The global returnable packaging market size is expected to reach $173 billion by 2030, according to a new report by Research and Markets.
Rapid industrialization, increasing trade activities, and rising demand for long-term, and eco-friendly packaging for the transportation of finished and semi-finished goods is expected to augment growth to the market, says the Global Returnable Packaging Market Size, Share & Trends Analysis Report.
Around the world, consumer brands are increasingly pledging to switch to reusable or recyclable packaging products owing to sustainability issues and to the desire to improve brand equity.
Flourishing e-commerce across the world is likely to augment growth to the market as the product distribution through e-commerce consists of extensive logistics where returnable packaging products consistently come into play.
The growing pharmaceutical industry, along with a surge in the desire for natural beauty products in the personal care & cosmetic industry, are also likely to drive the market significantly.
Pallets Lead the Industry
The report shows that pallets led the product segment and accounted for a revenue share of 57% in 2021 and are expected to witness significant growth from 2022 to 2030. High adoption of pallets for material loading and unloading by multiple end-use industries mainly attributed to the high share of the segment in 2021. The plastic material segment accounted for revenue share of 63.4% in 2021, owing to high adoption of plastic-based pallets, crates, and IBCs by end-use companies due to their durability, light weight, low cost, and high impact resistance.
Asia Pacific emerged as the leading regional market and accounted for over 36.6% of the total volume in 2021. Increasing manufacturing sector in developing countries such as China and India owing to low cost of production is primarily attributing to the growth of the regional market.
This information is slightly different from a report the company put out in May about sustainable packaging, which said that the global sustainable packaging market will increase at a rate of 5.9% per year through 2027, reaching $351.4 billion, up from $263.8 billion today. Factors driving growth of the market include the increasing awareness among consumers toward environmental issues caused by packaging, stringent government regulations, demand from the food and beverage industry, consumer preference, and eco-friendly material initiatives.