- July 26, 2011
LEATHERHEAD, UK | Research from Pira Intl. indicates there will be steady growth for “retail-ready packs” (RRPs) to 2016, representing new opportunities for converters/suppliers. This growth, says the study, will be driven primarily by retailers’ bottom line targets and includes such packaging as corrugated board, solid fiberboard, or rigid plastic.
Demand for RRPs will reach 27 million tons by 2016, up from a 2010 base of 19 million tons, according to The Future of Retail-Ready Packaging to 2016. The study quantifies and segments the market according to pack type, country and end use for the period from 2001 to 2016, across 14 countries and 22 end-use sectors. Over time, and under pressure from retailers seeking to improve in-store efficiencies, Pira reports, RRP has emerged as a system designed to reduce the amount of handling required to place products on the retail shelf while providing the consumer with easy access to products.
The research cites numerous benefits have been identified for these RRP systems, including:
• Both consumers and store employees indicating better product recognition
• ‘One-touch’ shelf replenishment
• Streamlined restocking
• Less product damage and more attractive, neater shelf appearance
High growth is evident in the emerging economies of Latin America and Asia-Pacific. China is the fastest-growing market and Pira expects it to increase its share of RRPs from 15% in 2010 to almost 18% by 2016. Key drivers of RRP consumption, according to the report, range from macroeconomic factors such as population growth, down to microeconomic influences such as printing technology developments and the use of white-top liners.
Accounting for almost 75% of consumption, corrugated RRPs dominate and technology, says Pira, is enabling improved graphics and performance. However, the material is expected to lose 0.5% market share between 2010 and 2016. Pira expects plastic RRPs to show the most significant gains and account for almost a quarter of demand in 2016. This will be followed closely by die-cut display containers and modified cases, all gaining at the expense of shrink-wrapped trays and other materials.
Finally, trends indicate a growing demand for RRPs has increased the need for innovative package design, especially in corrugated RRPs. Plain brown boxes now need to be far more complex, says Pira, in both appearance and performance with a need in some cases for intricate die-cut patterns. This trend can be seen in the growing demand for die-cut boxes in Europe, which is set to increase from about 38% of total shipments in 2001 to nearly 45% by 2016.
For information about the research, contact Stephen Hill at +44 0 1372 802025, or by e-mail: firstname.lastname@example.org.