The global dairy product packaging market has seen volatile market growth during the last few years due to sluggish growth on the part of global dairy production and unbalanced supply and demand. Due to the large inventory of milk in powdered form, keeping the overall profitability margins low, producers are reluctant to make fresh investments.
The recent trends in the global dairy market show that producers are trying to achieve product differentiation through packaging. Eye-catching, chick design, and aseptic features are common in present-day dairy product packaging formats. The fierce competition in major markets such as Japan and the rest of Asia-Pacific, Western Europe, and North America, have led the end users to invest in creative dairy product packaging solutions.
Manufacturers of dairy product packaging are focusing on these changing dynamics of the dairy industry and launching innovative packaging products. The demand for flexible packaging is rising worldwide. The stringent regulations related to the packaging and labeling of dairy products in regions such as the European Union, the US, and Japan is acting as a major restraint in the global dairy products packaging market.
The global dairy industry follows seasonality and cyclicity. Dairy product packaging across the globe is majorly divided into seven types of products or packaging formats – liquid cartons, bottles & jars, pouches, cans & jerry cans, cups & tubs, folding cartons, films & wraps, and other packaging formats.
Future Market Insights predict a comparison and review analysis of the dynamics of the dairy products packaging market, which is principally subjected to an array of industry factors along with a few definite influences concerning hazardous effects of plastics and other non-biodegradable packaging materials is likely to hinder the market growth.
The development that has taken place in the market includes the use of green packaging, which is biodegradable and sustainable. In April 2022, Berry Global launched its iconic pot made with recycled plastic for mayonnaise.
The market for dairy product packaging is expected to rise by 70 basis share points (BPS) in H1-2022 (O) compared with H1-2021, according to an FMI analysis. However, when comparing the H1-2022 projected and H1-2022 outlook period, a surge in BPS change by 50 BPS has been noticed.
The reasons for the surge in the market are due to its properties such as a high barrier to moisture, light, and oxygen, which avoids food from getting contaminated.
Despite these prospects, increasing consumption of dairy products owing to the rising awareness regarding a healthy lifestyle is further expected to fuel market demand for dairy product packaging.
Dairy product packaging demand analysis
The rising demand for aseptic packaging across the globe is a major factor driving the overall global dairy products packaging market. Innovative aseptic packaging helps to increase the shelf-life of a number of dairy products including liquid dairy products.
Consumers across the globe are increasingly focusing on food safety and the enhanced shelf life of dairy products. The increasing demand for sustainable aseptic packaging all over is increasing the share of flexible packaging in the global dairy products packaging market. Aseptic packaging formats can range from liquid cartons, pouches, cups, bottles, jars, metal, plastic, composite cans, and others.
The rising penetration of modern retail such as supermarkets, hypermarkets, convenience stores, discounters, and others all over is increasing the penetration of packaging in dairy and other food products. This is subsequently increasing the demand for dairy product packaging. Revenue generated from sales of dairy product packaging is estimated to be worth US$ 30.3 billion and is expected to expand at a CAGR of 4.5% during the forecast period.
North America holds more than 30% of the market share. This could be credited to the growing preference for dairy products like flavored low-fat yogurt and flavored milk by the US population. Also, inclination towards cheese is on the rise, especially Italian varieties such as parmesan, mozzarella, and provolone.
Packaged cheese slices are also being consumed on a large scale. Europe is second-seeded on similar grounds. However, the Asia-pacific is expected to grow on an exorbitant note in the dairy products packaging market going forward due to Gen Z preferring dairy products, cheese and paneer in particular.
- The global market for dairy product packaging is segmented on the basis of product type, material type, and application. On the basis of product type, the global market for dairy product packaging market is categorized into liquid cartons, bottles & jars, pouches, cans & jerry cans, cups & tubs, folding cartons, films & wraps, and others.
- Liquid cartons account for the largest market share. On the basis of material type, the global dairy products packaging market is segmented into plastic, paper and paperboard, glass, and metal. The plastic segment is further sub-segmented into polyethylene (PE), polypropylene (PP), polyamide (PA), polyethylene terephthalate (PET), and others such as ethyl vinyl alcohol (EVOH).
- Based on application, the global dairy product packaging market is segmented into milk, cheese, cream, butter/ ghee, yogurt, ice cream, and others. Milk and cheese are anticipated to maintain their dominance throughout the forecast period.