Oil Resistant Packaging Market Size, Share, Trends, Growth 2032

Oil Resistant Packaging Industry Prospective:

The global oil resistant packaging market size was worth around USD 12.5 billion in 2023 and is predicted to grow to around USD 19.9 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.3% between 2024 and 2032.

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Oil Resistant Packaging Market: Overview

The term "oil-resistant packaging" describes materials used in packaging intended to keep grease and oil from seeping through or destroying the integrity of the packing. Food products, industrial uses, and personal care products that contain oils, fats, or greasy substances frequently use these materials.

Growing demand in the culinary, industrial, and personal care industries is driving growth in the market for oil-resistant packaging. Products in this market include coated paper, aluminum foil, plastic films, and biodegradable treatments that stop oil and grease from penetrating.

Key Insights

• As per the analysis shared by our research analyst, the global oil resistant packaging market is estimated to grow annually at a CAGR of around 5.3% over the forecast period (2024-2032).
• In terms of revenue, the global oil resistant packaging market size was valued at around USD 12.5 billion in 2023 and is projected to reach USD 19.9 billion by 2032.
• The growing demand from the end-use industry is expected to drive the oil resistant packaging market over the forecast period.
• Based on the oil resistant packaging types, the paper segment is expected to hold the largest market share over the forecast period.
• Based on the application, the beverages segment is expected to dominate the market over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Oil Resistant Packaging Market: Growth Drivers

The rising food & beverages sector drives market growth

The food and beverage (F&B) industry is one of the key drivers of the oil-resistant packaging market. As the use of ready-to-eat, takeout, and convenience foods increases, oil-resistant packaging is crucial to maintaining food safety, freshness, and lack of contamination or leakage.

With the growth of fast-food franchises and delivery services, packaging that can effectively withstand oils, fats, and grease is becoming increasingly important.

Common products include things like pastry bags, pizza boxes, burger wraps, and containers for fries. These products must be made of oil-resistant materials to maintain their structural integrity and prevent oils from leaking through, which could cause spills or food to spoil.

 Oil Resistant Packaging Market: Restraints

High costs of sustainable & biodegradable alternatives hinder market growth

Environmentally friendly and biodegradable oil-resistant packaging is becoming more and more popular due to consumer demand, environmental concerns, and legal limitations.

However, the usage of these alternatives is limited by the high cost of materials and manufacture. Eco-friendly oil-resistant packaging commonly uses biodegradable coatings such as plant-based waxes, biopolymers, or water-based alternatives. These materials cost more than traditional PFAS-based coatings or paper laminated with plastic.

Furthermore, it is more difficult to find sustainable packaging raw materials than conventional alternatives made of paper or plastic, which restricts supply chains and raises procurement prices. The low production volumes of sustainable materials relative to conventional materials limit economies of scale. Therefore, the high cost of sustainable and biodegradable alternatives hamper the oil resistant packaging industry growth.

Oil Resistant Packaging Market: Opportunities

Growing product launch offers a lucrative opportunity for market growth

A growing product launch is expected to offer a lucrative opportunity for the oil resistant packaging market during the forecast period. For instance, in April 2024, the Cartaseal OGB F10 barrier coating, developed by specialty chemicals business Archroma, is intended to provide PFAS-free oil and grease resistance in food and non-food paper and board packaging.

By substituting a recyclable and repulpable covering for fluoro-based materials and polyethylene, the barrier appears to be water-based, oil- and grease-resistant, and allows papermakers to offer premium, environmentally conscious packaging. It is FDA and BfR-compliant, according to Archroma.

According to the company, the barrier makes recycling and repulping simple and offers oil and grease resistance (OGR) for applications, including folding box boards and flexible paper packaging.

According to reports, the Cartaseal OGB F10 uses bio-based raw materials to reduce the amount of oil-based resources that papermakers and brands use.

Oil Resistant Packaging Market: Challenges

Competition from alternatives poses a major challenge to market expansion

Alternative packaging options that provide improved performance, cost-effectiveness, or sustainability are becoming a bigger threat to the market for oil-resistant packaging. New technologies and package formats are replacing or enhancing conventional oil-resistant materials as consumers and businesses look for creative and environmentally responsible packaging.

Single-use oil-resistant packaging is becoming less necessary as reusable food containers and silicone-based meal wrappers become more popular. Disposable containers have been replaced by deposit-based reusable containers offered by certain eateries and meal delivery services. Takeout services, for instance, utilize reusable silicone wrappers and stainless steel tiffins. Thus, the competition from alternatives poses a major challenge to oil resistant packaging market expansion.

Oil Resistant Packaging Market: Report Scope

Oil Resistant Packaging Market: Segmentation

The global oil resistant packaging industry is segmented based on oil resistant packaging types, applications, and regions.

Based on the oil resistant packaging types, the global oil resistant packaging market is bifurcated into paper, bags, laminations, and boxes. The paper segment is expected to hold the largest market share over the forecast period. The use of greaseproof paper, which provides efficient oil resistance and preserves food quality, has expanded as a result of the rise in the consumption of baked goods, convenience foods, and ready-to-eat items.

Based on the application, the global oil resistant packaging industry is segmented into packed snacks, beverages, confectioneries, cosmetics, pharmaceuticals, and industrial. The beverages segment is expected to dominate the market over the forecast period. PET is extensively used in beverage packaging because of its strong oil barrier qualities, which help withstand chemicals that can harm plastics. This makes it perfect for containing oil-based beverages while assuring product safety and lifespan.

Furthermore, the sector is moving towards eco-friendly and biodegradable packaging options. Plant-based coatings and biodegradable polymers are being researched to improve oil resistance while decreasing environmental effects. Companies, for instance, are looking into the usage of bio-based polymers that are as oil-resistant as regular plastic.

Oil Resistant Packaging Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global oil resistant packaging market. The region is seeing an increase in demand for creative packaging solutions that enhance product appeal while ensuring safety. This tendency is especially prevalent among producers looking to entice customers through improved packaging.

Furthermore, the region's enormous network of fast-food companies demands effective oil-resistant packaging to maintain food quality and minimize grease leaks, which promotes market growth. Also, customers continue to prefer packaged snacks due to their convenience and price. The need for packaging that resists oil seepage in these items drives up the demand for oil-resistant solutions.

Oil Resistant Packaging Market: Competitive Analysis

The global oil resistant packaging market is dominated by players like:

• Zanders GmbH
• Archroma
• SNP Inc.
• NTI
• DuPont
• michelman inc.
• Sun Grown Packaging
• Twin Rivers Paper Company
• Safepack Solutions
• LINTEC Corporation
• WestRock Company
• Solenis
• Papkot™
• Mallard Creek Polymers

The global oil resistant packaging market is segmented as follows:

By Oil Resistant Packaging Types

• Paper
• Bag
• Laminations
• Boxes

By Application

• Packed Snacks
• Beverages
• Confectioneries
• Cosmetics
• Pharmaceuticals
• Industrial

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