The packaged food industry is experiencing significant growth due to various factors that are changing the way people consume food. The world's population is increasing rapidly, and more people are living in urban areas with busy lifestyles. As a result, there is a rising demand for food that is convenient and ready-to-eat. People now have more income to spend, especially in developing countries, leading to increased spending on discretionary items like packaged food.
The rise of e-commerce platforms is also playing a crucial role in boosting the packaged food industry. People can now easily order a variety of food products online, contributing to the industry's growth. The demand for dairy products is increasing, and there is a growing preference for foods that are conveniently packaged. These factors, along with the growth of the retail sector, are supporting the expansion of the packaged food market.
Standup pouches have become particularly popular in retail, offering more advantages compared to traditional plastic bag packaging. According to the European Retail Round Table, the retail sector in Europe has an annual turnover exceeding USD 350 billion, with over 34,000 working stores. The increasing number of retail chains in Europe is expected to create more opportunities for the packaged food industry. In 2018, the food and drink industry in Europe generated a turnover of USD 1,230.9 billion, making it the largest manufacturing industry in the EU.
Developing countries are also witnessing substantial growth in their food industries. For example, in India, the fast-moving consumer goods (FMCG) sector generated USD 69.38 billion in revenue in 2018 and is projected to reach USD 103.7 billion by 2020. This growth is attributed to liberalized foreign direct investment (FDI) policies, strong macro-economic indicators, and economic and industrial reforms, contributing significantly to the development of the food production and processing industries.
A significant portion of the FMCG sector is comprised of food and beverage products, including packaged foods like ready-to-eat meals and beverages, as well as dairy-based products. The increasing consumer preference for ready-to-eat products has created a demand for efficient packaging solutions, such as retort packaging, to preserve the quality of these products. Retort packages, being lightweight and easy to pack, have become an alternative to traditional cans. Nowadays, flexible retort packaging is widely used for various food products, including seafood, beans, meats, and prepared meals.
The demand for retort packaging is driven by its ability to protect food against contamination by microorganisms, air, moisture, and toxins, preventing spills or leaks. This has led to increased adoption of retort packaging in the food and beverage industry. Both developed and developing regions are witnessing significant growth in the food and beverage industry, driven by increasing awareness of processed foods and the expanding middle-class population. This growth is expected to propel the demand for retort packaging in the coming years, making it a key factor driving the global retort packaging market during the forecast period.
Report Attribute/Metric | Details |
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Segment Outlook | Packaging Type, Material, Application |
The Retort Packaging Market Size was valued at USD 4.13 Billion in 2023. The Retort Packaging industry is projected to grow from USD 4.34 Billion in 2024 to USD 6.74 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.65% during the forecast period (2024 - 2032).
The Retort Packaging Market is the type of food packaging that is done with the use of flexible plastic pouches or retort pouches. Via using the retort package it has the chance to use the ready to eat and other food items which are exposed to extreme heat. The main benefit of using the Market is that it can protect the food for up to 18 months with no preservations and zero refrigeration.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rapid spread of the pandemic across the world has affected all the industries and businesses across the world. Even the outbreak of the pandemic also harmed the Retort Packaging Market Share. Due to the impact of the pandemic many key players are exposed to the interruption of the supply of the raw materials as there was a lack of transportation and shortage of labour. This caused the greatest challenge to both the small and medium-sized companies to overcome the challenge and survive in the post-pandemic.
In the post-pandemic situation, it is expected to regain its market value in the future.
The important driver which drives the market of the Retort Packaging Market is the cost-effectiveness, durability and longer shelf life to protect the food from affecting the microorganism is also one of the main reasons which bring the growth in the Retort Packaging Market Size. In recent days there is an increase in the demand for ready to eat foods like sauces, soups, desserts, meat and seafood etc. These foods also act as the key factor for the growth of the Market Value.
The important thing which motivates the Retort Packaging Market Growth is the people's adoption of online food ordering. To preserve the food from not getting spoiled the manufacturers are using the retort packaging. So that the food will not be affected by the microorganism. It also prevents the food to retain its natural smell without adding any preservatives or freezing the food.
Secondly, the main opportunity which boosts the Retort Packaging Market is the usage of retort packaging in the food and beverage industries. Furthermore, the rise in the demand for the usage of ready to eat foods is also one of the main reasons which drive the growth of the Retort Packaging Market.
Though there is the rapid growth and the demand created for the Retort Packaging Market in recent days, it has much restraint which hinders the growth of the Market. The main restraining factor which affects the market value is that there is the need for high capital investment to improve the technology and to preserve the high quality of hygiene. And also because of the spread of the pandemic across the world which also has created the fluctuation of the cost of the raw materials which indeed has also caused the high cost even for the products.
The main challenge in the Retort Packaging Market is the need for the products has increased. As there is the rapid urbanization which has made the demand to its peak. To compensate for the need of the consumers the key players are working hard to produce the product in a large amount. Then another difficult challenge faced by the manufacturing companies is the outbreak of the pandemic. The outbreak of the pandemic has brought a negative impact on both the small and the large key players. As there was less availability of the raw materials during the pandemic time has also caused the challenge in the production.
The overall Retort Packaging Market Analysis is that there is a high chance to get the drastic output in the future due to the demand and the increased usage of the ready to eat foods. Also, the adoption of retort packaging in the food and beverage industries has faced great income. Due to its benefits like it retains the natural flavour and smell of the food, helps to prevent the food from the air and the moisture. These processes are done without adding any of the preservatives to the food. Rapid urbanization is also one of the main reasons for the growth.
Though there are drastic changes in the Retort Packaging Market due to its tremendous benefits, there are also some restraining factors that hinder the growth. they are the usage of plastic materials, as the plastic materials are causing pollution to the environment so people are not encouraging the use of plastics in food and beverage products as it can cause harm to both the humans and the environment. This Market is also ruling many regions across the world.
Due to the increase in the demand the players are expected to increase their productivity to fulfil the demand of the customers. Also due to the impact of the pandemic many small and medium-sized companies are struggling hard to survive, so they are waiting for the investment which can boost their financial status or else they are expecting to get merging or collaboration with other companies. Due to the increase in the development in the technologies the people are expecting the same development in the Retort Packaging Market. Also to complete the need the key players are expecting to expand their business to other regions.
Source: MRFR Analysis
North America is the largest shareholding region in the Retort Packaging Market. In North America, the changes in the lifestyle of the people have brought an impact on the growth of the Retort Packaging Market. Some countries like the US and Canada are the reasons for the growth of North America.
Europe follows North America. This growth of this region is because of the presence of several key players available in Europe. These factors have also brought an impact on the increase of investment in Europe.
The Asia Pacific region is expected to get gradual growth like the other region in the forecasting period. This is because of the adoption of the Retort Packaging Market in the food and beverages industries in the countries like China, India and Japan.
These are the key players who are ruling the Retort Packaging Market.
Recent developments
In February 2024, Amcor partnered with Stonyfield Organic (the leading organic yogurt producer in the United States) and Cheer Pack North America (a major spouted pouch manufacturer) to roll out its first all-polyethylene (PE) spouted pouches to the market. It is meant to address the need for environmentally friendly packaging through the use of materials that can be recycled by 100%, as it agrees with changes that are occurring in consumer preferences. They are aimed at providing a more sustainable alternative while still satisfying customers’ requirements for the quality and convenience of these brands.
In November 2023 ProAmpac introduced its ProActive PCR retort pouches that include post-consumer recycled (PCR) material. This addition builds on ProAmpac’s existing portfolio of ProActive options geared towards helping clients meet their circular economy targets.
The announcement was made by Huhtamaki in April 2023 concerning the planned introduction into the market of innovative, sustainable, flexible packaging. The company has used scientific methods to develop breakthrough mono-material technology. This kind of flexible packaging appears ecological and inventive because it is believed by its producers to meet both its customers’ demand as well as those who eventually consume them regardless of whether they are made from paper polyethylene or polypropylene retorts.
ProAmpac launched ProActive PCR Retort Pouches in April 2022 for food packaging for humans and pets, respectively. These packs have less virgin resins but use greater than 30% weight PCR content in substitution. They are also sold in conformity with the UK Plastics Packaging Tax (PPT)
Mondi introduced RetortPouch Recyclable in October 2021, a high-barrier pouch for wet pet food and foodstuff. This 100% recyclable monomaterial retort packaging solution is aimed at replacing multi-layered non-recyclable ones that ensure product preservation and reduce food loss.
Toyo Ink Group expanded its range of laminating adhesives in June 2022, introducing a product line featuring food-safe formulations without epoxy silanes and organic tin compounds. The updated portfolio now includes both the solvent-based TOMOFLEXTM as well as the solvent-free ECOADTM families of laminating adhesives. These formulations lend themselves well to various applications, including dry food, liquid pouches, and high-performance retorts found in multicompartment flexible packaging.
Retort Packaging Market overview
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