Compostable Paper Tray Market Forecasts to 2028 – Global Analysis By Source Type (Recycled Fiber Paper Trays, Virgin Fiber Paper Trays and Other Source Types), Material Type (Molded Pulp, Corrugated Boards and Boxboards/Cartons), End User and By Geography
According to Stratistics MRC, the Global Compostable Paper Tray Market is accounted for $491.17 billion in 2022 and is expected to reach $801.34 billion by 2028 growing at a CAGR of 8.5% during the forecast period. Compostable Paper trays are produced utilizing corrugated boards, molded pulp, boxboards, and other materials, and have many uses in various end-user industries such as food and beverage, personal care, retail, and healthcare sectors, among others.
According to the Association for Packaging and Processing Technologies, the US food industry is expected to increase at a steady rate of 2.9% CAGR through 2022.
Rising environmental concern among consumers
The growing consumer awareness of environmental pollution and the damaging effects of conventional plastic on the environment are providing manufacturers in the global compostable paper tray market with many prospects. Moreover, it requires less energy to produce compostable packaging materials. Additionally, because they are created organically without the use of chemicals, they are non-toxic. In addition, depending on the materials used to create the bio plastic, compostable plastic degrades more quickly and is absorbed by the soil or turned into compost.
Concerns about use of degradable additives in packaging
There are various environmental problems about packaging solutions, such as the usage of compostable and biodegradable materials, as well as recycling challenges. For instance, in 2017, the Institute of Scrap Recycling Industries (ISRI) issued many clarifications and new policy statements regarding the use of biodegradable chemicals in packaging. The research underlined that the degradable compounds have not undergone extensive testing and that it is not quite clear how much damage they may pose to the environment and to human health.
Zero waste edible trays creating buzz and turning up sales
Customers are looking for sustainable and environmentally friendly packaging solutions despite the many benefits that plastic trays provide. Because they create no waste and can be enjoyed right away, edible trays are growing in popularity lately. The introduction of edible trays made of sugarcane, palm leaves, corn starch, bagasse, and other materials has raised demand for compostable paper trays. It is projected that these edible trays will prove to be successful packaging alternative to traditional trays given that they satisfy all of the consumer's packaging criteria.
Cost effectiveness and lack of sufficient technology
Cost effectiveness and a lack of adequate technology are the main issues that are anticipated to slow the market's growth. Change in consumer mindset, which has been linked to more expensive costs than traditional items, is anticipated to be a significant problem for the end user industry. It is projected that other issues, such as shorter life and the inability to recycle some components that are not entirely biodegradable, may somewhat restrain market growth.
The COVID-19 pandemic had an effect on economics and enterprises in various countries as a result of lockdowns, travel restrictions, and business closures. The capacity for production, the timing of deliveries, and the sales of various items had all been significantly impacted by the disruption to the global supply chain. Numerous manufacturing sites in regions like North America, Europe, Asia Pacific, South America, and the Middle East & Africa were shut down as a result of this. The pandemic had a direct impact on supply and demand, which in turn disrupted supply chains and marketplaces and had an impact on the health of the global economy and enterprises.
The molded pulp segment is expected to be the largest during the forecast period
The molded pulp segment is estimated to have a lucrative growth due to rising product demand in end-user sectors and customer demand for transparent, biodegradable packaging options. These packaging materials are also lightweight, shockproof, strong, and convenient to carry, making them a popular choice for packaging in the food and beverage sector. The microporous structure of the molded pulp packaging material enables for aeration and water absorption capabilities. This ensures that perishable food products remain fresh for a long time.
The food and beverage industry segment is expected to have the highest CAGR during the forecast period
The food and beverage industry segment is anticipated to witness the fastest CAGR growth during the forecast period, due to its ability to protect the food from contamination and odor, further ensuring food safety. Some of the main products that use worldwide compostable paper trays for packaging are eggs, fresh fruits and vegetables, salad, and other culinary items. These trays cushion the delicate surfaces of the items, guaranteeing their safety throughout shipping. With enough air inside the container, compostable paper trays ensure that the food products are kept fresh. They are among the most often used types of packaging in the food and beverage sector since they also adhere to food safety regulations.
Region with highest share:
North America is projected to hold the largest market share during the forecast period, owing to the increasing usage of compostable paper tray packaging in the healthcare segment and food and beverage industry. Tier 1 firms have a tight hold on the industry due to their dominance of the compostable paper tray market in North America. Additionally, they are expanding their production facilities, forming strategic alliances, and launching new goods to take advantage of the enormous development potential in emerging markets.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the expansion of both the food packaging and retail sectors. Manufacturers are focusing on expanding their presence in the Asia-Pacific regions' expanding economies, particularly China and India, in order to enhance their market share. Supermarkets and hypermarkets are common in the area, thus the sales of compostable paper trays have a significant opportunity to increase in these markets.
Key players in the market
Some of the key players profiled in the Compostable Paper Tray Market include Athena Superpack Private Limited, BillerudKorsnas, Brodrene Hartmann, CS Packaging, Inc., Huhtamaki, Henry Molded Products, International Paper, Mondi Group, Novolex, Pactiv, Stora Enso, UFP Technologies
In March 2021, International Paper bought two state-of-the-art corrugated box plants located in Spain. It has grown its production capabilities in areas of Madrid and Catalonia to offer high-quality packaging solutions for applications in industrial and e-commerce segments.
Source Types Covered:
• Recycled Fiber Paper Trays
• Virgin Fiber Paper Trays
• Other Source Types
Material Types Covered:
• Molded Pulp
• Corrugated Boards
End Users Covered:
• Consumer Durables and Electronics Industry
• Food & Beverage Industry
• Healthcare Industry
• Personal Care & Cosmetics Industry
• Retail Industry
• Other End Users
• North America
Rest of Europe
• Asia Pacific
Rest of Asia Pacific
• South America
Rest of South America
• Middle East & Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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