Market Trends of North America Frozen Food Packaging Industry
Growing Demand for Fresh Meat Through Retail Channels
- As consumers increasingly demand bio-based materials over toxic plastics for fresh meat packaging, the market outlook is set to evolve in the coming years. Heightened environmental concerns, coupled with stringent government regulations, are poised to create fresh opportunities for market players. Such dynamics could propel these players toward innovative solutions in the fresh meat packaging arena, fueling overall market growth.
- This change has positively impacted the demand for fresh meat and poultry through online and offline retail channels owing to reasons, including the recognition of the health advantages of meat-rich protein, the rise of high-protein diets such as the keto diet, and the upswing in reliance on pre-packaged processed meat. Also, the region’s economic growth is expected to boost meat consumption.
- The US meat industry has displayed consistency over recent years. Data from the US Department of Agriculture and Economic Research Service indicates that beef production in the country was projected to reach 26.96 billion pounds in 2023, a decrease from 28.29 billion pounds in 2022. As of 2021, beef led the pack in retail sales among fresh meats in the United States, with sales surpassing USD 30 billion that year. In 2022, the retail price for 100% ground beef reached USD 4.8 per pound, a rise from USD 3.95 in 2020. Meanwhile, beef brisket averaged around USD 8.84 per pound at major grocery retailers.
- According to the Food Industry Association, meat sales have been the most consistent in department retail stores during the last few years, with an average household penetration of more than 98% and nearly 50 shopping trips per year. The top sellers in fresh meat are beef and chicken, while bacon and pre-packed lunch meat are the top sellers in processed meats.
- As per the research published by Progressive Grocer, retail sales of fresh meat in the United States increased in the past few years from USD 64.88 billion to USD 86.62 billion in 2022. This positive trend is also anticipated to be witnessed during the forecast period, pushing the demand for meat packaging in the region.
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United States to Witness Significant Growth Rate
- As demand for frozen food packaging surges, industry players are heavily investing in product innovation, fueling market growth in the country. The booming e-commerce landscape is further amplifying the need for packaging solutions. E-commerce not only enhances shopping convenience but also exerts downward pressure on prices across various sectors. According to Business Insider, while e-commerce is propelling retail growth, its impact on flexible packaging is poised to expand in the region.
- The United States boasts a fiercely competitive retail industry, largely propelled by dominant players like Walmart, Kroger, and Albertsons. Walmart, hailing from the United States, stands as the world's largest retailer. Notably, five out of the top ten global retail giants are US-based, underscoring the nation's pivotal role in the global retail landscape.
- In the country, millennial consumers, with their strong preference for single-serving and on-the-go food and beverage items, primarily drive the demand for frozen food packaging products. Designed to be portable, durable, and lightweight, frozen food packaging has emerged as a popular choice for such items. Additionally, the rising appetite for both processed and fresh snack foods is poised to further fuel this demand.
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