Food Packaging Market Size

Global Food Packaging Market size was valued at USD 247.8 Billion in 2023 and is poised to grow from USD 261.68 Billion in 2024 to USD 404.66 Billion by 2032, growing at a CAGR of 5.6% in the forecast period (2025-2032).

The growth of online grocery shopping, meal kit subscriptions, and food delivery services has raised the demand for durable and temperature-controlled food packaging solutions. In addition, the consumption of packaged and processed foods has increased due to the growth of the urban population and the global middle class, which has driven the global food packaging market growth.

Growing urbanization and changing lifestyles have significantly altered the need for food packaging in developing countries across the globe. As more people live in cities with busy schedules, the need for convenient, on-the-go packaging solutions is growing. For example, the market for portion-controlled snack packs, microwaveable containers, and ready-to-eat meal packaging has expanded dramatically in recent years. Due to regulations and consumer demands for eco-friendly packaging options, sustainability has emerged as a major motivator. Consequently, packaging designs that are recyclable, use less plastic, and are made of biodegradable materials have improved.

• For instance, in November 2024, the U.S.-based packaging company Greif unveiled a Coated Recycled Paperboard (CRB) specifically designed for the food industry, marking a significant advancement in environmentally friendly packaging solutions. The notable recyclable and recycled features of this new product demonstrate the company's commitment to sustainability and the circular economy. The expansion of plant-based materials like polylactic acid (PLA) and packaging made from mushrooms further demonstrates the industry's shift toward environmental responsibility.

Can AI Help Reduce Food Waste Through Smarter Packaging?

The need for better supply chain management, less waste, and more safety is driving the growth of the AI in food packaging sector. AI is being used to track freshness, predict spoiling, and enhance packaging design. To incorporate AI into food packaging, Nestlé partnered with Spoiler Alert, a U.S. based platform for managing food waste, in February 2024. The collaboration focused on optimizing food packaging by utilizing AI to predict product shelf life and cut down on excess inventory. AI algorithms analyzed real-time data from smart packaging sensors to track freshness, temperature variations, and supply chain movements.