Food Contact Paper Market Forecasts from 2023 to 2028

The food contact paper market was valued at US$85.767 million in 2021 and is expected to grow at a CAGR of 4.18% during the forecast period.

The food contact paper market is anticipated to grow at a steady pace throughout the forecast period. Plastics, rubber, paper, coatings, metal, and other materials can all be used to make food contact materials. Food packaging, such as that used for bakery goods, fruits, liquids and beverages, and takeaway food, frequently uses food contact paper. Food contact papers are showing an increase in demand due to their multiple benefits and sustainability. Moreover, the growing bakery industry and online food delivery system are further expected to bolster the food contact paper market in the coming years.

Multiple Benefits with Enhanced Food Contact Paper

A variety of food contact applications, such as tea bags, baking papers, filters, beverage cartons, sacks, packaging for dry and frozen foods, transport and distribution packaging, and tissue products, have a successful history of safe use with paper. The food contact paper protects the food from external damage, air, dust, moisture, and contamination thus extending the shelf-life of the food. These benefits associated with food contact paper along with the consumer preference for hygiene are expected to propel the food contact paper market.

Growing Population

The worldwide growing population is pushing the demand for more food consumption which in turn is anticipated to propel the food contact paper market. According to the UN estimates, the current world population exceeds the 8 billion mark and it is expected to cross 9.7 billion in 2050. According to the World Bank, each year, roughly 4.5 billion low-income individuals in developing nations spend more than $5 trillion. Moreover, in a recent press release, the UN demanded immediate action to feed the world's expanding population in a healthy, just, and sustainable manner. This growing population propelling the food demand is contemplated to boost the food contact paper market.

Growing Online Food Delivery System

Online food delivery businesses are major users of food contact papers as they need to properly pack the food in compliance with government regulatory guidelines. The growing online food delivery sector is thus anticipated to bolster the food contact paper market. According to a forecast by Zomato, there were around 80 million active monthly users on Indian food delivery platforms in 2021, and it is estimated to increase that number to 200 million over the following few years. According to the survey conducted by Toast Delivery Services, the ordering takeout increased by 43% in August 2020 and 10% of respondents used delivery systems more as compared to pre-pandemic time.

Growing Bakery Industry

For lining baked items, biscuits, and frying oil, glassine paper is used. As it makes it easier to separate distinct food components, it is mostly utilized as a release liner in meat and baked goods. The huge and growing bakery industry paves the food contact paper market expansion. According to the Federation of Bakers (UK), the bakery is the largest sector of the UK food industry worth £5 billion. The sales of baked goods in Canada were US$2.6 billion in 2021 as per the report of the Canadian Government and it is the fifth largest importer of baked goods worth US$1.8 billion. These trends and further expanding industry with diversified products are contemplated to aid the food contact paper market.

Government Regulations

The government regulations regarding food packaging and efforts to encourage sustainable packaging propel the food contact paper market. The first edition of the technical guide "Paper and board used in food contact materials and Articles" was released in May 2021 by the European Directorate for the Quality of Medicines & Healthcare (EDQM) and it contains resolution CM/Res (2020) 9 adds additional requirements for food contact paper and board in its technical reference on paper and board used in food contact materials and articles. Moreover, the Indian government released a regulation that prohibits recycled plastic packaging in May 2020 which further encourages the adoption of food contact paper thereby propelling the food contact paper market.

Restraints in the Market

Apart from the growth factors, a few factors are expected to limit the food contact paper market growth. Some disadvantages associated with paper packaging are that compared to alternative packaging materials like plastic, paper provides less of a barrier to oxygen, light, and germs. Moreover, it takes more space in landfills than plastic for example, in a landfill, 1 lb. of paper takes up more room than 1 lb. of glass, food scraps, or even some plastics. Additionally, paper packaging indirectly affects the environment through increased deforestation for the manufacturing of food contact paper.

North America is expected to grow considerably

The North American region is expected to hold a significant share of the food contact paper market during the forecast period. The factors attributed to such a share are the growing urban population and the adoption of packaged food particularly single-use packaged products. For instance, 83% of the US population resides in urban areas as per the World Bank data. Moreover, the presence of major market leaders such as Westrock Company, Georgia-Pacific LLC, and Twin River Paper Company further boosts the food contact paper market in the region through enhanced accessibility of food contact papers.

Key Developments

• In January 2022: a new high gloss low GSM food packaging paper was launched by SKPMIL that provides superior printing results on the paper.
• In February 2020, a new 100% natural barrier paper Zanbarrier NGR for food packaging was launched by Zanders. This paper packaging material is certified by ISEGA and it is ideal for flexible food packaging. Moreover, the company claimed that the higher density of this paves the way for multiple applications.

Company Products

• Westrock Company: Westrock Company is one of the leading paper packaging companies with nearly 300 production facilities worldwide. EverGrow® recyclable packaging solutions are offered by the company keeping in mind the sustainability goals and meeting consumer demand for plastic alternatives.
• Ahlstrom: Ahlstrom offers a range of solutions in media, life sciences, food packaging, and bakery industry. The company offers food packaging papers for butter, margarine, confectionery, baked products, dairy, meat, and several others. The ideal packaging option for the fast-service restaurant business is Ahlstrom's Servera® paper which was recently developed by the company.

Segmentation:

By Type

• Kraft Paper
• Greaseproof Paper
• Parchment Paper
• Others

By Application

• Bakery & Confectionary
• Dairy Products
• Fruits & Vegetables
• Poultry
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Taiwan
• Thailand
• Others