According to the Market Statsville Group (MSG), the global punnet packaging market size is expected to grow from USD 1,363.2 million in 2022 to USD 2,356.1 million by 2033, at a CAGR of 5.1% from 2023 to 2033.
The increased consumer demand for fresh produce and the growth of the food and beverage industry drive the demand for the punnect packaging market. Another key factor contributing to the growth of the punnet packaging market is the opportunity presented by the transportation industry. As more and more consumers demand fresh produce that is locally sourced and environmentally friendly, transportation of these goods becomes a key consideration. Punnet packaging, which is typically made of sustainable materials such as cardboard or paper, is an ideal solution for transporting fruits and vegetables. These packages are sturdy, protective, and easily stacked and transported, making them a popular choice for businesses that transport produce long distances. In addition to the transportation industry, punnet packaging is also popular in the retail sector. Supermarkets and grocery stores often use punnet packaging to display and sell fresh produce, providing an attractive and easy-to-use packaging option for consumers. This has led to increased demand for punnet packaging from both retailers and consumers, further driving growth in the market.
The demand for punnet packaging is decreased in the year 2020 due to the lockdown imposed by the government and low demand from the food & beverages industry. COVID-19 has adversely affected the punnet packaging industry due to halted manufacturing and a massive reduction in demand for luxury and non-essential services globally. Also, disrupted supply chains played a major role in the declining punnet packaging market growth amid the pandemic. COVID-19 crisis had positive and negative impacts on the packaging industry, mainly due to the closure of physical retail stores globally. However, the availability of online retailing has absorbed the high impact of this shutdown. The requirement for e-commerce-specific packaging is likely to remain strong, although e-commerce companies would have to focus on protecting goods and sanitizing packages. In addition, the pharmaceutical and food packaging industry is on the frontline within the global packaging market amid the pandemic, owing to the demand for essential products such as groceries and fresh food mainly from local e-retail sites.
Rising demand for exotic packaged fruits and vegetables owing to the ever-rising population and personal disposable income is responsible for inducing growth in the demand for punnet packaging. Consumers are seeking for healthier and more nutritious options for their diets, which has fueled the demand for fruits and vegetables. Various economies import fruits and vegetables from other producer countries to fulfill the growing demand for fruits and vegetables, which fosters the growth of the punnet packaging market. Furthermore, European customers are becoming increasingly interested in new flavors and fruit kinds. Most imports to Northern Europe result in a greater market value for exotic fruit. Every year, more exotics are imported, with a value that outpaces the number of imports. The market is gradually improving and creating a high demand for packaging. In Europe, exotic fruits and vegetables such as fresh lychees, passion fruit, carambola, and pitahaya saw a 40 percent growth in import value over the previous five years, reaching USD 162.08 million (142 million euros) in 2019. Other exotic fruit, primarily pomegranates, increased by 21% in 2019, reaching a total value of US$ 230.56 million (202 million euros). Thus, the high demand for exotic fruits and vegetables is driving the demand for the punnet packaging market.
The growing concerns regarding plastic use and its harmful environmental impact are the prime factors that hamper market growth in the forecasting years. Typically, the punnet packaging trays and containers are made up of various plastic materials such as PP, PE, and PET. The use of plastic materials in a food packaging solution contains harmful components and is complex to dispose of due to their non-biodegradable nature. For these reasons, several governments are enforcing strict regulations concerning the ban on such plastic materials in packaging, including food packaging. Therefore, this factor limits the adoption of plastic-based punnect packaging trays and containers.
According to the Centre of Health, Environment & Justice, PVC packaging has been prohibited or restricted in several countries, such as Canada, Spain, South Korea and the Czech Republic. Some U.S. cities, such as Rahway, New Jersey, and Glen Cove, New York, inhibited plastic products used in food packaging or containers. Also, in January 2020, China’s National Development and Reform Commission (NDRC) and the Ministry of Ecology and Environment released a plan to reduce the production and sale of single-use plastics in the country. As per the plan, single-use and non-degradable plastic bags that are less than 25 microns thick will be banned in major Chinese cities by the end of 2020 and across the country by 2022. Hence, the rising enforcement of strict government regulations regarding plastic packaging in the food processing industry may hamper market growth worldwide.
The surging e-commerce industry will pave the way for the growth of the punnet packaging market. For instance, as per the United Nations Conference on Trade and Development (UNCTAD) 2018 data, the United States recorded e-commerce sales of USD 8,640 billion, the United Kingdom witnessed USD 918 billion in e-commerce sales, and USD 807 billion in e-commerce sales in France. The growing demand for the e-commerce industry will create lucrative opportunities for market growth over the forecasting period. As in the e-commerce industry, punnet packaging is easy-to-use, cost-effective, and is required to pack varied products such as fruits, vegetables, and electronics.
Additionally, consumers are very specific regarding the quality of the products, and hence, the e-commerce industry faces various challenges in the transportation of temperature-sensitive and delicate creations. Punnet packaging maintains the quality of the products and provides safe delivery solutions. Punnet packaging assists e-commerce service providers in satisfying the customers' needs and meet packaging requirements. The aforementioned factor will positively promote the market's growth in forthcoming years across the regions.
The study categorizes the punnet packaging market based on material, product, capacity, packaging type, distribution channel, and application area at the regional and global levels.
Based on the material, the market is divided into paper, molded fiber, and plastic. The plastic segment is further bifurcated into polystyrene (PS), polypropylene (PP), polyethylene terephthalate (PET), polylactide (PLA), polyvinyl chloride (PVC), and others. The plastic segment accounted for the largest market share of around 77.8% in 2022. This is because plastic punnets are lightweight, durable, and can be produced in various shapes and sizes to suit different packaging needs. In addition, plastic punnets are often transparent or semi-transparent, which allows consumers to easily see the contents of the package, making them a popular choice for fresh produce packaging. However, there has been a growing trend towards sustainable packaging options in recent years, which has led to an increase in demand for paper and cardboard punnets. These materials are biodegradable, recyclable, and made from renewable resources, making them a more environmentally friendly option than plastic punnets. As a result, the punnet packaging market's paper and molded fiber segments are expected to witness a significant growth in the forecast period, driven by increasing consumer demand for sustainable packaging solutions.
Based on the regions, the global punnet packaging market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific accounted for the largest market share of around 43.2% in 2022. In countries such as India and China, which have some of the largest populations in the world, there has been a significant increase in demand for fresh produce as consumers become more health-conscious and seek out locally sourced products. This has increased demand for punnet packaging solutions to protect and transport the produce. In addition, the food and beverage industry in the Asia Pacific region is experiencing rapid growth, driven by factors such as rising incomes and changing consumer preferences. This has increase in demand for high-quality packaging solutions, including punnet packaging, to help preserve the freshness and quality of the products.
The punnet packaging market is a significant competitor, and extremely cutthroat in the sector is using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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