Retail Ready Packaging Market Size, Share & Trends Analysis Report By Material (Plastic, Paper & Paperboard), By End-use (Electronics, Pharmaceuticals), By Product, By Region, And Segment Forecasts, 2023 - 2030

Retail Ready Packaging Market Trends

The global retail ready packaging market size was estimated at USD 83.08 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 5.6% from 2023 to 2030. The purpose of retail packaging is to make the packed product attractive to retailers and potential customers. Retail-ready packaging is often used with products that are sold in bulk like household goods, beauty products, and food. The growing competition in consumer goods, food & beverage, electronics, and personal care & cosmetics is driving the end-use players operating in these industries to develop retail-ready packaging which enables customers and merchandise engagement and reduces the requirement for individual product packaging, thereby supporting its market demand.

High operational costs are a major concern for the retail stores. The retailer’s operational costs are associated with labor, which performs the following operations such as displaying products, locating products in stock, and disposing of the leftover packages. This could be solved by taking the product directly from the truck to the shelf. The ready-retail packaging helps bring down these costs and hence is favored by retailers.

The United States has a strong retail sector where the majority of the purchases are done through brick-and-mortar stores. As per the U.S. Census Data, most of the retail shopping in the country still happens in retail stores. The rapid expansion of the e-commerce industry has further increased the penetration of ready retail packaging. According to the National Retail Federation (NRF), 9 of the top 10 e-commerce websites are run by retailers having brick-and-mortar stores. The NRF has projected the growth rate of retail sales by the end of 2023 to increase in a range between 4-6% over that of 2022. Moreover, growth in the number of new stores has also been witnessed in the U.S., which indicates a very positive outlook for the market. In 2021, as per the NRF, 8,100 new store openings were recorded in the nation.

The food & beverage sector is a leading industry driving the U.S. economy. According to the U.S. Department of Agriculture (USDA), there were 41,080 food & beverage processing plants in the country in 2021. These facilities are located throughout the country, with major ones being located in California, New York, and Texas. American consumers have busy lifestyles, thus driving the demand for convenient, ready-to-eat, and ready-to-drink products, including meal kits, pre-packaged snacks, and beverages. Also, the rising consumption trends for dairy-free, gluten-free, and vegan diets have boosted the demand for specialized food and beverage products that address these needs. This is expected to drive product manufacturers to develop retail-ready packaging that sends out clear messages about their products, thus fueling market growth.

Product Insights

Based on product, the market is categorized into corrugated cardboard boxes, die-cut display containers, folding cartons, shrink-wrapped trays, and others. The die-cut display containers dominated the product segment in terms of revenue in 2022 and accounted for an overall share of 30.0%. The die-cut display containers or boxes are stamped from corrugated sheets cookie-cutter style. They offer versatility in terms of size, style, shape, or design. They offer efficient storage and are ideal for branding and promoting products while ensuring protection during transit, making them an ideal choice for retail businesses. In addition, they tend to require less tape than regular slotted corrugated boxes, leading to less packaging time and costs.

Corrugated cardboard boxes are used in retail ready packaging to enclose bulk products. They are often used to enclose edible oil jerry cans or detergent powder pouches. They are usually regular slotted types (RSC). The corrugated cardboard boxes have excellent strength and good to-weight ratio. The corrugated boxes can be customized to fit particular-sized products and come in varying sizes. The double-layer walls with B and E flutes inside provide protection to items against handling, shipping, and environmental impacts. Product protection also plays a critical role in retail-ready packaging. Damaged external packaging can influence the buyers purchasing decision. Hence the strength and durability of the corrugated boxes can contribute to its demand in the retail-ready packaging market.

The shrink-wrapped trays consist of a cardboard tray wrapped in shrink films. This type of retail ready packaging is economical compared to full-case packing. In addition, it offers more visibility of the product, allowing retailers to display the inventory. Snack products like granola bars, sunflower seeds, crackers, single-serve mini-cookies, and beverages are packed in rigid containers such as jars and bottles. These products are further provided secondary protection by enclosing the primary packaging in the shrink-wrapped trays. The function of trays is to protect the vulnerable areas of the primary packaging and the shrink film helps hold the product in place during distribution.

Folding cartons are manufactured from paperboard that is cut, folded, glued, and laminated. The folding carton is usually single-layered and printed in full colors. They are used for packaging cereals, small-sized chocolates, pharmaceutical products, and high-end cosmetic products. In addition, the material used is thinner compared to corrugated boxes and lightweight.

End-use Insights

The food & beverage end-use industry dominated the market in terms of revenue and accounted for over 37.0% share in 2022. Retail-ready packaging plays a crucial role in the food and beverage industry, providing a means to protect, preserve, and present products to consumers. It is used majorly by snack, edible oil, beverages, and bakery product manufacturers. The retail-ready packaging allows the retailers to quickly restock shelves and also helps the food & beverage product manufacturers to increase the branding of their products.

Retail-ready packaging is used in the pharmaceutical industry in over-the-counter drug selling. This enables the pharmacist to locate the drugs much more easily in the retail environment. The growing pharmaceutical sales globally are expected to positively influence the demand for retail-ready packaging as intense competition in the pharmaceutical sector can drive pharmaceutical manufacturing companies to focus on brand positioning to strengthen their market share.

Retail-ready packaging in electronics consists of corrugated racks with slots to market small electronic products such as mobile accessories, earphones, and chargers among others. Retail-ready packaging is used by electronic brands to occupy space in the retail store. The electronic products are also placed on die-cut corrugated containers to increase their visibility in the electronics retail space. In the personal care & cosmetics end-use industry, retail ready packaging is used to keep pouches of wipes, folded cartons for lipsticks, and shampoo sachets.

Material Insights

Based on material, the market is categorized into plastics and paper & paperboard segments. The paper & paperboard dominated the overall market in 2022 with a revenue share of over 61.0%. The ease of recycling paperboard materials, minimal handling needs, along its sinable sourcing methods, have made it an ideal choice for the retail-ready packaging solutions.

Plastic packaging is generally more durable and resistant to moisture, making it suitable for products that require protection from environmental factors. It is less likely to tear or become damaged during transportation and handling, making it suitable to be used in ready retail packaging. While some plastics are recyclable, there are often challenges associated with plastic recycling due to the variety of plastic types, which often limits its penetration in the market.

Regional Insights

The food & beverage, electronics, personal care & cosmetics, and pharmaceutical sectors are largely developed in the North America region. The region dominated the market with a revenue share of over 25.0% in 2022. The food & beverage industry in the region is expected to be driven by a growth in the young population and disposable income along with high purchasing power. The region has a significant presence of major retailers such as Walmart, Best Buy, Target Brands, Inc., and Home Depot among others. These retail giants are engaged in expanding their stores to cater to expand their presence, which can increase the number of retail stores in the region thereby driving the demand for retail-ready packaging. In addition, the region has retail-ready packaging manufacturers such as International Paper, Smurfit Kappa, Mondi, and Georgia Pacific LLC among others.

Canada has a progressive retail industry. The country has a free-trade agreement with the U.S. and Mexico and the European Union covered under U.S.-Canada-Mexico (USCMA) and CETA. These agreements have significantly boosted the retail sector in Canada since most products are exempt from taxes. The growing retail sector can positively influence the demand for retail-ready packaging.

The retail-ready packaging (RRP) market in Europe, like in other parts of the world, is influenced by various factors, including consumer preferences, sustainability concerns, and the evolving retail landscape. Sustainability is a prominent trend in Europe's RRP market. There is a strong push towards using eco-friendly materials, reducing plastic use, and optimizing packaging designs for recyclability and biodegradability. The retail-ready packaging in Europe often focuses on minimalist and space-efficient designs to optimize shelf space, reduce waste, and improve the shopping experience.

The market trends in Asia Pacific are influenced by the region's diverse consumer markets, rapid urbanization, technological advancements, and sustainability concerns. Furthermore, the growing penetration of modern trade channels such as hypermarkets, malls, and supermarkets in Asian countries is expected to propel the retail sector and contribute to the growth of the market.

Key Companies & Market Share Insights

The retail ready packaging industry includes a large number of players, most of which operate through North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. Major market players engage in mergers and acquisitions to expand their market reach. For instance, on September 8, 2023, Graphic Packaging International, LLC acquired Bell Inc. This acquisition will help Graphic Packaging International, LLC to increase its folding cartons production capacity and strengthen its position in the market.

Retail Ready Packaging Market Report Scope

Global Retail Ready Packaging Market Report Segmentation

This report forecasts revenue & volume growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global retail ready packaging market report based on material, product, end-use, and region:

• Material Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Plastic

  • Paper & Paperboard

• Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Die-cut display containers

  • Corrugated cardboard boxes

  • Shrink-wrapped trays

  • Folded cartons

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Food & Beverages

  • Pharmaceuticals

  • Electronics

  • Personal Care & Cosmetics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Southeast Asia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates

    • South Africa