The Insight Partners published the latest research study on Food Contact Paper Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type (Kraft Paper, Greaseproof Paper, Parchment Paper, and Others) and Application (Bakery and Confectionery; Dairy Products; Fruits and Vegetables; Meat, Fish, and Poultry; and Others). Factors such as the expanding demand for recyclable and biodegradable packaging and the growing demand for ready-to-eat and packaged food will drive the market growth. However, the higher market penetration by aluminum foil packaging will restrain the growth of the food contact paper market.
Food Contact Paper Market: Competition Landscape and Key Developments
Mondi; Westrock Company; Georgia-Pacific LLC; Twin River Paper Company; UPM; Ahlstrom-Munksjö; GM Packaging (UK) Ltd; Superiorpaper Pty Ltd. TopCare; and KRPA Holding CZ, a.s. are among the key players operating in the food contact paper market. Major market players are adopting strategies, such as mergers and acquisitions, to expand geographical presence and consumer base globally.
In 2020, Asia Pacific held the significant revenue share of the global food contact paper market and is expected to continue its dominance during the forecast period. Food contact papers are used as primary packaging materials for various food products, such as baked food, confectionery, meat, snacks, and grain mill products. The papers are sustainable alternatives to many other food packaging materials, such as plastic and glass. Growing initiatives by companies to reduce their carbon footprint are influencing the adoption of food contact paper across the world. The increase in demand for sustainable and eco-friendly food packaging has also increased the demand for food paper packaging.
Growing Demand for Ready-To-Eat (RTE) and Packaged Food to Drive Food Contact Paper Market Growth During Forecast Period
The food & beverages industry is increasingly focusing on mechanical innovation and technology to produce value-added products. Moreover, with population growth and the rise in the middle-class population in developing countries, the demand for various packaged food products is increasing. Due to busy corporate culture, people feel stretched after their daily working hours. Therefore, they strive for convenient food products. Ready-to-eat snacks and on-the-go foods are among the most preferred snacking and food options. According to the second annual state of snacking report from Mondelez International, millennial population working from home during the COVID-19 pandemic is inclined toward snacks over meals. All the factors are driving the growth of the food contact paper market.
Food Contact Paper Market: Segment Overview
Based on type, the global food contact paper market is segmented into kraft paper, greaseproof paper, parchment paper, and other. In 2020, the kraft paper segment accounted for a significant revenue share. The natural kraft papers have pure virgin fibers, which makes it an ideal food contact packaging solution.
Based on application, the global food contact paper market is segmented into bakery and confectionery; dairy products; fruits and vegetables; meat, fish, and poultry; and others. In 2020, the bakery and confectionery segment accounted for a significant revenue share. The food contact papers are increasingly used in the bakery and confectionery sector, which includes the usage of parchment paper in baking as it is heat-resistant and provides a non-stick surface to bake on. The common use of parchment paper is to eliminate the need of grease sheet pans. It also allows a very rapid turn-around of batches of baked goods with minimal clean up. Greaseproof paper is also an ideal solution for bakery items as it can withstand a wide range of environments, from hot oven to deep freezer and humidity.
The Asia Pacific dominated the global market. The region is expected to continue its dominance during the forecast period. The growing market penetration of the foodservice industry in recent years in the Asian countries is estimated to accelerate the food contact paper market growth in this region during the forecast period. Along with this, an increase in awareness about the environment is expected to result in increased demand for greener packaging solutions. Various initiatives taken by the government to ban plastic packaging in several Asian countries are also expected to accelerate the demand for eco-friendly and sustainable packaging solutions, which will increase the demand for food contact paper in the Asia Pacific. Along with this, the increasing presence of domestic and international players in the market has led to an increased focus of product quality and innovation, which will provide growth opportunities for the food contact paper market.
Kraft paper is basically a paper or paperboard which is being produced from the chemical pulp through kraft papers. The natural kraft papers have pure virgin fibers which makes it an ideal food contact packaging solution. Kraft paper is being increasingly used for manufacturing various food contact papers including paper bags, paper sacks, wrapping paper, and paper plates. Natural kraft paper is also being increasingly used as a grocery bag for fresh fruits and vegetables which is due to its high strength.
The fruit and vegetable segment is expected to grow at the fastest rate during the forecast period. There has been an increase use of kraft paper in various food contact paper packaging solutions for fruits and vegetables. It is being used as a vegetable box which is used for packaging and shipping of the vegetables and fruits as well as is used to produce embossed paper cushion pads for the packaging of vegetables and fresh fruit. Along with this, wax paper is also used for storing fruits and vegetables as the moisture retention capabilities of wax paper will keep the fruits and vegetables fresh for a longer period of time and will slow down their ripening and spoilage rate.
On the basis of type, the greaseproof paper segment held the fastest CAGR in the food contact paper market for the forecast period. The paper is used for wrapping food items such as sandwiches, cheese, desserts, baked goods, and cold meats. The greaseproof paper will help in providing a grease-free method for transporting and handling oily foods. These papers are also recyclable as well as printable. The greaseproof paper is permeable to air and moisture, which makes it possible for the food inside the paper to breathe and steam and exhale excess moisture.
Impact of COVID-19 Pandemic on Food Contact Paper Market
Many industries, such as the chemicals & materials industry, faced unprecedented challenges due to the COVID-19 pandemic. Due to the shortage of raw material and labor, shutdown of factories, and other operational difficulties under COVID-19 safety protocols, manufacturers of packaging products faced a contraction in sales during the initial months of the pandemic. Furthermore, the shift in the lifestyle of the consumers and their changing eating patterns have reduced the consumption of ready-to-use and outside food due to the virus spread, which has negatively affected the demand for food contact papers. However, as several countries are lifting the lockdown with proper precautionary measures, the demand for food contact papers is likely to back on track. As the lockdown was imposed in various countries, the e-commerce sector witnessed a significant demand for various products, such as packaged food and groceries including fresh vegetables and fruits, owing to the shutdown of offline stores, which fueled the utilization of food contact papers.