The global cardboard trays market is anticipated to accumulate a market value of US$ 5,451.92 million in 2023 and is expected to garner a valuation of US$ 9,270 million by exhibiting a CAGR of 5.4 % in the forecast period 2023 to 2033. The cardboard trays market reflected a growth of 4.2 % CAGR in the historical period 2018 to 2022.
The superior quality cardboard trays are made from recyclable plant fiber and use no plastic in their manufacturing. Sugarcane pulp remnants, bamboo, corn starch, palm leaves, coconut coir, Kraft paper, plant fibers, and other virgin fibers are used to make the cardboard food trays.
They do not spread any toxic chemicals into the food and are hundred percent recyclable. Paperboard trays have a sleek design and possess optimal strength, break resistance, durability, and crack resistance. These biodegradable trays can be used for the storage of cold and warm food items because they can be heated in the microwave and can be frozen without any damage to the packing.
Also, cardboard trays easily carry food items that are heavy, light, solid, or liquid. It is a popular notion that these trays are the most user-friendly kind of packaging solution due to their airtight locking system, which prevents any spills and leaks.
The market for eco-friendly paperboard trays is estimated to skyrocket in the forthcoming period since they are produced from plant fiber or wood pulp, both of which decompose easily and pose no threat to the environment.
Even though there are numerous benefits to using plastic trays, consumers are seeking more environmentally friendly packaging solutions. These days, edible paper trays are all the rage because they reduce waste and may be used instantly.
Edible paper trays made from sugarcane, bagasse, corn starch, palm leaves and others are propelling demand for Kraft paper trays. It is estimated that these trays will prove to be an effective packaging solution than conventional trays because they meet all of the consumer’s packaging needs.
Increasing focus of consumers on sustainability is leading to investments in new technologies and materials, like paperboard trays, including those with recycled content. Rising consumer preference toward eco-friendly packaging alternatives is attracting heavy investments in the paper and paperboard trays market. This is estimated to benefit the market during the forecast period.
Also, anticipating the profit-generating capability of the paperboard trays market and future growth opportunities, manufacturers are launching a wide range of kraft paper tray designs, which is proving to be a winning strategy for paper packaging businesses and boosting product sales.
Region-wise, Asia Pacific is expected to dominate the cardboard trays market by accumulating a 41.7% market share by end of the forecast period. The growth is attributed to the fast-expanding packaging industry, growth in food retail and foodservice industry, and growing consumer awareness about sustainable packaging solutions across the region. The food service sector in this region is expanding due to thriving growth in the tourism sector and improving consumer lifestyles, as well as inflating disposable income levels.
The market in North America is projected to expand with a significant CAGR of 5.1% during the forecast period. Rising consumer awareness toward sustainable materials, growing awareness of global environmental issues, paperboard tray’s cost-effectiveness and eco-friendly nature, the compostable nature of paper, and others are key factors driving market growth in the region. In addition, increasing supermarkets & hypermarkets in the region and the rapidly expanding retail sector is leading to high demand for paperboard packaging.
Paperboard packaging not only helps retail stores in food packaging but also help in sustaining nutritional values. Nowadays government is also implementing strict rules and regulations to provide safe packaged products by utilizing sustainable materials such as cardboard trays. This will further fuel the product demand in North America.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing cardboard trays are expected to create lucrative opportunities for market growth during the forecast period.
In May 2022, Mondi invested US$ 280 million to boost the production of corrugated boards and cardboard. This investment will help in expanding capacity and increase efficiency in the Czech Republic, Poland, Germany, and Turkey. From this investment figure, US$ 185 million will go to the company’s network of Corrugated Solutions plants in Eastern and Central Europe.
In December 2021, Iceland intended to remove some of its plastic packagings with functional barrier paper developed by ‘Mondi’, which is recyclable in current waste streams and has the same shelf life as its previous packaging. Iceland is determined for achieving sustainability targets and has already made great treads in reducing plastic packaging.
What Drives the Growth of the Cardboard Trays Market?
Cardboard trays ensures the safety and freshness of the product that is stored in the tray. These trays enables incredible moisture barrier, sealability, resistant to grease and also avoiding any spillage.
The cost of the cardboard trays are also affordable for the marketers specifically because of the recyclability of the cardboard as it is majorly made or paper and paperboard or Kraft papers, they can be easily recycled ensuring there is no wastage. This increases the availability of raw materials.
What Restraints the Growth of the Cardboard Trays Market?
There are some restraints to the growth of the cardboard trays market such as the material of the tray is not suitable for extreme pressure, the trays might lose its shape if exposed to some pressure damaging the product packed.
And Cardboard trays are not the best option for weatherproofing; water or any type of liquid would seep into the tray and damage the product inside. To avoid this restraint, holding any cold beverages can be avoided and also the product to be held should be checked well if it is closed properly.
How is Cardboard Trays contributing in the Growth of the E-commerce and Food Delivery Industry?
Cardboard trays are commonly used in food & beverage industry, personal care & cosmetics industry and also for product shipping. Nowadays with the expanding e-commerce of retail products and food and beverages deliveries, cardboard trays are particularly used for the proper handling and transportation of goods. Cardboard trays also ensures safety of the product which is the primary concern of an online retailer as well as the customer.
With the increasing number of takeaway food and beverage consumption, cardboard trays are contributing a lot to the safety of the product and also maintains the freshness of the food packed till it reaches the consumer. These factors are driving the demand for cardboard trays in several end-use industries globally.
How has Covid-19 Impacted The Growth Of The Cardboard Trays Market?
The Covid 19 crisis is likely to alter the growth of the packaging industry. Now with changing preferences of consumers across the globe since the pandemic has shown that consumers are more inclined to buy products through different channels of e commerce platform. Many companies started to provide essential services such as food and household supplies safely to the consumers.
The Covid 19 crisis has already led to decline in demand for certain types of packaging but the growth of cardboard trays started to accelerate mainly because it was used for food deliveries, e commerce shipments. It is expected that in the coming years the growth of cardboard trays is determined to grow in the retail industry too because of its reusability and sustainability characteristics.
These insights are based on a report on Cardboard Trays Market by Future Market Insights