Plastic Shipping Crates Procurement Category Market Research Report Updated

The price of plastic shipping crates has increased marginally over the last three years due to recovering demand and higher plastic materials and resin prices, according to an updated market report from IBISworld.

Plastic shipping crate prices are anticipated to increase in the next three years due to expected increases in plastic prices and additional developments in the overall economic climate, which will boost business activity. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Plastic Shipping Crates in its growing collection of procurement category market research reports.

IBISworld says that buyers of standard plastic shipping crates have a buyer power score of 3.7 out of 5, demonstrating a high level of buyer power. Scott Winters of IBISworld states that buyers gain negotiation power through the product’s low level of specialization, low total cost of ownership and high level of substitute goods.

Because common industry plastic shipping crates are made using molds and machinery that forms the plastic along an assembly line, there are few differences, if any, between one shipping crate and another. With this standardization, buyers can turn to many suppliers in the market for their shipping crate needs, boosting negotiation power. Similarly, buyers can look to substitute goods like wooden shipping crates and cardboard shipping crates. The widespread availability of substitute products allows for greater buyer power.

Moreover, more businesses are switching to plastic shipping crates compared with other types of crates due to their sustainable nature, which allows for cost savings, continues Winters. Plastic shipping crates offer a longer useful life and are safer for food and other edible goods being shipped. Additionally, plastic shipping crates have a low total cost of ownership, with few costs other than the initial purchase of the crate itself. Also, because many crates are used internationally for shipping, buyers can achieve cost savings in some countries where environmentally friendly crates earn governmental support and subsidies.

Buyers also have strong negotiating power due to market fragmentation; buyers are able to search among a wide range of suppliers for the best price. As a result, buyers can easily compare product prices and features from companies such as Orbis, Rehrig Pacific Company and Reusable Transport Packaging before making a purchase.

Although buyers have a great degree of power in the negotiation process, buyer power is limited by supplier input costs like the price of plastic materials and resin. This input is the main component in plastic shipping crate production and its price is tied to notoriously volatile crude oil prices. To mitigate the high and volatile prices, suppliers may pass the additional costs on to the buyer or absorb the additional production cost and face lower profit margins. In both cases, buyers encounter less room for negotiation with suppliers. For more information, visit IBISWorld’s Plastic Shipping Crates procurement category market research report page.

This report is intended to assist buyers of plastic shipping crates, which are typically used for storing products or shipping goods from one location to another. Plastic crates provide protection of shipped and stored goods from damage or breakage and simplify the handling of goods. Plastic shipping crates are cleanable and reusable and offer cost savings compared with wooden shipping crates. This report does not include wooden shipping crates, international shipping containers, packaging boxes or bags. Contents include:

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit

Soource: IBISworld

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