Increased use of environmentally friendly packaging is anticipated alongside the expansion of the food and beverage industry in Vietnam.
The food and beverages (F&B) market in the Asia-Pacific region, including Southeast Asia, is on an upward trajectory. Valued at $667 billion, the market is projected to reach a staggering $900 billion by 2028 1. As the industry grows, there's a growing emphasis on sustainable food packaging solutions.
Tetra Pak, a leading packaging solutions provider, recently expanded its Binh Duong facility in Vietnam. The expansion, costing €97 million, more than doubled the site's capacity and added the ability to produce 15 additional packaging formats 1. This move underscores the industry's commitment to innovation and sustainability.
Industry expert Hoa Nguyen predicts continued growth in demand for sustainable solutions in Vietnam's F&B sector. Companies like Tetra Pak, Nestlé, Vinamilk, and Masan Consumers are transitioning to higher quality and more sustainable packaging 1.
Circular Economy and Tray-to-Tray Recycling
The industry is moving towards closed-loop recycling systems like tray-to-tray recycling of food-grade plastics. This process allows used plastic trays to be recycled into similar-grade new trays, reducing virgin plastic use, lowering greenhouse gas emissions, and curbing landfill waste 1.
Regulatory Enhancements and Harmonization
Countries in Southeast Asia, such as Indonesia, Singapore, and Thailand, are updating regulations around food-contact materials, setting standards for paper and plastic packaging, and harmonizing labeling requirements 1. For instance, Singapore’s implementation of nationwide extended producer responsibility (EPR) and plastics bans, along with Malaysia requiring ISO-certified compostable food containers, are examples of regulatory strides driving sustainable packaging adoption 1.
Shift to Biodegradable, Compostable, and Recyclable Materials
There is an increasing demand for eco-conscious materials like biodegradable, compostable (e.g., bagasse, PLA), and recyclable packaging 2. The import of compliant eco-packaging materials in Singapore, for instance, surged 34% in early 2025 2.
Supportive Government Policies and Investments
Governments provide subsidies, tax incentives, and encourage sustainable packaging investment aligned with circular economy principles 2. National plans and regional cooperation aim to improve plastic recycling rates and drastically reduce plastic leakage by 2050 2.
Challenges and Cost Considerations
Despite strong trends, eco-friendly packaging still faces cost challenges, such as higher expenses of recycling processes and raw material price volatility 5. Affordable alternatives like paper-based materials or starch-based packaging sometimes limit broader adoption in the region 5.
In Vietnam, the F&B industry is expected to hit $96.7 billion by the end of 2025, maintaining annual growth of 6.74 per cent through 2030 1. Consumer demand is rising for packaging that delivers convenience, supports health, and meets environmental standards. In response, companies are innovating, offering functional drinks in smart bottles and sustainable packaging with QR codes 1.
Vietnam is behind Malaysia and Thailand in the race for green credit but has the opportunity to prioritize businesses with strong environmental strategies 1. For example, Vinamilk has eliminated plastic bags in all Giac mo sua Viet stores and aims to cut shrink wrap use for product pallets by half 1.
In conclusion, Southeast Asia's F&B packaging sector is innovating through advanced recycling technologies, tightening sustainability regulations, increasing use of biodegradable and compostable materials, and leveraging government policies for circular economy alignment, though cost and market readiness remain key challenges 135. The global eco-friendly food packaging segment is estimated to be $228 billion in 2024, rising to almost $354 billion by 2030 1.
- The Asian F&B market, encompassing Southeast Asia, is projected to reach $900 billion by 2028, with an increasing emphasis on sustainable solutions.
- The demand for eco-conscious materials like biodegradable, compostable, and recyclable packaging is increasing, as seen in Singapore's surge in import of compliant eco-packaging materials.
- Regulatory strides in Southeast Asian countries are driving sustainable packaging adoption, such as Singapore's nationwide extended producer responsibility (EPR) and plastics bans, and Malaysia's requirement for ISO-certified compostable food containers.
- Companies in the region, including Tetra Pak and Vinamilk, are transitioning to higher quality and more sustainable packaging to respond to consumer demand and soon-to-be implemented stringent regulations.
