North America Foam Trays Market: Introduction
The foam trays market in North America was valued at US$ 953.6 Mn in 2020 and is expected to cross US$ 1.2 Bn by 2031 at a CAGR of 2.7% during the forecast period. Foam trays are generally made from polyethylene, polypropylene, polyester, polystyrene, and other materials. Customers in North America are increasingly demanding fresh food products with extended shelf life and high quality. This is boosting the demand for food packaging, thereby driving the foam trays market in North America.
The rise in population in the U.S. has led to an increase in the demand for packaged food. The U.S. accounted for a major share of the packaging market in North America in 2020. Thus, the foam trays market in the region has been expanding considerably since the past few years. Continuous rise in the number of food packaging materials and packaging technology is being driven by changing customer demand for processed and semi-processed foods, new shopper product provision, utilization of automatic handling systems at distribution centers, and rise in concern toward customers’ health and safety.
Leading Players in North America Foam Trays Market
Key players such as Tekni-Plex, Inc., PACTIV Corporation, Novipax, Anchor Packaging Inc., Placon Corporation Inc., Coveris Holdings S.A, D&W Fine Pack LLC, Genpak LLC, Berry North America Inc., Ecopax LLC, Dart Container Corporation, Cascades Inc., and Atlas Holdings LLC. are focusing on expanding their global footprint through strategic capital allocation and increasing production capacity
Automation to Drive Changes in Product Protection Landscape
The North America foam trays market is projected to cross US$ 1.2 Bn by 2031. EDL Packaging Engineers – a specialist advancing in shrink wrapping and bundling packaging machinery, is now offering automatic packaging solutions for foam products, as automatic wrapping significantly reduces labor and material.
Apart from product innovations, automation is one of the key drivers, which is contributing to the growth of the North America foam trays market. This is evident since total enclosure protects foam products prior to conversion.
Non-biodegradable Nature of Foam and Availability of Bio-based Products to Hamper Foam Trays Market in North America
People are becoming increasingly aware about environmental hazards. Foam trays are made of polystyrene. These are dangerous to human health and the environment, as they take a long time to decompose. Bio-based products are degradable and recyclable. They help reduce waste. Products such as bagasse-based containers, corn plastic containers, and compostable paper containers are environment-friendly and decompose rapidly when disposed. Rise in consumer demand and government support for such products is boosting the bio-based products industry. This is directly augmenting the foam trays market in North America. Ban on single use polystyrene foam products in the U.S. poses a threat to the foam trays market in North America.
North America Foam Trays Market: Segmentation
North America Foam Trays Market, by Material
- Others (including Conductive Foams, Polyurethane Foams, and Foam Fluoride Trays)
North America Foam Trays Market, by Type
- Virgin Foam
- Recycled Foam
North America Foam Trays Market, by Application
- Industrial Packaging
- Food Packaging
- Others (including Electrical & Electronics and Cosmetics)
Key Challenges of North America Foam Trays Market
- Foam products made of polystyrene foam are harmful to the human health and the environment, since they take a long time to decompose. Foam breaks down so slowly that it may sit in landfills for 500 years, according to the Environmental Action Association.
- Various substitutes of foams are available in the market. They include bagasse-based containers, corn plastic containers, and compostable paper containers. Bio-based materials reduce the use of fossil fuels and associated greenhouse gas emissions by replacing petroleum-based products. Rise in consumer demand and government support is boosting the bio-based products industry.
- People are increasingly becoming aware of the environmental hazards of polystyrene foam. Several cities are banning single-use polystyrene foam products. For instance, the New York City implemented a ban on single-use polystyrene foam product in January 2019.
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