The Returnable Transport Packaging (RTP) market was valued at USD 7,762.99 million in 2019?and is expected to reach USD 11,041.49 billion by 2025, at a CAGR of 7.3% over the forecast period 2020?- 2025. The increase in demand for the export and import of goods and e-commerce industry will drive the market in the forecast period.
- Packaging materials have contributed immensely to natural resource depletion, global warming, ozone layer depletion, and placing excessive pressure on the environment by the unceasing waste disposal.
- Therefore, to deal with the negative consequences of packaging, RTP enables firms to reduce their operational cost and to lessen environmental impact in conformity with the government’s regulation for sustainable supply chains. RTP can be used to achieve logical, marketing, and environmental objectives.
- Besides, with the rising need for consumer goods in different sectors, including consumer electronics & home appliances, and personal care, a majority of the companies have invested in retail spaces in the past few months.
- In addition to this, in the automotive sector, it is crucial to have packaging solutions that deliver the ultimate protection for high-value goods and parts. From the engine to other small mechanical elements and decorative interior items, the production of a vehicle requires various components.
- The RTP systems include materials of rigid structures, such as wood and metals or high-grade plastics, since these materials are durable even under high loads. This reduces the overall costs to transport the product to the market incurred by the supplier. This is making the rigid structured returnable transport packaging systems very attractive to the companies, and thus, boosting the growth of the market.
Scope of the Report
Returnable transport packaging (RTP) is a kind of packaging where it can be used for more than one trips. These goods can be transported in the city, nationally or could be internationally between vendors and customers. The transport is done in pallets, drums, containers, etc. Transportation is mainly done in the automotive sector and in the consumer goods industry.
Key Market Trends
Returnable Wood Transport Packaging to Witness highest Growth
- Governments across the globe have many regulations when it comes to the packaging of materials in end-user industries, like automotive, textile, and chemical. Regulations require end users to limit the disposal of bio-degradable packages. Hence, the companies are using wood instead of disposable packages that are made of paperboard or other packaging materials.
- Therefore, returnable wood transport packaging is set to witness the highest growth rate due to that sole reason of environmental impact, the capital investment needed, and the total cost of the system, including transport/storage/repairs, ergonomics, and safety for workers when compared with other materials used.
- However, there are stringent regulations that might impact market growth. For instance, regulations to help reduce the risk of pest introduction and spreading into the country, the governments are establishing new procedures and phytosanitary certification.
- Some regulations require any wood package or any wood inside the container (even wood for lashing) to be fumigated and stamp certified before entering the country. However, returnable wood crates are being used effectively to transport glass bottles and other sensitive material with low costs and efficiency.
Asia-Pacific to have the Fastest Growth in the Market
- Asia Pacific region is expected to register the highest CAGR growth during the forecast period. Rising auto sales, growing infrastructural development, and increasing disposable income in the region are expected to drive growth for the global returnable transport packaging market.
- For instance, the packaging industry is among the high-growth industries in India and developing at a rate of 22% to 25% per annum, according to the Packaging Industry Association of India (PIAI). The rising cost of packaging, damage to goods in transit, availability of packaging material, and cost of disposing of the packaging material has now brought the attention of companies in sustainable packaging.
- Buyers in this market comprise various types of end-user industries, like food and beverage, cosmetics, other consumer goods, electronics, and automotive. Buyers are the ultimate users of retail products that are being packed within the products, such as crates and containers. The increasing demand for retail products, due to the increasing disposable income of the Indian population and improving lifestyles, is driving the demand for the retail sector in the country, which drives the RTP market.
The major players include IFCO System, Kuehne+Nagel, Schoeller Allibert, SSI Schaefer, Rehrig Pacific, and SSI Schaefer LTD, amongst others. The market concentration is moderate since there is no significant competition going on in the market because the companies are mainly focusing on the improved quality of transport packaging rather than focusing on the competitors since most of them are unorganized and local players.
- June 2018 - Polymer Logistics presented its innovative products and services for transport packaging, retail, and promotional display, and asset management at the 2018 United FreshMKT and International Floriculture Expos at McCormick Place.
- June 2018 - Finnish retailer SOK deployed fully automated material handling solutions for fruit and vegetables in their warehouse, and it is reported that SOK relies on reusable containers from IFCO.
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