Foam Trays Market to Undertake Strapping Growth During 2021
The
global market for foam trays is largely fragmented and companies are
operating amid an immense level of competition. According to a recent
report by Transparency Market Research, the leading three vendors,
namely Pactiv LLC, Genpak LLC, and Sealed Air Corporation,
collectively accounting for nearly 40% of the market in 2014.
Competition is especially severe in regional markets where a large
number of unorganized players command a prominent position in local
markets with the help of inexpensive products.
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Mergers
and acquisitions are being preferred with the aim of extending
product lines and expanding production capabilities, especially in
lucrative regional markets with untapped growth opportunities. Focus
on the development of biodegradable and sustainable product varieties
is also a prominent strategy adopted by companies in the global foam
trays market as products that are re-usable and eligible for
recycling are seeing increased popularity among consumers. Some of
the other leading players in the market are D&W Fine Pack LLC,
Dart Container Corporation, and Sirap Packaging.
According
to the report, the global foam trays market will exhibit a 3.2% CAGR
over the period between 2009 and 2021 and rise to a valuation of US$3
bn by 2021 in terms of revenue. Volume-wise, the market is expected
to register a 4.4% CAGR over the said period and rise to 52.8 bn
units by 2021. In terms of product type, the segment of polystyrene
foam trays led the global market, contributing revenues worth
US$1589.4 mn to the global market in 2014. Geographically, the market
in North America is presently the leading regional market in terms of
revenue as well as volume.
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Rising
Demand across Packaging Industry Boost Demand of Foam Trays Globally
Foam
trays are used across several applications majorly owing to their
cost effectiveness, impermeability to moisture, superior cushioning,
and convenience of use. In case of food service solutions,
especially, foam trays are known to be reduce the entire cost of the
service substantially as compared to when using paper trays.
Owing
to these factors, a variety of foam trays are being used in increased
volumes for serving food across fast food joints, schools and
colleges, and for packaging take-home food. Foam trays are also being
increasingly employed for packaging food products such as cereals,
vegetables, and fruits. The rising demand across food service and
food packaging sectors will enable the global foam trays market gain
good traction in the next few years. The demand for foam trays will
also be driven indirectly due to the rising prices of earth-friendly
materials and recyclable paper and plastic trays.
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Concerns
Regarding Non-biodegradable Nature of Foam Could Hamper Market Growth
Owing
to the presence of a large number of unorganized players in regional
markets and several international companies operating in the global
foam trays market, the bargaining power of suppliers has
substantially weakened. Companies are being required to reduce prices
to stay ahead in the competition, resulting in loss of margin.
Another factor that threatens to limit the growth prospects of the
global foam trays market is the rising consumer awareness regarding
the non-biodegradability of foam and its harsh implications on the
health of the environment. Many regional and national governments are
also planning to instigate bans on the use of foam containers across
food service establishments. This could negatively impact the growth
of the foam trays market to a vast extent.
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