Americas Modified Atmospheric Packaging (MAP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Americas Modified Atmospheric Packaging (MAP) Market was valued at USD 6.06 billion in 2020 and is expected to reach USD 7.79 billion by 2026 witnessing a CAGR of 4.29% over the forecast period (2021 - 2026). Considering, fresh fruits and vegetables, the air of packaging is replaced with atmospheric gases different in proportion. Usually, oxygen, carbon dioxide, and nitrogen are majorly used. Also, the choice and ratio of gases are dependent upon the material that is being packed. For instance, coffee beans release Carbon Dioxide when they are roasted, and without the use of MAP, the beans need to cool down before being packaged, else, the packaging would burst open.

Key Highlights

• With people working from home, preference for products/food packaging that requires little preparation such as ready meals and instant noodles along with easy storage is seeing rising demand. As of March 2020, Wegmans, a supermarket chain based in Rochester, N.Y., stated that shoppers are buying shelf-stable foods increasingly.
• Other macroeconomic factors like increasing food wastage are propelling the demand for MAP to rise. For instance, the industry trade group, Produce Marketing Association estimates that approximately USD 5 billion worth fresh fruits and vegetables succumbed to waste in the United States.
• Developments on the material front have been aiding reduced biochemical reactions in meat packaging. American experts have made plastic packaging materials with CO2. Also, the usage of bio-based polymers offers the feasibility of MAP development for new applications such as Cooled meat modified atmosphere packaging or cooked meat packaging.
• The modified atmosphere packaging process involves comparatively high requirements. This is primarily attributed to cost associated with possible failures such as incorrect gas composition, leaks due to faulty temperature, pressure distribution, contaminated or worn tools, seal contamination, or defective material thereby hindering the market growth.

Key Market Trends

Polyethylene Expected to Witness Significant Growth

• Polyethylene (PE) is an uncomplicated plastic and the lowest cost material prepared by the addition polymerization of ethylene. PE is being used for the packaging of fruits. It is observed that packaging citrus fruits in polyethylene films maintained high relative humidity (RH) inside the package and resulted in a reduction of shrinkage.
• The simplest and the most economical plastics made by addition polymerization of ethylene is polyethylene. Low-density polyethylene (LDPE) is the most commonly used packaging film. LDPE seals at lower and over a more comprehensive temperature range and has better hot tack, all of which result significantly from its long-chain branching.
• LDPE is an excellent barrier to water vapor, but a weak barrier to oxygen, carbon dioxide, and many odors and flavour compounds. Because LDPE is relatively transparent, it is predominantly used in film applications and in applications where heat sealing is necessary. LDPE's predominant availability in the American region is making it an excellent material for modified atmosphere packaging.
• Linear low-density polyethylene (LLDPE) is also the most commonly usedpackaging film in the packaging industry. LLDPE has excellent water vapor barrier properties but is a weak barrier to oxygen, carbon dioxide, and many odor and flavor compounds. This has been limiting usage in applications where longer shelf life is used. Since LLDPE often permits considerable downgauging, it can be the lowest cost alternative on a per-use basis, which has been encouraging its usage.

United States Expected to Witness Significant Share

• The United States is one of the prominent countries that accounts for a significant share of MAP market in the region due to rising demand for packaging of processed food, perishable food, and fresh food that bolstering the demand for MAP as it increases the shelf life of the Product to provide convenience to the customer and adds worth to the product.
• According to Progressive Grocer, the retail sales of processed meat in the United States in 2019 accounted for USD 21.47 billion. Moreover, the country has a significant amount of food wastage due to improper packaging and wasted along supply chain that is resulting in the adoption of MAP for fresh vegetables and fruits in the country. According to Swag, 40% of food is wasted in the United States every year.
• Further, United States Department of Agriculture, has permitted MAP technology for raw fishery product under the condition such as products are packaged under an established Hazard Analysis Critical Control Point (HACCP) plan, packaged Product are stored at or below 38°F ( 3.3°C ), and Product is adequately labeled for storage, temperature, shelf life, and cooking requirements.
• In February 2019, American company Air Products launched new scented Modified Atmosphere Packaging in UK. The system vaporizes natural aromas, like essential oils, into the packaging at an equivalent time because the Modified Atmosphere Packaging (MAP) gas, with no additional production steps.​

Competitive Landscape

The americas modified atmospheric packaging market is fragmented. The market studied comprises of Amcor Limited, Sealed Air Corporation, Mondi Group PLC, among others. Several regional firms are also trying to gain market share. Barriers to entry are low, which is resulting in the advent of smaller players, further increasing competitive rivalry.

• Mar 2020 - Amcor collaborated with the Healthcare Plastics Recycling Council (HPRC) will help foster more sustainable practices and innovation across the healthcare industry and to improve recyclability of plastic products.
• May 2019 - Sealed Air Corporation signed a definitive agreement to acquire Automated Packaging Systems Inc., a leading manufacturer of high-reliability, automated bagging systems, for a purchase price of USD 510 million on a cash and debt-free basis.

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