This research report on the in-store retail packaging market covers market sizing & forecast, market share, industry trends, growth drivers, and vendor analysis. The study includes insights on segmentation by packaging (retail ready packaging and display packaging), products (fiberboard and rigid plastic and others), applications (food industry, beverage industry, and others), and geography (Europe, APAC, North America, Latin America, and MEA).
The usage of environment-friendly material is expected to increase the demand for sustainable packaging material
The adoption of in-store retail packaging in general and retail-ready packaging, in particular, is growing. Cost-effectiveness is the major driver for the high adoption of retail ready packaging in APAC, MEA, and Latin America. However, mature markets such as North America and Europe, which have a high penetration of in-store retail packaging, are moving toward retail ready packaging to overcome the high labor and operational costs. The introduction of new models is set to put the retail industry on the path of high growth. With the change in governmental policies toward retail FDI investment, supermarkets and hypermarkets are increasing their presence in developing countries, thereby driving the global in-store retail packaging market. Further, the increase in private label products is expected to expedite the retail-ready packaging adoption by several brands.
Further, beverages and liquid products are contributing majorly to the increased demand for retail-ready and display packaging. The advent of single-serve packaging is expected to positively impact the market as the increase in unit products aids in demand for replenishment through retail-ready packaging. The high adoption of multi-packs in developed economies is further expected to have an impact on the retail packaging market.
However, with the rise in environmental consciousness, the packaging industry is shifting toward recyclable materials. Several government directives regarding the usage of sustainable materials for packaging purposes have been framed, which are expected to increase the demand for sustainable packaging material. Besides, the usage of fuel-based materials is likely to decrease during the forecast period, which is likely to increase the adoption of fiber board-based packaging, thus driving the global in-store retail packaging market. The global in-store retail packaging market is projected to grow at a CAGR of more than 5% during the forecast period.
This research report includes detailed market segmentation by packaging, products, applications, and geography.
In-store Retail Packaging Market: Packaging
The rise of hypermarkets, supermarkets, and convenience stores is a significant driver for the rapid growth of retail ready packaging
Retail ready packaging is showing rapid growth mainly due to the brisk growth of modern-day retail networks such as hypermarkets, supermarkets, and convenience stores. Attractive retail packaging is helping to increase profitability, high visibility, and easy navigation of the product, which is significantly driving the in-store retail packaging market globally. Further, brands are collaborating with retail stores and vendors to increase profit margins by making retail-ready packaging visually appealing with high-quality prints.
Corrugated based products drive the display packaging segment as they are less expensive and provide a larger printing surface than rigid plastic or metal-based display packaging. The segment is witnessing a high demand from the supermarket and hypermarkets sector. Further, the mature markets such as Japan, the US, Australia, and Western European countries are generating high demand for display packaging products.
In-store Retail Packaging Market: Applications
The high consumption of dairy products across geographies is boosting the in-store retail packaging market
The food industry is the highest value and volume generator for the in-store retail packaging market. Discount stores have had a large impact on retail-ready packaging, as the volume turnaround time is high in discount stores. Further, a significant part of the growth-related to packaged food arises from value-added fresh fruits and vegetables. The growth rate is primarily attributed to the high demand for fresh products, which are hygienic with long shelf life.
Although the consumption of dairy products across geographies is boosting the global in-store retail packaging market, the demand for retail dairy packaging products is expected to be high in developed economies. Thus, the highly competitive food and beverage industry is likely to witness unique designs and print technology during the forecast period.
The tear-tape or perforation style retail-ready packaging is widely used for beverages, especially packaged water and juices, as they are easy to open and store. Soft drinks, packaged coconut water, juices, wine, cider and beer, and other spirits are some of the beverages that utilize in-store retail packaging. However, display packaging market for beverages is not significant, with demand being more for floor displays rather than countertop displays.
In-store retail packaging is highly used for personal care, pet food, household products, and other non-food products. The adoption of retail ready packaging personal care products is high, especially with premium goods such as perfumes, deodorants, and cosmetics and is expected to be a significant value generator for the in-store retail packaging market.
In-store Retail Packaging Market: Products
Transparent rigid plastic is highly in demand for packaging of personal care products and other luxury items
The use of rigid plastic, which can either be reused or disposed of, is a major segment of the retail ready packaging market. The availability of low-cost plastic and its durability is expected to generate demand for rigid plastic. Further, transparent rigid plastic is highly in demand for packaging of personal care products and other luxury items, which is driving the in-store retail packaging market significantly.
In-store Retail Packaging Market: Geography
The presence of high labor costs in the US and Canada is a major driver for the in-store retail packaging market
The retail-ready and display packaging is witnessing steady growth in Europe, especially in Germany and the UK. The market is largely fragmented in Europe, with smaller players catering to locally set-up retail stores. Although Europe is a highly mature market for in-store retail packaging, business opportunities still exist as several traditional stores in Western Europe are expected to be modernized.
The growth in the retail and FMCG industries in APAC has contributed immensely to the global in-store retail packaging market. The market in APAC is mainly driven by China, India, and Australia, which are the most significant revenue contributors. Further, the market in India is largely dominated by convenient stores and grocery stores, with hypermarkets constituting a low share in the market. Besides, the government’s push for relaxing the retail FDI policy in India has given more opportunities for global players. Thus, the display packaging market has high market penetration, as the cost associated with it is lower than retail-ready packaging.
The presence of high labor costs in the US and Canada is a major driver for the in-store retail packaging market. Innovative lightweight retail ready and display packaging is gaining prominence in the retail market. Also, the high adoption of in-store retail packaging by FMCG companies is another key factor for growth. Improving the supply chain efficiency and developing in-store experience are the major focus areas in North America retail food packaging supplies market. Further, the shift from standard corrugated boxes to retail-ready packaging is growing at a faster rate in the US than Canada as a new retail investment in the US from Europe have increased.
In Latin America, the food and beverage industry has a higher market share than non-food categories. Also, the adoption of retail ready packaging of wine and other non-alcoholic beverages products in rigid plastic packaging is an active driver for the market growth in the region. Further, it is expected that local vendors will witness higher growth in retail-ready packaging than global vendors in the region. Also, a large pool of middle-class population with high disposable income will open growth avenues for new retailers in the region, thereby affecting the retail packaging market.
Although the shortage of logistical infrastructure is the major inhibitor of the in-store retail packaging market in MEA, the growth of display packaging is steady in the GCC region, with a limited presence in a few African countries. The increase in the retailer’s operational costs due to changing labor and localization laws and new taxation policies is expected to necessitate the need for retail-ready packaging to increase efficiency. Further, Turkey, Saudi Arabia, and South Africa are the major revenue contributors to the MEA in-store retail packaging market.
Key Profiled Countries
Key Vendor Analysis
The in-store retail packaging market majorly depends on the general economic condition of the region. Retail ready packaging is adding to the existing revenue stream; hence, the competitive pressure is high. Larger players have been aggressively adopting inorganic growth strategies to expand their presence across geographies. Technological strength and high-volume product lines of key players have helped offset cost variations. However, the competition is intense among existing vendors. The pressure from retailers to adopt retail-ready packaging is high in Europe, as the majority of the retail market is highly concentrated. The retail landscape in the US is different, with more than 15 retailers having a majority share in the market. The push from retailers is on the lower side of North America. From the packaging perspective, the retail landscape and its functioning are major factors as they determine the type of product and service required.
Other prominent vendors are Conitex Sonoco, Indevco, Georgia Pacific, Menasha, Saica Pack, Mayr-MelnhofKarton AG, Weedon Group, Packaging Corporation of America, Caps Cases, Pratt Industries, C&B Display Packaging, and STI Group.
Key market insights include
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