The global market for dairy packaging will grow moderately during the forecast period and will post a steady CAGR of over 4% by 2020, according to a study produced by Technavio, Elmhurst, Ill. A noteworthy factor that will spur the prospects for growth in this market is the increased use of biodegradable plastics, which are readily decomposed by microorganisms and have minimal impact on the environment compared to conventional plastics. As these plastics are made from petrochemicals with biodegradable additives, they will have a minimal toxic effect on the environment. Also, with the introduction of stringent environment compliance regulations in the country, vendors will be compelled to adopt biodegradable plastics as a substitute to avoid hefty penalties.

In terms of geography, North America dominated this market during 2015, and is envisaged to retain its dominating hold over the market until the end of 2020 due to rapid urbanization and the increased inclination of consumers toward packaged food products. Since the United States is said to be the largest producer and exporter of cheese in the world, it will also be the largest market for dairy packaging in this region. Increasing demand for dairy products like butter, milkfat, yogurt, ice cream and other dairy desserts will lead to the steady growth of the market in this region. By 2020, the market for dairy packaging in North America will generate revenues of close to $8 billion.

New product development
New product launches will create a demand for advanced dairy packaging in several regions such as APAC, Europe and North America.

The launch of new products will positively influence the global dairy packaging market during the forecast period, as vendors will try to establish an edge over their competitors or maintain market share by introducing new and innovative packaging options.

Increased use of biodegradable plastic
A trend that will have a positive impact on the growth of the global dairy packaging market is the growing use of biodegradable plastics. Adoption of these materials will reduce the market share of conventional plastic packaging materials over the next few years. With environment compliance regulations across the globe becoming more stringent, vendors will be more likely to adopt biodegradable plastics as a substitute to avoid hefty penalties.

Increased demand of multi-pack and variety pack
Since each retail chain approaches packaging differently, dairy manufacturers are under more pressure to customize their packaging designs. In addition, many merchants want packaging that takes up less shelf space, yet is still attractive, thereby increasing shelf presence. In order to overcome this difficulty, packaging vendors have developed multi-pack and variety pack solutions.

“Retailers prefer this marketing strategy, as it increases unit sales and entices consumers to try new products and varieties of a brand in small quantities. The advantages of multi-pack and variety pack are fueling demand for the global dairy packaging market,” says SharanRaj, research analyst.

Increased demand for sustainable packaging materials
Sustainability is a major aspect being pursued in the global dairy packaging market. Consumers are expecting dairy packaging materials to be environmentally-friendly and sustainable. Vendors are investing in R&D to develop materials that can be recycled and have the traditional capability of friction, moisture and heat resistance.

Major input comes from marketing departments after feedback from major business-to-business customers. They may include incorporation of design upheavals, creation of resistant-quality packaging material and boosting the visual appeal factor of both rigid and flexible containers.

This industry research report comprehensively segments the global dairy packaging market by type of packaging material (flexible plastic, rigid plastic, paper and paperboard, glass, metal and others), by application (milk, cheese, frozen products, cultured products and others) and by geography (APAC, Europe, North America and ROW).