In 2023, the global sales of paperboard trays are forecasted to reach a valuation of US$ 4.6 billion, marking a significant milestone in the industry. Looking ahead, substantial growth is anticipated, with sales projected to surge to US$ 7.2 billion by the year 2033. This expansion is expected to be driven by a steady compound annual growth rate (CAGR) of 4.6% throughout the forecast period. Factors such as the increasing preference for sustainable packaging solutions, growing demand from various sectors including food and beverage, and advancements in paperboard tray manufacturing technologies contribute to the positive outlook for the market.
The global market for paperboard tray recorded a CAGR of 3.4% during the historical period. It reached a market value of US$ 4.4 billion in 2022 from US$ 3.7 billion in 2018.
The fast food industry in the global market is expanding at a significant rate, which is intensifying the demand for paperboard trays. Fast food has become about convenience where paperboard trays simplify the serving and consumption of fast food items. Paperboard tray aid in the easy handling of a variety of materials, including burgers, fries, chicken nuggets, and sandwiches.
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The availability of paperboard trays in different sizes and configurations makes them appropriate for a wide range of food products. Paperboard trays are cost-effective, making them suitable for fast food businesses and restaurants and helping them manage their packaging expenses.
Manufacturers are providing paperboard trays that are coated or lined with barriers to provide grease and moisture protection, ensuring the food is safe during transit, and the packaging remains intact for the end user. Several big food brands and companies are adopting paperboard trays designed to enhance visual appeal as a marketing strategy, which is resulting in high customer satisfaction and repast business.
Fast food companies have recognized the benefits of paperboard trays to improve their branding strategy, customer satisfaction, and meeting sustainability goals, which is highly influencing the trays industry. Ovenable paperboard trays are influencing the market, driven by innovation and broadening applications.
Rising preference for ready-to-cook and pre-packaged meals in urban areas is expected to push the demand for ovenable trays. Ovenable trays would offer convenience with food as consumers can keep the trays directly in the oven, simplifying the meal preparation without the need for cookware.
In June 2022, BASF collaborated with Confoil to develop dual ovenable and certified compostable paperboard trays. These are coated with partly bio-based and certified compostable biopolymer for ready-to-eat meals such as curries, lasagne, and stir-fries.
Smart packaging has become a point of focus in the packaging industry. Technology embedded in packaging provides consumers with more security, convenience, and details.
Paperboard trays are integrated with NFC chips and printed QR codes that can be scanned with the smartphone, providing more information about the product. Smart packaging can be utilized to track several parameters, such as temperature, pH, fermentation, quality, and flavor, to maintain compliance with health standards.
Growth Drivers:
- Sustainability Concerns: With increasing environmental awareness, there’s a growing preference for eco-friendly packaging solutions. Paperboard trays are considered more sustainable than plastic alternatives, leading to increased demand from environmentally conscious consumers and businesses.
- Regulatory Support: Governments and regulatory bodies worldwide are implementing stringent regulations to reduce plastic usage and promote sustainable packaging. This has created a favorable regulatory environment for paperboard tray manufacturers.
- Consumer Preference: Consumer preferences are shifting towards products with minimal environmental impact. Paperboard trays are perceived as more natural and recyclable, aligning with these preferences and driving consumer demand.
- Cost-Effectiveness: Paperboard trays can often be more cost-effective than other packaging materials, especially when considering the entire lifecycle of the product. This cost efficiency attracts manufacturers and retailers looking to optimize their packaging expenses.
- Customization Options: Paperboard trays offer flexibility in design and printing, allowing for customization to meet specific branding and marketing requirements. This versatility appeals to companies seeking unique packaging solutions to differentiate their products.
- Expansion of End-Use Industries: Industries such as food and beverage, healthcare, and cosmetics, which rely heavily on packaging solutions, continue to grow. This expansion drives the demand for paperboard trays as a preferred packaging choice within these sectors.
- Technological Advancements: Advances in paperboard manufacturing technology have improved the strength, durability, and aesthetic appeal of paperboard trays, making them more competitive with other packaging materials.
Industry Restraints:
- Competition from Alternative Materials: Despite their advantages, paperboard trays face competition from alternative materials such as plastic, foam, and aluminum. These materials may offer different benefits, such as enhanced durability or lower costs in certain applications, posing a challenge to the growth of the paperboard tray market.
- Supply Chain Disruptions: Paperboard manufacturing relies on a complex supply chain involving raw materials such as wood pulp. Disruptions in the supply chain, whether due to natural disasters, transportation issues, or trade disputes, can impact production capacity and lead to supply shortages or increased costs.
- Perception Challenges: While paperboard trays are generally considered environmentally friendly, there may be misconceptions or criticisms regarding their sustainability compared to other packaging materials. Addressing these perceptions and educating consumers about the benefits of paperboard trays is essential to overcoming this restraint.
- Limited Product Compatibility: Paperboard trays may not be suitable for all products, especially those that require airtight or moisture-resistant packaging. This limitation restricts the market potential of paperboard trays in certain industries or product categories.
- Recycling Infrastructure Challenges: Although paperboard trays are recyclable, the lack of adequate recycling infrastructure in some regions can hinder their widespread adoption. Improving recycling systems and increasing awareness about proper disposal and recycling practices are crucial to overcoming this challenge.
- Cost Fluctuations: Fluctuations in the cost of raw materials, energy, and transportation can impact the production cost of paperboard trays. Price volatility in these areas may affect profitability and pricing strategies within the industry.
- Innovation Barriers: While there have been technological advancements in paperboard manufacturing, further innovation is needed to address specific challenges such as improving barrier properties for moisture and grease resistance without compromising recyclability.
Key Takeaways from Paperboard Tray Market Study-
- Multi-cavity trays are projected to exhibit a 4% CAGR during the forecast period.
- The molded fiber segment is estimated to record a 9% CAGR during the forecast period.
- The food industry is the prominent user of paperboard trays, with 5/6th of the market share driven by growing food consumption and the ever-expanding food service industry.
- The flexibility and adaptability of paperboard trays would make them suitable for non-food applications, and it is anticipated to witness a 9% CAGR by 2033.
- China’s paperboard tray market is projected to expand at a CAGR of 1% by 2033.
“As brands and consumers are seeking packaging solutions with minimum environmental impact and a circular economy, paperboard trays are gaining traction in the industry. The growth in the food service industry, including fast food chains and takeaway services, is emerging as a prominent influence on the paperboard tray market.”- says a lead analyst at Future Market Insights (FMI).
Competitive Landscape
- Amcor plc
- Sonoco Products Company
- Huhtamaki Oyj
- DS Smith Plc
- International Paper Company
- Brodrene Hartmann A/S
- Billerud AB
- Stora Enso Oyj
- Mondi Group Plc
- Graphic Packaging International, LLC
- Novelex Holdings
are noticeable players in the market. The Tier 1 players in the market hold 10 to 20% of the overall paperboard tray market.
Leading players in the market are expanding their presence and manufacturing capabilities for paperboard packaging. They are moving toward adopting and offering sustainable packaging solutions to customers.
Recent activities and developments implemented by leading players in the market are:
- In March 2022, Huhtamaki Oyj announced an increase in the production of unique smooth molded fiber packaging in Europe. It can be used to produce high-precision food packaging to replace rigid plastic.
- In April 2021, Graphic Packaging International, LLC announced the introduction of its ProducePack Punnet for fresh fruits and vegetables, an innovative paperboard alternative to plastic punnet trays.
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Paperboard Tray Market Outlook by Category
By Material:
- Kraft Paper
- Paperboard
- Molded Fiber
By Product:
- Single Cavity
- Multiple Cavity
By Application:
- Microwave Trays
- Conventional Trays
By Capacity:
- Up to 8 oz
- 8 oz to 20 oz
- 20 oz to 30 oz
- Above 30 oz
By End Use:
- Food
- Fruits and Vegetables
- Poultry
- Bakery and Confectionary
- Baby Food
- Ready-to-eat Meals
- Pet Food
- Other Food Products
- Non Food
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East and Africa
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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