Market Trends of Asia Pacific Foodservice Paper Packaging Industry
This section covers the major market trends shaping the APAC Foodservice Paper Packaging Market according to our research experts:
Online Food Ordering Services are Expected to Drive the Market
- The growing number of online food ordering services significantly contributes to the market's growth rate, as paper-based packaging is highly used in food delivery. In China, top-tier cities are where consumers congregate, with Shanghai having the most users per resident. Meituan's research from 2021 shows that the high penetration rate of the online food delivery business in China's top-tier cities is making lower-tier Chinese towns more likely to grow and have more opportunities.
- Meituan noted "strong growth" in Q1 despite the lockdowns that affected Shanghai and other major cities. According to its financial release, food delivery revenues surged 17.4% year over year (YoY), while operational profits rose by 41.3%.
- Furthermore, the COVID-19 pandemic increased the use of food and online grocery shopping.In January 2022, Swiggy raised USD 700 million in fresh fundraising under the direction of Invesco, transforming the business into a decacorn and nearly raising its valuation to USD 10.7 billion.
Additionally, in a country such as India, where the need for online meal ordering is rising, packaged food boxes are becoming more and more popular in the food packaging industry. For example, in February 2022, Zomato, a well-known meal delivery service, said that in the five years before that, the average number of active food delivery restaurants had increased by six times, and the average number of transactions per month had increased by thirteen times.
India to Grow at Significant Rate during the Forecast Period
- According to FICCI, India's QSR industry has experienced unprecedented growth over the past several years, significantly boosting the country's economic performance. The unorganized sector of the Indian industry currently holds a substantial share, but with the emergence of international and Indian restaurant chains, the organized market will grow quickly. The fact that more people are ordering food online and having it delivered has aided in the market's growth rate.
- Due to the enticing fiscal incentives, supportive economic policies, and encouraging growth in the food retail sector, India's food ecosystem presents enormous investment prospects. Through the Ministry of Food Processing Industries (MoFPI), the Government of India (GoI) is doing everything it can to get more investments in the food processing industry in India.
- By 2025, analysts predict that the Indian food processing market will be worth USD 470 billion.MoFPI says that in the coming years, Tier-II and Tier-III cities may follow the trend seen in large cities and eat more processed foods.
- The Production Linked Incentive (PLI) Scheme aims to modernize and improve the competitiveness of the food processing sector over the next six years by identifying a number of items with a high potential for production growth and value addition.
Further, the companies have been adopting innovative technologies to provide enhanced food packaging services to their customers in the country. For instance, in August 2021, moving towards sustainable development goals (SDGs) for food packaging, researchers at the Indian Institute of Technology (IIT) Roorkee developed ethylene-scavenging functional paper from pine needle waste, as environment-conscious consumers are avoiding single-use plastic packaging. It could also help stop trees from being cut down, and it has become an eco-friendly alternative to materials used to package food.
