The barrier packaging industry in Europe is estimated to be worth USD 5.3 billion in 2024 and is anticipated to reach a value of USD 6.9 billion by 2034. Sales are projected to rise at a CAGR of 2.7% over the forecast period between 2024 and 2034. In Europe, the revenue generated by barrier packaging in 2023 was USD 5.2 billion. The industry is anticipated to exhibit a Y-o-Y growth of 2.1% in 2024.
Food industry is one of the dominant sector in the barrier packaging industry with more than 60% of the value share in Europe. This is attributed to the need for prolong shelf life, to keep the product fresh for longer periods, and prevent spoilage of perishables such as meat, dairy, and ready to eat food.
Barrier packaging protects the food from oxygen, moisture, and contamination and reaches the consumer with a guarantee of quality maintained during transportation and storage. It is especially crucial in Europe due to the existence of strict food safety regulations with a rising demand from the consumer side for packaged food with high quality. Other factors that are driving the demand for advanced barrier packaging include the increase in convenience foods as well as online grocery shopping in Europe region.
Barrier Packaging Industry Forecast
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 5.2 billion |
| Estimated Size, 2024 | USD 5.3 billion |
| Projected Size, 2034 | USD 6.9 billion |
| Value-based CAGR (2024 to 2034) | 2.7% |
High barrier packaging (OTR <1cc/m2*day) is leading the barrier packaging industry in Europe which is anticipated to reach more than 40% of value share in the end of 2034. Its demand is primarily rising due to an increasing requirement for packaging systems that could guarantee the freshness and quality of sensitive food products such as meat, dairy, and ready-to-eat meals, by preventing oxygen from entering the package.
Food packaging has high safety standards across Europe and a trend towards longer shelf life products is prevailing. Therefore high barrier packaging has become an imperative for maintaining the integrity of the product through the supply chain distribution system. The growth is also contributed by advances in packaging materials that are making high barrier solutions both efficient as well as sustainable.
The barrier packaging market is set to experience profitable growth during the forecast period. It is projected to create an incremental opportunity of USD 1.7 billion and is predicted to rise 1.3 times the current value through 2034.
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The below table presents the expected CAGR for the Europe barrier packaging market over several semi-annual periods spanning from 2024 to 2034.
In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 2.9%, followed by a slightly higher growth rate of 2.5% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 2.9% (2023 to 2033) |
| H2 | 2.5% (2023 to 2033) |
| H1 | 2.3% (2024 to 2034) |
| H2 | 2.6% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 2.3% in the first half and remain relatively moderate at 2.6% in the second half. In the first half (H1) the market witnessed a decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
Premiumization of Food and Beverage Products in Europe
Advanced barrier packaging is on rise due to the growth of consumer preference for premium products in Europe. Premium products in food and beverage require sophisticated protection in order to keep them fresh, extend their shelf life, and protect them from contaminants. There is quite a high demand for barrier packaging in food and beverage market, particularly in the Western Europe markets of France, Germany, and Italy.
The consumers here tend to emphasize more on quality, taste, and food safety. The growth in the organic, artisanal, and gourmet product categories has also fueled a demand for premium barrier packaging since such products are associated with high performance barriers that have to prevent the ingress of oxygen and moisture to preserve the delicate nature of contents.
Having better visual designs, premium packaging materials also meet the demand for branding luxury products. Increasing emphasis on product integrity and brand image in premium segments will continue innovation and demand for superior barrier packaging solutions.
Rising Demand for High-Performance Packaging in Healthcare and Pharmaceuticals
The healthcare and pharmaceutical industry is expanding in Europe largely due to the aging population and increasing healthcare needs. This is creating an opportunity for barrier packaging companies to capitalize on the strict requirements for packaging in the healthcare and pharmaceutical industries, in which protection from contamination, moisture, oxygen, and light must be ensured.
They innovate by making advanced barrier materials that extend the shelf life of pharmaceutical products, protect sensitive medications, and ensure conformity with EU regulations on medical packaging. Although new drugs, biologics, and vaccines comes into the market, and appropriate packaging is needed for maintaining the stability of a product during supply chain.
Thus in this market segment, specialized barrier solutions for medical devices and pharmaceuticals manufactured under strict safety standards can provide a growth opportunity for the manufacturer.
High Production Cost of Barrier Packaging Limits Expansion
A major problem facing the market for barrier packaging is that these packages require advanced materials like multilayer films, aluminum foils, or specialized polymers like EVOH that are expensive. These material provide greater resistance to moisture, oxygen, and other gases but demand more complicated processes to manufacture hence being costlier.
The production cost of high barrier packaging tends to be more elevated compared to regular packaging. This is going to be challenge to manufacturer operating in cost sensitive markets from adopting such packaging. This will limit its application especially in lower margin products where price should be extremely competitive. As a result, end user will find less expensive alternatives in such situations.
The European market recorded a CAGR of 1.3% during the historical period between 2019 and 2023. Market growth of barrier packaging was positive as it reached a value of USD 5.3 billion in 2023 from USD 4.9 billion in 2019.
The Europe barrier packaging market witnessed a steady growth in historic period driven by increasing demand for longer shelf life products along with an increase in consumer awareness of food safety and quality. The market have a strong demand from the food and beverage sector, contributing the leading segment due to growing popularity of ready to eat meals and packaged fresh food.
Pharmaceutical industry also grew and contributes in market growth to a great extent especially after pandemic as delivery of vaccines and medications increased. This has generated the demand for secure and tamper evident packaging solutions. But sustainability concerns emerged as one of the main issues as many European countries began enforcing strict rules on packaging waste.
Thus producers were compelled to work creatively with recyclable or compostable high barrier materials. Overall, the market reflected a moderate growth rate with demand of advanced packaging material.
In forecast period, market growth for the Europe barrier packaging is expected to flourish due to increasing focus on high barrier packaging solutions. The barrier packaging market in Europe is expected to grow in future supported by the European Union sustainability regulations that motivate the use of biodegradable, compostable, and recyclable barrier packaging solutions.
Reducing the usage of plastics material has become more important issue and it being replaced by with new materials such as paper based, bio based, and mono material packaging. The key sectors will be food and beverage, pharmaceutical, and personal care which stimulate the market growth. An aging population would have a stimulating effect on the demand for medical packaging.
Also, an increasing e-commerce sector requiring strong packaging solutions will boost the market sales. Technological advances and innovations in nanotechnology based coatings and smart packaging that improve barrier properties without compromised environment goals will be creating traction in market.
Tier 1 companies in the European barrier packaging industry include Mondi Plc, Constantia Flexibles, Clondalkin Group, and RKW Group with market revenue above USD 100 million. These manufacturers are market leaders in barrier packaging within Europe having extensive production capacity, different product offerings, and extensive manufacturing expertise. These companies are capturing around 25% to 30% of Europe's market share in the barrier packaging industry.
Tier 2 of the Europe barrier packaging industry incorporates companies Sealed Air Corporation, Sonoco Products Company, Taghleef industries and Schur Flexibles with revenue of USD 50 to 100 million. They have limited presence, and well-maintained knowledge but may not have expertise and advanced manufacturing technology.
Tier 3 category in the Europe barrier packaging market includes the small-scale players of the region with revenue below USD 50 million. These companies fulfil the local market demand and are recognized as an unorganized market. They have a country level presence, limited manufacturing facilities, and expertise in local market needs.
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The section below covers the future forecast for barrier packaging market in terms of countries.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Germany | 2.5% |
| UK | 3.1% |
| Italy | 2.1% |
| France | 2.9% |
| Benelux | 3.5% |
| Russia | 1.7% |
The data published by the British Heart Foundation states that heart and circulatory diseases affect around 7.6 million people in the UK. It is estimated that more than half of the population in the UK will get a heart or circulatory condition lifetime. It will raise the demand for medical devices and pharmaceuticals and require secure and reliable packaging solutions.
With more and more people needing medications such as blood pressure drugs, statins, and other treatments, pharmaceutical companies will need high-barrier packaging for product stability, safety and extended shelf life. This will increase the demand for blister packs, vials, and other barrier packages in the healthcare industries.
Additionally, the increased need for health and safety might spill over into food packaging because consumers will be demanding fresh foods and heart-healthy products that continue to protect food quality, hence supporting the growth of the barrier package market in UK. UK is anticipated to grow at 3.1% of growth rate in forecast years.
Germany is anticipated to reach 22.4% of the value share in 2034. As per the International Trade Administration, USA Department of Commerce, the market for e-commerce in Germany is blooming. The total sales of e-commerce was USD 141.2 billion in 2022 which is around 11% growth as compared to 2021.
With the rise of online purchases for food, medicine, and other consumer goods, the demand for appropriate packaging is increasing that will prevent damage to products while in transport to ensure they reach consumers in a good condition. In particular, for grocery, and fragile products like drugs, high-barrier packaging protects them from the loss of freshness, a deterioration in quality, and safeguard the products.
With the emergence of e-commerce, more and more retailers strive to meet consumer demands regarding product safety and quality by requiring durable and advanced barrier packaging solutions.
The section contains information about the leading segments in the industry.
| Application | Oxygen Barrier |
|---|---|
| Value CAGR (2034) | 3.1% |
Oxygen barrier leads in the application of barrier packaging with more than 55.4% value share in 2024. Oxygen barrier packaging is the most advanced among all types of barrier packaging, as it is playing a very crucial role in extending the shelf life of perishable food products.
Oxygen is one of the major contributors to food spoilage and degradation, and efficient oxygen barriers significantly minimize oxidative reactions that cause food to deteriorate. Due to this, such packaging is most essential for the food and beverages industries to ensure that their products remain fresh and do not degrade.
With growing pharmaceutical applications where drugs under protection are sensitive to oxidation, a growing need for oxygen barrier solutions has been emerging. With increasing consumer awareness regarding food safety and quality, the demand for oxygen barrier packaging is increasing day by day across most industries.
| Packaging Format | Stand-up Pouches |
|---|---|
| Value CAGR (2034) | 3.9% |
Stand up pouches is one of the leading segment with optimum growth rate and it is anticipated to hold around 25.7% value share in 2034. Stand-up pouches are increasingly used and in demand as they are easy to carry and flexible. The pouch is attractive in appearance on shelves and thus grabs attention. The pouch is light in weight that reduces shipping costs. Advanced barrier materials guard against moisture, oxygen, and light, hence, the shelf life of several products is ensured.
Consumer demand, over the past few years, has been driving innovation in making recyclable and biodegradable options available for packaging. Increased consumption of on-the-go products with a growing percentage of the population turning to e-commerce make stand-up pouches a propitious segment for the near future.
Key players of Europe barrier packaging industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.
Key Developments in Barrier Packaging Market:
Packaging formats in barrier packaging market include stand-up pouches, retort pouches, vacuum bags, flow wraps, lidding films, sachets, blister packs, shrink wraps, pillow packs, gusseted bags, spouted pouches, and bag-in-box.
The barrier packaging market is divided into low barrier (OTR100cc/m2*day), medium barrier (OTR20-50 cc/m2*day), moderate barrier (OTR<10cc/m2*day), high barrier (OTR <1cc/m2*day), and ultra-high barrier (OTR<0.1cc/m2*day).
The barrier packaging materials are categorized including metal film, plastic, biodegradable, and paper. Metal film is divided into aluminum foil, and metalized Film. Plastic is divide into polyethylene, polypropylene, polyethylene terephthalate (PET), polyvinylidene chloride (PVDC), ethylene vinyl alcohol (EVOH), and nylon (Polyamide).
The barrier packaging applications are categorized including oxygen barrier, aroma barrier, and oil/grease barrier.
The barrier packaging end use are categorized including food, healthcare, electrical & electronic, agriculture, chemicals, cosmetics, and other industrial.
Key countries of Europe such as Germany, Spain, France, Italy, BENELUX, Nordic, Russia, Poland, Israel, and Rest of Europe are covered.
The barrier packaging industry in Europe is projected to witness CAGR of 2.7% between 2024 and 2034.
The Europe barrier packaging industry stood at USD 5.2 billion in 2023.
Europe barrier packaging industry is anticipated to reach USD 6.9 billion by 2034 end.
BENELUX is set to record a CAGR of 3.5% in assessment period.
The key players operating in the Europe barrier packaging industry are Mondi Plc, Constantia Flexibles, Clondalkin Group, and RKW Group.
| Estimated Size, 2025 | USD 19.3 billion |
|---|---|
| Projected Size, 2035 | USD 28.3 billion |
| Value-based CAGR (2025 to 2035) | 3.9% |
| Estimated Market Size (2024E) | USD 18.32 billion |
|---|---|
| Projected Market Value (2034F) | USD 24.14 billion |
| Value-based CAGR (2024 to 2034) | 2.8% |
| Estimated Size, 2024 | USD 3,964.7 million |
|---|---|
| Projected Size, 2034 | USD 5,503.9 million |
| Value-based CAGR (2024 to 2034) | 3.3% |
| Market Value for 2024 | USD 18.8 billion |
|---|---|
| Projected Market Value for 2034 | USD 24.5 billion |
| Value-based CAGR (2024 to 2034) | 2.7% |
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Barrier Packaging Industry Analysis in Europe
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