The global market for Molded Fiber Trays is projected to reach US$2.4 Billion by the year 2027, trailing a post COVID-19 CAGR of 5.2% over the analysis period 2020 through 2027. A robustly growing market until recently, molded fiber pulp packaging, is all set to reclaim its vigor in the near term, rising past the temporary yet significant dents made by the onset of the COVID pandemic, which squeezed the sector due to shrinking demand from end-use segments including food service, cosmetics, logistics and automotive packaging. A large scale lull in demand on account of spending only on necessary items hurt the short term demand for the packaging from non-essential goods segment. The spread of COVID-19 pandemic has significantly affected the business, sales and transport cycles while creating a negative impact on sectors such as consumer durables, food service and electronic items. The dependence of the molded fiber pulp and packaging material on the demand flow of end-use sectors is causing considerable uncertainty in the global molded fiber packaging market including demand for molded fiber trays. Against the backdrop of the pandemic, dietary habits and eating preferences are changing, with consumers exhibiting preference for home-cooked food as an alternative to packaged food products and online food orders as a replacement to dine-ins. The beginning of the pandemic brought with it lockdown measures which resulted in closures of dine-in restaurants. The restaurant industry recorded massive losses with seated diners in restaurants worldwide plummeting to the steepest level at -38.8% in November 2020. Although restaurants have re-opened, the second and third waves of infections continue to spread resulting in reduced foot-falls for dine-ins.

Finding an opportunity in this crisis is food takeaways and online orders with both platform-to-consumer and restaurant-to-consumer witnessing robust growth. Molded fiber trays which are perfect packaging solutions as carryout food containers are poised to benefit from the current state of affairs. Molded fiber or molded pulp is a type of fibrous material, which is generally made from recycled newsprint, paperboard and natural fibers like wheat straw, sugarcane, and bamboo. Molded fiber packaging products including trays are currently used in packaging and handling of a large number of manufactured products in various end-use industries. Molded fiber packaging, which is available in various forms including plates, trays, bowls and clamshells, is used for protective packaging and for beverage carriers and foodservice trays. Molded fiber trays and other packaging solutions offer protection to products during shipments, and are known to promote customer convenience. In several applications, molded pulp is known to less expensive in comparison to foam, vacuum formed PVC or PET, corrugation and EPS (expanded polystyrene) alternatives. Molded pulp products are generally made waterproof using a spray or dip coating of wax. Molded fiber is an environmentally beneficial and sustainable packaging material compared to conventional alternatives, as it is produced using recycled materials and is also designed to be recycled following completion of useful life.

Healthcare packaging and food service retail packaging are expected to drive the growth and ensure recovery of the market post pandemic. Growth will also be supported by easily compostable, biodegradable and recyclable nature of molded fiber trays. Benefits offered by the material in terms of maximum cushioning, impact blocking and bracing are gaining prominence among industry participants. The molded fiber packaging material also outperforms plastic alternatives on all parameters including aesthetics, expense and utility. Growing concerns over the usage of single-use plastics made from EPS (expanded polystyrene) foam along with governmental regulations against EPS packaging is another factor boosting long-term market prospects. The steady use of drive-in and carryout grocery stores and food service establishments will help conquer the negative impact of the demand slump caused by the coronavirus pandemic. Some of the benefits of molded fiber packaging driving their acceptance and adoption in the food and beverage industry include superior product protection; compact packaging and thereby increased space for product and marketing messaging and labelling; higher recyclability; reseal ability and re-use of the package; easy and hassle free opening and handling of the package; adaptable to different product geometries ; cost-effective packaging solutions; ability to pack multiple items in the same package; reduced risk of product contamination and longer shelf life; and can be customized to needs of the product. Molded fiber trays are increasingly used to transport eggs and fresh produce as they are affordable, reliable, and eco-friendly way to transport. The porous fiber material of molded fiber provides better ventilation through the micro pores, while the excellent shock absorption properties protect from breakage during rough handling, which in turn extends the shelf life of such products. In addition, the porous nature of the molded fiber absorbs moisture from fresh produce such as fruits and vegetables, which retains the freshness for a longer period of time.