Dairy Packaging Market - Forecasts from 2023 to 2028

The dairy packaging market was valued at US$58.377 billion in 2021 and is projected to expand at a CAGR of 4.24% over the forecast period to reach US$78.051 billion by 2028.

Dairy packaging refers to the process of enclosing and protecting dairy products such as milk, cheese, yogurt, and butter to maintain their freshness, safety, and quality during storage and transportation. This packaging involves various materials like cartons, bottles, pouches, and containers that are designed to prevent contamination, preserve nutritional value, and extend shelf life, ensuring consumers receive safe and high-quality dairy products.

Introduction:

The dairy packaging market refers to the industry involved in the design, production, and distribution of packaging materials and solutions specifically tailored for dairy products such as milk, yogurt, cheese, and butter. This market encompasses various packaging formats and technologies aimed at preserving the freshness, safety, and quality of dairy items during storage and transportation, while also meeting consumer demands for convenience, sustainability, and product information. The dairy packaging market plays a crucial role in ensuring that dairy products reach consumers in optimal condition while adhering to regulatory standards and environmental considerations. Its market drivers are the growing global demand for dairy products, increased consumer awareness of food safety and hygiene, the rising popularity of on-the-go consumption, advancements in packaging technology, and the industry's shift towards eco-friendly and sustainable packaging options to address environmental concerns.

Drivers:

• Increasing global demand for dairy products: As the global population grows and consumer preferences shift towards dairy-based diets, there is a rising demand for milk, cheese, yogurt, and other dairy products, driving the need for efficient and effective dairy packaging solutions.
• Food safety and hygiene concerns: Dairy products are highly perishable and susceptible to contamination. Safe and hygienic packaging is crucial to protect dairy items from external factors, maintain freshness, and ensure consumer safety.
• Extended shelf life and reduced food waste: Dairy packaging plays a significant role in extending the shelf life of dairy products, reducing spoilage, and minimizing food waste along the supply chain. This is essential in addressing food security and sustainability challenges.
• Advancements in packaging technology: Constant innovation in packaging materials and technologies offers new possibilities for dairy packaging. For instance, barrier coatings, aseptic packaging, and smart packaging with sensors help preserve dairy freshness and enhance traceability.
• Convenience and on-the-go consumption: Consumer lifestyles have become busier, driving the demand for dairy packaging solutions that offer convenience and easy portability, such as single-serve yogurt cups or resalable milk cartons.
• Retail and consumer requirements: Eye-catching and informative packaging designs influence consumer choices, especially in the highly competitive dairy market. Packaging serves as a means of branding and providing essential product information to attract customers.
• Regulatory compliance: Dairy packaging must adhere to stringent regulations and standards to ensure product safety and quality. Compliance with labeling requirements and packaging materials' safety is essential for market access.
• Export and international trade: The dairy industry engages in global trade, necessitating robust packaging solutions to maintain the quality of dairy products during long-distance transportation, and expanding market access.
• Environmental concerns and sustainability: Consumers increasingly seek eco-friendly packaging options. Biodegradable, compostable, or recyclable materials in dairy packaging can help reduce environmental impact and align with sustainability initiatives.
• Dairy product diversification and innovation: The dairy market is continuously evolving, with companies introducing new products and flavors. Dairy packaging must be adaptable to accommodate these product innovations and meet changing consumer demands.

Products offered by key companies:

• Danone has launched a new line of yogurt packaging that is made from seaweed. The seaweed packaging is biodegradable and compostable, and it has a carbon footprint that is 80% lower than traditional plastic yogurt packaging.
• Arla Foods has launched a new line of milk packaging that is made from FSC-certified paperboard. FSC certification ensures that the paperboard is sourced from responsibly managed forests.
• FrieslandCampina has launched a new line of milk packaging made from 86% renewable plant-based materials. The packaging is made from a combination of paperboard, sugarcane, and cornstarch, and it is 100% recyclable.

Positive growth in the paperboard segment:

The paperboard segment of the dairy packaging market is experiencing significant growth primarily because of the increasing demand for sustainable packaging solutions. Paperboard is a recyclable and biodegradable material, making it an attractive choice for environmentally-conscious consumers. Its lightweight and versatility make it suitable for various dairy products like milk, yogurt, and cheese. Moreover, its affordability makes it a cost-effective option for dairy producers, further contributing to its market growth.

The Asia-Pacific region is expected to hold a significant share:

The Asia Pacific region is poised to dominate the dairy packaging market share due to several key factors. The world's largest population and the region's rising demand for dairy products will drive the need for dairy packaging. Increasing disposable incomes in the region lead to a higher demand for processed and packaged foods, with dairy products being a popular choice. Additionally, the growing preference for convenient food options fuels the demand for processed and packaged dairy items. Furthermore, the presence of major dairy producers like India, China, and Indonesia, investing in new packaging technologies and expanding production capacity, contributes to the region's prominence in the dairy packaging market.

Key developments:

• In July 2023, Arla Foods partnered with sustainable startup Blue Ocean Closures to develop fibre-based caps for its milk cartons. This collaboration aims to reduce plastic usage by over 500 tonnes per year and aligns with Arla's goal to eliminate fossil-based plastics by 2030. The fibre-based caps will be made from sustainably sourced materials, featuring a thin barrier coating and advanced vacuum press forming technology.
• In March 2023, Organic Valley launched new product packaging with a bright and modern design, emphasizing its ethically sourced products from small family farms. The "Nowstalgia" concept combines an idealized past with a contemporary look. The packaging highlights core values like pasture-raised dairy and the absence of antibiotics and GMOs.

Key Segment:

By Packaging Type

• Cans
• Bottles/ Containers
• Cartons
• Pouches/Bags
• Others

By Material

• Plastic
• Paper and Paperboard
• Glass
• Others

By Product

• Butter
• Frozen Product
• Milk
• Cheese
• Yogurt
• Others

By Geography

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