BY GLOBAL MARKET INSIGHTS MAY 2024
The global modified atmosphere packaging equipment market was estimated at USD 2.2 billion in 2024 and is projected to grow at a CAGR of 4.8% between 2025 and 2034.
To get key market trends
The increase in demand for extended shelf-life food products to reduce food wastage is driving the market for global modified atmosphere packaging equipment. As these machines help in increasing shelf life by exchanging oxygen inside the packaging/container with carbon dioxide and nitrogen which helps in preventing spoilage of the food and preserves it for longer duration. As per the data published by United Nations Environment Program, approximately over 1 billion meals are wasted in a day, which promotes the use of effective preservation packaging. The integration of modified atmosphere packaging equipment is rising in various food sectors like meat, poultry, bakery, dairy, fresh produce, ready-to-eat meals, etc.
What are the growth opportunities in this market?
The growth in demand for ready-to-eat meals and convenience foods is increasing due to changing lifestyle of urban populations. The increasing popularity of ready-to-eat meals is driving growth in the RTE foods market leading to increase in demand for modified-modified atmosphere packaging machine. As the urban lifestyle is shifting towards hectic work life balance, consumers are preferring ready to eat meals and precut fruits and vegetables to save time. This too increases the demand for ready-to-eat meals with longer shelf life and sustainable packaging.
Sustainability concerns and environmental impact of single use packaging has led to stricter regulatory norms and rules. The modified atmosphere packing equipment can adopt various types of packaging materials that are biodegradable and environmentally friendly, making them ideal choice for food packaging. This paired with their ability to provide longer shelf life of perishable food products has made them quiet popular in the packaging industry and increasing their demand in the packaged food industry.
Modified Atmosphere Packaging Equipment Market Trends
- With the trend of sustainable lifestyle, the entire industry is witnessing shift towards sustainable alternatives to packaging materials and processes. The modified atmosphere packaging machine can incorporate variety of sustainable materials in their equipment to improve their sustainability appeal. In 2025, StePacPPC a modified atmosphere packaging equipment manufacturer partnered with Windham Packaging to introduce a modified atmosphere packaging solution that increases shelf life of fresh produce which helps in reducing food wastage and helps businesses achieve sustainability goals.
- The trend of integrating technology in industrial manufacturing equipment is pushing manufacturers in adopting smart technology in modified atmosphere packaging equipment. These technologies bring smart features like remote control systems and real time monitoring to modified atmosphere packaging equipment, which increases their productivity and helps the operator fine tune without physically accessing the equipment through remote control access.
- The use of modified atmosphere packaging machines is also witnessing popularity in the perishable goods category as demand for precut meat and fish is increasing. Health-conscious consumers are opting for freshly cut meat and fish products instead of frozen ones. The modified atmosphere packaging machines helps in improving the shelf life of fresh meat and fish. This has led to increase in popularity of modified atmosphere packaging machines in the market.
Trump Administration Tariffs
- The tariffs imposed by Trump Administration on imports from China will result in increased cost of raw materials and essential components required in manufacturing of modified atmosphere packaging equipment. Electronic components and mechanical parts required for manufacturing of modified atmosphere packaging equipment are primarily sourced from China.
- Due to these tariffs, the modified atmosphere packaging equipment manufacturers are shifting their sources from China to other countries less affected by the tariffs. This will help them in minimizing their reliance on China for essential components.
- The shift in suppliers and raw material sources short term disruptions in the supply chain will lead to increase in costs and slowing fulfilment times. To avoid this, manufacturers are actively shifting their suppliers to countries like Mexico and Vietnam.
Modified Atmosphere Packaging Equipment Market Analysis
Learn more about the key segments shaping this market
The modified atmosphere equipment market by operation is segmented into automatic and semi-automatic. In 2024, the automatic modified atmosphere packaging segment dominates the market generating revenue of USD 1.5 billion and semi-automatic modified atmosphere packaging segment is expected to grow at CAGR of around 4.6% during the forecast period 2025 to 2034.
- The automatic modified atmosphere packaging equipment remains popular due to its efficient and scalable product capabilities which are sought after in food industry where production volumes are usually higher. The incorporation of technology in automatic modified atmosphere packaging equipment has enabled features like real time monitoring and maintenance prediction which reduces the downtimes, which is preferred in food industry.
- Harpak introduced their automatic modified atmosphere packaging equipment called ‘FM400 horizontal flow warp machine – 2025’ with smart technology. This machine is designed to meet high production volume required by food industry. The machine has output of up to 150 packets per minute.
- The semi-automatic modified atmosphere packaging equipment is popular due to its affordability, which is ideal for smaller businesses and local players. The semi-automatic machines are preferred for smaller production batches.
Learn more about the key segments shaping this market
Modified atmosphere packaging equipment market by distribution channel is segmented into direct and indirect. Direct segment made up 72% of the market in 2024.
- The direct sales channel remains popular as it offers much better deals and partnerships between manufacturers and businesses. These partnerships helps both parties foster long term relations and lead to better deals for both. The modified atmosphere packaging machine cost higher upfront and are usually tailored made for specific food products.
- The high degree of customization is easier through direct sales channels as it connects businesses and their needs with the manufacturer leading to satisfactory modified atmosphere packaging machines that is finetuned for specific applications.
- The indirect segment consists of third-party distributors and dealers which helps smaller businesses with procuring modified atmosphere packaging equipment who lack access to global manufacturers. They work as a mediator between the manufacturers and consumers and often offer complimentary services and extra chargeable services like maintenance packages.
