With the top three vendors, Pactiv LLC, Genpak LLC, and Sealed Air Corporation, collectively accounting for nearly 40% of the global market for foam trays in 2014, the market is largely fragmented and witnesses immense competition, states TMR in a recent report. Competition is especially severe in regional markets where a large number of unorganized players command a prominent position in local marketplaces with the help of inexpensive product varieties.
Mergers and acquisitions with the aim of extending product lines and expanding production capabilities, especially in lucrative regional markets with untapped growth opportunities, is one of the most preferred growth strategies adopted by vendors in the market. Focus on the development of biodegradable and sustainable product varieties is also a prominent strategy adopted by companies in the global foam trays market. For instance, Anchor Packaging Inc. introduced a new “Wave” series of containers under its “MicroRaves” trademark in May 2015. The product range is consumer re-usable and eligible for recycling.
Cost Effectiveness and Rising Demand across Packaging Industry to Boost Demand for Foam Trays Globally
Foam trays are used across several applications majorly owing to their cost effectiveness, impermeability to moisture, superior cushioning, and convenience of use. In case of food service solutions, especially, foam trays are known to be reduce the entire cost of the service substantially as compared to when using paper trays.
Owing to these factors, a variety of foam trays are being used in increased volumes for serving food across fast food joints, schools and colleges, and for packaging take-home food. Foam trays are also being increasingly employed for packaging food products such as cereals, vegetables, and fruits. The rising demand across food service and food packaging sectors will enable the global foam trays market gain traction in the next few years. The demand for foam trays will also be driven indirectly due to the rising prices of earth-friendly materials and recyclable paper and plastic trays.
Cost Wars among Vendors and Concerns Regarding Non-biodegradable Nature of Foam to Restrain Market’s Growth
Owing to the presence of a large number of unorganized players in regional markets and several international companies operating in the global foam trays market, the bargaining power of suppliers has substantially weakened. Companies are being required to reduce prices to stay ahead in the competition, resulting in loss of margin. This has compelled many chief vendors in the market in divesting their foam tray production divisions. Loss of production capacity could have a notable negative impact on the overall development of the global foam trays market in the next few years.
Another factor that threatens to limit the growth prospects of the global foam trays market is the rising consumer awareness regarding the non-biodegradability of foam and its harsh implications on the health of the environment. Many regional and national governments are also planning to instigate bans on the use of foam containers across food service establishments. This will negatively impact the growth of the foam trays market to a vast extent.
Applications across Food Industry and Polystyrene Products Pivotal to Growth
Transparency Market Research states that the global foam trays market will exhibit a 3.2% CAGR over the period between 2009 and 2021 and rise to a valuation of US$3 bn by 2021 in terms of revenues. Volume-wise, the market is expected to register a 4.4% CAGR over the said period and rise to 52.8 bn units by 2021. In terms of materials, product type, the segment of polystyrene led the global market, contributing revenues worth US$1,589.4 mn to the global market in 2014. Applications in the food industry contributed to the largest share in revenues of the overall market in the same year.
This review is based on a recent report published by Transparency Market Research, titled “Foam Trays Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2009 - 2021.”
- Demand for biodegradable product varieties on a rise; vendors compelled to focus on environmentally viable products
- Top three vendors collectively accounted for nearly 40% of the overall market in 2015
- Polystyrene is the most preferred material for producing foam trays; the segment contributed revenues worth US$1,589.4 mn to the global market in 2015
For this study, the market has been segmented as follows:
Global Foam Trays Market, by Types
Global Foam Trays Market, by Application Types
- Food Packaging
- Meat & Poultry
- Dairy Products
- Food Service (Clamshells)
- Fruits & Vegetables
- Food Chains (Organized)
- Industrial Packaging
Global Foam Trays Market, by Geography:
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of the World
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
- Latin America
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.
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