The global retail ready packaging market is anticipated to reach US$ 102.2 billion by 2032, expanding at a CAGR of 2.4% from 2024 to 2032. This type of packaging, often abbreviated as RRP, plays a crucial role in optimizing stock and enhancing the retail experience. RRP comprises elements like case stackers, pallet displays, and counter displays, typically crafted from paper, plastic, and paperboard. Its advantages are numerous, including lightweight construction, ease of handling, and efficient replenishment. Moreover, the widespread recyclability of RRP products, coupled with their ability to effectively promote brands, has solidified their popularity worldwide.
Retail ready packaging has emerged as a vital packaging choice for the food and consumer products industry. Its attractive packaging designs not only enhance brand visibility but also streamline the process of assembling displays and unpacking goods. By minimizing labor and overall operational costs, RRP contributes significantly to cost-efficiency. Additionally, it plays a crucial role in reducing packaging waste, aligning with current sustainability concerns.
One of the prominent trends driving the growth of this market is the increasing adoption of die-cut display containers, particularly within supermarkets and hypermarkets. The reusability of these containers has made them a preferred choice for retailers and manufacturers, further boosting demand for retail ready packaging. RRP’s ability to reduce shipping expenses presents an additional advantage. This cost-saving enables businesses to allocate more resources to marketing initiatives like promotions and advertising, further enhancing their market reach. Additionally, RRP reduces labor expenses and enhances the shopping experience for customers.
Retail ready packaging provides manufacturers with a cost-effective way to maintain their brand image while simplifying the stocking and display process for retailers. This packaging alternative contributes to environmental sustainability by utilizing less plastic in its components, thus minimizing landfill waste. The retail sector is expected to witness robust growth in several countries in the foreseeable future. For instance, the Retailer Association of India (RAI) reported a 15% increase in consumer durables sales in 2021, indicating a strong revival of the retail industry. This expansion has heightened the awareness of the need to reduce material waste, thereby stimulating sales in the retail ready packaging sector.
The North American region emerged as the leading market in 2023. This dominance is fueled by the expansion of the retail sector in the region. According to the National Retail Federation, retail sales in the United States are projected to rise from US$ 5.13 trillion in 2022 to US$ 5.23 trillion in 2023. Major retailers like Walmart and Kroger are driving the adoption of retail-ready packaging in the United States and Canada. The region is witnessing a surge in the adoption of new, consumer-friendly, and economically viable package designs, further propelling the growth of the retail-ready packaging market in North America.
Leading companies in the global retail ready packaging industry are focusing on developing customized solutions to cater to specific advertising needs. They offer creative and retail-ready package designs for enhanced brand exposure. To remain competitive, brands are incorporating dynamic visuals, interactive elements, and innovative structural designs into their retail-ready packaging solutions. Some of the key players in the global retail ready packaging market include:
* DS Smith plc
* Smurfit Kappa Group
* International Packaging Corporation
* WestRock Company
* Menasha Packaging Company, LLC
* Klöckner Pentaplast Group
* Georgia-Pacific LLC
* Pratt Industries Inc.
* McLean Packaging Corporation
* Fencor Packaging Group Limited
Recent developments in the market include:
* In 2022, Smurfit Kappa UK Limited (SKUK), a leading integrated paper-based packaging solutions provider, acquired Atlas Packaging in Barnstaple, North Devon. Atlas Packaging is an independent supplier of corrugated packaging.
* Stora Enso introduced a new kraftliner called AvantForte WhiteTop in 2022. This kraftliner, made entirely from virgin fiber, is designed for high-end markets such as fresh food, e-commerce, and shelf-ready packaging.
The retail ready packaging market is poised for continued growth, driven by factors such as increasing consumer awareness of sustainability, the rise of e-commerce, and a focus on enhancing the retail experience. With its numerous benefits, including cost-efficiency, brand promotion, and environmental consciousness, retail ready packaging is well-positioned to play a significant role in shaping the future of packaging solutions.
