Molded Fiber Packaging Market

Market Definition

The market covers the production and commercialization of fiber-based packaging solutions derived from recycled paper or natural pulp. 

Positioned as a sustainable alternative to plastic, molded fiber serves a broad range of applications including food and beverage, electronics, healthcare, and industrial goods, with growing scope driven by environmental regulations and evolving consumer preferences. 

The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape of this sustainable product.

Molded Fiber Packaging Market Overview

The global molded fiber packaging market size was valued at USD 14.09 billion in 2024 and is projected to grow from USD 14.89 billion in 2025 to USD 22.83 billion by 2032, exhibiting a CAGR of 6.30% during the forecast period. 

This market is driven by increasing demand for sustainable, recyclable solutions and the rapid adoption of Dry Molded Fiber (DMF) technology, which offers improved efficiency, reduced environmental impact, and enhanced performance for a wide range of packaging applications.

Companies operating in the molded fiber packaging industry are Huhtamaki, Hartmann Packaging A/S, Pactiv Evergreen Inc., Genpak, UFP Technologies, Inc., Molded Pulp Packaging, Mondi, International Paper, Stora Enso, Keiding, Inc., Maspack Limited, PulPac, CKF Inc., Pacific Pulp Molding, Inc., and EnviroPAK, among others.

Current technological innovations are playing a critical role in driving the growth of the market. The integration of advanced materials, such as high-barrier liners and plant-based polymers, has significantly improved the functional performance of molded fiber packaging, including moisture resistance, sealability, and mechanical strength.

These enhancements enable molded fiber solutions to meet the requirements of more demanding applications, such as food and beverage packaging. As a result, businesses are increasingly opting for molded fiber alternatives over conventional plastic packaging, aligning performance needs with sustainability goals.

• In May 2025, Avantium partnered with the Bottle Collective to make fiber bottles from Dry Molded Fiber (DMF) technology. Avantium’s plant-based polymer PEF will be integrated into the Dry Molded Fiber bottle process to enhance the barrier performance and sustainability of the bottles. PEF is a 100% plant-based, fully recyclable polymer with superior barrier properties and higher mechanical strength than conventional plastics.

Key Highlights:

1. The molded fiber packaging market size was recorded at USD 14.09 billion in 2024.
2. The market is projected to grow at a CAGR of 6.30% from 2025 to 2032.
3. North America held a market share of 38.12% in 2024, with a valuation of USD 5.37 billion.
4. The thermoformed segment garnered USD 4.24 billion in revenue in 2024.
5. The recycled paper pulp segment is expected to reach USD 11.40 billion by 2032.
6. The wet segment secured the largest revenue share of 58.40% in 2024.
7. The electronics segment is estimated to register a CAGR of 7.52% through the forecast period
8. South America is anticipated to grow at a CAGR of 6.11% during the forecast period.

Market Driver

Growing Demand for Sustainable and Recyclable Packaging

The rising consumer and regulatory focus on environmental sustainability is a key driver for the market. Increasing awareness of plastic pollution and climate impact has accelerated the shift toward packaging solutions that are recyclable, biodegradable, and made from renewable materials such as wood pulp. 

This demand is prompting manufacturers to innovate with fiber-based formats that align with circular economy principles. As a result, companies are investing in alternative packaging technologies to meet sustainability expectations while maintaining product protection and functionality.

• In May 2024, Diageo announced a trial of a dry molded fiber bottle for Baileys Irish Cream Liqueur. The bottle is made of 90% paper with a thin plastic liner and foil seal, designed to be recyclable in standard paper streams without requiring consumers to separate the materials. This marks Diageo’s first consumer-facing trial with paper-based bottles as part of its efforts to develop more sustainable packaging solutions.

Market Challenge

Competition from Traditional Plastic Packaging

The molded fiber packaging market faces significant competition from traditional plastic packaging, which often provides superior water resistance, durability, and lower costs. These properties make plastic packaging a preferred choice for many manufacturers and consumers despite growing environmental concerns.

Therefore, companies are investing in technological advancements to improve the water resistance and mechanical strength of molded fiber products. Additionally, collaborations and partnerships are helping to scale production and reduce costs, making molded fiber packaging a more viable alternative to plastics in various applications.

Market Trend

Adoption of Dry Molded Fiber (DMF) Technology

The market is experiencing significant growth driven by the adoption of dry molded fiber (DMF) technology. This innovative process manufactures three-dimensional packaging products using a nearly waterless method, which offers lower environmental impact compared to traditional fiber forming techniques. 

The increasing development of pilot lines and industrial-scale production facilities reflects a strong commitment to scaling DMF technology for high-speed, turnkey manufacturing. Additionally, DMF helps create customized packaging solutions with enhanced barrier properties, supporting its expanding application across sectors.

• In December 2024, ANDRITZ, a global technology group, inaugurated a new technical center in Montbonnot, France. This facility features a pilot line dedicated to dry molded fiber (DMF) production, a nearly waterless process for converting cellulose fibers into sustainable 3D packaging. Building on its strategic partnership with Swedish pioneer PulPac, ANDRITZ will use this center to develop industrial-scale, high-speed DMF solutions and enable customers to conduct trials for innovative, customized, and environmentally friendly packaging

Molded Fiber Packaging Market Report Snapshot

Segmentation	Details
By Type	Thick Wall , Transfer, Thermoformed, Processed
By Material Type	Recycled Paper Pulp, Bamboo Fiber, Bagasse, Wheat Straw
By Process	Wet, Dry
By End-use Industry	Food and Beverages, Electronics, Healthcare, Other End-use Industries
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Thick Wall, Transfer, Thermoformed, and Processed): The thermoformed segment earned USD 4.24 billion in 2024 due to its versatility and growing demand across various industries.
• By Material Type (Recycled Paper Pulp, Bamboo Fiber, Bagasse, and Wheat Straw): The recycled paper pulp segment held 50.30% of the market in 2024, due to its wide availability and cost-effectiveness in sustainable packaging.
• By Process (Wet and Dry): The wet segment is projected to reach USD 13.20 billion by 2032, owing to its established manufacturing methods and strong demand for molded fiber products in food packaging.
• By End-user Industry (Food and Beverages, Electronics, Healthcare, and Other End-user Industries). The electronics segment is estimated to grow at a CAGR of 7.52% through the forecast period, driven by increasing demand for sustainable and protective packaging solutions in the electronics industry.

Molded Fiber Packaging Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific molded fiber packaging market share stood around 38.12% in 2024 in the global market, with a valuation of USD 5.37 billion. The increasing global focus on sustainability and environmental responsibility is accelerating the shift from conventional plastic packaging to eco-friendly alternatives like molded fiber packaging.

Regulatory frameworks and corporate sustainability initiatives focused on reducing plastic waste are also  supporting the demand for biodegradable and recyclable packaging solutions. Additionally, rapid growth in the e-commerce and food & beverage industries is driving the need for efficient, protective, and sustainable packaging formats.

The e-commerce sector requires lightweight yet durable packaging to ensure product integrity during transit, while the food & beverage industry demands hygienic and environmentally responsible packaging options.

• In April 2025, Nippon Molding Co., Ltd. completed Site Acceptance Testing of their PulPac Modula machine, advancing the rollout of Dry Molded Fiber technology in Japan. The company, a leading producer of egg trays, is expanding its portfolio to include Dry Molded Fiber packaging to meet the rising demand for circular and resource-efficient solutions.

North America molded fiber packaging industry will likely see significant growth at a CAGR of 5.98% over the forecast period. The market is driven by raw material and continuous technological innovation.

A mature recycling infrastructure and access to high volumes of recycled paper, cardboard, and agricultural byproducts ensure a stable and cost-effective supply chain, which supports large-scale production and  complements sustainability objectives.

Additionally, ongoing investment in research and development is accelerating innovation in the sector. Advances in design engineering, barrier technologies, and material strength are enabling the creation of high-performance, application-specific molded fiber packaging solutions.

Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) guidelines aim to protect human health and the environment by providing businesses and communities with policies, advisories, and educational resources. These guidelines emphasize corporate responsibility, collaboration with stakeholders, employee awareness, and standardized environmental targets that promote sustainable practices across industries.
• In Europe, Single-Use Plastics Directive (SUPD) aims to reduce the environmental impact of plastic waste across member states. It restricts the use of certain single-use plastic products such as packets, wrappers, and food containers, driving the adoption of sustainable packaging alternatives like molded fiber and encouraging innovation in eco-friendly materials.

Competitive Landscape

Companies in the molded fiber packaging market are actively expanding their businesses through strategic collaborations, investments in advanced manufacturing technologies, and partnerships focused on innovation and sustainability.

Many companies are entering joint ventures to develop new fiber-based materials and scalable production lines to meet the demand for eco-friendly packaging solutions while enhancing product performance.

• In September 2024, ANDRITZ and PulPac AB partnered to serve the alternative packaging market. The cooperation combines PulPac’s Dry Molded Fiber technology with ANDRITZ’s expertise in turnkey pulp mills, web forming, converting, and recycling technologies. This partnership allows ANDRITZ to offer complete Dry Molded Fiber lines for producing recyclable and biodegradable packaging products made from wood pulp, including coffee lids, cutlery, and trays. Several industrial lines using PulPac’s technology and ANDRITZ components are already in operation.

List of Key Companies in Molded Fiber Packaging Market:

• Huhtamaki
• Hartmann Packaging A/S
• Pactiv Evergreen Inc.
• Genpak
• UFP Technologies, Inc.
• Molded Pulp Packaging
• Mondi
• International Paper
• Stora Enso
• Keiding, Inc.
• Maspack Limited
• PulPac
• CKF Inc.
• Pacific Pulp Molding, Inc
• EnviroPAK 

Recent Developments (Partnerships/Product Launch)

• In May 2025, Amcor and Metsä Group collaborated to develop three-dimensional molded fiber packaging solutions with lidding and liner for a variety of food applications. The partnership combines Amcor’s high-barrier film liner and lidding technology with Muoto, a wood-based molded fiber product developed by Metsä Spring. The full solution will be recyclable in the paper stream in most European markets with a CEPI recyclability score of over 80%.
• In December 2024, ANDRITZ introduced a new pilot line in Montbonnot, France, to advance solutions for dry molded fiber production. The pilot line will support the development of industrial-scale solutions for high-speed dry molded fiber production plants for the packaging industry. It will also enable customers to conduct trials, receive support on R&D projects, and create new products with customized shapes and barrier properties. Coffee cup lids are one example of products made with dry molded fiber technology.
• In September 2024, Dart Container Corporation partnered with PulPac to become a licensee of Dry Molded Fiber technology, supported by PulPac’s North American sales agent Seismic Solutions. Dart is installing the first Dry Molded Fiber production line, the PulPac Scala, in North America. The process uses significantly less water and energy than traditional fiber forming, lowers CO2 production footprint by up to 80%, and operates up to 10 times faster than conventional methods, addressing evolving needs in the packaging industry