February 25, 2024
Edible Packaging Market

Edible Packaging Market Owing To Growing Demand for Sustainable Packaging Solutions

The Edible packaging Market is estimated to be valued at US$ 1067.15 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The Edible Packaging Market is estimated to witness high growth owing to increasing demand for eco-friendly solutions. Edible packaging solutions are gaining popularity as they eliminate the need for plastic and wrapping materials and reduces environmental pollution.

Market Overview: – 

Edible packaging utilizes edible ingredients likes plant-based materials and fats and oils to form films and coatings for food packaging. These packaging are sustainable and biodegradable in nature. They provides protection and extends shelf life of food products similarly to conventional plastic packaging. The edible films acts as barrier against moisture, oxygen, bacteria, etc. thus maintaining freshness of food items.

Market key trends: – 

Rising focus towards sustainability along with increasing demand for green packaging is fueling the edible packaging market growth. Consumers are shifting their preference towards eco-friendly solutions due to rising environmental concerns regarding plastic waste. Growing food industry worldwide along with increasing shelf life requirements of food products is also boosting the market. Moreover, advancements in film forming ingredients coupled with ongoing R&D for enhancing functional properties of edible films is expected to present lucrative opportunities during the forecast period.

Porter’s Analysis: –

  • Threat of new entrants: – The threat of new entrants is moderate as the edible packaging market requires high R&D investment and capabilities to develop innovative packaging solutions. There are also established players who have command over distribution channels.
  • Bargaining power of buyers: – The bargaining power of buyers is high given the presence of substitutes and undifferentiated products. Buyers can easily switch to alternative packaging materials if price increases.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in edible packaging such as polysaccharides and lipids are commoditized. However, specialized suppliers may hold some bargaining power.
  • Threat of new substitutes: – The threat of substitutes is high as petroleum-based plastic packaging is widely used. Edible packaging needs to prove its functionality and efficacy over plastic to reduce threat.
  • Competitive rivalry: – The competitive rivalry is high considering presence of global players and intensifying competition.

SWOT Analysis: –

  • Strengths: – Edible packaging is biodegradable and environment-friendly. It reduces plastic waste. Some products provide extended shelf-life.
  • Weaknesses: – High production costs compared to plastics. Limited functionality for certain applications. Vulnerable to moisture and humidity.
  • Opportunities: – Growing awareness about sustainability can drive demand. Potential in food, pharmaceutical and cosmetics industries. Support from regulations restricting single-use plastics.
  • Threats: – Substitute threat from bioplastics. Possibility of not gaining wider acceptance. Structural stability issues during supply chain and storage.

Key Takeaways: –

The Global Edible Packaging Market Demand is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing awareness about environmental sustainability. The market size for edible packaging is projected to reach US$ 1.8 Bn by 2030 from US$ 1.067 Bn in 2023.

Regional analysis: – North America dominates the edible packaging market currently due to stringent regulations regarding single-use plastics and presence of major players. Asia Pacific is projected to be the fastest growing market, expanding at a CAGR of around 7% during the forecast period led by growing demand from China, India and other developing nations in the region.

Key players analysis: –  Key players operating in the edible packaging market are MonoSol, Kuraray Co. Ltd., JRF Technology, WikiFoods Inc., Safetraces Inc., and Tate and Lyle Plc.Other prominent players include New Zealand Manuka Group, Hispanagar, Acroyali Holdings Qingdao Co., Ltd., Industrias Roko, S.A., Neogen, Merck Group, Agarindo Bogatama, Setexam, and Norevo GmbH.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it