Molded Pulp Packaging Market Growth & Trends
The global molded pulp packaging market size is expected to reach USD 8.90 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 7.4% over the forecast period 2024–2030. This is attributed to the increasing demand for environment-friendly packaging solutions by end-user industries and rising environmental concerns among consumers about single-use plastic.
Plastic is one of the majorly used materials for packaging in various industries including food & beverage, healthcare, cosmetics & personal care, and consumer goods. However, plastic is a non-biodegradable, unsustainable material, and can have an adverse impact on the life of humans as well as animals. In addition, the recycling rate of plastic waste products is low as compared to the consumption rate, which ultimately pollutes land, ocean, and drinking water.
Over the years, numerous regulatory agencies and governments around the world have put limitations on the formation of plastic waste in an effort to reduce this enormous amount of plastic waste produced annually. Several retail chains and food service operators are expected to shift from plastic packaging to molded pulp packaging in order to meet the growing consumer demand for biodegradable packaging. Thus, these factors are expected to fuel the demand for molded pulp packaging over the forecast period.
The global pandemic in the year 2020 created a positive impact on molded pulp packaging owing to increasing demand for eggs from the retail chain followed by the rise in demand for doorstep deliveries of fresh fruits & vegetables, and eggs. The rise in egg consumption was due to a variety of factors such as a boost in at-home baking and an increase in demand for healthy proteins. As the food service outlets were closed in most places in the world, egg producers shifted the supply to supermarkets. The standard molded fiber pulp packaging for eggs sold at supermarkets saw significant pressure on inventory leading to a shortage. The shortage has eventually diminished as more people have relaxed and the panic buying & hoarding of eggs has significantly reduced.
The industry players are adopting several strategies including mergers & acquisitions, joint ventures, and partnership agreements to increase the customer base and individual market share. For instance, in November 2022 CKF Inc announced an acquisition of Packright Manufacturing Ltd., a packaging manufacturer company. This acquisition will help the company to strengthen its position in the sustainable packaging market.
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Molded Pulp Packaging Market Report
Molded Pulp Packaging Market Report Highlights
- The wood pulp dominated the market in the source segment in 2023 owing to the rising awareness of sustainable packaging among consumers as the wood pulp is considered sustainable due to its 100% degradable properties
- However, higher production costs and abundant availability of substitute sustainable packaging solutions in the market restraint the growth of the molded pulp packaging industry to some extent
- The transfer type segment accounted for the highest market share due to its wide application in the food & beverage industry as it offers anti-shock properties of this packaging restraint damage or breakage to the products, especially beverage bottles and egg trays.
- Molded pulp clamshells segments is expected to dominate the product segment over the forecast period 2023–2030. Plastic clamshells offer higher moisture barrier ability than molded pulp packaging, declining use of single-use plastics is hindering the growth of the market for plastic clamshells. For instance, some countries across the world have banned the use of plastic clamshells for packing eggs. Therefore, such bans on plastic clamshells are likely to positively impact the growth of the market for molded pulp clamshells
- The food packaging application segment is dominating the market. Increasing consumption of vegetables, eggs and fruits by diet-conscious population has been driving worldwide, which, in turn, is expected to bolster these exports and imports between countries, thus, requiring molded pulp packaging
- New product developments coupled with mergers & acquisitions, and capacity expansions are some of the strategies adopted by players. For instance, in June 2022, Huhtamäki Oyj announced its plans to invest USD 100.0 million to expand the production capacity of its molded fiber product manufacturing unit in Indiana, the U.S.
