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The returnable transport packaging (RTP) market is estimated to increase by USD 3,439.74 million between 2022 and 2027. The size of the market is forecast to grow at a CAGR of 7.37%. The growth of the market depends on several factors, including long-term cost-saving opportunities for buyers, the growing global e-commerce market, and the increase in electronic components trade between India and China.
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The long-term cost-saving opportunities for buyers are notably driving the market growth, although factors such as threats from the leasing market may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Long-term cost-saving opportunities for buyers is the key factor driving the growth of the global RTP market. Most products are made of lightweight plastic, saving shipping costs. Average distribution costs as a percentage of global logistics costs in 2019 increased by about 3% compared to the previous year. Moreover, most transportation is overland, especially in developing countries in the Asia-Pacific region such as India. As a result, the demand for RTP products is expected to increase during the forecast period due to the advantages of lightweight and space-saving during transportation.
In addition, the use of RTP products decreases the overall cost of packaging in the long run. The average life span of RTP products ranges between 15 and 20 years. Although single-use packaging products are relatively less expensive than RTP products, they need to be purchased repetitively. As a result, the end-user can save around 20%-25% of their distribution cost by using RTP products. Thus, such benefits of RTP will increase its demand which in turn will boost the growth of the global RTP market during the forecast period.
The adoption of radio-frequency identification (RFID) technology in RTP is the primary trend in the market. RTP products such as pallets and containers are equipped with RFID technology to monitor, control, and track the physical condition of products throughout the supply chain. RFID-enabled pallets can be tracked from production units through distribution centers to retail stores. This RFID technology prevents pallets from being stolen or misplaced. The RFID tracking technology system embedded in the pallets also improves supply chain transparency.
In addition, the RFID tags on the pallets can be connected to the shock sensor, which allows manufacturers, retailers, and logistics services providers (LSPs) to know the real-time status of the pallets. Various companies such as Costco, Kraft Foods, Walmart, and Mondelez are using pallets embedded with RFID tags. Thus, such advancements in RTP products will boost the growth of the global RTP market during the forecast period.
Threats from the leasing market are a major challenge to the growth of the global market. The RTP product leasing is also expected to have an adverse impact on the demand for new product sales. Leasing helps end users reduce the operational costs of purchasing and maintaining these products. Additionally, Leasing offers significant tax benefits compared to purchasing new RTP products. Therefore, APAC SMEs are expected to prefer leasing rather than buying their RTP products and this will affect the demand for newly manufactured RTP products.
Additionally, the useful life span of the RTP products is quite long. For example, the average life span of an intermediate bulk container is 20 years, and retrofitting can extend its useful life by 3-4 years. Hence, leasing is expected to affect the frequent purchase requirements of RTP products. However, companies in the market can offset their losses due to leasing activity by adding a segment of leasing services to their service portfolio. Thus, the threat from the leasing market will hinder the growth of the global RTP market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Balmer Lawrie and Co. Ltd.: The company offers returnable transport packaging such as plain steel drums, lacquer lined drums, and galvanized drums.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the containers segment will be significant during the forecast period. Containers are the largest segment of the global returnable shipping packaging market and will remain the largest segment throughout the forecast period.
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The containers segment was valued at USD 2,474.37 million in 2017 and continued to grow until 2021. The container segment has various product categories, including stacking nest boxes, reusable plastic crates, and bulk crates, widely used in retail warehouses, poultry farms, etc. The retail sector is expected to account for the major demand for products in the container segment. In developed countries such as the US, the organized retail sector accounted for a share of around 85% of the retail industry in 2020. However, the share of the organized retail sector in APAC was just around 19% in 2020; this is indicative of the significant growth opportunities in the organized retail sector in APAC during the forecast period, which is still in the growth phase.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The RTP container has a special internal design to protect the products inside from breakage and damage. With RTP products, suppliers and customers can ensure robust, undamaged packaging and reduce the risk of goods being stolen or damaged during transit. These packaging products can be utilized by any industry, considering receptacles` wide variety of sizes, shapes, and material structures. Steel racks, bulk containers, pallets, drums and barrels, and sleeve boxes and packs are some RTP products that companies can use efficiently in their production lines. In addition, when containers are outfitted with custom dunnage, the carbon footprint can be reduced by decreasing plastic waste. Thus, all these factors are expected to contribute to the growth of the regional market during the forecast period.
The RTP Market is a crucial component of sustainable supply chains, addressing environmental concerns and promoting efficient logistics. With a focus on reducing plastic waste generation and promoting reusable packaging materials like plastic drums, salvage drums, and fiber drums, the industry plays a key role in mitigating environmental degradation and groundwater contamination. RTP solutions benefit various sectors including the food, chemicals, and oil industries, as well as automotive parts and medical equipment manufacturers. Companies like Schütz Australia and IFCO System lead the market, offering innovative solutions for returnable packaging needs. As the e-commerce industry continues to grow, the demand for RTP solutions is expected to rise, contributing to a more environmentally friendly and cost-effective supply chain ecosystem.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Returnable Transport Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.37% |
Market growth 2023-2027 |
USD 3,439.74 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.68 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 30% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Balmer Lawrie and Co. Ltd., Berry Global Inc., Brambles Ltd., Bulk Lift International LLC, BWAY Corp., CABKA Group GmbH, CORDSTRAP BV, Craemer GmbH, DS Smith Plc, Greif Inc., Myers Industries Inc., Rehrig Pacific Co., Schoeller Allibert BV, SCHUTZ GmbH and Co. KGaA, Tank Holding Corp., The Supreme Industries Ltd., Thielmann Portinox Spain SA, Time Technoplast Ltd., TranPak Inc., and Amatech Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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