Compostable Paper Tray Market: Growing environmental concerns and consumers’ preference for eco-friendly products is expected to augment the market at a CAGR of ~6.5% during the forecast period of 2022 to 2030

Pune, India, May 2021/MRFR Press Release/- Market Research Future has published its half-cooked research report on the global compostable paper tray market.

Market Highlights

According to MRFR analysis, the global compostable paper tray market is expected to register a CAGR of ~6.5% during the forecast period of 2022 to 2030.

Compostable paper trays are gaining popularity among customers owing to the global campaign against plastic. Additionally, they are economical and eco-friendly. Recycled content is helping market leaders in the biodegradable paper tray sector grow their customer base. These trays are made from corrugated boards, molded pulp, boxboards, and other materials. They are used in a wide range of end-user industries, including the food and beverage, personal care, retail, and healthcare sectors. Due to increased focus on sustainability and reducing the quantity of plastic packaging waste, paper tray demand is predicted to increase significantly. Manufacturers in the compostable paper tray sector are heavily investing in offering sustainable paper trays in a variety of paper patterns in response to rising consumer demand in biodegradable products.

Regional Analysis

Globally, North America is expected to dominate the global compostable paper tray market. It contributed over majority of the market shares in 2021 and is anticipated to maintain its dominance throughout the study period. The tier 1 companies in compostable paper trays are dominating the overall market, and are well-established in the North American region. Additionally, through the expansion of production facilities, strategic partnerships, and the introduction of new products, the market players are taking advantage of the enormous growth potential in emerging economies. Thus, it is anticipated that the market would grow significantly during the forecast period in the Asia Pacific region. This region is seeing enormous expansion in the food packaging and retail sectors. The market for food service packaging is growing rapidly due to the booming tourism industry and rise in customers' changing lifestyles. Therefore, to increase their market share, manufacturers are concentrating on setting up their business in Asia-Pacific region, particularly China and India. Due to the presence of supermarkets and hypermarkets in the region, these markets have a significant potential for growth in terms of compostable paper tray sales.

Market Segmentation

The global compostable paper tray market has been segmented into source, material type, end user and region.

On the basis of source, the market for compostable paper trays is divided into virgin fiber and recycled fiber. For compostable paper trays, the virgin fiber market segment held the largest market share in 2021. Virgin fiber is produced with fresh wood pulp. Paper made from virgin fiber contains no recycled materials. In the packaging industry, virgin fibers are widely used to make paper and paperboard goods. Since they guarantee food safety by preventing taint, odor, and migration issues as well as complying with food safety requirements, virgin fiber is used to manufacture compostable paper trays that are used to package items including fruits, eggs, and vegetables.

On the basis of material type, the compostable paper tray market is segmented into corrugated boards, boxboards, and molded pulp. A typical kind of packing material that can be used to hold, ship, and protect virtually any items is corrugated cardboard. The interior of boxboards is made up of a low-density, incredibly strong, and somewhat yellow material. Pharmaceuticals, graphic design, health and beauty items are the key end users. The molded pulp market is growing as a result of increased product demand in end-user industries and rising customer demand for transparent, biodegradable packaging options.

On the basis of end-user, the market is segmented into retail industry, food and beverage industry, personal care & cosmetics industry, healthcare industry and others. In 2021, the food and beverage industry led the market for global compostable paper trays. Compostable paper trays have been used to package eggs, salad, fresh fruits and vegetables, and other food items. These trays cushion the delicate surfaces of the items, guaranteeing their safety throughout shipping. Compostable paper trays make sure that there is enough air inside the container to maintain the freshness of the goods. These trays protect the food from contamination and odor, further ensuring food safety. They are among the most often used types of packaging in the food and beverage sector since they also adhere to food safety regulations.

 Key Players

Some of the key market players are Mondi Group plc, Huhtamaki Oyj, International Paper, BillerudKorsnas, UFP Technologies, Inc., CS Packaging, Inc., Stora Enso, Novolex, Orcon Industries, Athena Superpack Private Limited, and Henry Molded Products, Inc. among others.Access Full Report Details: Compostable Paper Tray Industry