A new report by Smithers Pira, commissioned by Asia Pulp & Paper Group (APP) and released today at Interpack, finds that the European out-of-home (OOH) packaging market is expected to grow by 6% to hit €6bn by 2020.
According to the report, “European Out-of-Home Packaging Trends to 2022”, growth in the Out-of-Home packaging market – worth €5.65bn in 2015 – is being driven by an expansion in the fast food and fast-casual market segments as restaurants look to new forms of home delivery services. These delivery services are in turn driving a ‘premiumisation’ across the category as foodservice providers seek to replicate the ambience and style of a dine-in experience through their packaging.
The packaging markets in both Western and Eastern Europe are expected to grow. According to the research, Western Europe’s total packaging market was worth $184bn in 2016 and is expected to grow by 2.8% per year to 2020;[1] Eastern Europe’s market is expected to grow faster at 3% per year from a base value of $48.1bn in 2016. This is in part due to the higher capacity for OOH food and drink consumption to increase alongside discretionary income in Eastern European markets in comparison to the comparatively saturated OOH markets in Western Europe.
Across Europe, the growing popularity of home delivery and fast food is leading to predictions that these sectors could well overtake the market share of full-service restaurants by 2020.[2] In the UK, services like Deliveroo and just-eat.co.uk are offering more options for consumers to have restaurant-quality food in the comfort of their own home – cutting out the need for diners to eat outside the home.[3] This is driving opportunities for businesses across the packaging and converting sector to support restaurants with quality, luxury packaging that can help to recreate restaurant experiences.
On a market-by-market basis, the UK OOH packaging market is currently the largest in Europe at €1.24bn (2015), and is expected to maintain this position through 2020 with a predicted 1.5% annual growth rate. The UK’s large food service sector, valued at €55bn, and rapidly developing fast-casual market, currently worth €1.39bn, is helping to keep the UK at the top of the OOH packaging market and is driving the sector’s expansion. Consumer preference for on-the-go consumption and a cultural distaste for loose goods like unpackaged produce make Britain a prime location for innovation and growth in the OOH packaging.
Dr Liz Wilks, Director Sustainability & Stakeholder Engagement Europe at Asia Pulp and Paper Group, said, “Recent disruptions in the delivery sector such as Deliveroo have created new opportunities in European packaging. Restaurants and fast food brands are looking to replicate the feel of their restaurants through their packaging for diners at home and there is an opportunity for packaging providers to capitalise on this growth area by working closely with the food sector on this area of innovation.”
John Nelson, Commissioning Editor, Smithers Pira, said, “Despite living our lives increasingly online, this report demonstrates how paper and packaging is still at the heart of disruptive and emerging global trends, such as the growth of new food delivery services. Our research for APP shows that the value of the Our-of-Home packaging market in Europe is expected to hit €6bn by 2020.”
[1] Smithers Pira, “The Future of Global Packaging to 2020”, 2015
[2] Euromonitor, “Consumer Foodservice in 2016: Key Insights For Global Operators”, 2016
[3] Euromonitor, “Beyond Takeout: Restaurant Delivery and the Future of Home Delivery in Foodservice”, 2016
