Our-in depth analysis of the global edible packaging market includes the following segments:
By Material Type
By End User Type
Global edible packaging market is further classified on the basis of region as follows:
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The edible packaging market, in terms of value, is estimated around USD 702.13 Million in 2017 and is expected to grow during the forecasted period at a CAGR of around 7.3%. Increase in intake of processed food & beverages, rise in hygiene concerns among people, increase in shelf life of products, reduction in packaging wastage, growth in disposable income of consumers and rise in standard of living are bolstering the growth of edible food packaging market globally. Companies spend more on packaging innovation rather than on production cost so as to improve the performance of the packaging method.
North America holds the largest market share in terms of revenue due to the increase in demand for packaged food. It was found that North America acquired a share of more than 33% of edible packaging market globally in 2016. It was seen that U.S. being both a prominent consumer and producer of edible packaging which pushed the edible packaging market in North America region.
Asia Pacific is anticipated to be the fast growing market due to the increasing urbanization and industrialization along with growing demand for packed food. Availability of raw materials and low labor cost also stimulates the market growth in this region. The increasing disposable income of the consumers also influencing the standard of living of the people which also a key factor for the growth of edible packaging market in this region. Europe is projected to showcase a promising growth to the global edible packaging market followed by North America and Asia-Pacific due to the growth of food & beverages segment in this region. The packaging industry holds a solid ground in Europe due to high demand for food packaging coupled with speedy rates of product development and innovation. Latin America and Middle East and Africa regions are also expected to show an optimistic growth during the forecasted period due to growing demand for the e-commerce sector.
Major drivers for the growth of edible packaging market are growing awareness about the qualities of edible packaging such as shelf life of products and comfort of handling while maintaining the quality of product. The number of employed population is significantly rising which increases the demand for processed food.
The edible packaging market is still at its promising stage and various innovations are being made in the market. The nutritive features of food are enriched by the usage of Nano technological solutions such as multifaceted systems and Nano encapsulation. Technological advancements and reduction in packaging waste are some of the factors contributing to the growth of edible packaging market. However, the high cost of manufacturing edible packaging since it needs to meet the sanitary desires while in shipment. Contamination of food is the major barrier in the growth of edible packaging market as edible layers are prone to catch germs, dirt and other harmful particles.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Sadaf Naaz, Mohd Shadab