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Retail Ready Packaging Stats

Retail Ready Packaging Stats

The global demand for retail-ready packaging (RRP) exceeded 32 million tons in 2018, growing an average of 4% annually since 2014, with the market worth an estimated $57.46 billion in 2018. RRP consumption is expected to increase on average by 5.4% annually from 2019 to 2024, reaching a total of nearly 44 million tons, valued at $77 billion at constant 2018 prices. That’s according to a recent report from Smithers, The Future of Retail-Ready Packaging to 2024, which indicates that the global demand for RRP is 10 million tons. Demand for RRP is coming from emerging and transitional economies, with Asia-Pacific accounting for 4.9 million tons-nearly half the total global demand. Western markets, which are relatively mature, will show below-average growth through 2024, with North America at a 3.5% CAGR.

Retail ready packaging stats Trolli Cabrio Case
Trolli candy uses the Delkor Cabrio Case®

The report notes that the use of RRP in the fresh produce, dairy, and bakery markets accounted for more than half the total volume consumed in 2018. These three sectors are expected to retain their dominant market share over the medium term. Overall, there is expected to be a slight shift in market share in favor of non-food items through 2024. Innovation is at the forefront of development in the RRP industry, with many end-use sectors enjoying the benefits of new designs in RRP.

Frozen foods and household care products will show the highest growth among the various end-use sectors for RRP, at a CAGR of 8.1% and 6.9% respectively. The lowers growth lies in pet food (2.51%) and canned food (2.58%).

Die-cut containers accounted for 55% of the volume demand for RRP in 2018 with plastic making up nearly a quarter of the total. By 2024, these two formats will maintain their relative positions, but the major shift will be from shrink-wrapped trays to modified cases, with a 2% market share changing places between these two formats.

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