Winning in food and beverage packaging: 3 essential market takeaways

Explore key insights into the food and beverage packaging market and gain expert perspectives on its future outlook.

Key takeaways:

  • Discover how the food and beverage packaging market is being transformed by global overcapacity, changing supply dynamics and supplier consolidation.
  • Learn why transparent, transaction-based pricing is essential for making informed procurement decisions and building more resilient supply chains.
  • Explore how economic headwinds, geopolitical risks and private label trends are shaping the packaging market outlook in 2024 and beyond.
  • See how independent data and packaging market forecasts can help you anticipate market shifts and negotiate with greater confidence.

In the rapidly evolving food and beverage packaging market, having a clear, data-driven perspective is more than just an advantage—it’s the key to making confident, future-focused decisions. On February 24, our webinar, ‘Winning in Food and Beverage Packaging,’ delved into key market forecasts, highlighting the trends, challenges and opportunities shaping procurement strategies in the packaging industry today.

Ready to dive deeper into these trends and strategies? Watch the full webinar on demand to access expert analysis and actionable insights for procurement teams. Watch now.

For buyers navigating the food and beverage packaging market, the core challenge remains the same: securing fair prices and maintaining supply chain resilience amid economic uncertainty and shifting consumer behaviors. This article presents 3 key takeaways from the webinar, providing you with the insights necessary to make informed, data-driven procurement decisions.

Why independent data is your best negotiation tool

Before diving into the trends, we need to address the foundation of every successful procurement strategy: trustworthy data.

In the food and beverage packaging market, opacity is a frequent pain point. Without a transparent, independent benchmark, you are often negotiating in the dark. Are you paying a fair market rate? Is your supplier’s price increase justified by actual market movements?

This is where Fastmarkets steps in. We don’t just report on prices; we capture where transactions are actually occurring. Our methodology is built on transparency and rigor, ensuring that when you see a price, it reflects the reality of the open market—not just a bid or an offer.

By using a neutral reference point—like our 42-lb linerboard price—you can streamline negotiations. Instead of debating the “what” and “why” of a price, you can focus on terms and supply security, knowing that the base price reflects the true packaging market outlook.

1. Market headwinds demand proactive strategies

The global economy is shifting and the ripple effects are directly felt in the food and beverage packaging market. While we aren’t seeing a total recession, growth has become “boring”—a slow, steady grind rather than a boom.

Procurement teams need to be aware of several macro trends:

  • Geopolitical risks: From conflicts in Ukraine affecting energy prices to disruptions in the Red Sea impacting freight, external shocks are the new normal.
  • Shifting consumption: Post-pandemic, consumers are prioritizing services over goods. This dampens demand for packaged products, forcing manufacturers to fight harder for every sale.
  • The private label boom: In Europe, private labels are surging. With 81% of consumers believing private label quality matches A-brands, retailers are pushing for lower packaging costs to maintain their competitive edge.

These headwinds mean reactive buying is no longer enough. You need sophisticated packaging market outlook data to anticipate these shifts. If you know that consumer demand for goods is softening, you can better forecast your own volume needs and negotiate more effectively with suppliers eager to secure volume commitments.

2. Overcapacity is reshaping global supply

One of the most critical takeaways from the webinar was the state of global supply. Simply put, there is too much capacity chasing too little demand.

Driven largely by massive investments in Asia, the global containerboard market is facing an overcapacity of approximately 23 million tonnes in 2026. The cartonboard market isn’t far behind, with a surplus of around 10 million tonnes.

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For buyers, this “gap” between supply and demand is a critical lever. Low operating rates generally suggest a buyer’s market. However, it’s not that simple.

While overcapacity should theoretically lower prices, other factors—like high energy costs and potential mill closures—can keep floors under pricing. Understanding exactly where operating rates sit in your region helps you gauge how desperate suppliers might be for volume, allowing you to time your contracts to capture the best possible value.

3. Consolidation creates new giants

While overcapacity is the story on the ground, consolidation is the story in the boardroom. The landscape of the food and beverage packaging market is changing rapidly through high-profile mergers and acquisitions.

The recent combination of Smurfit Kappa and WestRock, along with the merger of International Paper and DS Smith, creates massive global players. These new giants have more leverage and more resilience.

In Europe, the top five producers now account for roughly 40% of capacity. This consolidation matters to you because it changes the competitive dynamic.

  • Supplier power: Fewer, larger suppliers may have more discipline in managing capacity, potentially reducing the volatility that buyers have historically used to their advantage.
  • Strategic sourcing: You may need to diversify your supplier base to ensure you aren’t overly reliant on one of these mega-producers.

Conclusion: Turning insight into action

The packaging market outlook for the coming year is defined by contradiction: weak demand for goods versus rising operational costs; global overcapacity versus consolidating supplier power.

To win in this environment, you cannot rely on gut feeling or last year’s spreadsheets. You need a clear, independent view of the market.

Fastmarkets is the leading price authority in the food and beverage packaging market because we are dedicated to providing the most trusted intelligence and packaging market forecasts for the industries we serve. Our global team of trained reporters connects daily with buyers and sellers, capturing real transactions and delivering the most accurate insights available. This ensures you always have the clearest, most independent view of where prices actually stand in the food and beverage packaging market—backed by rigorous, actionable packaging market forecasts.

Whether you are managing supplier negotiations, building annual budgets, or developing a long-term commodity risk strategy in the food and beverage packaging market, our data and packaging market forecasts provide the clarity you need to succeed.

Curious to see these market insights in action? Watch the full webinar on demand for expert analysis, or talk to us about our food and beverage coverage and price data to power your next procurement move with clarity and confidence.

Case Study

Learn how to monitor packaging prices using cost and price indices and understand the underlying cost drivers, from material cost to labor, energy and more. Examples include cartonboard, liquid container and paper bag.

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