Returnable Packaging Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F Segmented By Material, By Product, By End Use, By Region, and Competition

Global Returnable Packaging Market is Anticipated to Grow Significantly Through 2028 due to Increasing Demand from the Automotive Sector. in 2021, Around 487 Thousand Commercial Vehicles Were Produced in India

Global Returnable Packaging market is anticipated to grow significantly through 2028 due to increasing demand from the automotive sector. In 2021, around 487 thousand commercial vehicles were produced in India.

Global Returnable Packaging market is expected to expand during the projected period due to increasing demand from the automotive sector as it helps in transporting automotive parts and components between manufacturing plants and suppliers, where it has proved to be highly effective in reducing transportation and packaging costs. Growing demand for sustainable packaging to reduce waste and lower carbon footprint is expected to drive the growth of the market. Moreover, increasing demand for durable & robust packaging products from various end-use industries is projected to drive the returnable packaging market in the upcoming years.

Rising Demand for Sustainable and Durable Packaging

The development and application of packaging that increases sustainability is referred to as sustainable packaging. Reusing the package and lessening the environmental impact are made possible by strong, long-lasting packaging goods with returnable features. Returnable packaging reduces the amount of packaging trash that ends up in landfills, making it very sustainable. End users are adopting more environmentally friendly packaging strategies to improve the reputation of their brands, as well as increased regulatory pressure on the usage of plastic packaging.

For instance, according to the 2021 Global Buying Green Report by Trivium Packaging, a high-quality and infinitely recyclable metal packaging provider based in the Netherlands, conducted a survey of end users in Europe, North America, and South America, and it was found that 83% of younger generation consumers were willing to pay more for sustainable packaging as compared to the previous year.

Therefore, the growing demand for sustainable and durable returnable packaging will result in the growth of Global Returnable Packaging market in the projected years.

Increasing Demand from Automotive Industry

The automobile sector has developed into one with intricate supply chains and links, necessitating the streamlining and error-free execution of several tasks in order to prevent anomalies. Returnable packaging helps regulate the flow of goods in supply chains in the automobile sector by offering safe, environmentally responsible solutions to do so. Packaging options that provide the best protection for expensive items and parts are crucial in the automotive industry. Returnable packaging is typically used for the transportation of large and bulky components, such as bumpers, engines, and transmissions. These parts require strong and durable packaging that can withstand the stresses of transportation and handling. The construction of a car involves several components, ranging from the engine to other minor mechanical parts and adorning interior fixtures. Furthermore, regular and short-distance transportation of heavy and elevated auto parts tends to generate demand for durable, sturdy, effective packaging products, such as racks, pallets, and dunnage. Returnable packaging is cost-efficient and replaces one-time-use packaging materials, such as cardboard boxes and wooden crates, which can be expensive and wasteful.

For instance, according to IBEF, Indian Automakers are the seventh-largest producers of commercial cars, and by 2026, the sector is anticipated to generate more than USD 250 billion (including parts production).

Additionally, the main benefit of returnable packaging in the e-commerce sector is its cost savings. E-commerce companies often need to ship products in large volumes, which can lead to significant packaging costs. By using returnable packaging, companies reduce the need for one-time-use packaging materials, such as boxes and envelopes, which is very expensive and wasteful. Returnable packaging is designed to be used multiple times, reducing the need for replacement and reducing costs over time. Returnable packaging materials can be made from recycled materials, further reducing their environmental impact. By using returnable packaging, e-commerce companies can reduce their carbon footprint and contribute to a more sustainable supply chain.

For instance, Business Norway introduced Packoorang eco-friendly, reusable packaging for e-commerce which has a 50-80 percent smaller carbon footprint than cardboard boxes after just one use.

For instance, European Commission Cordis introduced RePack, which is a sustainable packaging system for online retailers and shoppers whereby delivery packages can be conveniently and easily returned and then re-used.

Therefore, the growing demand for safe and protective returnable packaging material led to the growth of Global Returnable Packaging Market during the forecast year.

Increasing Demand from Food & Beverage Sector

The packaging of dairy, bakery, agricultural, meat, and processed and semi-processed food goods is in great demand, which helps in growing the demand for packaging material from the food & beverage industries. In addition, developing a processed food products business is predicted to increase product penetration within the food and beverage industry.

Moreover, with rising concern about plastic waste and potential restrictions by various governments, a number of firms in the beverage, alcohol, and processed food industries have begun to investigate alternate packaging options, including glass, to limit the use of plastic.

For instance, in October 2021, Burger King, together with Loop Industries, started working to reduce packaging waste and employ reusable packaging material for food packaging.

Thus, increasing demand for sustainable and returnable packaging material in the food & beverage sector is anticipated to grow the Global Returnable Packaging Market in the upcoming years.

Additionally, returnable packaging is also used in the healthcare sector, particularly for medical devices, instruments, and supplies. It is particularly important for medical devices and instruments that are expensive, delicate, or sensitive to temperature, humidity, or other environmental factors. By using returnable packaging, healthcare providers can ensure that these products are protected during transport and storage, which can help improve the life of devices.

For instance, Nefab Group provides returnable packaging solutions in the form of LID, inner packaging, ESD, outer packaging, and pallet for various applications.

Ongoing technological advancements are also contributing to the growth of the global returnable packaging market. The introduction of new technologies such as RFID tagging and advanced tracking systems are making it easier and more efficient to manage returnable packaging materials across global supply chains. This has helped to reduce the complexity and cost of managing returnable packaging materials, making them a more attractive option for businesses of all sizes.

For instance, Smartx Technology Inc introduced a technology by the name of SmartX HUB RFID-enabled assets tracking system, which helps to track Returnable Transport Items (RTIs).

However, the issue faced by the global returnable packaging market is the high initial cost of purchasing and implementing these materials; the upfront investment can be a major barrier for many companies. In addition, the logistics and transportation required to manage returnable packaging can be complex and time-consuming, requiring significant planning and coordination to ensure that items are returned to the appropriate locations in a timely manner. Along with this, these materials have a greater transportation cost because of their return trip. Along with this, these items take up a lot of storage space and need to be maintained on a regular basis. Furthermore, product theft or misplacement has been found, necessitating the use of tracking systems and increasing material handling costs, which slow down the market growth. Moreover, the need for standardization and compatibility between different types of returnable packaging materials is growing. This is particularly important in global supply chains, where companies may be working with partners and suppliers in different countries with different types of packaging materials. Thus, without standardized materials and processes, it can be difficult to ensure that returnable packaging can be effectively reused and returned material which further slows down the market growth.

Recent Developments

• In April 2022, ORBIS Corporation introduced various packaging solutions and services, including reusable plastic pallets, at MODEX show 2022.
• Reusable packaging distributor IFCO Japan purchased the RPC pooling services division of Sanko Lease Co. Ltd. in March 2022.
• In September 2021, Tesco signed an agreement with a reusable packaging platform, namely Loop, to introduce reusable packaging as part of its green efforts.
• Aeon supplied its products with reusable packaging platforms, namely Loop, in 19 stores across Japan, in May 2021.
• In May 2021, Nefab increased its production facilities to Houston (Texas), Tucson (Arizona), and Gainesville (Florida).

Market Segmentation

Global Returnable Packaging Market is segmented based on material, product, end-use, and region. Based on material, the market is categorized into plastic, metal, wood, and others. Based on product, the market is segmented into pallets, crates, intermediate bulk containers (IBCs), and others. Based on end use, the market is fragmented into food & beverages, automotive, consumer durables, and others. Based on region, the market is divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

Company Profiles

ORBIS Corporation, Econovus Packaging Pvt. Ltd., Nefab AB, Plastic Packaging Solutions Midlands & East Ltd., Tri-pack Packaging Systems Ltd, Amatech Inc, CHEP International Inc, LEAP India, Schoeller Allibert Services B.V., Celina Industries are some of the key players of Global Returnable Packaging Market.

Report Scope:

In this report, global Returnable Packaging market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

Returnable Packaging Market, By Material:

• Plastic
• Metal
• Wood
• Others

Returnable Packaging Market, By Product:

• Pallets
• Crates
• Intermediate Bulk Containers (IBCs)
• Others

Returnable Packaging Market, By End Use:

• Food & Beverages
• Automotive
• Consumer Durables
• Others

Returnable Packaging Market, By Region:

• North America
• United States
• Mexico
• Canada
• Europe
• France
• Germany
• United Kingdom
• Spain
• Italy
• Asia-Pacific
• China
• India
• South Korea
• Japan
• Australia
• South America
• Brazil
• Argentina
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

Competitive landscape

Company Profiles: Detailed analysis of the major companies present in the global Returnable Packaging market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company’s specific needs.


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