Foam Trays Market Size, Share, Trends, Growth 2030

Foam Trays Industry Prospective:

The global foam trays market size was worth around USD 2259.5 Million in 2022 and is predicted to grow to around USD 3,250.8 Million by 2030 with a compound annual growth rate (CAGR) of roughly 4.82% between 2023 and 2030.

The report analyzes the global foam trays market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the foam trays industry.

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Foam Trays Market: Overview

Foam trays are a type of packaging solution or material that is manufactured using expanded polystyrene foam. They are most commonly used in the food & beverages segment but have applications in other industrial sectors as well. In the food industry, foam trays are used for the packaging of vegetables, poultry, meat, eggs, and fruits. The industry revolved around the producers and sellers of foam trays for all end-user verticals. The main reason for the high demand for the product is its cost-efficient and relatively lightweight as compared to other packaging materials.

Some of the major attributes that make foam trays highly desirable in the food industry are their ability to provide excellent insulation along with protecting the packaged goods from getting spoiled due to high moisture content in the environment. It also assists in maintaining food freshness, impacting the final quality of the food before it reaches the final consumer. The market is run by a significant number of manufacturers, distributors, and wholesalers who are constantly evolving in terms of production quality to meet the growing demand from end-user verticals.

Key Insights: 

• As per the analysis shared by our research analyst, the global foam trays market is estimated to grow annually at a CAGR of around 4.82% over the forecast period (2023-2030)
• In terms of revenue, the global foam trays market size was valued at around USD 2259.5 million in 2022 and is projected to reach USD 3,250.8 million, by 2030.
• The foam trays market is projected to grow at a significant rate due to the growing demand for a convenient packaging solution
• Based on type segmentation, isopropanol was predicted to show maximum market share in the year 2022
• Based on coverage type segmentation, food grade was the leading type in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Foam Trays Market: Growth Drivers

Growing demand for convenient packaging solutions to provide higher growth

The global foam trays market is projected to grow owing to the increasing demand for convenient and lightweight packaging solutions. Foam trays offer higher flexibility in terms of weight as compared to other solutions present in the market. Furthermore, they can be manufactured in different shapes and sizes depending on the final application, thus offering better versatility. As the requirement for easy-to-use packaging solutions is gaining higher momentum, the industry players can expect more demand in the coming years. In addition to this, the general increase in the food & beverages (F&B) sector is expected to act as a major growth propeller. Factors like increasing population, rapid rate of urbanization, rising disposable income, constant product innovation, and addition, are some of the basic but effective reasons why the F&B sector globally is witnessing higher demand. This trend subsequently translates to more requirements for supportive products like foam trays.

Foam Trays Market: Restraints

Environmental concerns to restrict the market growth

Although the demand for foam trays is growing consistently, the foam trays industry players are currently struggling with navigating through the rising concerns over the environmental impact of foam trays. These products are derived from expanded polystyrene foam which is not environmentally friendly since it cannot be bio-degraded and takes multiple years to break down thus effectively acting as a pollutant. The modern world is currently in a time where climate or environment-related problems are top priority and business operations are being monitored for the impact on the ecosystem.

Foam Trays Market: Opportunities

Growing innovation to provide growth opportunities

One of the key areas where the foam trays industry players may benefit is the increasing investment toward better innovation and development. Market players are constantly investing and diverting resources to explore new materials that can act as alternatives to polystyrene foam while maintaining performance output and cost. Moreover, some businesses offer customization of the product in terms of color, size, and shape allowing them to explore more growth opportunities. This can also impact the business operation of the end user since it provides them with the scope for branding solutions.

Foam Trays Market: Challenges

Growing competition from alternative solutions to challenge market growth

The global foam trays market faces intense challenges in terms of the availability and the growing popularity of different alternatives in the commercial market. With the growing awareness and regulation around the environmental impact of plastics in all forms, users are now seeking more sustainable objects and solutions leading to a growing segment of the consumer database opting for alternatives like paper-based packaging, bioplastics, and other types of eco-friendly materials.

Foam Trays Market: Segmentation

The global foam trays market is segmented based on material used, applications, coverage type, and region.

Based on material used, the global market segments are polyester, polyethylene, polystyrene, and polypropylene. The industry witnessed the highest growth in the polystyrene segment in 2022 and during the forecast period, it may grow at a CAGR of 2.91%. The different positive attributes of the material are the main reason for segmental growth. For instance, it is lightweight making it an optimum choice in packaging solutions where the weight of the good is a primary concern. Furthermore, it offers durability and can withstand being exposed to harsh environments. Products made of polystyrene are the most cost-effective.

Based on applications, the global market is divided into food packaging, pharmaceutical, and industrial applications.

Based on coverage type, the global market is divided into industrial grade and food grade. The industry witnessed the highest CAGR in the latter segment due to the growing consumption level of foam trays in the F&B sector, one of the fastest-growing industries. Packaging is essential in the food industry and market players tend to invest heavily in solutions that provide them with better benefits. Factors like safety, preservation, branding, convenience, regulatory compliance, and sustainability are the key aspects that influence the decision in terms of packaging type. Plastic is currently the most preferred choice and dominated almost 37.1% of the industry share.

Recent Developments:

• In February 2022, Tekni-Plex, a leading company dealing with material science solutions, announced the launch of a new segment of foam polypropylene food trays. This range offers products that are a recyclable substitute to the otherwise dominant foam polystyrene trays. The trays can be used to store meat products
• In March 2021, Ecovative Design, a company that has worked consistently toward replacing leather material and foam packaging with mushroom mycelia, announced that it received fresh funding of USD 60 million to make its vision come true and replace fungal-based solutions in the foam, food, and fashion industries
• In June 2021, INEOS Styrolution announced the launch of Styrolution® PS ECO 440 in the EMEA market. The material is mechanically recycled polystyrene

Foam Trays Market: Report Scope

Foam Trays Market: Regional Analysis

North America to continue its dominance

The global foam trays market is expected to register the highest growth in North America as it led to over 35.71% of the global market share in 2022. The increased demand for parcels of takeaway food items was the leading cause of regional growth, especially in the US and Canada. Rising urban culture, changing eating patterns, and lifestyle led to higher demand in the segment. Furthermore, the pharmaceutical segment had an important role to play in the higher revenue trend since hospitals and medical centers are increasingly getting inclined toward using foam trays for the protected delivery of various medicines or products. Europe accounted for 28.1% of the global market share in 2022 and may grow at a CAGR of 3.4% during the forecast period. The growth is mainly driven due to the growing demand in the F&B sector along with the presence of key players.

Foam Trays Market: Competitive Analysis

The global foam trays market is led by players like:

• Dart Container Corporation
• Genpak LLC
• Huhtamaki Oyj
• Pactiv LLC
• Sealed Air Corporation
• Placon Corporation
• Anchor Packaging Inc.
• Fagerdala USA Inc.
• Premier Protective Packaging
• VFP Technologies Inc.
• CKF Inc.
• Ecopax LLC
• Reynolds Packaging Group
• Universal Foam Products
• VFP Inc.
• New England Foam Products
• Ultramotive Corporation
• Ridout Plastics Co. Inc.

The global foam trays market is segmented as follows:

By Material Used

• Polyester
• Polyethylene
• Polystyrene
• Polypropylene

By Applications

• Food Packaging
• Pharmaceutical
• Industrial Applications

By Coverage Type

• Industrial Grade
• Food Grade

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa