SAN FRANCISCO, March 16, 2021 The- global returnable packaging market size is expected to reach USD 153.35 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.7% from 2021 to 2028. 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.
Key suggestions from the report:
- Based on material, plastic accounted for a share of 63.4% in terms of revenue in 2020 owing to the high adoption of plastic-based pallets, crates, and IBCs by end-use companies due to their durability, lightweight, low cost, and high-impact resistance
- By product, pallets led the market with a share of 57.2% in 2020 and are expected to witness significant growth from 2021 to 2028. This is attributed to the high adoption of pallets for material loading and unloading by multiple end-use industries
- Asia Pacific emerged as the leading regional market and accounted for 36.4% of the total revenue in 2020. The growing manufacturing sector in developing countries, such as China and India, owing to the low cost of production is boosting the growth of the regional market
- The market is moderately fragmented with the presence of a significant number of large and medium-sized companies. Key players are focusing on acquisitions and are incorporating novel tracking devices to efficiently track product movement throughout the supply chain.
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.
Flourishing e-commerce across the world is likely to augment market growth as the product distribution through e-commerce consists of extensive logistics, wherein returnable packaging products are used. Moreover, the growing pharmaceutical industry due to the rising elderly population and increasing chronic diseases, along with a surge in the personal care and cosmetic industry on account of the rising preference for natural or plant-based beauty products, is likely to drive the market significantly.
Find more research reports on Plastics, Polymers & Resins Industry, by Grand View Research:
- Industrial Bulk Packaging Market – The global industrial bulk packaging market size was estimated at USD 21.8 billion in 2018, escalating at a CAGR of 3.8% over the forecast period.
- Flexible Intermediate Bulk Container Market – The global flexible intermediate bulk container market size was valued at USD 4.0 billion in 2018 and is expected to advance at a CAGR of 5.9% over the forecast period.
- Dunnage Packaging Market – The global dunnage packaging market size was valued at USD 3.0 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.1% from 2020 to 2027.