Food contact paper market to grow by 4%

According to a report published by Transparency Market Research (TMR), the global food contact paper market is estimated to grow at a CAGR of 4% during the forecast period of 2019-2027.

02 Mar 2020 | By Aultrin Vijay

The report states that the market will reach a valuation of USD 7.4 bn by 2027

The report stated that the market will expand at a moderate pace and reach a valuation of USD 7.4 bn by the end of the forecast period.

With paper becoming the material of choice for food packaging, there has been a flurry of activity in the global paper packaging market. According to the report, manufacturers are trying to keep pace with this growing demand for paper packaging solutions for food, while focusing on improving the functionality of the paper used.

“They are aiming at product innovation that offers characteristics such as moisture-resistance, grease resistance, and temperature control. With multifunctional packaging paper, as a product, being relatively new and offered by a few players in the global food contact paper market, manufacturers are beginning to focus on R&D into the same to gain a competitive advantage,” the report stated.

The report revealed that tailor-made products has had a big impact on the global food contact paper market, as manufacturers are increasingly looking at customised products in order to enhance product appeal for end users in the value chain. This has opened up opportunities for players, as customised and specialised products are becoming a routine option being offered, aimed at expanding the customer base.

According to analysts at TMR, the growth of food contact paper market can be attributed to the push for the use of biodegradable, sustainable packaging for food, being adhered to by stakeholders, globally. Manufacturers in the global food contact paper market, keeping pace with this trend, and focusing on compostable and environment-friendly packaging, are likely to maximise their gains during the forecast period.

According to the report, increasing growth of online foodservice platforms is expected to bolster the growth of the food contact paper market during the forecast period.

Leading food companies are collaborating with emerging online foodservice platforms to establish themselves as well-known brands across the globe. Owing to this, food contact paper comes into the picture and acts as a branding and marketing tool for various fast food companies, bakeries, and quick-service restaurants.

Increasing awareness regarding the need for recyclable products is expected to boost the growth of the food contact paper market in the next eight years. Stringent regulations related to the consumption of single-use plastic packaging products are also projected to propel the demand for sustainable packaging solutions, such as food contact paper.

With more than 42,000 locations across 112 countries and more than 37,800 locations across 119 countries, respectively, Subway and McDonald’s are the top fast food restaurants in the world. These fast food companies are expanding their businesses in developing nations such as ASEAN countries. These restaurants are providing their products with food-grade paper-based packaging solutions. Therefore, an increment in the number of fast-food outlets will boost the food contact paper market growth in the next decade.

The report stated that manufacturers in the industry are looking forward to investing in recyclable food contact paper material to provide a more sustainable and eco-friendly products. However, greaseproof paper remains a widely-used food contact paper across the world, which provides high barrier properties to the packaging.

Sandwiches, burgers, pizzas, cookies, and other bakery and fast food products require the appropriate packaging, as it comes in direct contact with food products. Therefore, to attain the necessary barrier properties, manufacturers treat food contact paper with certain chemicals, the report mentioned.

Food contact paper is also known as greaseproof paper, waxed paper, and foil paper. Some food manufacturers use these papers for filtering, cooking, and frying, which will push the growth of the food contact paper market. Furthermore, it should be produced in accordance with FDA food contact material regulations, which differ for different countries.

For manufacturers, making food contact material in compliance with government regulations, such as exclusion of PFAS chemicals and usage of food grade materials, is expected to be a key factor in achieving a foothold in the market.