The returnable transport packaging market in Asia-Pacific (APAC) is expected to post a CAGR of over 8% during the period 2018-2022, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the growth of trade between India and China. In the emerging markets of APAC, India and China are the key players. Regardless of its huge middle-income population, the countries managed to generate around 35% growth of merchandise trade. The growing commercial activity between the giant markets of the emerging world will pave the way for the growth of the manufacturing industry. Moreover, China mentioned in 2018, its willingness to have a free trade agreement with India to facilitate more commercial exchange among the countries.
As per Technavio, the increased adoption of returnable transport packaging will have a positive impact on the market and contribute to its growth significantly over the forecast period. This returnable transport packaging market in APAC 2018-2022 research report also analyzes other important trends and market drivers that will affect market growth over 2018-2022.
One of the key reasons triggering the requirements for returnable transport packaging is the growing environmental concern. When compared to disposable packaging alternatives, reusable transport packaging emits 28%-30% less carbon dioxide. Additionally, the returnable transport packaging products are considered as low-cost long-term investments as the cost incurred is utilized with repeated shipping. Returnable transport packaging is more stable than disposable packaging, and the risk of bending or collapsing while handing or during truck movement is minimal for this type of packaging.
“Compared to disposable packaging, the space optimization capacity of returnable transport packaging in transit vehicles is more efficient. For example, a loaded truck can carry 168 intermediate bulk containers, whereas 5 truckloads are required to carry the fiber drums of equivalent capacity. It also specifies the higher loading capacity of returnable transport packaging over disposable packaging. Thus, the low operating cost of returnable transport packaging compared with disposable packaging will benefit the end-users,” says a senior packaging research analyst at Technavio.
This market research report segments the returnable transport packaging market in APAC by end-user (food and beverage industry, manufacturing industry, and retail industry) and geographical regions (China, Japan, and other countries).
The food and beverage industry segment held the largest market share in 2017, accounting for 41% of the market. This end-user segment is expected to dominate the global market throughout the forecast period.
China led the APAC market in 2017 and the region is expected to dominate the market through 2022.