The transit packaging market size is expected to reach USD 148 billion by 2024, growing at a CAGR of 3% during the forecast period. The use of additional or secondary packaging to protect the primary product during shipping or transportation is fueling the growth of the global transit packaging market. The transformation of the packing industry from a protective wrapping to a useful promotional tool is augmenting the development of the global market. The increasing efforts on the calculations, estimates, product selection, shipping amenities, and package designing is impacting the growth of the transit packaging industry. The international and regional players are catering to a diverse number of industries to boost their market share. Corrugated boxes, crates, pallets, and protective packaging are some of the most commonly used products in the global market. The inexpensiveness and light weight of corrugated boxes is making it the number one choice for transit packers in the global market. These products have significantly evolved over the last couple of years and very useful in the reusable transport packaging industry. The introduction of the innovative boxes with abilities such as printability feature is boosting the evolution of the packaging industry. The rising awareness for delivering packing products which can be re-used and recycled is one of the recent trends in the global market. The increasing consumer spending sentiments across the world owing to improved economic conditions and the growth prospects of various industries worldwide are two of the major factors contributing to the growth of the global market. The vendors are leveraging the growth of the emerging nations to increase their profitability in the global transit packaging market.
The retail sector is gaining momentum and is driving the demand for a variety of transit packaging products that are useful for packaging and transporting the goods in the sector. The implementation of stringent environmental regulations and laws are driving the demand for returnable and reusable packages in the market.
TRANSIT PACKAGING MARKET TRENDS
The growth and development of the e-commerce industry are one of the major factors resulting in the revolution of the global transit packaging market. The rise in the adoption of technology across geographies is leading to the significant development of the e-commerce sector. The exponential growth of the e-commerce industry is fueling the need for transit packaging and other innovative solutions in the global market. The US and China are the largest regions for these goods, with the largest e-retail industry. For instance, out of more than 30 billion parcels shipped by China in 2016, 70% came through the e-commerce channel. With such major business coming from the online channel, vendors will focus on offering products that are specifically designed for the benefit of the companies operating in this market space. The emergence of online food delivery and online grocery systems is changing the demand trends in the market. The players are offering an innovative and wide variety of packaging solutions regarding size, shape, color, and strength to cater to the large group of end-users in the global transit packaging market.
TRANSIT PACKAGING MARKET – SEGMENTATION
This market research report includes a detailed segmentation of the market by
- Product Type
- End-user Type
TRANSIT PACKAGING MARKET – BY PRODUCT TYPE
Over 90% of products shipped in the US use corrugated boxes, thereby driving demand in the global transit packaging market
The global transit packaging market by product type is segmented into corrugated boxes, crates (wooden crates & plastic crates), pallets (wooden pallets, plastic pallets, & metal pallets), and other protective packaging (bubble wraps, air cushions, foam packaging, insulated shipping containers, tapes, & protective mailers). The corrugated boxes dominated more than half of the total market share in 2018, growing at a CAGR of around 4% during the forecast period. The extensive use of corrugated boxes across different industries in the European and North American region is driving the growth of this segment in the global market. Corrugated boxes have a wide range of application from the ordinary pizza boxes to shipping large consignments in the transit packing industry. Leading vendors such as Smurfit Kappa, Mondi, and DS Smith offer different products and are aiming to innovate their corrugated product offerings with an aim to match up the changing demand of the end-user industries in the global market. The launch of lightweight and flexible corrugated boxes is expected to transform the global transit packaging market over the next few years.
Wooden crates and plastic crates are used for end-user industries goods such as food, beverages, and other travel retail-related products in the global market. The introduction of wooden pallets, plastic pallets, and metal pallets to carry loads and cater to handling, assembling, storing, sorting, and transporting goods is contributing to the growth of the market. Some of the other packaging materials available in the global transit packaging market are bubble wraps, air cushion, foam packaging, insulated shipping containers, tapes, and protective mailers.
TRANSIT PACKAGING MARKET – BY END-USER TYPE
E-commerce is contributing to the major revenues across the retail segment in the global transit packaging market
The end-user segment in the global transit packaging market is divided into food & beverage, retail, electrical & electronic industry, industrial goods, and others. The retail sector is the fastest growing end-user segment in the global market, at a CAGR of approximately 4% during the forecast period. The exponential growth of the e-commerce industry is contributing to the revenues in the retail segment in the global market. With increasing penetration of smartphones and rise in the number of mobile users, the vendors are leveraging digital printing packaging solutions to promote product differentiation and attract the maximum number of consumers in the global market. Moreover, the increasing use of sustainable and reusable transit packaging products are driving the growth of retail segment in the market. The implementation of technologies such as artificial intelligence (AI), Internet of Things (IoT), and robotics is enhancing the entire value chain and the use of packing solutions in the global transit packaging market.
The development of emerging regions such as India and China is one of the essential drivers of the food and beverage sector in the global market. The sub-segments of the industrial goods segment such as chemicals, fertilizers, construction, machinery, and automotive are fueling the need for innovative packaging in the market. The growing demand for customized electronic goods is propelling the growth of the electronics segment in the global transit packaging market.
TRANSIT PACKAGING MARKET – BY GEOGRAPHY
Changes in consumption pattern and fast economic growth is fueling development of the APAC region in the global transit packaging market
The global transit packaging market by geography is classified into APAC, Europe, North America, Latin America, and MEA. APAC occupied more than 1/3rd of the total market share in 2018, growing at a CAGR of more than 3% during the forecast period. The economic development, rising number of investments, and increasing rate of consumption are driving the growth of the APAC region in the global market. China, India, Japan, and South Korea are among the largest revenue generators in the global market. The development of various end-user industries such as food & beverages, retail, electrical & electronics, and industrial goods is propelling the demand for innovative products in the APAC market. The leading vendors are focusing on offering customized retail ready transit packaging products and sustainable designs to gain a larger market share. With the increasing number of e-commerce portals and penetration of smartphones across the APAC region will create lucrative investment opportunities for leading vendors in the global transit packaging market.
The EU directives regulating the norms in the packaging industry in Europe will lead to the introduction of sustainable and reusable packages in the global market. The US and Canada are the largest revenue generating countries in the North American market. Economy development and growth of the consumer retail segment in countries such as Brazil, Mexico, and Argentina will positively impact the development of the global transit packaging market.
The Transit packaging market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Corrugated Boxes
- Wooden Crates
- Plastic Crates
- Wooden Pallets
- Plastic Pallets
- Metal Pallets
- Other Protective Packaging
- Bubble Wraps
- Air Cushions
- Foam Packaging
- Insulated Shipping Containers
- Protective Mailers
- Food & Beverage
- Electrical & Electronic Industry
- Industrial Goods
- North America
- Latin America
- Saudi Arabia
- South Africa