North America Dairy Packaging Market

North America Dairy Packaging Market Analysis

The North America Dairy Packaging Market is expected to register a CAGR of 2.15% during the forecast period.

• The North American region accounts for the largest share in the global dairy packaging market, owing to the increased production and sale of dairy products, such as milk, cheese, and yogurt.
• Over the past few years, the consumption of dairy products in the United States has increased, especially cheese, parmesan, provolone, and mozzarella, which is likely to boost the utilization of dairy packaging in the country..
• The increasing per capita consumption of dairy products and production of cheese in the United States are poised to compel the manufacturers to innovate in the packaging, in order to cope with the demand and maintain price certainty, which is likely to foster the market growth over the forecast period.
• The disruption to supply chains due to coronavirus is causing tonnes of fresh produce to be wasted in the U.S. Despite food shortages and high demand for dairy produce, the Dairy Farmers of America has had to ask farmers to dump their milk. The disruption to supply chains means that farmers are unable to get their produce to market. The short shelf life and perishable nature of dairy products, means the effects of coronavirus have hit them harder, and faster, than other agricultural industries.

North America Dairy Packaging Market Trends

Paper and Paperboard to Show Significant Growth

• Cardboard is considered to be the most suitable packaging material for dairy products after plastics. The most prevalent type of cardboard used for the packaging of dairy products is the whiteboard. It is suitable for wide range of products such as frozen desserts, milk, or butter as it is coated with wax or plastic that makes the cardboard heat sealable.
• Paper and paperboard packaging is the fastest growing segment of the US dairy packaging market. Paper, timber, pulp, and other similar forest products, which can be easily recycled, are used as primary raw materials for paper packaging.
• Moreover, in the United States, eco-friendly packaging is one of the primary purchasing factors, and draws a considerable attention from manufacturers to and customers. Eco-friendly variants, such as paper and paper board, are being used extensively for dairy packaging, especially liquid dairy products, such as milk, drinkable yogurt, and flavored milk.
• Further, with the advent of bio-degradable solutions, paper and paperboard packaging is growing strong in the US market. In fact, over the forecast period, it is expected to stand as a strong rival to the plastic solutions. The technology of composite packaging is further expected to aid the growth of paperboard packaging over the forecast period.

Cultured Products to Hold the Highest Market Share

• Cultured products included in the scope of the study are yogurt, sour cream, cottage cheese, and dips. Yogurt sales have experienced an increase in a very long time.
• Nevertheless, with the advent of flavored yogurts, the product is expected to sustain its demand in North America over the forecast period. Most of the people consider yogurt as a healthy substitute for ice creams. In America, it is estimated that more than 80% of the population between the age of 18 to 35 prefer frozen yogurt as a close substitute to ice creams.
• Moreover, with the packaging innovations in North America, such as aseptic packaging technology, yogurts are increasingly becoming safe and fresh from fill through final dispensing. Bag-in-box and pouches protect quality, extend freshness, and reduce waste. With aseptic technology, yogurt products have become more shelf-stable and preservative-free.
• For instance, Amcor produces the MiGurt, the pourable, multi-serve aseptic product packaged in a 750-g barrier PET bottle. This helps to provide an extended shelf life of six months to the yogurt and requires no refrigeration before opening.
• Several trends are gaining traction within the cultured dairy segment, specifically with yogurt. Manufacturers are benefiting from the clean eating movement, as cultured products that are functional, grass-fed, whole milk, and lower in sugar are becoming more popular.

North America Dairy Packaging Industry Overview

The North America dairy packaging market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable packaging, many of the companies are increasing their market presence by securing new contracts and by tapping new markets. Huhtamaki Group, Berry Global Group Inc. Bemis Company Inc., Amcor Limited among others.

• February 2020 - Many consumer packaging solutions are shifting to paper because it is highly functional and comes from renewable resources. Huhtamaki Compacto vending cups are a new range of paper cups designed and optimized for vending machines. They are made with paper from 100% PEFC certified sustainably managed forests and have been designed with vending machine operators in mind.
• September 2020- Amcor announced the world's first recyclable flexible retort pouch. The technical breakthrough, which many considered impossible, follows years of dedicated research and investment.

North America Dairy Packaging Market Leaders