Albany, NY -- (SBWIRE) -- 12/12/2018 -- 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.
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.
This analysis of the global foam tray market is based on a recent market research by Transparency Market Research, titled "Foam Trays Market (Type - Polyethylene, Polypropylene, Polyester, and Polystyrene; Application - Pharmaceutical, Food Packaging (Meat & Poultry, Dairy Products, Food Service, Fruits & Vegetables, Bakeries, Food Chains), and Industrial Packaging) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2009 - 2021."