus been forced to adapt, under the threat of being overtaken by alternate packaging materials that are more environmentally viable.
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The booming demand for packaged food in developing Asia Pacific economies could play a vital role in the growth of the global foam trays market in the coming years. While takeaway food is not part of the conventional cuisine in Southeast Asia, its convenience in urban environments has led to its widespread adoption, leading to a corresponding rise in demand from the foam trays market. The rising use of recyclable foam trays is also important for the Asia Pacific foam trays market, as it means the industry could be less affected by environmental regulations than in developed countries.
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