Global Returnable Packaging Market - 2024-2031

Market Size

The global returnable packaging market size was worth US$ 112.36 billion in 2023 and is estimated to reach US$ 161.03 billion by 2031, growing at a CAGR of 4.6% during the forecast period (2024-2031).

Returnable packaging, also known as reusable packaging or returnable transport packaging, comprises sturdy hand-held and bulk containers, pallets, shipping racks, dunnage and other associated products intended to be reused multiple times. The packaging is constructed of long-lasting materials, including plastic, wood, metal, glass and paperboards and is designed to be reused repeatedly to promote ease of use, durability, cleaning and repair.

These are intended for several trips and are engineered to endure rigorous handling throughout the supply chain. Compared to expendable packaging, the initial expenditure for such products is significantly more. Still, as the number of travels increases, the cost per trip decreases, ensuring a speedy return on investment, catering to an increasing need for sustainable and long-lasting packaging from a variety of businesses.

Returnable Packaging Market Dynamics

During the forecast period, factors such as rising urbanization around the world and thus the cost-effectiveness of returnable packing is likely to contribute to the growth of the returnable packaging market. However, returnable packaging's market expansion is projected to be hampered by a shortage of storage space and the possibility of material loss.

Rising opportunities for logistics in emerging economies

Emerging economies like Brazil, India and China provide enormous potential for industrial packaged bulk product logistics. In addition, the countries have a large supply of raw materials for the returnable packaging market. The manufacturing industries such as food & beverage, automotive, chemical & materials and healthcare have benefited from China and India's strong economic growth.

The returnable packaging market is predicted to benefit from the rising manufacturing sectors in emerging economies and the demand for sustainable and cost-effective packaging solutions. Furthermore, in the upcoming years, the growing urban population, rising internet penetration rate and expansion of the e-commerce industry are expected to provide enormous chances for the returnable packaging market to flourish.

High optimization in a pack size

The pack's design, optimized to help conserve shipping space without compromising the product's protection, is one of the primary elements driving the growth of returnable packaging. Companies are investing in research and development to produce novel and high-performing packaging solutions. Returnable packaging systems save money on transportation as they are lightweight and stackable, which means there is no wasted space.

One of the fastest-growing trends in the returnable packaging sector is cube-shaped packaging in logistics chains. On the other hand, cylindrical steel and plastic drums are easy to use and handle by a single person without any mechanical handling equipment. Large firms also utilize rectangular-shaped Intermediate Bulk Containers (IBCs) because they allow containers to be placed closer together with less void area in between. The market for returnable packaging systems is likely to rise in the coming years due to these advantages.

Storage space requirements and the risk of material loss

Once the returnable package is received, the issue of where to store it arises-because of the design and strength, storing empty reusable packaging takes up more room than one-time packaging solutions. Returnable packing must be returned and this return trip is regrettably not free. As a result, such cost is factored into the shipping and transportation budget.

With returnable packing, relying on the client to send back packaging items once the goods have been received becomes a dependency. If the customer fails to do so, the vendor is responsible for the cost of those unreturned materials. Unlike one-way packing, which is typically less expensive upfront, returnable packaging is typically more expensive upfront. However, long-term savings are projected to be significant.

COVID-19 Impact Analysis

Due to the government-imposed lockdown in many countries, the demand for returnable packaging saw a decline in 2020 due to less demand from many industries such as manufacturing and the food industry. As a result of halted manufacturing and a large drop in the demand for luxury and non-essential services worldwide, the COVID-19 issue impacted the returnable packaging business negatively. COVID-19 had a mixed influence on the packaging business, primarily due to the global closure of physical retail outlets.

Demand for non-essential goods led to a sharp reduction in industrial, transportation and bulk packaging during the first two quarters of 2020. Due to the general wider public lower disposable income and lower sales for packaging from industrial goods, the packaging industry came under great pressure to reduce wholesale and retail costs. Consumers were cautious about purchasing luxury items, vacationing and using hospitality services after the COVID-19 event, which limited the packaging industry's growth.

However, the high impact of the shutdown has been mitigated by the availability of online retailing. The demand for eCommerce-specific packaging is projected to stay robust, while eCommerce businesses will have to focus on product safety and package sanitization. Furthermore, the packaging in the food business is at the forefront of the global packaging market, owing to the high demand for critical products such as groceries and fresh food, mostly from local e-commerce sites.

Returnable Packaging Market Segment Analysis

By end-user, the returnable packaging market is segmented into food & beverages, automotive, consumer durables, healthcare and others.

Complex supply chains & networks in the automotive industry

The automotive sector is expected to be the largest segment in the returnable packaging market. The worldwide automobile sector is characterized by complex supply chains and networks, which necessitate integrating many processes to facilitate the inbound and outward flow of returnable packaging. Returnable packaging is being used by several OEMs today to improve the efficiency of their operations by minimizing the time it takes to return products to manufacturers and suppliers.

Automobile manufacturers frequently employ returnable containers to transfer various sections of automobile components to component suppliers. After that, the components are transferred to assembly plants to be assembled. Plastics and steel are utilized for returnable packaging in the automotive industry because they are durable and tamper-resistant. The demand for returnable packaging is steadily expanding in the automobile industry, owing to the pressure on OEMs to reduce costs to keep up with the market competition.

Global Returnable Packaging Market Geographical Share

Growing automotive industry and the rising government initiatives in Asia-Pacific

Owing to the rapid industrialization and rising manufacturing industries in developing nations such as China, India and Vietnam, Asia-Pacific has emerged as the main region for returnable packaging with great development potential. Returnable packaging goods are largely used by automotive manufacturers to convey semi-finished and finished vehicle components, such as body parts, from vendors to assembly units.

Pallets, racks and dunnage are among the packing products in great demand due to the frequent and short-distance transportation of heavy and high-volume car components. The constant rise of the worldwide automotive industry, owing to a growing middle-class population, particularly in Asia-Pacific, is predicted to boost the automotive segment's growth over the forecast period.

Russia-Ukraine War Impact:

The long-term impact on the packaging industry remains uncertain, but actions such as companies withdrawing from the region and worldwide sanctions are expected to have enduring consequences. Sanctions already imposed, including the US ban on importing Russian oil and gas and the EU's plans to ban all coal imports, could have lasting effects across various industries. The increase in energy prices is likely to remain elevated as Western Europe strives to reduce its energy dependence on Russia.

In response, Russia has banned the export of over 200 products, including medical, agricultural, and timber goods. Russia and China are among the world's largest aluminum producers, with Russia contributing 6% of global production. Tensions between Russia, China, and the West are expected to impact global commodity prices, and some experts predict this could lead to an increase in recycling efforts.

According to the Kyiv School of Economics, an estimated $63 billion in damage has been inflicted on Ukraine's infrastructure, with cities such as Kyiv, Kharkiv, Zaporozhye, and Dnipro-where many of PACK TECHNOLOGY Ukraine's suppliers are located-suffering heavy shelling. The destruction of infrastructure is likely to shutter many businesses permanently or for the long term, necessitating a rebuild of supply chains for those able to continue operations.

By Product

Pallets

Drums & Barrel

Crates

Others

By Material

Plastic

Metal

Wood

Glass

Foam

By End-user

Food and Beverages

Automotive

Consumer Durables

Healthcare

Others

By Region

North America

U.S.

Canada

Mexico

Europe

Germany

UK

France

Italy

Russia

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Recent Developments

In April 2024, Uber Eats will address carbon emissions and packaging waste by offering takeaway food in reusable, returnable packaging. They are extending their partnership to Los Angeles, San Francisco, and other areas on the West Coast of the United States.

In March 2024, Brau Union Austria introduced an innovative sustainable bottle for the brewing industry. In collaboration with Vetropack Group, Brau Union Austria unveiled a 0.33-liter returnable bottle for the Austrian brewing industry. This bottle will allow for more crates per pallet, offering economic and ecological benefits such as reduced logistics costs, shorter transport routes, and decreased CO2 emissions.

In March 2024, the French beauty brand Yves Rocher announced the launch of its Bain de Nature eco refill packs, which contain bath and shower gels made from 90% recycled plastic. This initiative includes packaging that uses four times less plastic than conventional 400ml bottles, addressing consumer demand for more sustainable alternatives and complying with national and European regulations on plastic use.

In February 2024, Glow Recipe, a popular brand known for its skincare products, introduced a refillable unit of its Watermelon Glow Pink Juice Oil-Free Moisturizer. The new packaging is made with 95% post-consumer recycled plastic, resulting in approximately 59% less carbon emissions and 51% less waste compared to its single-use counterparts.

In April 2023, Brambles announced the completion of a merger between CHEP China, a returnable packaging manufacturer, and LOSCAM China, a pooling and returnable packaging solutions provider for supply chains. This merger will help Brambles meet the increasing demand for returnable packaging solutions with an effective supply chain.

Returnable Packaging Market Competitive Landscape

Product launches, approvals and other organic growth tactics such as patents & events are being prioritized by several companies. Acquisitions, partnerships and collaborations were seen as inorganic growth tactics. The efforts have paved the road for market players to expand their business and client base. With the increased demand for returnable packaging worldwide, market payers in the returnable packaging market are expected to benefit from attractive growth prospects.

Major global returnable packaging market companies include Returnable Packaging Resource Inc., Nefab Group, Plastic Packaging Solutions Midlands & East Ltd., Tri-Pack Plastics Ltd., Amatech Inc., Celina Industries, CHEP, Integra Packaging, ORBIS Corporation and Menasha Corporation.

Why Purchase the Report?

Visualize the composition of the returnable packaging market segmentation by product, material, end-user and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the returnable packaging market by analyzing trends and co-development deals.

Excel data sheet with thousands of returnable packaging market-level 4/5 segmentation points.

Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global returnable packaging market report would provide access to an approx. 61 market data table, 57 figures and 211 pages.

Target Audience 2024

Returnable Packaging Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Returnable Packaging Manufacturers