Egg Packaging Market Expected to Expand at a Steady 2022-2030

by ravi on Apr 12, 2022 Business 22 Views


The global egg packaging market size is expected to grow from USD 1,750.3 million in 2020 to USD 2,240.3 million by 2027, at a CAGR of 4.2% from 2021 to 2027. Egg packaging plays an important role in the supply chain of the egg industry. Its functions vary based on the packaging materials and packaging type. Egg packaging can be divided into three major categories in terms of packaging as primary, secondary, and tertiary. The primary packaging is directly in contact with the eggs to be packaged, while the secondary and tertiary packaging acts as a protective barrier during transit. The egg packaging market uses plastic polymer resins and paper materials as standalone products or in combination to form easily yielding packaging products. Paper-based materials are gaining market share over plastic materials due to stringent regulations banning plastic usage in growing and developed nations.

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Globally, a majority of the consumers are willing to spend more on health and fitness clubs, with the health aspect playing a key role in driving the growth of the egg packaging market across the world. The rising number of gyms and health clubs with personal training and the latest fitness equipment attracts consumers, likely influencing the higher consumption of eggs globally.

In addition, the increasing popularity of having eggs for breakfast and several initiatives for healthy and nutritional diets are expected to drive the market for egg packaging along with the egg consumption rate globally. Moreover, with the growing number of challenges among egg packaging vendors, most of them are looking to reduce the cost of packaging materials and optimize profits. However, stringent EMISPDF in government regulations worldwide against plastics and efforts to attain sustainability are likely to hamper the global egg packaging market during the forecast period. Therefore, environmental concerns have forced several egg packaging vendors to take steps and use bioplastics or paper-based materials for egg packaging.

COVID-19 Impact on the Global Egg Packaging

A majority of the poultry producers around the world are being affected by the ongoing COVID-19 pandemic. Still, the impact varies significantly from market to market in different countries across the globe in 2019 and 2020. In Q2 2020, countries across all the regions witnessed different stages of the viral outbreak and disease progression, with some relaxation in restrictions, while others are yet to feel the full effect of the pandemic. In addition, the government in a significant number of countries has been reasonably successful in halting the disease’s spread, allowing economies to continue with a degree of normality. Vendors in the global egg industry have suffered a series of challenges related to their operations and productions.

In addition, the global slump in restaurant dine-ins across the world during Q1 and Q2 2020 pushed egg packaging industries across all regions into a major slowdown in production and demand. On a global scale, APAC and Europe were the most significantly impacted regions across the globe. This is attributed to the high number of COVID-19 cases recorded in these regions, especially in Italy, Spain, Germany, and France in Europe, and China, Japan, and South Korea in the APAC region. Moreover, the Government of China has enforced the shutting down of all restaurants and cafes in the country from Q4 2019 to Q2 2020, which, in turn, has affected the growth rate of the egg industry in China during the same period.

Global Egg Packaging Market Dynamics

Drivers: Mounting Production of Eggs

The high affordability and health benefits are the major drivers for the rising demand for eggs worldwide. Eggs are a popular choice of protein for most global populations as they are affordable and healthy. Furthermore, egg yolks are a significant source of vitamins, minerals, and fat since they contain fat-soluble vitamin D and are naturally high in choline. Choline promotes normal cell activity, liver function, and the transportation of nutrients throughout the body. It also contributes to fetal brain development and helps prevent congenital disabilities. So, to promote these nutritional benefits, major countries conducted several global campaigns to promote egg consumption in 2019. In line with the growing number of promotional campaigns, the consumption of eggs increased significantly by 6.9% in 2019. Furthermore, several large-scale egg producers expect a surge in demand estimated to substantially drive the global egg packaging market over the next few years.

Restraints: Fluctuations in Raw Material Prices

Plastics and paper materials are predominantly used raw materials in the global egg packaging market. In addition, consumer preferences and changing government regulations have forced several major vendors in the egg packaging market worldwide to make changes in their production process and find raw material alternatives for plastic. Since the raw materials for egg box manufacturing are readily available across major countries worldwide, they have taken away a big chunk of the operating cost for several players in the egg packaging market across regions. This is majorly due to poor raw material management and sourcing from egg packaging vendors, which has even led to significant financial losses in recent years. Globally, raw materials generally and widely preferred by a majority of the globally established vendors in the egg packaging market include virgin paper pulp, water paper, plastic, and cardboard.

Opportunities: Increasing Concerns Over Health & Fitness

With the increasing number of irremediable diseases worldwide, several food manufacturers have been taking up the important role of stemming the growing burden of nutrition-related diseases. In addition, several medical organizations and councils encouraged and insisted on consuming fresh vegetables, fruits, and eggs every day, which can increase the nutrition and immunity to withstand various diseases. Additionally, in 2019, concrete actions these food product producers took included global public commitments to address food reformulation, consumer information, responsible marketing, healthy lifestyles, and public-private partnerships.

Furthermore, the rising global burden of nutrition-related diseases called for concerted action with food producers, health ministries, and packaging vendors. Several countries in Africa witnessed an urgent need to resolve acute and chronic hunger, malnutrition, and undernutrition.

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Scope of the Report

The study categorizes the egg packaging market based on material and product at the regional and global levels.

By Material Type Outlook (Sales, USD Million, 2017-2027)

  • Paper
    • Molded Fiber
    • Paper Board
  • Plastic
    • Polystyrene
    • PET
    • PP, PVC, PE
    • Others

By Product Type Outlook (Sales, USD Million, 2017-2027)

  • Cartons
  • Trays

By Region Outlook (Sales, USD Million, 2017-2027)

  • North America (US, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
  • The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

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The paper segment is projected to account for the largest market share by material type

Based on material type, the global egg packaging market is divided into paper and plastic. In 2020, the paper segment accounted for the largest market share of 57.5% in the worldwide egg packaging market. Paper packaging eliminates the breakage of products throughout the entire supply chain, including transportation, distribution, and storage. Globally, several egg farmers prefer to adopt paper material packaging because it prevents the loss of quality, moisture, and rotting of eggs. Trays, cartons, and family packs are widely preferred types of paper-based packaging used for eggs worldwide. With the rising consumption of eggs, the demand for sustainable paper-based packaging is expected to increase significantly in the coming years in several emerging global markets. Globally, the increasing concerns related to the plastic ban are expected to bolster the market for paper-based packaging products in the egg industry. Further, several egg packaging vendors are actively involved in enhancing their product designs with suitable paper materials that are highly attractive to customers.

Europe accounts for the highest CAGR during the forecast period

Based on the regions, the global egg packaging market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Europe is estimated to hold the highest CAGR of 5.3% in the global egg packaging market during the forecast period. The egg industry in Europe has undergone several transitions towards adopting eco-friendly production processes due to the increasing concerns about one-time usable plastic across the packaging industry. Further, Europe has the highest level of sensitivity and awareness in providing sustainable and eco-friendly packaging preferred by a majority of the population. Additionally, several food safety authorities in major developed economies like Germany, Belgium, and the UK have proposed updates in packaging standards, which is expected to drive innovations among major vendors in the egg packaging industry in Europe.

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Moreover, the demand for protein-rich diets has increased among the majority of the people in Europe. Predominantly, the consumption of eggs has witnessed significant growth across several rapidly urbanizing countries in Europe. The higher consumption of eggs continued to drive the demand for egg packaging materials in several European markets, especially in the UK. However, consumers across several European countries are seeking affordable and diverse protein sources along with their diet. Therefore, the per capita consumption of eggs is expected to grow faster during the forecast period, making Europe a highly potential market for egg packaging services.

Key Market Players

The major player in the egg packaging market are Brødrene Hartmann, CKF Inc., Celluloses De La Loire, Dispak Limited, Huhtamaki Oyj, Ovotherm International Handels GmbH, Mauser Packaging Solutions, Pactiv LLC (Reynolds Group Holdings Ltd.), Dynamic Fibre Moulding Ltd., Sanovo Technology Group and Sonoco Products Company.

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