Transit packaging: Key market research findings
- Demand for customization drives market growth
- Pallets account for a majority of the market’s revenue
- Key vendors – Grief, Mondi, Pratt Industries, Smurfit Kappa, and Sonoco
Technavio’s market research analysts predict the global transit packaging market to grow at a CAGR of more than 4% between 2016 and 2020. The steady growth of the market is spurred by the increased demand for customization from vendors. Despite the wide range of options available while purchasing transit packaging containers, several companies are offering customization with respect to the container type. Customizations in terms of container capacities and raw materials used are among the most important trends gaining traction in the market. During 2015, the global transit packaging market was dominated by the APAC region with a market share of around 47%. The strong production activities in economies such as China and India will drive the demand for transit packaging in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the transit packaging segments based on the product.
“The available protective packaging products such as bubble wrap and Styrofoam are lightweight and cheap. However, these products are made out of polystyrene which is derived from hydrocarbons. These products take longer to decompose and hence, are not environment-friendly. The growing environmental concerns are pushing vendors to invest in R&D for the development of advanced packaging products that are eco-friendly and biodegradable,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
The pallets segment is expected to showcase the fastest growth during the forecast period with a market growth rate of CAGR of around 6% throughout the predicted period. A pallet is a flat panel that serves as a base for the storage and transportation of raw materials and finished products. It is designed in such a way that they can be lifted by forklifts and pallet jacks. The use of palletized storage and transportation is one of the key considerations in modern logistics as it enables operational efficiency with respect to material handling.
The key vendors in the global transit packaging market include Grief, Mondi, Pratt Industries, Smurfit Kappa, and Sonoco. The smaller and local vendors compete in terms of cost as it is difficult for them to compete with international vendors in terms of features, quality, and range of products. Vendors find huge scope for innovation owing to a rise in consumption in the chemical, fertilizer, food, and pharmaceutical sectors.
A more detailed analysis is available in the Technavio report, Global Transit Packaging Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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