According to Smithers’ latest report “The Future of Retail Packaging in 2024″, the growth in demand for retail packaging comes from emerging and transition economies. The Asia-Pacific region accounts for 4.5 million tons, almost half of the total global demand.
At the same time, the relatively mature Western market will show below-average growth by 2024, although South and Central America will take second place in demand, reaching 1.7 million tons. The total global demand is 9.1 million tons.
In 2018, global retail packaging (RRP) value demand exceeded 29.1 million tons, an average annual growth rate of 4% since 2014. The market value in 2018 is estimated at 57.46 billion U.S. dollars.
It is estimated that from 2019 to 2024, RRP consumption will increase by an average of 5.4% per year. At constant prices in 2018, it will total nearly 40 million metric tons, worth 77 billion U.S. dollars.
A series of demographic, social and technological driving factors will stimulate the demand for RRP, from simple population growth to increasing use of flexible packaging, and then RRP is required to display and sell packaging.
As with large-scale packaging consumption, there is a correlation between demographic factors and the future demand of RRP. In particular, the greater urbanization process in the Asia-Pacific region has brought more consumers to Western supermarket retail for the first time, thus introducing retail display formats.
In stores in the 21st century, the advantages of retail or shelf form will remain basically unchanged for retailers and brand owners, but new steps and technologies will help to further consolidate these advantages during the forecast period.
Reducing in-store costs, such as stacking shelves or designing labor for specific promotional displays, is an advantage for retailers. Large retailers are publishing in-store guidelines for employees to explain store layouts in a retail-ready format. For example, Walmart has a 284-page employee guide. This will promote greater standardization of the size of the RRP format during the forecast period.
At the same time, demographic changes and the types of goods consumers buy prefer RRP. More single-person households and more frequent shopping visits make the market tend to sell more individual units in small batches. Pouch packaging has led to an improved format for displaying these in stores.
Retail-ready packaging allows brand owners to better control the way their products are displayed in the retail environment, thereby controlling their contact with shoppers. In an era of significant decline in brand loyalty, this creates a clear opportunity to increase shopper engagement. However, in order to establish more connections with shoppers and maintain their position in the retail sector, brands must also focus on innovation and improving consumer convenience.
There are several technical factors that benefit brands, such as digital printing on inkjet printers. It is easier to commission short-term corrugated paper jobs with low order quantities and receive them quickly from the printing service provider, which allows greater flexibility when ordering corrugated paper RRPs and allows more use of promotional RRPs. While this has always been possible in major consumer festivals (such as Christmas), the wider availability of digital printing means this can be extended to smaller events, such as Halloween or Valentine’s Day.
The use of RRP in the fresh produce, dairy and bakery markets accounted for more than half of total consumption in 2018. These three industries are expected to maintain their dominant market shares in the medium term. Overall, it is expected that by 2024, the market share will change slightly, which will benefit non-food items.
Innovation is at the forefront of the development of the RRP industry, and many end-use sectors are enjoying the benefits of RRP’s new design.
The RRP of frozen foods and home care products will show the highest growth in each end-use sector, with compound annual growth rates of 8.1% and 6.9%, respectively. The lowest growth was in pet food (2.51%) and canned food (2.58%).
In 2018, die-cut containers accounted for 55% of RRP demand, and plastics accounted for nearly a quarter of the total. By 2024, these two formats will maintain their relative positions, but the main change will be from shrink-wrapped pallets to modified boxes, and the market share between these two formats will change by 2%.
Die-cut containers will continue to be popular and will be slightly higher than the average market growth throughout the study period, defending its current huge market share.
By 2024, the growth of retrofit cases will be the fastest, with a compound annual growth rate of 10.1%, pushing consumption from 2.44 million tons (2019) to 3.93 million tons (2024). New demand for shrink-wrapped pallets will be low, with a compound annual growth rate of 1.8%, while demand in developed economies will actually fall-Western Europe, the United States, Canada, and Japan.
For more information about Smithers’ latest report “The Future of Retail Packaging in 2024″, please download the brochure at https://www.smithers.com/services/market-reports/packaging/the-future-of-retail- Ready to pack until 2024.
What is the definition of pack format? As far as I know, RRP is “corrugated paper”. The die-cut container is die-cut corrugated, and there are shrink-wrap pallets on the corrugated, right? https://www.youtube.com/watch?v=P3W-3YmtyX8 Then what is a modified box? Does this mean modifying the atmospheric package? Thank you for your help in advance.
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Post time: Jun-09-2021