News | October 16, 2017

Dairy Packaging Market In North America - Top 3 Trends By Technavio


Technavio’s latest market research report on the dairy packaging market in North Americaprovides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technaviodefines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

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Technavio has published a new report on the dairy packaging market in North America from 2017-2021.  ...

Technavio has published a new report on the dairy packaging market in North America from 2017-2021. (Graphic: Business Wire)

The demand for dairy packaging has increased tremendously due to the inclination of consumers toward packaged food products and on-the-go packages. Along with the increase in demand for dairy products, their increased distribution through organized retail stores also plays an important role in the growth of packaging industry.

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The top three emerging market trends driving the dairy packaging market in North America according to Technavio research analysts are:

  • Demand for biodegradable packaging
  • Increase in demand for multi-pack
  • New product development

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Demand for biodegradable packaging

North America is estimated to be the largest consumer of the biodegradable packaging due to the presence of mature markets that consist of highly environment conscious consumers. In addition, North America consists of a high-spending population, which is estimated to increase the overall demand for biodegradable dairy packaging.

Dairy manufacturers, as well as suppliers, have a responsibility of protecting the environment and reducing the carbon footprint. Hence, recyclable glass containers are expected to be an effective option as glass can be recycled multiple times and can be used as a packaging for dairy products, including milk, cheese, yogurt, and ice-cream.

“Environment compliance regulations are becoming more stringent, and vendors are adopting glass and bio-degradable plastics as a substitute for conventional packaging materials. This will lead to an increase in demand for biodegradable materials for dairy packaging, which will boost the growth of the dairy packaging market during the forecast period,” says Sharan Raj, a lead analyst at Technavio for packaging research.

Increase in demand for multi-pack

Multi-pack contains many identical products, which are sold at a discounted price in comparison to the products sold individually. Multi-pack is an impressive marketing strategy because it increases unit sales as well as attracts consumers to try new products of a brand. Another advantage of multi-pack dairy packaging is that it is shelf ready, thereby building brand awareness as well as increasing conversion rates specifically for non-chilled products. Many vendors design in a way such that the packaging looks attractive and takes less shelf space. This increase in demand for multi-packs is estimated to trigger the growth of the dairy packaging market in North America during the forecast period.

New product development

The dairy packaging market in North America is highly competitive, and companies are investing in R&D for innovative product packaging. Vendors are developing packaging options that improve the shelf life, usability, convenience, and hygiene of the product. For instance, Smith Dairy's Artisa cottage cheese features fruits at the bottom of the packaging. The packaging is a transparent single-serve cup, and the company spent a year and a half on experimenting and researching consumer preferences on cups and lids before the final design.

EcoTensil'd PopOut SpoonLidz introduced an eco-friendly design that turns the lid into a spoon with a simple fold. As the lid is made from green paperboard, it is environmentally sustainable. Hence, vendors are continuously working on innovations which are anticipated to help them gain a competitive advantage.

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