Stronger Sustainability Requirements Are Surfacing as the Trend Continues to Grow

(Credit: Amcor)

Packaging sustainability is a mega trend impacting the packaging industry, according to the new report "Sustainable Foodservice Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)” by Reportlinker.com. 

As a result, new, stronger sustainability requirements regularly surfaced on various fronts. The increase in concern for environmental impacts caused by these plastic containers among the food service industries is leading to multiple companies using recycled materials for food services, helping to drive the market.

In March 2020, according to packaging news, KFC, Pizza Hut, and Taco Bell expanded sustainable packaging commitments, having announced plans to boost sustainable packaging, intensify plastic waste action, and move corporate offices to renewable energy.

The cost of using sustainable packaging is understandably higher than conventional packaging. This is due to the materials involved and their sourcing (both virgin and used materials) – but also due to the less-established supply chains, manufacturing processes, and lower economies of scale.

Some of the main key market trends include: 

• QSRs are expected to drive sustainable foodservice packaging in the forecasted period: As eco-friendly services are becoming more appealing to customers, many companies are moving to greener options that are less harmful to the environment. Some quick-service restaurants, known for their ’organic’ options, are adapting to more environmentally friendly alternatives to reduce their carbon footprint. For instance, in June 2022, KFC India unveiled ’KFConscious,’ marketed as the most sustainable restaurant in Chennai, as the outlet aims to use environment-friendly materials. KFC India has also chalked out plans to open 20 more outlets across the country by the end of 2022. Such instances are driving the demand for sustainable foodservice packaging in QSRs. Further, in October 2021, McDonald’s Canada announced its commitment to eliminating single-use plastic items from its restaurants. Paper straws are used in place of single-use plastic items in restaurants.
• Asia Pacific Accounts for the largest market share: In February 2022, CHUK, a compostable foodservice ware brand, joined quick commerce firm Blinkit, its sustainability partner. Blinkit delivers CHUK’s products to end consumers within 10 minutes, bridging the gap between end consumers and CHUK. 

The sustainable foodservice packaging market is moderately fragmented, as the major share of the market is still dominated by multiple major players. With new innovations in sustainable food service packaging and market demand, the market is attractive for the new players. Some of the key players in the market are Amcor Limited, Sealed Air Corporation, and Mondi Plc., among others.

Amcor was recently one of the organizations involved with the World Wildlife Fund’s ReSource: Plastic program; companies involved with the program cut their use of problematic plastic, including hard-to-recycle and single-use plastics, by 57% between 2018 and 2020, according to a report by the WWF.

Another recent report predicted the global sustainable packaging market will increase at a rate of 5.9% per year through 2027, reaching $351.4 billion, up from $263.8 billion today (per Research and Markets). Factors driving growth of the market include the increasing awareness among consumers toward environmental issues caused by packaging, stringent government regulations, demand from the food and beverage industry, consumer preference, and eco-friendly material initiatives.