There has been remarkable growth in the food and drink, delivery and packaging industries in Western Europe. The focus has been on improving the Out Of Home (OOH) dining culture in the region. However, these business opportunities remain untapped in Eastern Europe which also can sustain this business.

In Eastern Europe, the reports regarding consumption of delivery and takeaway foods are observed to be lower than the records observed in Western Europe. However, it is also known that the OOH sector in Western Europe is almost saturated, which increases the chances for the markets in Eastern Europe to experience growth.

Recent research studies done by Smithers Pira and Asia Pulp and Paper indicate that many Eastern European countries are experiencing a 1.9% growth in the packaging sector while the service delivery in the entire sector is expected to rise3% annually until 2020. Thus the previous value of $48.1 billion recorded for 2016 will rise. The increase in disposable income, changing consumer needs among the young customers and new designs for luxury dining are three significant reasons for the expected growth in the Eastern European OOH packaging market.

The rise of disposable incomes

The growth of the OOH packaging market in Eastern Europe has been attributed to the rise in disposable income. There is a higher demand for food delivery services. The increase in wages in the region has empowered people to have a higher preference for enjoying meals from the restaurant by ordering the food. Thus the rise in the demand for adequate food packaging.

In Poland, this trend has been particularly observed. The APP Smithers Pira research found out that the total food and drink consumption in Poland is expected to rise as high as 48.4 million tonnes by 2020. This indicated an increase from the previous value of 1.6% recorded in 2016. The market is estimated to be worth €60 billion by 2020. The new opportunities in the OOH dining sector are a strong indicator that Poland offers outstanding business opportunities to packaging manufacturers.

Younger consumer’s cravings for globalised brands

The surge in demand for OOH in Eastern Europe has also been attributed to the increasing numbers of younger consumers who need this service. In Eastern Europe, the fast foods are regarded as global food brands, sophistication, and class which makes the younger consumers have a higher preference for ordering meals which will be delivered.

In Romania, there is an expected rise in the packaging market; the expected figures have been put at $2.99 billion by 2020. In addition, a 2.3% annual growth rate is expected in the food packaging sector to account for a 32% rise on the entire packaging market. This is an indication of a slower growth rate than the normal value in Eastern Europe at 2.5%. The growth in the packaging sector is expected to be promoted by the younger consumers based on their preference for ordering foods as frequently as three times a week. Dining at fast foods accounts for 50% of their feeding habits every month.

Romania currently has one of the highest GDP growths in the EU. In one quarter, a growth of about 25% has recorded promoted by the population aged below 25 years. It is expected that the number of Romanians who with preferences for takeaway foods is expected to rise. The major players in the OOH packaging market that are interested in growing their businesses in Eastern Europe should target Romania among other countries in that region due to the high number of young people who prefer to consume fast foods like the people in Western Europe.

A new taste for luxury OOH dining

The OOH dining is being perceived as an emerging luxury among the consumers. This is a significant driver or growth in the food and drinks packaging market. In addition, the demand healthy foods will add to the growth in this sector.

In Bulgaria, the revenue from the packaging market is expected to hit the $1 billion mark by 2020 the foods and drink packaging sector accounts for 44% of the national market share, and it is observed to appreciate by 2.6% every year. The reports from research studies indicate that the food industry in Romania has also transitioned towards the adoption of healthy foods such as white cheese, wholegrain bread, etc. in response to the market demand in the region.

The attention to healthy luxury OOH foods is also another significant driver for the premium paper packaging markets when healthy foods are propagated as part of the offers in the market. In Bulgaria, Paperboard has risen to become the second commonly used packaging material, and its revenue is expected to grow at the rate of 4.2% annually.

Other companies such as Deliveroo are experiencing transformations due to the impact of the OOH market in Western Europe. Considering the potentials in the Eastern Europe market, it will be a good decision for the packaging industry to begin solid plans to grow the OOH market in the region which already exhibits lucrative potentials.