Organic Food Packaging Market

The word “organic” is regulated by international standards as well as by individual national regulations. These regulations include requirements for the production, processing and labeling of organic foods. The food products described by this term must be produced organically, which means that they must not contain genetically modified substances, pesticides, fertilizers and must not use any kind of growth hormones or chemicals. during production.

Since organic products are considered premium products and have a higher price tag than their conventional counterparts, the packaging of these products should reflect the same quality standards. When consumers buy organic food, they expect to buy an environmentally friendly product, including the packaging. The packaging material for organic food should be environmentally friendly, ecologically sustainable and have a high degree of recyclability and possibly include graphic design work characteristic of organic products for effective advertising.

For special packaging of organic food products, labeling is done to give the consumer assurance that the products they buy are produced in accordance with organic farming and processing regulations such as European Directive 834/2007 . Certification agencies for organic food packaging include the Canadian Food Inspection Agency (CFIA) Organic Label, the United States Department of Agriculture (USDA) Organic Label, the Label of the EU organic farming and national organic labels (eg France).

Growing organic industry

The organic industry has experienced remarkable growth in recent years. According to the USDA (United States Department of Agriculture), consumer demand for organic products continues to show double-digit growth. Organic products are now available in nearly 20,000 health food stores and nearly 3 out of 4 conventional grocery stores. According to industry statistics provided by the USDA, organic sales account for over 4% of total sales. food in the United States. Demand for organically grown foods is increasing among American consumers. According to the Nutrition Business Journal, fresh fruits and vegetables have been the best-selling organically grown products since the organic industry began retailing over 30 years ago. Growing consumer demand for organic products means that more and more companies are focusing on and incorporating organic and all-natural food products into their portfolio, which in turn is accelerating the demand for organic food packaging.

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Increasingly health-conscious demographics

Globally, health awareness is on the rise as consumers are increasingly aware of the health risks associated with the use of conventional products. In addition, the increasing prevalence of chronic diseases such as diabetes, high blood pressure, cancer, among others, has raised serious concerns among consumers globally. Consumers quickly tend to consume natural and organic foods with few chemicals.

Concentration of competitors on market knowledge

Food manufacturers today are focused on product differentiation. The organic industry has opened up opportunities for food manufacturers to establish their pillars in the market. The demand for organic products is increasing at a faster rate, mainly in the western regions, due to a growing health awareness. Manufacturers are taking advantage and attracting customers by providing special packaging for organic products with organic labeling and informative packaging regarding organic food. Additionally, organic food manufacturers market their product saying the product is chemical-free, all-natural, organic, and non-GMO. In addition, manufacturers run advertisements full of information regarding the benefits of organic products and the health risks of consuming conventional food products.

Segmental overview

Paper-based packaging: safe, recyclable and sustainable

Paper-based packaging is considered safe for organic products because it is recyclable and environmentally sustainable. The demand for paper-based packaging is high for fruit and vegetable packaging. Cardboard, paper-based cardboard, among others, are widely used in the packaging of organic food products. The second preferred packaging for organic products is the bioplastic packaging, which is made from bio-based materials such as cellulose. The demand for this packaging is increasing, due to its recyclability and its harmlessness with regard to environmental concerns. Due to the increasing regulation of plastic-based packaging, manufacturers are increasingly focusing on environmentally friendly packaging. Bioplastic packaging is expensive compared to other packaging; therefore, the usage is less compared to paper-based packaging and the like.

Regional overview

High consumption of organic products in western regions

The demand for organic food packaging is high in western regions such as North America and Europe, due to the high consumption of organic food products compared to other regions. According to FiBL (Organic Agriculture Research Institute), in 2018 the total organic food market was around $ 111 billion, with the United States, Germany and France being the top three contributors to the market. world of organic food products. The United States contributed $ 46.5 billion, Germany $ 12.5 billion, and France $ 10.4 billion in 2018.

Asia-Pacific exports organic food products to European economies

Asia-Pacific is also experiencing substantial growth in the organic industry; countries such as Australia and New Zealand in the region have a penchant for organic food, which is expected to boost demand for organic food packaging in Asia Pacific. Most of Asia-Pacific countries export organic food to European countries because consumption is high in Europe; in addition, Asia-Pacific consumers are price sensitive; therefore, they opt for conventional and inexpensive products rather than expensive products.

Key players

The main players operating in the organic food packaging market are Amcor (Australia), Mondi Group (Austria), Sealed Air Corporation (United States), Ball Corporation (United States), Tetra Pak (Sweden), Crown Holdings Inc. (United States), BASF (Germany), Huhtamaki Oyj (Finland), Westrock (United States), Smurfit Kappa (Ireland), Sonoco Products Company (United States), Evergreen packaging (United States) , Elopak (Norway), Winpak Ltd. (Canada), Berry Global (United States), Printpak (United States), Paperfoam (Netherlands), Sustainable Packaging Industries (United States), GWP (England), Swedbrand Groups (Hong Kong), among others.

Most of the players engaged in the manufacture of organic food packaging are based in North America and Europe to achieve significant sales, as consumers in these regions are more inclined to purchase organic food products than other regions. . However, the demand for organic products in Asia-Pacific is also gradually increasing. Players who are planning to launch new biologics can focus on Asia Pacific as the competition is quite low in this region compared to North America and Europe.

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Segmentation of the organic food packaging market

By type of packaging

Flexible packaging
Paper and cardboard packaging
Rigid plastic packaging
Glass packaging
By application

Fruits and vegetables
Bakery products
Confectionery products
Dairy products
Ready meals
Meat, fish and poultry
By region

North America

United States

Great Britain
The rest of europe
Asia Pacific

South Korea
The rest of europe
Central, South America and the Caribbean

Rest of Central and South America and the Caribbean
Middle East

Saudi Arabia
United Arab Emirates
Rest of the Middle East

South Africa
Rest of Africa

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