The presence of only a few players, namely, MonoSol, LLC, WikiCell Designs Inc., JRF Technology LLC, and Tate and Lyle Plc., in the global market for edible packaging reveals its consolidated structure, states a new report by Transparency Market Research (TMR). The market is highly competitive at present and is anticipated to remain so over the next few years.
As per the research report, the? global edible packaging market, which offered an opportunity worth US$0.77 bn in 2016, is expected to rise at a CAGR of 6.90% during the period from 2016 to 2024, attaining a value of US$1.3 bn by the end of the forecast period. The food and beverage manufacturing segment has acquired the leading position in this market and is anticipated to remain highly attractive throughout the period of forecast.
Market for Edible Packaging to Remain Strong in North America
According to the report, North America, Asia Pacific, Latin America, Europe, and the Middle East and Africa are the prime geographical segments of the worldwide edible packaging market. It further present a regional analysis of this market on the basis of its performance in each of these regions. Among these, North America has emerged as the leading regional market for edible packaging, thanks to the U.S. being both, a prominent producer and consumer of edible packaging, across the world. The North America market for edible packaging held a share of more than 36% in 2016. The regional market is projected to remain on the top of the global market by the end of the forecast period, although with a slight decline in its share, which is attributed to its maturing state.
On the other hand, Asia Pacific is anticipated to offer a highly lucrative market to players in the near future, thanks to the rising awareness level of consumers regarding the benefits of edible packaging and the increase in their disposable income, which is impacting positively on their standard of living, fueling the demand for edible packaging in this region.
Urbanization and Changing Standard of Living to Have Great Influence on Demand for Edible Packaging
"The rising consumption of processed products, increasing household income, and the growing preference for hygienic and durable products among consumers have surfaced as the main driving force behind the growth of the global edible packaging market," says an analyst at TMR. The upswing in urbanization in emerging economies is another important factor that is pushing this market to grow steadily.
In addition to this, the rising awareness among consumers about the attributes of edible packaging, such as the easy handling of products despite maintaining their quality and the shelf life is likely to propel this market substantially in the near future. However, the high cost associated with the packaging machines and quality films utilized in edible packaging may hamper the smooth sailing of this market, in the years to come. Apart from this, the escalating usage of modified atmosphere packaging may also limit the market's growth to some extent in the near future, notes the study.