The global cheese packaging market is nearing a valuation of USD 3,706.5 million in 2024. The industry is projected to reach a value of USD 5,577.9 million by 2034. Sales are projected to rise at a CAGR of 4.2% over the forecast period. The revenue generated by cheese packaging in 2023 was USD 3,519.4 million. The industry is anticipated to exhibit a Y-o-Y growth of 5% in 2024.
Boxes are anticipated to gain a 4.5% growth rate during the assessment period because they provide a sturdy and protective outer layer that shields the cheese from external elements during storage and shipping. Trays and flow wrap sales are inclining as they are the most suitable format for cheese packaging and preserving freshness. This packaging format offers convenient portable and maintains the safety of the products, which further boosts the demand.
eCommerce and retail sales are following a bullish trend among the distribution channels in the cheese packaging market. eCommerce is likely to capture a 26.4% share by 2034, driven by its increasing penetration, accessibility, and convenience. eCommerce offers a variety of choices for selection from a wide range of brands, and products which help consumers in better and easier shopping experience.
Flourishing retail is anticipated to contribute USD 519.6 million by the forecast period. The expansion of the retail section due to the increasing number of hypermarkets, supermarkets, and convenience stores is influencing the sale of cheese packaging.
Based on material, plastic is the relatively preferred material in cheese packaging due to its flexibility and versatility, which is currently holding USD 1.4 billion in revenue. Plastic packaging provides an effective barrier to cheese. It is transparent and lightweight, which makes it ideal for cheese packaging.
Paper is projected to hold around 25% of the market share by 2034, driven by its sustainably, innovations in coating, compliance with regulations, and consumers’ inclination towards eco-friendly packaging. of the market share by the end of 2034 driven by its sustainably, innovations in coating, compliance to regulations, and consumer’s inclination towards eco-friendly packaging.
Key Industry Highlights
Reclosable Flexible Packaging Ensures Product Protection and Prolonged Shelf Life
Cheese companies need to focus on differentiating their products to captivate the consumer’s attention on the shelf. Cheese packaging poses a challenge in packaging different varieties of cheese, which need unique storage solutions. Reclosable packaging is an ideal solution for cheese packaging that overcomes the challenge of product protection.
Reclosable packaging solutions provide barrier properties that protect the cheese from external factors and maintain the product’s freshness. Manufacturers are incorporating this packaging with closure technologies to keep the accurate moisture and remove excess oxygen and humidity. These properties offered by reclosable packaging will enhance the product shelf life retaining the integrity of the product.
The future outlook of reclosable packaging is positive as they are convenient to operate with better gripping and proper closing of all types of packages. Companies can also utilize the double lock closure technology for improved effectiveness of packaging. This technology ensures slower moisture transmission rates, which is likely to maintain the extended period of soft textured cheese compared to other packaging.
Escalating Preference for Eco-conscious Packaging Materials
The rising focus on sustainability and changing consumer preferences combined with strict packaging regulations significantly influence the cheese packaging market. Rising eco-consciousness among consumers, discussions on climate change, and circular economy goals are shifting the focus over the recyclability of materials. Certain regulations regarding the usage of plastic due to increasing plastic pollution are pushing governments to implement the laws.
Regions like Europe and North America have made and proposed several legislative laws to achieve the circular economy goals. For instance, the European Union has packaging and packaging waste regulations, a single-use plastic directive, and an EU waste framework directive that compels the use of sustainable materials. Countries like the UK and Spain have imposed taxes on plastic use. Consequently, brands are seeking sustainable business operations and packaging choices and working towards the reduction of impact on the environment.
Manufacturing companies are exploring alternatives to traditional materials, such as bioplastics that are made from natural materials, such as sugarcane, corn, or cellulose, that are biodegradable and compostable. Since recyclability has become an important factor, the application of mono-material packaging like mono PE and mono PP will support the transition towards recycle-ready packaging.
Using recycled content in packaging is an essential aspect that contributes to the circular economy and reduces plastic taxes. Companies like Amcor plc are offering solutions like recycle-ready packaging and mono-material packaging along with offering services for carbon footprint reduction for business.
Non-Recyclable Packaging Materials are Key Impediment for the Market
Cheese packaging performs a wide range of applications and requires specific barriers to preserve the product. It must have antic leak properties and be compatible with high-speed production. Manufacturers were using films such as OPA/P and OPA/PEP that perform better in cheese packaging. These materials have challenges in recycling, which is a key factor hampering their adoption. As sustainability is a key factor that manufacturers need to address, they need to develop bio-based materials or materials films that have minimum impact on nature.
Country-wise Insights
The section below covers the industry analysis of the cheese packaging market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, South Asia, Europe, East Asia, and others, is provided. Brazil is anticipated to remain the lead in Latin America, with a value share of more than 30% through 2034. In East Asia, India is projected to witness a remarkable CAGR of 5.1% by 2034.
Booming Pharmaceutical Industry in the USA Creates Opportunities for Cheese Packaging Manufacturers
The United States currently captures a significant share in North America, and it is anticipated to reach USD 924.8 million by 2034. Consumers in the United States consume more dairy products, including cheese. The escalating demand for ready-to-eat meals and fast foods that mostly incorporate cheese is rising in the country. The USA is among the companies adopting innovative technology for cheese packaging, such as modified atmosphere packaging. Consumers demand a variety of cheese that needs smart and effective packaging solutions for preservation.
The USA reflects a strong position in milk production, which is likely to upscale the consumption of dairy-based products in the country. Additionally, the country has a significant demand for convenience and ready-to-eat food that incorporates cheese. Consequently, the demand for cheese packaging is bourgeoning in the country to maintain the freshness and quality of packaged cheese.
Expansion of Food Service Industry in India Fuel Sales of Cheese Packaging
India is anticipated to generate incremental opportunity worth USD 86.8 million and capture a 38.6% value share by the forecast year. The food service market in India is estimated to grow by 11.19% CAGR during 2022 and 2028, as reported by the India Brand Equity Foundation (IBEF). The remarkable growth and expansion of the food service sector in India will boost the demand for cheese packaging solutions in the future.
The growth in disposable income and urbanization has led people to eat more from outside. This directly impacts the expansion of cheese packaging in India, creating growth opportunities for manufacturers.
Significant Cheese Consumption in UK Propel Cheese Packaging
The United Kingdom is anticipated to generate revenue worth USD 174.1 million and expand at a 2.8% growth rate by the assessment year. The higher cheese consumption in the UK is impacting the sales of cheese packaging significantly.
Manufacturers are responding to the European consumers’ demand for fresh and soft cheese products with extended shelf life. Companies are also implementing eco-friendly and convenient packaging options like cups, bags with resalable closures, trays, etc., for cheese packaging. The combined effects of these factors are responsible for the revenue growth in the cheese packaging industry in the United Kingdom.
Competitive Landscape
The cheese packaging industry is evolving with the help of technology and automation that makes the process more efficient and accurate. Smart packaging with freshness indicators and QR codes for traceability is another trend that is gaining popularity. These innovations not only enhance the consumer experience but also offer manufacturers insights into managing supply chains and losses. Sustainable materials and packaging are gaining more attention as consumers and regulatory bodies demand eco-friendly products.
Key players in cheese packaging are continually innovating to stay ahead in the competitive market by providing innovative solutions that maintain the freshness and quality of products. The dynamic nature of the market forces organizations to keep innovating and improving their products. Strategic alliances and acquisitions between packaging companies and between packaging companies and cheese producers are increasingly being formed to increase the capacity and visibility of the companies.
Recent Industry Developments in the Cheese Packaging Market
- In April 2024, Amcor announced the expansion of its printing and converting capabilities in North America for the dairy market to support customer needs for flexible packaging.
- In April 2023, Stora Enso Oyj introduced Trayforma BarrPeel, which is a sustainable barrier-coated paperboard material for pressed trays for fresh food like cheese. They also reduce the 10% plastic in the trays.
- In November 2023, Mondi plc announced the collaboration with Skånemejerier to develop cheese packaging. The company created a mono-material polypropylene-based packaging for ICA’s Hushållsost cheese.
These insights are based on a report by Ismail Sutaria Cheese Packaging Market by Future Market Insights.
