The retail ready packaging market is projected to grow exponentially by 2028, powered significantly by the booming pharmaceutical industry.
Retail ready packaging is being rapidly adopted by various mass retailers, supermarkets, and e-commerce packaging vendors as it significantly reduces costs in supermarkets by saving on de-palletization. Many retail stores worldwide are upgrading to ensure better distribution, optimization of shelf space, and ease of recycling, which has facilitated product uptake in recent years.
What is retail ready packaging?
Retail ready packaging, often abbreviated as RRP, represents a packaging system predominantly utilized by retailers, including mass retailers, supermarkets, and e-commerce platforms. This type of packaging is designed to be immediately presented on the store shelf without the need for unpacking or adjusting the product inside. It is also referred to as “one touch” packaging because the secondary packaging is placed directly on the shelf without the requirement to handle individual products.
What are the benefits of retail ready packaging?
Efficiency: RRPs significantly diminish costs, particularly in supermarkets, by negating the need for de-palletization.
Optimization: Retail stores globally are transitioning to RRPs to optimize shelf space, streamline distribution, and offer ease of recycling.
Adaptability: Given the pace of technological innovation and market dynamics, RRPs provide businesses the agility to capitalize on emerging trends.
Reusable Retail Ready Packaging Solutions
Reusable packaging stands out as a sustainable solution within the broader RRP framework. As businesses and consumers increasingly focus on environmental concerns, reusable packaging systems not only minimize waste but also foster brand loyalty among eco-conscious customers. Prominent examples of reusable RRP include RPCs, which provide shelf ready, one touch display for perishable products, as well as bulk bins and other reusable merchandising systems.
Market overview (2023-2028)
The global retail ready packaging market is on a trajectory for exponential growth by 2028, with a significant push from sectors like the burgeoning pharmaceutical industry.
When dissected by material, the market is split between paper & paperboard and plastic. The plastic category, particularly the PET segment, holds a 30% market share, with an anticipated growth CAGR of over 4.5% during the evaluation period.
In terms of products, offerings like folding carton (or box board) are expected to see notable uptake, propelled by the expansive growth of e-commerce and retail sectors.
From an application standpoint, while the fruits & vegetables segment is set to grow at a CAGR of about 5.1%, the pharmaceutical industry’s stake in the RRP market was nearly 10% in 2021 and is predicted to climb further by 2028.
Regionally, North America has made its presence felt with a significant 20% share in the total revenue for 2021, forecasting a promising growth pattern in the upcoming years. For instance, in August 2021, Refresco Group B.V., a major bottler and beverage solutions provider, announced the acquisition of three production facilities in the U.S. from The Coca-Cola Company, a leading beverage corporation. The deal enabled Refresco to strengthen and expand its manufacturing footprint across strategic locations.
To conclude, as retail dynamics continue to evolve, the retail ready packaging market, with its efficiencies and adaptabilities, seems poised to cater to the varied demands of businesses and consumers alike.