Us Dairy Packaging - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)

By Author: Poojan Dogra
Total Articles: 979
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The rapidly changing consumer preferences and economic scenario are significantly affecting the US dairy packaging market. The considerable expansion of dairy product portfolios, primarily in sports nutrition, along with an increasing number of casual users, is driving the import-export activities, as most of the users prefer to consume products of well-established brands. Furthermore, the United States accounted for 90% of the milk output in the North American region.

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- The dairy sector in the country is undergoing revolutionary changes, owing to ever-evolving diets. As the industry responds to the consumer trends and government goals, a paradigm shift in new product developments, changing work practices, and growth in consumption of protein-based products are being witnessed in the US dairy packaging market.
- As more people around the world live in congested urban centers, package size is an important consideration. Bulk store packages ...
... work for large, suburban households, but an increasing number of families, in the United States, consist of only one or two people. These kind of consumers are majorly looking for smaller and single containers.
- Another primary consideration for consumers is portion control. Furthermore, portable and snackable single portions of items are gaining immense popularity in the market, as customers, particularly those in affluent western nations, are more weight-conscious.

Key Market Trends

Plastic to Hold a Major Market Share

Plastics are the best packaging solutions for dairy products in the current market scenario. Favorable properties, such as low cost, lightweight, and less shrinkage, help companies reduce transportation costs and carbon footprint.
PE and PP bottles have been significant dairy packaging materials, replacing glass bottles, as they were rigid like glass and very light. However, with the advent of PET bottles, the use of PE and PP solutions decreased, due to government regulations and the advantages provided by PET containers.
PET containers could be used for hot-filling and aseptic cold-filling, which increase the shelf-life of the product without it being kept in desired conditions. Further, the increasing recyclability nature of PET containers has made them more popular in the dairy packaging market.

Bottles to Hold a Major Market Share

Due to its applications in packaging fresh milk, flavored milk, drinking yogurt, probiotics, and all new dairy-based, high-value products, bottles, especially the plastic PET variants and glass variants, are the preferred packaging option for most of the dairy manufacturers in the country.
According to FAO, glass bottles are the most inert of all packaging materials and provide maximum protection from oxygen, moisture, and microorganisms. When colored they can partly protect milk from harmful UV light.
Also, glass provides better aesthetics, when compared to plastic bottles. As a result, more premium and organic variants of milk and other dairy products in the market are increasingly using glass bottles; doorstep deliveries are increasing demand for glass bottles as well.

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Competitive Landscape

The US 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. For instance, in 2018, Bemis Company Inc. launched its latest innovation, Encore ultra-clear recyclable film. The technology combines readily recyclable material with shelf-appealing transparency, helping CPGs attract today's consumers, while achieving the sustainability goals of their businesses. Further, in 2018, Berry Global Group acquired Clopay Plastic Products Company Inc. from an affiliate of Griffon Corporation, for a purchase price of USD 475 million, subject to post-closing adjustment for working capital and certain other items.

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