Micro-Perforated Food Packaging Market - Forecast(2023 - 2028)

Micro-perforated Food Packaging Market Overview

The micro-perforated food packaging market size is forecast to reach US$2.1 billion by 2027 after growing at a CAGR of 5.5% during 2022-2027. The fresh food segment is anticipated to contribute to the market’s growth owing to increased health awareness among consumers globally. The COVID-19 pandemic amplified the consumption of fresh and healthy food products. Polyethylene is one of the widely used raw materials in the manufacturing of micro-perforated packaging which is projected to have a robust impact in the forecast period. It comes with superior qualities like high strength and low production costs. Other raw materials such as polypropylene and polyethylene terephthalate will contribute significantly to the market’s growth. Micro-perforation is used in modified atmosphere packaging by transporting and exchanging gas. The modified atmosphere packaging through the perforation process helps in preserving the freshness of mostly meat, fish, poultry, etc. The films segment is poised to witness maximum usage in the target market owing to the increasing demand in food applications, controlling microbial contamination, and increasing the shelf life of products. Packaging films and wraps will also contribute significantly to the market’s growth. The region in North America region is expected to drive the market’s growth owing to rising health awareness like avoiding frozen foods and consuming fresh foods. Foods like ready to eat meals are also witnessing demand due to fast paced and busy lifestyle of people in the region. However, strict environmental regulations imposed by governments related to plastic manufacturing might hinder the growth of the micro-perforated food packaging market.

COVID-19 Impact

The micro-perforated food packaging got affected severely in the initial stage of COVID-19 with disruption in the supply chain, factory shutdown, procurement of raw materials, etc. However, the market not only survived the pandemic but displayed excellent demand owing to increased awareness of health and eating fresh food. People globally became more conscious about food products they were consuming as the pandemic showed how much important it is to have food at the right time and in the right condition. In the post COVID 19 recovery, the market is showing robust growth due to the above-mentioned reasons. Also, going forward, micro-perforated food packaging will continue to expand exponentially with advancement in sustainable micro-perforated food packaging, which will help the market grow effectively.

Report Coverage

The report: “Micro-perforated Food Packaging Market Forecast (2022 -2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Micro-perforated Food Packaging Industry. 

By Product Type: Bags, Sleeves, Packaging Films, Rolls, Wrap, Pouches, Others

By Raw Material: Polyethylene, Polypropylene, Polyethylene Terephthalate, Others

By Application: Fruits and Vegetables, Bakery and Confectionery, Ready to Eat Meals, Snack, Pasta, Others

By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:

• Polyethylene is projected to drive the micro-perforated food packaging market growth in the forecast period. This raw material possesses qualities like low production costs, high strength, and recyclable property, making it a desirable choice among micro-perforated food packaging manufacturers.
• The fruit and vegetable segment is poised to drive the market’s growth owing to increased awareness among consumers about eating fresh and healthy food items. According to the survey by The Packer, an online source that covers the fresh produce industry has mentioned in its Fresh Trends 2021 report that vegetable consumption witnessed an upward trend during the pandemic and 73% of consumers stated they purchase fresh vegetables.
• The North American region is poised to drive the growth of the micro-perforated food packaging market in the forecast period owing to reducing increasing food waste as the US is one of the high food spending regions in the world. For instance, the Environmental Protection Agency (EPA) has set a goal titled United Sates 2030 Food Loss and Waste Reduction Goal which aims to reduce food waste.

Figure: North-America Micro-perforated Food Packaging Market Revenue, 2021-2027 (US$ Billion)

Micro-perforated Food Packaging Market - By Product Type

The films segment dominated the micro-perforated food packaging market in 2021 and is growing at a CAGR of 5.4% during the forecast period. The demand for packaging films is attributed to the growing demand for fresh fruits and vegetables among consumers globally. Fruits and vegetables have always been an integral part of one’s diet and with the arrival of the pandemic, it showed the importance of including fresh fruits and vegetables in the diet, and accordingly, the demand has increased among consumers. Packaging films help in preventing microbial contamination and increase the shelf life of food products for which they are becoming a popular name in the target market. Packaging films have been associated with the micro-perforated food packaging process and the growing awareness about healthy eating will lead to further innovation of new perforated technology and solutions. According to Packaging Gateway’s October 2019 official article, Multivac, an industrial packaging company that deals with micro perforation packaging, developed an innovative micro-perforation packaging process titled FRESHSAFE that includes an integrated perforation station for tray sealers with the help of films. This technology was developed to enhance the shelf lives of fruits and vegetables. Such development with the help of packaging films will contribute to the micro-perforated food packaging market in the forecast period.

Micro-perforated Food Packaging Market - By Raw Material

Polyethylene dominated the micro-perforated packaging market in 2021, owing to its superior properties like non-toxic, lightweight, and elastic properties. It is one of the widely used raw materials in the manufacturing of micro-perforated food packaging. The application of polyethylene micro perforated food packaging solutions aid in minimizing costs due to the higher availability of polyethylene. This raw material also helps in minimizing the overall weight of the micro-perforated packaging. Furthermore, it provides excellent transparency to food items in retail shops, making it a popular choice among customers. Owing to such robust qualities, this raw material is also a desirable choice among manufacturers. In 2019, Specialty Films, which deals with micro-perforated films for food products, got recognition from reputed industry trade shows like IFFA–Frankfurt, Germany, 2019 for developing the high-quality polyethylene based micro-perforated films named PVCL polyethylene film. Such development of polyethylene based micro-perforated packaging material will contribute to the market’s growth in the forecast period.

Micro-perforated Food Packaging Market - By Application

The fruits and vegetable segment dominated the micro-perforated food packaging market in 2021 and is growing at a CAGR of 5.7% in the forecast period. The increasing demand for fruits and vegetables is attributed to the rising awareness among consumers about the importance of consuming fresh and healthy food products. Micro-perforated food packaging witnessed huge demand owing to the robust benefits of eating fresh fruits and vegetables. For instance, according to the data by Produce Marketing Association (PMA), consumers bought more fresh fruit and vegetables in the early part of the pandemic in 2020 and the same scenario of buying fresh fruits and vegetables in large quantities among consumers is still there after one year. Consumers are buying more fruits and vegetables in 2021. Similarly, as per Fresh Trends 2021 survey data by The Packer, 24% of the consumers said, in 2020, they used fresh fruits and vegetables every day in cooking which is an increase in comparison to 18% who said so in 2019. Such growing demand for fruits and vegetables will require higher micro-perforated food packaging, thereby driving the market’s growth in the forecast period.

Micro-perforated Food Packaging Market - By Geography

North America region held the largest market share in 2021 up to 34%. There has been an increase in demand for fruits and vegetables in the region during the pandemic. Consumers are more driven towards consuming fresh foods, ready to eat meals compared to foods like frozen foods. This trend of consumption of healthy foods is projected to expand in the region in the coming years which will contribute to the micro-perforated food packaging market. Furthermore, the high spending related to food in the region is augmenting micro-perforated food packaging demand. The increasing food market in the region will also stimulate higher uses of packaging films as it enhances the shelf life of food products and prevents microbial contamination. According to the United States of Agriculture (USDA) data, the food-at-home spending segment that includes food purchased from supermarkets, convenience stores, supercentres, and other retailers jumped from $808.0 billion in 2019 to $876.8 billion in 2020. The region is expected to witness higher food spending in the coming years. Such an increase in food spending in the region will augment the micro-perforated food packaging market in the forecast period. The region in the Asia Pacific is anticipated to contribute significantly to the market’s growth in the forecast period. The Asia Pacific region is also witnessing huge spending in the food production sector, especially in emerging countries like China and India. According to data by India Brand Equity Foundation (IBEF), the Indian govt. announced a PLI scheme amounting to US$ 1484 million for the food processing sector for six years starting from the fiscal year 2022. Such high investment in the food sector will stimulate the market’s growth in the coming years.

Micro-perforated Food Packaging Market Drivers

Growing demand for sustainability will drive the market’s growth

Government bodies across the globe have been very focused on sustainable packaging methods. Similarly, manufacturers in the micro-perforated food packaging market are also adopting new strategies to develop and use sustainable products to reduce waste in the landfills, identify recycling alternatives and make the planet a better place. Australia based Integrated Packaging that deals with micro-perforated packaging have joined hands with REDcycle, to support the reuse of post-consumer soft plastic. REDcycle is a program where manufacturers share the responsibility to create a sustainable future. The process involves recovery, recycle and reuse of post-consumer soft plastic. Furthermore, the use of advanced technology like Laser Perforation allows manufacturers to fight food waste and provide customers with unmatched packaging solutions for fresh produce. This awareness among manufacturers towards sustainable packaging solutions will lead to the development of bio packaging which will contribute to the growth of the micro-perforated packaging market in the forecast period.

Increasing food spending globally will drive the market’s growth

The increasing food investment across the globe is anticipated to drive the market’s growth in the forecast period. With increasing population and lifestyle change, food consumption is also increasing among every class of people. Higher spending will lead to higher manufacturing of micro-perforated food packaging in the coming years. For instance, as per India Brand Equity Foundation (IBEF), the Indian grocery and food market is the sixth largest market in the world in which retail contributes 70% of the sales. The data also suggest that the Indian food sector will witness robust growth in the forthcoming years. Similarly, as per the United States of Agriculture (USDA) data, countries like UK and the US have higher food spending. Such increasing spending in the food industry will demand higher production of micro-perforated packaging materials, which will augment the market’s growth in the forecast period.

Micro-perforated Food Packaging Market Challenges

Strict environmental regulations regarding use of plastic might hinder the growth of the market

The implementation of stringent environmental regulations globally might affect the growth of the target market. Various regulatory bodies across the world have always been against the use of plastic due to its environmental drawbacks. For instance, the European Union passed a law in 2019 to ban single use plastic in the region by 2021. This law is passed to reduce the use and impact of plastic in various product manufacturing and ultimately to reduce plastic waste. Since plastic has been a vital part of the micro-perforated packaging process, regulations like this might hamper the growth of the micro-perforated packaging market in the forthcoming years. Similarly, the U.S. Federal Food, Drug, and Cosmetic Act (FD&C Act) ensure the packaging material must be safe and should not have any chemical effect when it comes in contact with the food product. Moreover, every food-packaging manufacturer in the U.S required to include an Environmental Assessment (EA) followed by a clearance from the United States Food and Drug Administration FDA. Such strict regulations and acts might challenge the growth of the target market in the forecast period.

Micro-perforated Food Packaging Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in this market. Micro-perforated Food Packaging top 10 companies include:

1. Mondi
2. Bolloré Group
3. Amcor Limited
4. Uflex Limited
5. Multivac
6. Sealed Air
7. TCL Packaging
8. COVERIS
9. Intertape Polymer Group
10. Amerplast
11. Others

Recent Developments

• In May 2019, Sealed Air announced the agreement to acquire Automated Packaging Systems, Inc. (APS), which deals with industrial packaging solutions, for a purchase price of $510 million. This deal will contribute to the market’s growth as Sealed Air aims to expand its operation in packaging solutions.

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