Returnable Packaging Market

SKU: DMPAC5402 | Last Updated On: Jan 27 2023 | Available Formats

> Returnable Packaging Market Expected to reach a high CAGR of 6.1% during the forecast period By 2029

Returnable Packaging Market is Segmented By Product (Pallets, Drums & Barrel, Crates, Others), By Material (Plastic, Metal, Wood, Glass, Foam), By End-User (Food & Beverage, Automotive, Consumer Durables, Healthcare, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Returnable Packaging Market Size, Share, Growth Outlook

The global returnable packaging market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 6.1% during the forecast period (2022-2029).

Reusable packaging includes sturdy hand-held and bulk containers, pallets, shipping racks, dunnage and other products. It is sometimes referred to as reusable transport or returnable packaging. Returnable packaging comprises long-lasting materials such as plastic, wood, metal, glass and paperboard to improve ease of use, durability, cleaning and repair.

Returnable packaging is the perfect packaging material for the food and beverage, automotive, consumer durables and healthcare industries since it is made to resist various demanding handling procedures.

 

Returnable Packaging Market Report Scope

Metrics

Details

Market CAGR

6.1%

Segments Covered

By Product, By Material, By End-User, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Source: DataM Intelligence Analysis (2022)

Global Returnable Packaging Market Dynamics

The returnable packaging market is expected to be driven by the global logistics industry's expansion and rising demand in emerging economies. However, the increased logistics costs of returnable packaging during the predicted term may limit market expansion.

The growth and advancement of the global logistics market

The global pandemic has recently impacted almost every aspect of the global economy, but e-commerce is one area that has seen significant changes recently. Online shopping has grown in popularity among lone consumers, placing a significant burden on the supply chain logistics industry to keep up with the surge in demand.

As a result, logistics companies are developing innovative strategies to deal with these rapidly changing logistical patterns. Furthermore, accurate and efficient Internet of Things (IoT) adoption will be a significant development in the logistics industry in 2022. By 2025, McKinsey expects investments in warehouse automation to rise by 3-5%, with the pharmaceutical logistics industry potentially accounting for 8–10% of that growth.

Growing demand for returnable packaging in emerging economies

Emerging economies are undergoing significant industrialization and rapid economic expansion, especially those in Asia-Pacific. The region's manufacturing sector is rapidly growing, with China and India holding the top spots. Due to its extensive manufacturing sector, including consumer electronics, transportation, telecommunications and food processing, China has earned the moniker "factory of the world." Another significant emerging economy in the region is India, which concentrates on growing its manufacturing sector.

Multinational corporations are moving production to other Asia-Pacific nations, including Vietnam, Thailand, Cambodia and Indonesia, due to increased production prices in China. Due to the ongoing demand for raw materials and the import and export of finished goods, the rise of export-led manufacturing industries in emerging nations is creating significant potential for logistics.

The dramatic increase in logistical costs

Using returnable containers can significantly increase logistics costs due to the need to manage the return cycle, despite the obvious benefits of eliminating disposal costs, the need to repeatedly purchase packaging and the operational advantages of using automation and reducing logistical operation costs. Because containers regularly get lost or diverted and system-wide information systems rarely maintain track of them, using returnable packaging upsets the normal cost allocation balance.

Due to the return trip for returnable items, a greater transportation fee is noted. Additionally, these items require regular maintenance and take up a lot of storage space. It is also common for things to be stolen or lost, necessitating the use of tracking systems and raising the cost of material handling. It can negatively affect product demand.

COVID-19 Impact Analysis

The packaging sector and the returnable packaging industry have experienced various effects due to the COVID-19 epidemic. While the markets for industrial, luxury and some B2B transport packaging shrank, there was a large growth in demand for packaging for food products, medical supplies and e-commerce shipments. A corresponding pattern was discernible in nations like China and South Korea, which were among the first to deal with the pandemic.

Consumers have added to the hoarding trend with their frenzied purchases of staples for home care, food, drink and medicine. However, as retailers were forced to close and consumers started to cut back on their spending, the market for returnable packaging in non-food and premium goods collapsed.

Global Returnable Packaging Market Segment Analysis

By end-user, the returnable packaging market is segmented into food & beverage, automotive, consumer durables, healthcare and others.

The rapid growth of the food & beverages sector

Returnable packaging is used as a packing solution when the transportation is gathered and returned to the distribution station for further use. It consists of transportable goods that are efficiently and securely transferred along the supply chain, such as dunnage, reusable pallets, racks, hand-held containers and bulk containers. The food and beverage sector is expected to dominate the global market for returnable packaging due to the rising need for packaging dairy, bakery, farm & meat and processed and semi-processed food commodities.

It is anticipated that the growth of processed food products will lead to increased product penetration within the food and beverage business. As the Gross Domestic Product (GDP) of nations like China and India continues to rise, food and beverage businesses will expand. Another driving factor for food and beverage firms is the consumer's health. Due to the increased demand for food and beverages, it is predicted that the market for returnable packaging will grow throughout the forecast period.

 

Source: DataM Intelligence Analysis (2022)

Global Returnable Packaging Market Geographical Analysis

The rising product demand in North America

It is anticipated that North America will dominate the global market for returnable packaging. Due to increased product demand from numerous end-use sectors, U.S. market for returnable packaging is anticipated to display an unexpected growth share. It is anticipated that the market for returnable packaging in the area will rise due to the presence of major food and beverage, pharmaceutical and automobile industries in U.S.

The region's leading corporations, including Menasha Corporation, Orbis Corporation and Myers Industries, Inc., are primarily drawn to returnable packaging goods because of their environmental, economic and ergonomic advantages. For instance, at the MODEX show in 2022, Booth B8419, U.S.-based company Orbis Corporation displayed a variety of packaging solutions and services, including reusable plastic pallets. The company's solutions are intended to optimize the flow of goods, discover efficiency in supply chains, bring sustainability into reusable packaging options and lower total package costs.

Source: DataM Intelligence Analysis (2022)

Global Returnable Packaging Market Competitive Landscape

Businesses compete for customers by offering services across various end-use industries in the moderately competitive returnable packaging industry. Product launches, clearances and other organic growth initiatives like patents and events are frequently prioritized by businesses. Inorganic growth methods included acquisitions, joint ventures and collaborations.

The efforts have allowed market participants to expand their clientele and enterprises. Due to the increasing demand for returnable packaging worldwide, market participants in this sector should benefit from intriguing growth potential.

Major global returnable packaging market companies include CHEP, Amcor Plc, Mondi, Celina Industries, Integra Packaging, RPR, Inc., Menasha Corporation, Returnable Packaging Resource, Inc., NEFAB GROUP and Midlands Limited.

NEFAB GROUP

Overview: The Nefab Group is a Swedish business creating packaging solutions. The company develops packaging solutions for various markets, including aerospace, automotive, telecommunications, energy and healthcare. Additionally, the business provides consultancy services for packaging and logistics optimization, including engineering, life-cycle analysis and auditing. The business is currently creating new environmentally friendly packaging materials. The business has offices in significant North America, Europe and Asia-Pacific nations, giving it a strong presence in important geographic areas worldwide.

Product Portfolio: For reusable systems, the company offers foldable steel containers. Nefab produces and sells multi-use wire mesh containers and personalized steel racks and containers for simpler handling. Nefab's LogPak wooden pallet collar device is well-known and frequently utilized. Pallet collars can be produced following the requirements and include four or six galvanized steel hinges.

Key Development: Reflex Packaging, a provider of eco-friendly thermoformed cushioning, was purchased by the Swedish industrial packaging firm Nefab in October 2021 for an undisclosed sum. Reflex Packaging provides high-performance thermoformed cushioning made entirely of recycled plastic as an alternative to traditional packaging.

Why Purchase the Report?

  • Visualize the composition of the returnable packaging market segmentation by product, material, end-user and region, highlighting the critical commercial assets and players.
  • Identify commercial opportunities in the returnable packaging market by analyzing trends and co-development deals.
  • Excel data sheet with thousands of returnable packaging market-level 4/5 segmentation points.
  • Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
  • Product mapping in excel for the key product of all major market players

The global returnable packaging market report would provide access to an approx. 61 market data table, 57 figures and 209 pages.

Target Audience 2022

  • Returnable Packaging Service Providers/ Buyers
  • Industry Investors/Investment Bankers
  • Education & Research Institutes
  • Emerging Companies
  • Returnable Packaging Manufacturers

Frequently Asked Questions

What is the Projected CAGR value of the Returnable Packaging Market?

Returnable Packaging Market is expected to grow at a CAGR of 6% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls the Returnable Packaging Market during 2022-2029

Which is the fastest-growing region in the Returnable Packaging Market?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period 

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