Retort Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Retort Packaging Market size is estimated at USD 5.45 billion in 2024, and is expected to reach USD 7.75 billion by 2029, growing at a CAGR of 7.29% during the forecast period (2024-2029).

Key Highlights

• There is a rising demand for ready-to-eat meals as a result of a number of causes, including changing lifestyles, long workdays, and increased urbanization. Many customers are searching for quick and simple meal options that can be made in a matter of minutes without compromising on taste or quality. For consumers who are busy and want to save time and effort, ready meals provide an easy, simple answer. Retort packaging has expanded due to products in pouches and trays since many consumers choose packaging options for on-the-go consumption. Retorting purses and bags makeup about 60% of all food packaging worldwide, according to the Flexible Packaging Association.
• The US Census Bureau reports that from September 2022 to December 2022, there was a rise in the monthly retail sales of food and drink in the US. In September 2022, the sale was valued at USD 78,216 million. In December 2022, it was worth an astounding USD 88,432 million. In the coming years, it is anticipated that this tendency will continue. Retort packaging demand is therefore anticipated to expand during the projection period as a result of the market's progressive increase in retail sales demand.
• Consumers' initial hesitation of overpaying for pets is progressively giving way to trends like pet humanization and sensitization, which are clearly shown in the sharp increase in adoption rates. Retort pouches are becoming more and more popular all over the world as a result of the expanding use of flexible packaging techniques in a variety of sectors, including retail, pharmaceutical, food and beverage, and pet food.
• However, one key difficulty in the retort packaging industry is the high cost of manufacturing retort packaging materials. Retort packaging is strong and able to survive high temperatures since it is comprised of plastic, aluminium, and other materials. However, the price of these materials and the need for specialized machinery and production methods to create them drive up manufacturing prices. Adopting this technique may be challenging for small enterprises with tight resources due to the high cost of retort packing. Manufacturers are searching for ways to improve the efficiency and cost-effectiveness of the retort packaging process to meet cost issues.
• Due to COVID-19 supply chain issues and earlier lockdowns, finding paper boards has grown increasingly challenging on a global scale. In light of this, a hike in the price of paper packaging began in 2020 and is still in force today. Since then, these problems have gotten worse, and because of Russia's interference in the Ukrainian situation, the price of raw paper materials has increased to record levels. Economic sanctions imposed on Russia by a number of countries have caused a rise in commodity prices, interruptions in the supply chain, and effects on several global markets as a result of the war between Russia and Ukraine. The conflict between Russia and Ukraine has had a profound effect on people's life and means of subsistence, as well as greatly altered trade patterns. The price of plastic resins is increasing across the whole global supply chain as a result of rising energy costs and oil prices. However, the polymer industry was dominated by Russia's invasion of Ukraine in 2022. A major challenge for market vendors is the varying cost of raw materials on the domestic market as a result of fluctuations in the price of oil and gas.

Retort Packaging Market Trends

Beverages to Witness Significant Growth Rate

• Flexible packaging solutions, such as retort packaging, play a crucial role in reducing waste and allows online brands to innovate their packaging to enhance the e-commerce experience. There is a high demand for retort packaging in the beverage sector due to factors such as ease of handling and reduced production and shipment costs.
• Made from heat-resistant laminated plastic, retort pouch packaging, a form of flexible packaging, plays a crucial role in ensuring the reduction of beverage and product waste while allowing online brands to innovate their packaging to enhance the e-commerce experience simultaneously.
• Lightweight packaging material is essential for beverages, particularly in pouches. The improving designs of pouches increased their applications, attracting more consumers to purchase fruit drinks, nutraceuticals, meal replacement shakes, fibre supplements, and cold-pressed juices.
• However, the quality of beverages is affected by pH, storage temperature, pressure, and contaminants' presence. Retort pouch packaging sterilizes beverages by preserving the quality and safety of beverage products with pH levels between 4.0 and 7.0 without using preservatives. Companies are increasingly employing packaging products with properties such as barrier resistance (to heat, moisture, and bacteria) and to eliminate possible oxidation.
• Consumers are becoming increasingly conscious of health and wellness. From juice in the morning to energy drinks, consumers now are spending more on products that provide refreshments that are well within the wellness trend. This has created a high demand for cost-effective packaging solutions in the beverage segment.
• In the first quarter of 2022, consumer spending on food and non-alcoholic drinks amounted to over GBP 29 billion (USD 35.26 billion), according to the Office for National Statistics (UK). The amount of money spent by households in the first quarter of 2019 was around GBP 27 billion (USD 32.8 billion). Increased sales and manufacturing of retort drinks might result from rising consumer expenditure, which would increase the need for packaging materials. Companies in this industry may be able to boost their manufacturing capabilities and produce cutting-edge packaging solutions as a result of the rising demand for retort beverage packaging.

North America is Expected to Hold Significant Market Share

• Increased urban population, busy work life, growing single households, and increasing spending power of the population have boosted the growth of readymade, which are normally packaged in stand-up retort pouches, thereby also acting as key drivers for the growth of the retort pouch industry.
• Retort packaging has been rapidly gaining popularity, as it is a highly convenient and portable packaging solution. Many shoppers in the country prefer flexible, stand-up pouches over traditional, rigid packaging. Consumers have driven demand for stand-up pouches exponentially over the past decade, whether for snack food, beverage, baby food, or industrial oils and lubricants.
• In the United States, the Department of Health and Human Services regulates food, pharmaceutical, and nutraceutical products consumed by humans and animals. This is done through either the Food and Drug Administration (FDA) or the US Department of Agriculture (USDA). The regulation used for retort packages is quite demanding under the highest temperatures and requires the materials and processes to be listed under FDA regulation 21 CFR 177.1390.
• The growing adoption of flexible packaging techniques across numerous industries, including retail, pharmaceutical, food and beverage, and pet food, is propelling the use of retort pouches in Canada.
• In the country, about 75% of the food supply comes from packaged, processed food items. Also, there is a change in eating habits, and the country is witnessing an increase in consumption of ultra-processed, ready-to-consume foods, which are typically energy-dense with high fat, sugar, and sodium content. These food are mostly packed in retort pouches as it provides an effective technique for packaging food products that require extended shelf life.

Retort Packaging Industry Overview

The retort packaging market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable packaging, many companies are increasing their market presence by securing new contracts and by tapping new markets.

In June 2022, Stora Enso and Tetra Pak joined forces on a beverage carton recycling solution. A design for a recycling plant at Stora Enso's Langerbrugge location in Belgium is part of the joint feasibility study. The Benelux market receives around 75,000 tonnes of beverage cartons annually. More than 70% of these have already been collected for recycling.

In April 2022, ProAmpac introduced its distinctive ProActive PCR Retort pouches. ProActive PCR Retort pouches are made for packaging pet and human food, and they are both FDA and EU-approved for food contact in retort applications. In order to reduce the usage of virgin resins in the packaging, ProActive PCR Retort pouches have a 30-weight percentage or higher PCR content. Additionally, these inventive pouches are Plastics Packaging Tax (PPT) compliant for the United Kingdom (UK).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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