Market Trends of Skin Packaging Industry
The Meat Sub-segment Under Food is Expected to Hold a Major Market Share
- Skin packaging is a recent method of meat storage derived from traditional vacuum packaging. This method involves placing raw meats on a plastic tray and then covering them with a thermoformed plastic film that is heated simultaneously while the meat is being positioned. This process ensures that the upper skin is precisely shaped by shrinking it, thus preventing the formation of air and reducing the likelihood of visible exudation, increasing the product’s shelf-life.
- This technique was created to commercialize small amounts of raw, minced, or meat preparations that can be bought in a retail store. The close fixation of the plastic film on the product also has the finality to enhance all sensory aspects perceived by the consumer since this technique is mainly used for self-service purchases.
- Skin packaging is becoming increasingly common in supermarkets and other retail outlets to extend expiration dates and minimize food loss, supported by the increased awareness of the UN Sustainable Development Goals (SDGs). As meat blocks tend to remain on the shelves long before being purchased, the skin packaging method is primarily used for blocks of meat rather than sliced meat for household consumption and other products.
- The ability to resist bone punctures and increase shelf life, hold the product in place, and protect the meat during distribution, as well as the clarity of the film that allows consumers to see the product, are the main characteristics of skin films. Aside from its advantages for merchandising and shelf life, the skin packaging seal's size reduces meat waste and returns. There can be many returns from retailers due to leaks or packages with poor seals, especially in the meat industry.
- The demand for meat and cut meat packaging is rapidly increasing due to the e-commerce boom, and it is expected to be constant during the forecast period. According to the Organisation for Economic Co-operation and Development data, poultry meat consumption worldwide is expected to reach 147.47 metric kilotons in 2028, an increase from 135.62 metric kilotons in 2022. Thus, due to the increasing consumption of meat products, there is a constant need for skin packaging.
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Asia-Pacific is Expected to Hold Significant Share of the Market
- Due to the expanding organized retail and e-commerce sectors and the simplicity with which raw materials can be obtained, Asia-Pacific is anticipated to present prospective growth possibilities for market players. The demand for packaged food goods is expected to increase due to the rising consumer buying power in China, India, and Indonesia, which would boost market expansion.
- China’s skin packaging industry is growing due to the country's booming economy, rapid urbanization, and rising standard of living. Consumers gravitate toward more secure, practical, distinctive, and environmentally responsible packaging. According to the National Bureau of Statistics of China, approximately 63.9% of China's total population resides in cities. China has experienced a steady increase in its urbanization rate over the past few decades.
- Companies are extending their presence in Asia-Pacific as the region continues to develop. For instance, Amcor, a leader in responsible packaging solutions, opened its brand-new, cutting-edge production facility in Huizhou, China. The 590,000 square foot factory, which cost over USD 100 million to build, is China's largest flexible packaging facility in terms of production capacity, enhancing Amcor's capabilities to fulfill rising client demand throughout Asia-Pacific.
- The rising population, rising income levels, and changing lifestyles are expected to increase consumer spending, raising the demand for skin packaging products in India. Moreover, the increased media penetration via the Internet and television is boosting the demand from the rural sector for packaged goods.
- With increased demand and the emergence of new businesses in the food and beverage industry, India witnessed a surge in the packaging used for food and beverages. Food and beverage packaging use has increased due to the launch and rapid expansion of food delivery services like Zomato and Swiggy. There have been considerable advancements in food packaging that emphasize brand recognition while upholding the caliber and level of the food product with contain skin packs.
- With the growing population and urbanization, the demand for meat in China is growing significantly, which impacts the demand for different types of skin packaging for meat to keep it fresh and tender for a longer duration. According to the Organisation for Economic Co-operation and Development, per capita meat consumption in China showed a growing trend. It was 45.17 kilograms in 2021, which increased to 48.28 kilograms in 2023; it is expected to reach 52.84 kilograms by 2029.
- The market is driven by the growing preference of Chinese customers for meat, cheese items, fish, pork, seafood, vegetables, and others that are mostly skin-packed to make them shelf-stable. Customers in the nation are becoming increasingly accustomed to purchasing fresh fish and seafood.
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