Amid Consumer Focus on Sustainability, Food Packaging Sourcing Is Up 240% YoY

Christian Cavallo Mar 09, 2023

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Welcome to this week’s edition of the Thomas Index Report.

The food and packaging industries are tied at the hip, and recent trends are strengthening this bond. In this week’s Thomas Index Report, we explore how trends in food packaging have accelerated both industries and how it has affected sourcing trends on Thomasnet.com.

Frozen food is driving growth across the food sector. A recent Institute of Supply Management (ISM) report found that frozen food outpaced fresh food by 230% in the second quarter of 2022. Driven initially by pandemic-related supply changes, frozen food demand has kept pace due to its versatility in high-inflation markets. As prices increase, customers make fewer trips to the supermarket and often choose more durable, longer-lasting foods over fresh alternatives.

While frozen foods typically use plastic packaging, consumer sentiment is changing in favor of sustainability. Carton board, or the paper-based packaging found in egg cartons and takeout containers, is gaining popularity in the frozen food space as more consumers choose recyclable materials. The ISM suggests that this shift presents an opportunity for paperboard companies to expand into the frozen food industry, where they expect a 24% year-over-year increase in folding box board growth in 2023.

The lightweight, non-reactive, and sustainable nature of paper packaging makes it ideal for food products. A 2023 Visiongain report revealed that the global paper packaging market was valued at $233 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% in the next decade — largely due to the replacement of single-use plastics with paperboard in food and other sectors. Reflecting these trends, Thomasnet.com data shows a 137% year-over-year increase in food packaging sourcing and a 240% year-over-year increase in paper and paperboard packaging.

As frozen food gains popularity, we expect to see a further rise in paper-based packaging as customers shy away from bags, pouches, and other plastic solutions.

I’m Anna Wells, and this is the Thomas Index Report.