ID: MRFR/PNT/1129-HCR | February 2021 | Region: Global | 150 pages
It is estimated that the baby food packaging market will reach a CAGR of 12.84% within the forecast period of 2020-2028. Baby food is one of the important products for the larger consumer base. Packaged baby food is highly demanded as it ensures the quality and safety for consumption by small children. Traditionally, baby food was sold in glass jars due to which it was expensive, thus restricted market growth.
For decades baby food is being sold in plastics and other materials due to which it has become cost-effective and easy to store. Baby food packaging is of varied types like cartons, cans, thin-walled containers, pouches, and others. In recent times, demands for stand-up pouches have increased due to their longevity features.The market value for the baby food packaging industry will be approximately 16.07 million in USD. The demand for the baby is increasing in a global context which is expected to change the baby food packaging market outlook.
COVID 19- Analysis
The impact of a pandemic on the baby food packaging market can be analysed in two folds. Firstly, in high-earning economies, the demand for baby food has increased. As customers have stick piled all essential items due to imposition of nationaland international lockdowns. Thus, the market for baby food has increased.
Secondly, in low- and middle-income earning economies, customers are witnessing a reduction in purchasing power, high- unemployment, and others. Hence, the social and economic crisis is triggered due to the pandemic. This has posed high health risks for children due to lack of nutrition with socio-economic conditions. Thus, food packaging market growth has dwindled in these regions owing to the pandemic situations.
Besides, travel bans and national lockdowns have created huge supply chain disruptions. China has suffered the highest impact of the pandemic. However, the country is the manufacturing hub due to the presence of suppliers of raw materials. The food and beverage industry is highly impacted by the restrictions imposed due to pandemics.
Drivers- In the year 2018, the baby food packaging industry was estimated to be valued at USD 50.64 billion. It was also projected to expand at a CAGR of 7.0%. Hence, it can be estimated that the baby food industry has been witnessing growth over the last few years.
Increasing demand for stand-up pouches will drive the food packaging market growth. Owing to its features like hygiene, lightweight, reusable, and ease in storing. Also, stand-up pouches keep the food fresh while it provides longer shelf life which has fuelled its demand. Another driving factor is rapid urbanization in middle-income earning countries. Thus, there has been a shift to modern lifestyles due to high disposable income. Due to which expenditure on baby food has increased.
Opportunities- There has been an increase in urbanization in many countries of the world. People are adopting modern lifestyles which have increased the demands for baby food. Also, the customers are becoming aware of environmentally friendly products which have further increased demand for biodegradable materials. These factors have provided opportunities for the food packaging industry to expand its market globally.
Restraints- The market for biodegradable packaging products are expensive and are not widely used. Due to which food packaging market growth will suffer restraints. In addition to this, plastics are being widely used due to their cost effectiveness in all economies. However, plastic packages contain BPA that is harmful to infant food. The BPA contained packaged materials are banned in many regions of Canada and European regions. This factor will act as a restraint for the food packaging industry.
Challenges- There has been a rise in strict government regulations in the global context. Hence, product innovations for biodegradable packaging materials need to be pushed for improving the current standards. Since customers are becoming highly aware coupled with stringent regulations.
The use of plastic containers and other convectional packaged materials used for baby food is being used relatively lower by the customers. Also, the companies face high costs or production by recyclable products which also impacts the price. These challenges will hinder the baby food packaging market growth.
Cumulative Growth Analysis- In many countries, both parents have established professionals. Hence, the baby food packaging market growth is increased due to the high demand for convenience food. It is estimated baby food packaged in biodegradable materials like paperboards will fuel the demand. In addition to this, customers in middle earning economies are mostly preferring to purchase from one-stop markets.
Thus, introducing customers to modern lifestyles. In addition to this, there have been increasing nuclear families in regions like Mexico, Brazil, China, and others. This will positively impact baby food packaging market growth.
Value Chain Analysis- Due to increased environmental degradation, governments have created stringent policies. Also, health policies in countries like Canada restrict the sale of plastics packages containing BPA. Hence, manufacturers within the baby food packaging industry are required to abide by laws for safe food packaging.
Also, a regulatory framework must be followed while disposing of the plastic materials used in packaging. Many countries are adopting incentives and reward programs for industries that reach national targets of carbon emissions. Hence, sustainability needs to be embedded in organizational functions.
The package of baby food is generally designed for storing food products for infants and toddlers. Market segmentation is listed below
Based on geography baby food packaging market growth is subdivided into four regions like North America, Europe, Asia- Pacific, Latin America, and the Middle East.
Asian Pacific regions will witness substantially high growth. Owning to the high usage of packaged baby food. In the emerging economies, there has been a change in lifestyles due to improved disposable income. China will contribute largely to a market share of baby food packaging. In addition to this, North America and regions of Europe will also contribute significantly due to stringent government policies. The lowest market growth regions will be Africans and Latin America.
The baby food packaging industry is consolidated in nature.
In the year 2019, Sonoco announced its agreement of USD 110 million for acquiring Corseno Holdings America. The formers are the US market leader in uncoated recycled paperboard and cores used in packaging films or tapes. Paperboard Packaging has been introduced which is lightweight, easy for using, and reusable. It ensures freshness to the product along with ensuring long shelf life.
The key market players are working on product innovations that will further boost the demand. Besides, in the year 2018, Square Baby announced its cold chain packaging materials that can be recyclable. This is a remarkable development in the infant food section which drives the baby food packaging market growth.
This report has included various heads which include market overview,market dynamics, COVID-19 analysis, value chain analysis, segment overview, competitive landscape, and recent development. Some of the metrics followed during the report preparation is given below
|Market Size||2027: Significant Value|
|CAGR||2027: Substantial CAGR|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Material Type, sealing and handle, and applications|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Bericap India Pvt. Ltd., Essel Propack Limited, Hindustan National Glass & Industries Ltd, ITC Ltd Paperboards, MeadWestvaco Corporation, Tata Tinplate Company of India (TCIL),Tetra Pak India Pvt Ltd, Cascades Inc, and FPC Flexible Packaging Corp,|
|Key Market Opportunities||Increasing demand for convenience products and food safety|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
It is estimated that the market will be driven by factors like hygiene, safety, and the lightweight of the packages. Also, shifting to modern lifestyles, increasing the number of working parents and high disposable incomes will be the driving factors.
The analysis for regions covers North America, Europe, Asia Pacific, and Latin America- Africa. Also, Asia- Pacific will be the highest growth region followed by North America and Europe, owing to stringent government policies.
The market players for the market are Ardagh Group (Ireland), Mondi Group (UK), Bemis Company Inc. (U.S.), Amcor Ltd (Switzerland), Winpak Ltd (Canada), Silgan Holdings Inc. (U.S.), RPC Group (UK), Sonoco (U.S.), Tetra Laval (Switzerland) and DS Smith Plc (UK).
The market segmentation is subdivided into three parts that include type, material, and products.
The Baby Food Packaging industry majorly uses plastic products that are banned in regions like Canada. Also, stringent government regulations have pressured manufacturers to switch to biodegradable materials. Due to this, the cost of production is increased. Besides, paper boards materials are not extensively used due to prices of final products increase. This hinders market growth in developing and emerging economies.
Due to changing lifestyle and composition of the family, there has been an increasing demand for convenience products for babies. In global contexts, manufacturers can reap the opportunities of expansion in different markets. For instance, North America and the Asia Pacific provide the highest growth opportunities due to increasing demand.