Dairy Products Packaging Market - Global Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

The incorporation of antioxidants in packaging material is likely to drive the dairy product packaging market during the forecast period

The introduction of nanotechnology-based food packaging is expected to be a significant driver for the dairy packaging market. Advancements and innovations in the field of nanotechnology are likely to enhance the efficiency of dairy product packaging. The use of nanotechnology provides robust solutions for refining or monitoring of dairy food products, thereby increasing safety, quality, and shelf life of the product. Hence, innovations in nanotechnology are expected to boost new packaging alternatives with better properties than traditional packaging.

The inclusion of active and intelligent ingredients, which include several antioxidants, in packaging material is helping to extend the shelf life of dairy products. Therefore, the incorporation of these intelligent ingredients is likely to drive the dairy products packaging market during the forecast period. The increasing growth of dairy products and the need to differentiate in the retail space are expected to boost active and intelligent packaging in the dairy industry further.

 The dairy packaging market is witnessing a significant shift from rigid to flexible packaging. The modification in the flexible packaging material can be attributed to the following factors:

• Reduced raw material cost
• Decreased production expenditure
• Low transportation spending

 Further, the emergence of the e-commerce sector worldwide is expected to accelerate the flexible packaging market. Also, pouch packaging is gaining momentum among end-users in the dairy packaging market. The availability of modern pouch machinery has significantly increased the production of manufacturers. Therefore, these factors are likely to increase the demand for innovative packaging material in the dairy products sector. The global dairy packaging market is expected to grow at CAGR of over 3% during the period 2018−2024. 

DAIRY PACKAGING MARKET SEGMENTATION

This market research report includes a detailed market segmentation by

• Packaging
• Products
• Applications
• Geography

DAIRY PACKAGING MARKET PACKAGING

The replacement of strong rigid plastic packaging with multi-layer flexible pouches is expected to augur well for the flexible packaging market

The application of flexible packaging in the dairy product market is high. The easy availability of plastic as a raw material in the production of pouches is one of the reasons for the wide usage of flexible plastic in dairy packaging. Milk is the largest end-user for the flexible packaging market. APAC is the major region for the usage of flexible plastic as this type of packaging makes milk highly affordable for a large section of people living in the region. Further, the replacement of strong rigid plastic packaging of dairy products with multi-layer flexible pouches is expected to augur well for the flexible packaging market.

Butter and cheese are generally packaged in parchment paper and wax-coated paper. The rise of the middle-class population in emerging countries is expected to offer ample opportunities for dairy product packaging vendors during the forecast period.

Wrap foils for butter and margarine, milk bottles capping foils, and cheese foils are the primary application of flexible foils. However, the market growth of aluminum is declining YOY as these foils hamper the separation of materials during the recycling process.  Also, aluminum foils are getting replaced with plastic films with high barrier properties.

Paperboard packaging for liquid dairy products is growing fastest across regions, with China leading the pack in the APAC region. With premiumization of liquid dairy growing, the need for aseptic liquid cartons is expected to increase significantly. In addition, the growth momentum for categories such as flavored milk, lactose-free liquid products, high nutritional value dairy products is expected to have a positive influence on the overall dairy packaging market.

Rigid packaging is dominated by rigid plastic packaging, which holds over 80% share in rigid dairy packaging. All the three categories – rigid plastic, metal, and glass − in rigid packaging have been witnessing accelerated growth momentum, with rigid plastic alone exhibiting an incremental growth of over $8000 million during the period 2018−2024. Butter, cheese, and milk powder are the major application areas of metal packaging, while glass packaging is limited mainly to milk packaging.

DAIRY PACKAGING MARKET PRODUCTS

The liquid cartons market is likely to grow due to the growing importance of aseptic packaging

Several dairy vendors prefer flexible pouches worldwide, especially small and medium-sized dairy enterprises due to their cost-effectiveness and economic viability. However, the availability of pouch making machinery and raw materials is a major factor for the high adoption of flexible pouches in the dairy product packaging market. APAC and Europe are the major end-users of pouches.

The market for liquid cartons is expected to grow rapidly during the forecast period as aseptic packaging is gaining importance in extending the shelf life of liquid dairy products. APAC is expected to witness high volume demand for liquid cartons as premium dairy products are launched due to the rise in the disposable income in the middles class.

Bottles, jars, and cans are widely used for packaging dairy products. The demand for these packaging types is growing as they are convenient for consumers and offer ease of transportation for vendors.

DAIRY PACKAGING MARKET APPLICATION

The high cheese production capacity is expected to offer ample packaging opportunities for dairy packaging vendors in Europe

With milk production expected to reach over 900 million tons by 2020, the milk packaging segment is likely to increase significantly during the forecast period. The growth in population, the increase in disposable incomes, and rapid urbanization are expected to bode well for the milk packaging market during the forecast period.

The cheese packaging segment in Europe is expected to grow as the European Union dominates the cheese market. The European market generated revenue of more than $2000 million in 2018. While the cheese output in Europe stood at over 10 million metric tons in 2017, which is likely to increase during the forecast period, the high production capacity is expected to offer ample packaging opportunities for the dairy packaging industry in Europe.

Parchment paper, foil laminates, cellophane, wax coated paper, cardboard boxes, and lacquered tin cans are majorly used for packaging of butter and creams. The packaging of butter and cream is expected to gain prominence during the forecast period as these products are considered natural and healthy.

The other application segment includes yogurt, ice creams, frozen dairy products, and milk powder. The packaging of these products varies depending on the processing technology and the type of barrier protection.

DAIRY PACKAGING MARKET GEOGRAPHY

The growing spending on the food and beverage sector in several APAC countries is significantly contributing to the growth of the dairy packaging market.

Europe and North America held over 50% of the dairy packaging market. The APAC market is largely volume-based with dairy products witnessing high demand.  Australia, Japan, China, Germany, France, the US, and Canada are the major dairy packaging market as their spend on F&B and dairy products is relatively high. The diversity of flexible packaging allows the packaging industry to withstand raw material, pricing, and cost pressures.

The dairy packaging market in Europe has reached maturity. The UK, Germany, and France are the three leading countries with high demand for dairy products. The demand for rigid containers and liquid cartons is growing rapidly, with rigid PET bottles and jars replacing many existing packaging forms. Portugal and Italy are expected to witness faster packaging growth rate on account of the high retail consumption. France, Germany, Italy, the UK, and Spain are the largest EU food and drink producers and are expected to provide growth momentum during the forecast period.

The high spending on the food and beverage sector in several APAC countries such as Australia, Japan, and China is significantly contributing to the growth of the dairy packaging market. The demand for flexible pouches, bags, and flexible multi-material films is expected to be high in APAC, particularly in New Zealand. Further, the acceptance of aseptic packaging is expected to drive the dairy packaging market in the APAC region.

Factors, such as high disposable income, increased preference for hygienic products, and the prominence of clear labeling and informative packaging are augmenting the growth of the dairy packaging market in North America. Further, the US-Mexico-Canada (USMCA) agreement is expected to fetch revenue to the dairy packaging market of North America as it will help to streamline the export and import process. Besides, the growing health-conscious population is likely to lead an incremental demand for organic dairy products.

The dairy industry in the Middle East is linked to the oil economy of the region. Currently, the dairy industry is in the recovery mode as oil prices affect consumption of premium dairy products, which lead to overall low demand. The growth rate of dairy packaging market is expected to witness a sharp increase as the real benefits of 2017 prices increase are realized fully in 2019. The popularity of free trade zones, improvements in port infrastructure, and the availability of low taxes are expected to increase the investment in the packaging market in MEA. Further, the potentially untapped markets in sub-Saharan regions are expected to offer high scope for multinational vendors as the region is currently serviced mainly by regional players.

The flexible packaging market in Latin America is expected to witness growth during the forecast period on account of the large middle-class population with increased disposable income. The growth in the food and beverages sector, increase in consumer spend on food and dairy products, including milk, cheese, and butter, are likely to drive the dairy packaging market in Latin America during the forecast period.

KEY VENDOR ANALYSIS

The dairy packaging market is witnessing high competition among vendors. The competition is based on factors, including competitive pricing, product quality, and innovative packaging. Many vendors are shifting to sustainable and biodegradable packaging materials. Stringent regulations are changing the dairy packaging market dramatically. The limit on the use of single-use plastics is driving the market toward eco-friendly and sustainable packaging. The European Commission proposal for the single-use plastics directive (SUP) has increased the focus on substituting plastic packaging. Price fluctuations in raw materials of packaging have an adverse impact on the profit margins of vendors. Mondi, Huhtamaki, Tetra Pak, Berry Global, Elopak, Amcor are the leading players in the market.

The Dairy Products Packaging market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Market Segmentation by Packaging

• Rigid
• Flexible
• Paperboard

By Products

• Liquid Carton
• Pouches
• Bottles, Jars, and Cans
• Others

By Applications

• Milk
• Cheese
• Butter and Creams
• Others

By Geography

• Europe
  • France
  • Germany
  • Italy
  • Spain
  • UK

• APAC
  • Australia
  • China
  • India
  • Japan
  • South Korea
• North America
  • US
  • Canada
• Latin America
  • Brazil
  • Chile
  • Mexico
  • Argentina
• MEA
  • Egypt
  • Saudi Arabia
  • South Africa
  • Turkey