FMI Analyst View: ‘Wrap and Roll: The Delicatessen Paper Market’

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The deli paper market is expected to reach approximately USD 1,613.5 million by 2024 and is projected to grow to USD 2,411.5 million by 2034, driven by a stable CAGR of 4.1% during this period. A major factor contributing to this growth is the increasing preference for takeaway meals over prepared meals.

Increasing environmental awareness among consumers and businesses is driving demand for recyclable and biodegradable paper for delicatessen products. This trend is further supported by stricter government regulations on single-use plastics, which is driving the adoption of alternatives to paper-based packaging.

As deli operators and consumers prioritize sustainability, demand for recyclable and biodegradable paper is growing. This shift is driven by environmental concerns, regulatory requirements, and a commitment to sustainability, all of which are aimed at reducing the environmental impact of packaging materials.

The growing need for packaging that ensures contamination control is driving a significant increase in the demand for deli paper. With increasing concerns over health and safety, businesses are looking for hygienic and reliable packaging solutions, leading to the use of high-quality deli paper to meet stringent standards.

Government bans on single-use plastics are driving a shift to paper-based packaging materials, supporting environmental regulations and reducing plastic use, making deli paper an ideal choice in the foodservice industry.

Urbanization and busy lifestyles are driving consumers to opt for ready-to-eat meals, increasing the demand for delicatessen paper for effective packaging and presentation of ready-to-eat meals. This trend supports the foodservice industry’s need for hygienic and practical packaging solutions.

The opening of more cafes, restaurants and takeaways is driving the need for deli sheets to properly package and present food. This demand is driven by the need for visually appealing, practical and hygienic packaging options that increase customer satisfaction and maintain food quality during transit.

Key industry highlights

Online food delivery drives demand for wraps

The rise of meal kits and online food delivery platforms has increased the need for reliable and eco-friendly packaging, leading to a remarkable growth in the delicatessen paper market. Effective packaging is essential to maintain the quality, hygiene and presentation of food as more and more consumers prefer home delivery.

Within the foodservice industry, deli paper is popular for its grease resistance, versatility, and environmental friendliness. It provides a hygienic barrier and preserves the freshness of various foods, making it crucial for businesses looking to improve customer satisfaction.

The eco-friendly packaging options offered by deli wraps are in line with the growing consumer preference for sustainability. The increasing popularity of delivery services and the shift towards eco-friendly packaging is expected to drive significant growth in the deli paper market.

Hygienic packaging streamlines delicatessen operations

The growth of the deli paper industry is driven by the need for hygienic packaging to prevent contamination. Deli sheets are essential in the foodservice industry due to their protective and hygienic qualities. As awareness of food safety and cleanliness increases, the demand for hygienic packaging solutions is expected to increase in the coming decade.

Deli paper forms a barrier against impurities, keeping deli products fresh and safe. Its ability to resist grease and moisture improves its usability for packaging various types of food, such as pastries and sandwiches.

Using deli paper as a lining in food trays and baskets helps maintain the quality and safety of food. Deli operators who prioritize hygienic packaging to meet customer expectations and regulatory standards are contributing to the growth of the industry.

Customised printing improves home delivery of deli items

With home delivery becoming increasingly popular, the market for delicatessen paper is set to grow significantly. The need for good packaging and hygiene to improve food quality is driving the demand for paper for food packaging and transportation.

Delicatessen companies use custom printed paper for branding and promotional activities, realizing that this paper increases brand visibility and customer engagement.

Butcher paper is gaining popularity in the competitive sector as a way for businesses to print custom, high-quality graphics. This feature improves customer satisfaction, encourages repeat purchases and promotes brand loyalty. The design emphasises the importance of deli paper in modern food packaging, highlighting both its practicality and marketing potential.

Market concentration

Global industry leaders such as Vegware, Detpak and Novolex are known for their extensive product range and significant impact. These Tier 1 companies are leading innovative packaging solutions across industries and setting global benchmarks.

Tier 2 companies such as Spectra Packaging and McNairn Packaging have significant revenue shares and strong regional market positions. While they are not as globally dominant as Tier 1 giants, they remain competitive in their areas thanks to specialized product offerings and regional influence.

Tier 3 companies, such as Chemco Industries, Inc., Gator Paper and Eco-Pack Packaging Material Industrials LLC, have specialized product offerings and limited market presence. They often serve specific regional markets or industries.

Country-specific insights

India

The demand for food wrapping paper in India is expected to grow at a CAGR of 5.90% through 2034. The emergence of new food startups and home-based culinary businesses is driving the need for food wrapping paper, essential for small-scale food production and catering. This is in line with the Indian government’s ‘Make in India’ strategy.

The market growth is also supported by the growing hospitality and catering sector, which requires delicacy wrapping sheets for elaborate banquets and catering services.

The rise of luxury cafes in major cities like Mumbai and New Delhi is further increasing the demand for high-quality packaging materials for takeaway food, which are essential for hospitality businesses.

China

China is expected to show a CAGR of 4.2% through 2034. The rapid expansion of the food processing sector, rising disposable income and the growing need for convenient food packaging are important factors.

The Chinese food delivery industry is ideal for innovative food paper solutions. While emerging economies initially prioritize price and usability over sustainability, environmental considerations are expected to become more prominent as the food service industry grows and consumer awareness increases.

United States

The United States gourmet food market is poised for significant growth, with an expected CAGR of 4% through 2034. Demand for quick meal alternatives is driving the growth of takeout and delivery services.

Deli paper is crucial for providing practical packaging options that keep deli products fresh and high quality during transit. The increasing reliance on these services to deliver restaurant-quality meals is driving demand for reliable and hygienic packaging materials.

There is also a growing demand for eco-friendly paper for deli products in the US, with brands such as Vegware and Detpak offering recyclable and biodegradable options. This meets regulatory requirements and consumer expectations for environmentally friendly packaging.

Competitive landscape

Leading companies are implementing sustainable practices by incorporating recyclable and biodegradable components into their deli paper. They are emphasizing personalization options such as branding, embossing, and custom printing for wrapping paper.

Major packaging companies are developing innovative deli packaging made from sustainable materials to expand their customer base and meet government regulations. Strategies such as mergers, acquisitions, partnerships, facility expansions, price reductions and strengthening of distribution channels are being used to increase market position.

Major entities are also focusing on creating new food-coated paper with safe coating components and improved properties. They are researching and developing advanced, unique coating technologies for better functionality.

Recent developments in the industry

· In March 2024, Eco-Products added paper bags and sandwich wraps to its GreenStripe line of compostable products, certified by the Biodegradable Products Institute. These products, manufactured in the United States by Duro and Bagcraft, are ideal for restaurants, grocery stores and foodservice operators.

· In November 2023, Belfast-based sustainable packaging company Biopax acquired a Holweg Weber web flexo press capable of processing 500 million paper wrapping units per year. The aim was to increase capacity and supply of domestic products.

· In October 2023, UK food packaging manufacturer Colpac provided accessible recycling and composting guidance for its cardboard packaging, promoting responsible waste management and supporting WRAP’s Recycle Week 2023 to improve recycling rates.

· In August 2023, British supermarket Sainsbury’s introduced a premium to-go meal concept called Kitchen Deli in 100 of its 1,400 stores. The range includes sandwiches, salads and ready-made meals. Sainsbury’s plans to replace its plastic packaging with recyclable or compostable paper-based materials.

· In April 2023, Novolex introduced the Power Prep wrap, a laminated and insulated wrap designed for ready-to-eat hot sandwiches and other freshly prepared dishes. Ideal for convenience stores, supermarkets and hospitality businesses, this wrap can be custom printed.

These insights are based on a report by Ismail Sutaria Deli paper market by Future Market Insights.

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