Industry: Chemicals and Materials
Published Date: June-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 146
Report ID: PMRREP34019
The market for paperboard tray is estimated to reach a valuation of US$7.2 Bn by the year 2033, at a CAGR of 4.6%, during the forecast period 2024 to 2033.
Key Highlights of the Market
|
Attributes |
Key Insights |
|
Paperboard Tray Market Size (2024E) |
US$6.7 Bn |
|
Market Size (2033F) |
US$7.2 Bn |
|
Forecast Growth Rate (CAGR 2024 to 2033) |
6.3% |
|
Historical Growth Rate (CAGR 2019 to 2023) |
3.4% |
The global market offers manufacturers considerable potential due to the increasing awareness of the detrimental effects of traditional plastics on the environment and the ecological degradation that is a consequence of their use.
It is anticipated that the demand for compostable paper trays will increase due to the increasing production of trays made from resources such as sugarcane, bagasse, palm leaves, and maize starch.
Due to the tourism sector's expansion and the increasing demand for food packaging, the market for biodegradable paper platters in the food and beverage industry is expected to increase over the forecast period.
As the importance of sustainability, and the necessity to reduce plastic packaging pollution increases, it is anticipated that the demand for paperboard trays will see a steep rise in the market size.
It is utilized extensively in the packaging industry because of its exceptional physical attributes, which include exceptional strength, longevity, and resistance to fracture and splitting.
The growing tourism industry and the increasing disposable income of middle-class consumers would fuel the demand for food service packaging, eventually aiding the global market share.
The rising demand for paperboard trays from food & beverages industry is aiding the market’s growth over the forecast period.
With over half of the global market share, the food and beverage industry is the major end-user of paperboard packaging. Fruits, vegetables, and food products are packaged using corrugated container boards, whereas beverages are packaged using coated, unbleached boards in the food and beverage business.
The need for folding carton packaging is estimated to increase as the consumption of frozen goods increases. Meanwhile, paper replacements such as water-based coatings can achieve the same strength, moisture resistance, and durability as plastic by employing sustainable strengthening techniques.
The pre-packaged food business is gradually replacing plastic straws and cutlery with paper or wooden alternatives. Moreover, a quick spike in public interest has contributed to the growth of eco-friendly packaging solutions.
According to recent studies, around 55% of consumers prefer recyclable goods and products while making a purchase, which eventually helps the global market for paperboard trays thrive during the forecast period.
The paperboard tray market was valued at US$3.7 Bn in the year 2018 and experienced a modest growth rate of 3.4% during the historical period 2019 to 2023, to reach a valuation of US$4.4 Bn in the year 2023.
The world's growing emphasis on sustainability has been a major factor in the market's expansion, companies are looking for sustainable packaging options.
Since paperboard trays are the most effective substitute for plastics, government and authority prohibitions and limitations on the use of single-use plastics would also encourage the usage of these trays.
Additionally, paperboard trays would offer a practical solution to package hot food items and guarantee their safe delivery to customers. One of the major users of paperboard trays is the constantly expanding food industry, which supports the growth of the market globally.
Growing Buzz Around Environmentally Sustainable Packaging Solutions
The market share is primarily driven by growing environmental consciousness and the promotion of sustainable packaging options. Trays made of paperboard are generally thought to be more environmentally friendly than those made of plastic or foam.
Several government authorities globally have instituted policies and plans aimed at reducing the consumption of single-use plastics and supporting environmentally friendly packaging options, eventually boosting the revenue of the market.
Further, the said market may be significantly impacted by shifting consumer preferences for practical and environmentally friendly packaging options.
One of the biggest markets for paperboard trays is the catering sector, which can directly impact the expansion of the market.
Convenience stores, supermarkets, hypermarkets, and other retail establishments would all be crucial in driving up demand for paperboard trays, which may be impacted by changes in consumer purchasing habits and retail trends.
Rapid e-Commerce Expansion
The e-commerce industry is growing at a very fast pace, which has increased the need for packing materials like paperboard trays to protect items during transit.
The global paperboard tray market is primarily being driven by the expansion of the food and beverage sector. Demand may be significantly impacted by the expansion of the quick service restaurant (QSR) industry in particular.
Innovations in coating methods, production processes, and design alternatives can make paperboard trays more competitive in the market.
The presence of major players in the packaging sector, including corrugated tray producers and rivals in the packaging material market, would probably affect the market.
Cost and Performance of Materials
Although the paperboard tray market shows potential for expansion, it encounters difficulties with its availability, cost, and performance of materials.
Paperboard tray manufacturers and converters may encounter difficulties in obtaining environmentally friendly paperboard materials and maintaining a reliable supply chain with transparent quality control.
The expenses associated with manufacturing paperboard trays, such as the costs of raw materials, electricity, and processing, could be greater in comparison to traditional plastic trays. This might affect the competitiveness and affordability of the market.
Further, the performance of paperboard trays may be hindered by factors such as their ability to resist moisture, their strength, and their shelf-life. These limitations might impact their applicability for specific applications and end-use requirements, necessitating the need for product innovation and customization.
To overcome these obstacles, industry stakeholders, supply chain partners, and regulatory bodies need to work together and provide affordable and environmentally friendly solutions that match the requirements of the market and performance standards.
Sustainability Initiatives Worldwide
The paperboard tray market is characterized by substantial growth prospects that are fuelled by sustainability initiatives, market expansion, and product innovation.
The performance and functionality of paperboard containers are improved by the development of bio-based coatings, barrier treatments, and water-resistant additives, which allow for their use in a broader range of applications, such as chilled and frozen foods.
Companies can differentiate their products, improve shelf appeal, and develop value-added packaging solutions for consumers by investing in digital printing technology, branding solutions, and customization capabilities.
Strategic partnerships, collaborations with recyclers, and investments in closed-loop recycling infrastructure support the transition to a more sustainable and resource-efficient packaging system and promote the circular economy.
Paperboard segment dominates the material segment of the market with 43% of the total market share
|
Market Segment by Type |
Market Value Share |
|
Paperboard |
43% |
Based on the material segmentation, the global paperboard tray market is further sub-segmented into paperboard, kraft paper and moulded fibre, where the paperboard segmentation owns the major market share.
Paperboard is the preferred material for numerous tray manufacturers due to its environmental benefits, cost-effectiveness, consumer appeal, and customization options. Further reinforcing the preference for paperboard in the tray industry is the movement toward sustainable and eco-conscious packaging.
It is anticipated that the paperboard segment will account for approximately 43% of the market share and will experience modest growth during the forecast period.
Conversely, the moulded fibre segment is anticipated to be impacted by the growing emphasis on paper recycling and is anticipated that the compound annual growth rate (CAGR) will be 5.9% during the forecast period.
Microwave Trays Account for 65% Market Share
|
Market Segment by Application |
Market Value Share |
|
Microwave Trays |
65% |
Based on application, the market is further classified into microwave trays and conventional trays, where the microwave trays segment dominates the global market share among the said segmentation.
Microwave trays are the market leader in the market and are expected to dominate the market share during the forecast period.
The global market is experiencing a surge in demand for microwave trays due to the increasing demand for ready-to-eat food and convenient packaging from end users.
Consumers are increasingly choosing microwaveable containers to directly heat their food, thereby reducing the time and effort required by other packaging formats.
Companies are also providing novel trays that meet consumer demand by offering both conventional and microwave trays.
Food-Related End Use Leads with 55% Value Share of Market
|
Market Segment by End Use |
Market Value Share |
|
Microwave Trays |
65% |
Based on end use, the paperboard tray market is further sub-segmented into food, and non-food end users, where the food sub-segmentation dominates the market share.
Paperboard containers provide a range of advantages, including cost-effectiveness, sustainability, versatility, customization, and food safety. These factors have resulted in their increasing utilization in the food industry.
Furthermore, paperboard containers provide a broader array of advantages, including superior microwave cooking results, on-the-go convenience, and retail differentiation from food processors.
The demand for ready-to-eat meals is on the rise as a result of the increasing prevalence of online food delivery services, the rise in living standards, and the hectic occupations of individuals. The growth of the segment is anticipated to be influenced by these factors.
Asia Pacific Continues to Surge Ahead with 35% Market Share
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Region |
Market Value Share |
|
Asia Pacific |
35% |
Asia Pacific region is predicted to dominate the global paperboard tray market share owing to the presence of major emerging economies like India, and China.
The Asia Pacific region's growth can be primarily attributed to the expansion of this region to the significant need for environmentally friendly and economically viable packaging, in particular for applications that apply to food-grade products.
The Indian Brand Equity Forum (IBEF) projects that the food service sector in India will see robust growth over the forecast period, as individuals are living busier lives and have more discretionary income, there is a remarkable 23% growth rate in the demand for meal delivery services.
Furthermore, the North American region is anticipated to experience steady growth during the forecast period due to the significantly growing need for paperboard packaging that is both customizable and durable throughout the many divisions that make up the region.
Furthermore, the latest developments that have been achieved in the packaging industry are also providing a robust drive to the growth of market share.
March 2022 –
Huhtamaki Oyj, a leading paperboard tray manufacturer, announced that it is increasing the production capacity of molded fiber packaging in Europe to produce high-precision food packaging.
January 2022 –
Novolex Holdings Inc. launched its new product, a unique tray that does not need an adhesive coating for packaging meat, fish and poultry products.
April 2022 –
The Burgo Group signed an agreement to sell its Duino Mill in Italy to Mondi PLC at a valuation of US$40 Mn to tackle business hindrance.
The major competitors in the paperboard tray market are primarily evaluated based on their product or service offerings, their financial statements, developments and the approaches implemented, the company's position in the global market scenario and its geographical reach.
|
Attributes |
Details |
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Forecast Period |
2024 - 2033 |
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Historical Data Available for |
2019 - 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Countries Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Product:
By Material
By Capacity:
By Application
By End Use
By Region
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The global paperboard tray market size was valued at US$6.7 billion as of 2023.
Asia Pacific holds the major market share.
Asia Pacific is predicted to exhibit the highest growth rate during the forecast period.
DS Smith Plc, International Paper Company, Brodrene Hartmann A/S, Billerud AB, and Mondi Group Plc are among the top five players in this industry.
The microwave trays segment continues to hold a dominant share of the market.
