U.S. Fresh Produce Packaging Market 2024-2033

Freshness and Shelf Life Are Key to Fresh Produce Packaging. How Will New Technology Benefit Consumers?

This industry study analyzes the $6.1 billion US market for fresh produce packaging. It presents historical demand data (2013, 2018, and 2023) and forecasts (2028 and 2033) as well as annual data for years 2020-2027. Unit demand and value demand data is shown for fresh produce packaging by material (plastic, paper & paperboard, molded fiber, and other materials), product type (clamshells, two-piece containers, tubs & cups, pails, boxes & cartons, trays, platters, baskets & punnets, wood crates, RPCs, bags, pouches, wrap, lidding) and market (fruits, vegetables, and salad & greens). The study also evaluates company market share and competitive analysis on industry competitors including International Paper, WestRock, Packaging Corporation of America, Georgia-Pacific, and Sonoco Products.

Demand for fresh produce packaging is forecast to increase 2.4% per year to $7.3 billion in 2028 or 59 billion units. Market value gains will be supported by modest growth in unit sales as well as by:

• rising demand for value-added produce packaging, such as resealable trays and stand-up pouches
• a continued transition from pillow pouches to higher value plastic trays with lidding and plastic containers for salads and leafy greens
• increasing sales of fresh-cut produce - such as prechopped celery or ready-to-eat mixed berries - which are typically sold in tubs, cups, or other higher value containers

Plastic Trays & Containers to Outpace Other Major Packaging Types

Plastic trays with lidding, tubs, cups, and two-piece containers are expected to outperform bags and pillow pouches in retail markets due to their strong performance across numerous key applications, including salads, berries, and fresh-cut produce. Despite rising concerns over the sustainability of plastic packaging, paper and molded fiber alternatives have struggled to capture significant market share due to plastic’s strong protective abilities, clarity, and capacity to extend shelf-life

Apples & Salad to Drive Overall Produce Packaging Demand

Apples and salad will outperform other types of produce throughout the forecast period and combined will account for a majority of absolute gains in unit and value terms through 2028:

• Unit gains for apple packaging will be aided by the increase in packaged apples as opposed to unpackaged options, while market value will be boosted by the growth of value-added items (such as resealable stand-up pouches and large clamshells) over traditional bags.
• Salad’s market position will be supported by the growing consumer preference for leafy greens and salad mixes over head lettuce. Additionally, a transition to higher-value packaging - such as trays with resealable lidding and modified atmosphere packaging (MAP) - will boost market value.

Convenience is King as Consumers Seek to Incorporate More Fresh Produce into Their Diets

Trends toward healthy eating have spurred increased fresh produce consumption and growth in direct-to-consumer outlets, such as farmer’s markets and roadside stands. However, consumers increasingly seek convenient ways of incorporating fresh fruits and vegetables into their busy schedules.

Ready-to-eat (RTE) and fresh-cut options have become a significant portion of the fresh produce market over the past decade. These products are generally packaged in rigid plastic containers, often in single-serving format, to support snacking and on-the-go eating.

Historical Market Trends

Demand for produce packaging is at its most basic level determined by the amount and type of fresh produce that requires packaging each year:

• Products such as salad mixes, cherry tomatoes, berries, and fresh-cut produce are heavy users of packaging, while others such as whole melons or winter squash are typically sold without packaging.
• Different types of produce require different types of packaging based on their size, shape, and hardiness. All of these factors result in variations on a year-to-year basis in packaging requirements.

Other factors that impact sales of produce packaging include:

• sustainability initiatives, which may favor one type of packaging over another, especially in terms of the materials used
• the volume of produce going to end users such as restaurants or processed food manufacturers as these users require different sizes or types of packaging compared to retail stores
• retailer trends, such as growth in the ALDI store chain in the US, which more heavily packages produce items
• the amount of produce imported or exported in its final packaging versus in bulk quantities
• consumer preferences, which can be a positive or negative factor in packaging demand

These factors not only can change the volume of packaging needed but also affect market value depending on their impact on the packaging product mix. For example, as users switch to more expensive, more environmentally friendly packaging, this generally results in an increase in average prices and a boost to packaging market value.

Packaging Product Trends

Demand by Packaging Category: Rigid vs Flexible

Demand for fresh produce packaging is projected to increase 2.4% per year to $7.3 billion in 2028. In unit terms, demand will rise 1.3% annually to 59 billion units. Despite relatively slow growth in domestic produce output, advances will result from increases in the amount of produce sold in retail packaging. In addition, value gains will benefit from greater use of higher-value packaging types for fresh-cut produce that offer consumer convenience, ease-of-use features (for both store personnel and customers), and improved performance characteristics to keep the contents fresh for longer.

Rigid products will increase their share of the fresh produce packaging market in both value and unit terms:

• Corrugated packaging will remain popular despite RPCs gaining share in bulk applications.
• Plastic containers will benefit from consumer preferences for RTE products and other fresh-cut offerings in clamshells, tubs, and other container types.

Sales of flexible packaging products - including bags, pouches, and film wrap and lidding - will continue to benefit from greater demand for packaged and fresh-cut fruits and vegetables and more intensive use of higher-value stand-up pouches. Nonetheless, bags and pouches face strong competition from rigid plastic containers and top-seal trays in areas such as salad mixes, greens, and pre-cut produce, mainly for their protective abilities.

Materials Competition

Produce packaging can be produced from a variety of materials; the most common are plastic, paper and paperboard, and molded fiber, although materials such as mesh and wood also see use.

Demand for produce packaging is forecast to increase 2.4% per year to $7.3 billion in 2028, reaching 58.6 billion units.

Plastic will continue to account for the majority share of packaging sales as it is the most common option for rigid packaging such as clamshells and other plastic containers; trays and platters; baskets; and flexible packaging such as bags, pouches, wrap, and lidding.

Plastic has maintained its dominance due to performance advantages, like its light weight, moisture resistance, enhanced barrier properties, and puncture resistance. Source reduction efforts have also favored flexible plastic packaging formats (such as pouches).

The sustainability comparison between plastic and competitive materials like paper and molded fiber for produce packaging is complex:

• Manufacture of plastic packaging generally involves the production of fewer greenhouse gases, less water, and less solid waste compared to paper. Plastic’s superior protective properties also help reduce food waste. However, bags, pouches, and other flexible plastic packaging formats are not recyclable in many locations (although an increasing number of plastic packages are made with postconsumer recycled content).
• Paper and molded fiber packaging are positioned as renewable and have good environmental perceptions among consumers. However, both materials face performance issues like moisture resistance and durability. Some folding cartons and paper or molded fiber trays are manufactured with plastic coatings that help with moisture issues but frequently limit their recycling.

Whether paper and molded fiber are generally more sustainable than plastic, many companies are capitalizing on the notion that these materials are more eco-friendly alternatives. To that end, multiple players are developing new paper and molder fiber packaging technologies that can stand up to plastic’s performance properties.

Campaigns to improve public awareness of the energy and emissions savings related to plastic will help promote the use of plastic packaging. However, some produce suppliers - especially producers of organic or other specialty types - opt for paper or molded fiber packaging that consumers will perceive as eco-friendly.

Pricing & Inflation

The produce market for packaging is highly competitive, and pricing plays an important role in packaging choice. However, the decision process is usually more complicated than a direct comparison of unit prices.

Some of the fastest-growing types of produce packaging - such as stand-up pouches and purpose-specific plastic containers - can cost considerably more than the packaging formats with which they directly compete. However, these packaging types also offer advantages that can result in overall cost savings, higher product sales, or additional profits:

• Display-ready corrugated boxes can be moved from storage directly onto the sales floor, saving on time and labor costs.
• Clamshells and other plastic containers can stack, making it easier to restock and to maintain an orderly produce display.
• Handled pouches offer a convenience factor that customers appreciate, while also making it easier to move in the produce department and at checkout.
• Pouches, trays, and other containers that are suitable for use as cooking containers offer convenience to the consumer.

Input costs - most notably raw material costs - are the principal factor that determines packaging prices, although product complexity and manufacturing requirements are also important. For produce packaging, raw materials mainly include paperboard, pulp, and plastic resins.

Through 2028, the average produce packaging price is expected to increase 1.2% per year - hewing closer to historical norms after a high inflationary period - to 12.4 cents per unit. Predicted price increases will mainly be supported by:

• more intensive use of better quality materials and recycled content
• the inclusion of higher quality graphics
• a continued shift in the product mix to more expensive types of packaging, such as stand-up pouches and RPCs