Food and Beverage Packaging Market to Grow by USD 206.9 Billion from 2025 - 2029

The food and beverage packaging market plays a vital role in preserving product quality, ensuring food safety, and enhancing consumer convenience. With evolving consumer preferences, regulatory pressures, and sustainability goals, the market is witnessing rapid innovation and technological advancements.The market is set to expand by USD 206.9 billion between 2024 and 2029, growing at a CAGR of 5.4%.Companies are increasingly investing in smart packaging solutions, biodegradable materials, and innovative designs to cater to changing demands. While plastic remains a dominant material, the industry is gradually shifting toward eco-friendly alternatives to address environmental concerns.

For more details about the industry, get the PDF sample report for free

Market Segmentation

By Material

Plastic
Glass
Metal
Biodegradable Materials

By Application

Beverages
Food
Frozen Foods
Others

Regional Market

APAC (China, India, Japan, South Korea)
Europe (Germany, UK, France)
North America (Canada, US)
South America
Middle East and Africa

Market Insights by Material

Plastic Segment to See Significant Growth

The plastic segment will experience notable growth due to its versatility, durability, and cost-effectiveness. Key plastic materials include:

Polyethylene (PE): Low-density polyethylene (LDPE) is used for fresh produce packaging, while high-density polyethylene (HDPE) is preferred for containers like milk and juice bottles.
Polyethylene terephthalate (PET): Commonly used in beverage packaging.
Polypropylene (PP) & Polystyrene (PS): Widely used across various food packaging applications.

Innovations such as PLA packaging, meal kit packaging, and portion-controlled packaging are also gaining traction, driven by shifting consumer preferences.

Market Dynamics

Key Drivers

1. Increase in Beverage Consumption

The growing demand for beverages is a major driver for the packaging industry. For example:

The beer market grew by 0.1% in 2023, translating to 297 million 633 ml bottles—highlighting the need for durable and efficient packaging.
The shift toward bio-based, compostable, and plant-based packaging aligns with sustainability goals.

Additionally, automation in packaging, temperature control solutions, and meal kit packaging are emerging trends in the evolving market landscape.

Key Market Trends

1. Strategic Collaborations Driving Innovation

In February 2024, Amcor plc, Stonyfield Organic, and Cheer Pack North America partnered to develop an all-polyethylene (PE) spouted pouch—enhancing moisture and oxygen barrier properties for yogurt packaging.
The rise of eco-friendly packaging solutions, branding, and labeling advancements further fuels industry growth.

Key Challenges

1. High Costs of Sustainable Packaging Solutions

Sustainable packaging materials, such as biodegradable plastics like polylactic acid (PLA), cost 20-30% more than traditional options.
The food industry faces challenges in balancing cost-efficiency, sustainability, and regulatory compliance.
The packaging supply chain must adapt to e-commerce trends, meal kit solutions, and durable, portion-controlled, and recyclable packaging.

Get more details by ordering the complete report