Europe Molded Pulp Packaging Market Growth & Trends
The Europe molded pulp packaging market size is expected to reach USD 1.43 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.6% from 2020 to 2028. Rising usage of molded fiber for the packaging of eggs and fruits in Europe is expected to fuel the growth of the market. The European Union (EU) is amongst the top four egg-producing regions globally. As per the European Commission, the overall egg production in the region was 6,313 thousand tons in 2020. Whereas, according to International Egg Commission, the average egg consumption in the European Union is 210 eggs per person per year. These factors are expected to fuel the demand for molded pulp packaging in the region.
The EU is focusing on banning the use of single-use plastic products, along with foam, in a variety of food packaging and foodservice applications and electronics and industrial applications. Supportive regulatory policies promoting the use of sustainable packaging solutions are expected to augment the growth of the market during the forecast period. Increasing adoption of sustainable practices by businesses in their supply chain activities is anticipated to increase the penetration of molded pulp products in European countries. For instance, in March 2021, AR Packaging introduced a fiber-based barrier tray for fresh vegetables and fruit in order to attract retailers and food producers in search of plastic alternative packaging solutions. Pulp made from recycled paper products is further increasingly being promoted in the region to reduce the burden on virgin wood pulp.
Europe Molded Pulp Packaging Market Report Highlights
- The non-wood pulp source segment is expected to register the highest CAGR of 6.2% over the forecast period. Increasing concerns over deforestation leading to challenges associated with the availability of wood pulp are expected to support the demand for non-wood pulp sources such as bagasse, rice straw, flax, and hemp
- Market players are focusing on new product development and mergers & acquisitions to strengthen their market presence. For instance, in January 2021, Br?drene Hartmann A/S acquired Gotek-Litar JSC, headquartered in Russia and involved in producing molded fiber packaging. The acquisition was a part of the former’s strategy to increase its foothold in Europe in the market
- The thermoformed packaging type segment is expected to register the fastest CAGR of 6.8% over the forecast period owing to thin walls, a smoother finish, and better dimensions of thermoformed pulp packaging. The products offer alternative solutions to plastic thermoformed packaging and are thus expected to gain traction
- The food packaging application segment held the second-largest revenue share in 2020. Molded pulp trays and clamshells are widely used for packaging eggs, fruits, vegetables, and meat and poultry products in the fresh food industry, thus supporting the segment growth
- The Scandinavian region is expected to expand at a CAGR of 5.7% over the forecast period. The region is characterized by the presence of countries that are major producers of pulp and pulp-based products. Finland and Sweden were ranked among the largest producers of these products in 2020 in the European region, thereby fueling the growth of the market