The global Returnable Packaging market size is expected to be worth around US$ 163.35 billion by 2030, according to a new report by Vision Research Reports.
The global Returnable Packaging market size was valued at US$ 101.55 billion in 2020 and is anticipated to grow at a CAGR of 5.10% during forecast period 2021 to 2030.
Get Sample Copy of This Report@ https://www.visionresearchreports.com/report/sample/37464
Growth Factors
Rapid industrialization, increasing trade activities, and rising demand for robust, long-term, and eco-friendly packaging for the transportation of finished and semi-finished goods in multiple end-use industries are expected to augment the growth of the market.
Returnable packaging consists of sturdy products, such as pallets, crates, IBCs, and drums and barrels, which are intended to use for multiple trips. These products are designed to withstand harsh handling within the supply chain, thus are made up of robust materials, such as polypropylene, high-density polyethylene, metal, and wood, which results in their high cost as compared to single-use packaging. However, returnable packaging is reused multiple times, which eliminates the recurring costs of packaging products and makes them lucrative in the longer term.
Globally, end-use companies or consumer brands are increasingly pledging to switch to reusable or recyclable packaging products owing to sustainability issues and to improve brand equity. Besides, growing favorable government regulations such as European Union’s Circular Economy Action Plan that focuses on sustainable practices are expected to favor the market growth in the coming years.
Report Highlights
Plastic led the market and accounted for a 63.4% share of the global revenue in 2020. High-density polyethylene (HDPE) and polypropylene (PP) plastics are typically used for manufacturing products, such as pallets, crates, IBCs, and drums, owing to their durability, low weight, and strong corrosion and solvent resistance.
Moreover, plastic-based RTP products incur minimal or no damage during the rough handling by forklift and other material handling equipment owing to their high impact resistance. Besides, plastic-based RTP products offer strong weather and chemical resistance, which makes them suitable for pharmaceutical and food applications.
The metal material segment is expected to witness the fastest growth from 2021 to 2028 on account of high strength, coupled with a strong sustainability profile of metals as compared to plastic. However, the higher weight of metal-based products is expected to hinder the segment growth to some extent.
The wood material is majorly used for making pallets. Low cost and wide availability of wooden pallets as compared to are the key factors responsible for their wide adoption. However, increasing demand for plastic-based pallets owing to their lower maintenance costs, ease of cleaning, high durability, and aesthetic appeal is expected to have an adverse effect on the growth of the wood material segment.
Pallets led the market and accounted for 57.2% share of the global revenue in 2020. This is attributed to the extensive utilization of pallets by multiple end-use industries ranging from food and beverages to petroleum and. The growing use of reusable pallets over one expendable pallet as the former is sturdy and economically viable is expected to boost the segment growth.
Dunnage provides 360-degree protection to individual units during shipping. Dunnage refers to an interior placed inside the container to facilitate the safe packaging of individual units. It is an effective packaging product for the transportation of fragile, high-value automotive, and electronic products.
Intermediate bulk containers (IBCs) are expected to register the highest CAGR from 2021 to 2028. The product is typically used to store and handle liquid and powdered products and finds extensive application in the food and beverage and pharmaceutical industries. Increasing demand for effective and low-cost bulk liquid transportation products from various end-use industries is expected to contribute to the high growth of the product segment.
Multiple types of returnable crates, including nestable, stackable, and collapsible, are utilized by the agricultural, grocery, dairy, and bakery sectors for product distribution in a closed loop. Low weight, compact size, and availability in multiple sizes make them the preferred material for product handling.
The food and beverages end-use segment led the market in 2020 and accounted for 34.5% share of the global revenue. This is attributed to high product demand for the packaging of the dairy, bakery, agricultural, meat, and processed and semi-processed food products. The expanding processed food products industry is further anticipated to increase product penetration within the food and beverages segment.
Automotive manufacturers primarily use returnable packaging products for the transportation of their semi-finished and finished auto components, such as body parts, from the vendors to the assembly units. Frequent and short-distance transportation of heavy and high-volume auto parts generates demand for sturdy, effective, and durable packaging products, such as pallets, racks, and dunnage. The steady expansion of the global automotive industry on account of the growing middle-class population, especially in the Asia Pacific region, is expected to have a positive impact on the growth of the automotive segment over the forecast period.
The healthcare end-use segment is expected to exhibit the fastest CAGR from 2021 to 2028. Increasing cases of chronic diseases and the growing aging population have been significantly driving the pharmaceutical industry, which, in turn, is expected to augment the product demand in the pharmaceutical applications over the forecast period.
Asia Pacific led the market and accounted for a 36.4% share of the global revenue in 2020. It is projected to expand at the fastest CAGR from 2021 to 2028. The presence of a large number of manufacturing companies in countries, such as China, India, Indonesia, and Vietnam, is the key factor driving the regional market. Furthermore, rapid industrialization in the Asia Pacific due to the low cost of manufacturing is expected to benefit the market growth.
The market in the Middle East and Africa is expected to witness significant growth in the coming years owing to the shifting focus from the oil industry to the manufacturing industry. North America was the second-largest market in 2020 and is expected to expand at a significant CAGR from 2021 to 2028. Favorable trade agreements such as the USMCA between U.S., Canada, and Mexico are expected to boost manufacturing activities within the region, which is expected to drive the market in North America.
Key Players
Market Segmentation
Buy This Premium Research Report, click here@ https://www.visionresearchreports.com/report/cart/37464 or call: +1 9197 992 333
Vision Research Report, Recently Announced New Report on "Smart Lock market - Global Industry Analysis,…
Vision Research Report, Recently Announced New Report on "2D barcode reader market - Global Industry…
Vision Research Report, Recently Announced New Report on "commercial refrigeration equipment market - Global Industry…
Vision Research Report, Recently Announced New Report on "Restaurant Point-of-Sale Terminal market - Global Industry…
Vision Research Report, Recently Announced New Report on "vacuum cleaner market- Global Industry Analysis, Market…
Vision Research Report, Recently Announced New Report on "household refrigerators and freezers market - Global…