Transit Packaging Market Size Expected to Reach USD 454.48 Bn by 2033
Ottawa, Sept. 24, 2024 (GLOBE NEWSWIRE) -- The global transit packaging market size is predicted to increase from USD 231.25 billion in 2023 to approximately USD 454.48 billion by 2033, according to a study published by Towards Packaging a sister firm of Precedence Statistics. The industry is poised to grow at a notable CAGR of 6.99% between 2024 and 2033.
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Leading Factors of the Transit Packaging Market
- Increased demand for protection and safety of products is the major factor that drives the market.
- E-commerce boom drives growth in North America due to increased requirement of packaging materials.
- Food and beverage industry is the dominating sector in market due to online-delivery food.
- Providing robust durability through use sustainable solution is an unceasing challenge for the market.
Product Safety and Less Damage to Product Attracts Consumers
The transit packaging market revolves around the protective layer of packaging which provides protection during transportation and also prevents excessive damage, thus, increasing the product demand. Along with this, sustainability and supply chain optimization are the leading objectives of the market. The product safety feature also includes protection from damage and tampering which increases shelf life and also prevents the product from temperature fluctuations and moisture.
With a wide variety of products being shipped globally, including fragile items like electronics, pharmaceuticals, and cosmetics, the need for durable transit packaging has surged. E-commerce businesses must ensure their goods arrive in perfect condition, leading to a rise in the use of cushioning materials, corrugated boxes, and other protective packaging.
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Driver
E-commerce Boom Drives the Transit Packaging Market
The major driving factor is the booming e-commerce sector due to increasing consumer preferences for online products which requires robust packaging. The online packed products include fragile and delicate products as well which needs customized packaging and prevention from damage. The rapid rise in online shopping has led to an increased demand for transit packaging. Consumers now expect faster and safer deliveries, necessitating robust and protective packaging solutions to safeguard products during shipping and handling. E-commerce companies often seek personalized packaging solutions to enhance customer experience and brand visibility. Transit packaging is increasingly being tailored to fit specific product types, ensuring better protection and reducing material waste, thus driving demand.
Restraint
Raw Material Costs and Strict Regulations Hinder the Market Growth
The leading challenges which hinder the growth of transit packaging market is raw material costs and government regulations. The prices of raw material like plastic, wood and corrugated box can change due to economic ups and downs, in result, affecting the profit margin. The government regulations with its time-consuming nature and regulations on sustainability of the packaging hinder the growth of the market. Apart from this, changes in regulations due to external factors can affect the key players and can compile them to adopt packaging solutions.
AI Integration
Technological Advancement in Nanotechnology and Smart Packaging
The technological advancements have included RFID Tags and sensors which track the route and delivery of product with its GPS systems. The built in cooling or heating elements can maintain temperature fluctuations in sterilized products. Nanotechnology with its enhanced barrier properties provides environment for antimicrobial packaging. Cloud computing and 3D technology offers customization, provides on-demand production and reduces excessive waste production.
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Opportunity
Key Players are Adoption of Sustainable Solutions
As businesses shift toward sustainability, there is a growing demand for transit packaging made from recyclable, biodegradable, and reusable materials. Key players are investing in developing such packaging, creating new opportunities for innovation and market expansion. The transit packaging market offers opportunities in producing recyclable and reusable materials made from bio-degradable materials like paper and paper-board, plastic or wood material which is a sustainable option. The demand for sustainable packaging solutions is also due to the increasing consumer preferences leaning towards green packaging.
Regional Insights
North America is the dominating region in the transit packaging market. The packaging market flourished most due to the booming e-commerce sector which requires robust and safe packaging. The requirement for packaging material has increased the profit margin of manufacturing and industrial sectors and this also fuels the economic growth rate of America. Apart from being conscious about hygiene, shelf life and convenience, American consumers are also aware of the environmental impact the packaging of products causes.
They are ready to purchase green packaging products which comes with recyclable ability and it is achievable, given the reason that packaging converters and value-chain partners focus on sustainable packaging solutions. According to United States Environmental Protection Agency (EPA), the strict regulations can slow down the environmental impact and give preference to eco-friendly and recyclable packaging which will also reduce waste generation.
- In April 2023, Ranpak, a global packaging provider had launched two sustainable paper-based packaging solutions which were climaliner Plus and naturemailer padded mailers in North America. They are 100% kerbside recyclable and also offer 72 hours of thermal protection which was a good eco-friendly solution for food and beverages, healthcare and temperature-sensitive goods.
Europe plays a significant part in being a global supply chain market due to its key players who have an established infrastructure with strategic location as its plus point. According to the Ministry of Foreign Affairs and Trade of New Zealand, Europe focuses on cost minimisation and just-in-time inventory management and with recent implications of Brexit, European companies were changing their supply chain strategies which would give advantage to regional-base supply model.
Europe Parliament and Council had passed a law which banned the sale of fossil fuel-powered cars and vans and it will be initiated from 2035, in result, affecting the European supply chain. The growing e-commerce and recycling drive in Europe is contributing to the transit packaging market. The focus on sustainability has reduced the shipping emissions by 6% by 2030, and by 80% by 2050 as Europe is environmentally conscious nation.
- In March 2024, Accenture had acquired Flo Group which increased the company’s abilities to gain clients in Europe and to build a strong supply chain. The Flo Group aimed at helping their clients to recognize logistic benefits and the company also works with various clients which include retail, automotive, consumer goods, manufacturing, mining, energy, chemicals and government.
Asia-Pacific is the fastest growing region in the transit packaging market due to rising population and the economic growth of the region. The working middle class which has increased due to rapid urbanization and change in lifestyle. The regional growth plays a big role in increasing the market rate, especially in China and India. According to International Review of Economics and Finance (Pages 429-441, Volume 88), the boom in e-commerce sector increased by packed products has led to significant development in packaging sector which has also resulted in increased environmental pollution and resource waste obstacles.
The express delivery industry in China has observed increase in online shopping and that it also reduced transportation trips. The express delivery uses non-biodegradable materials which are corrugated boxes, plastic bags, envelopes, and other types of packaging and they are not recycled properly. To avoid environmental hazards, it will be necessary for China to use recyclable and biodegradable materials and it is possible with government regulation and consumer perferenecs.
According to IBEF (India Band Equity Foundation), India’s packaging market is supported by e-commerce boost due to consumers preferring online shopping and packed products. The convenience of getting products delivered at door is what rising the packaging industry in India and brands like Amazon and Flipkart are taking advantage of it.
- In April 2024, JB Chowhan, founder of VHS Logitech, had released a statement stating that its pharma sectors need to tackle packaging and distribution losses in the supply chain. He also added that due to India’s incomplete infrastructure and power supply, pharmaceuticals and vaccines face problems as they need constant monitoring.
Top Companies of Transit Packaging Market
- Mondi
- WestRock Company
- International Paper
- Nefab AB
- Smurfit Kappa
- ProAmpac
- Sealed Air
- Stora Enso Oyj
- DS Smith
- Greif, Inc.
- Sonoco Products Company
- Rengo Co. Ltd.
- Mauser Packaging Solutions
- Schütz GmbH & Co. KGaA
- Time Technoplast Ltd.
Recent Innovations by Top Companies
| Company | American Packaging Corporation |
| Headquarters | Columbus, Wisconsin |
| Recent Development | In April 2024, American Packaging Corporation, a leader in flexible packaging solutions had announced the launch of another RE™ Design for Recycle flexible packaging technology and the company also aimed at developing the technology based on government guidelines for recyclability. |
| Company | BAUCH |
| Headquarters | Germany |
| Recent Development | In April 2024, BAUCH, a German-based engineering company had struggled due to supply chain regulations. The company had faced problems because the European Parliament had passed the Corporate Sustainability Due Diligence Directive (CSDDD) bill. |
Segmental Insights
By Material Type
The paper and paper-board segment is the dominating segment in the transit packaging market. It is dominating due to its properties which are convenience and flexibility. The paper and paper-board segment provides easy handling, strong protection and adaptability and can also be easily recycled or bio-degraded. Apart from this, paper and paper-board materials can be customized and are in demand due to its features like resistance compressive forces and bending stiffness. Paper and paper-board materials are used in corrugated boxes, milk cartons and bags.
The plastic segment is the fastest growing segment in the transit packaging market. It will dominate the market due to its properties which are providing protection, durability and preserving product quality. The plastic segment offers a hygienic and lightweight packaging which makes it preferred among the consumers. Customization and safety are the essential features of the plastic segment.
By End-User
The food and beverage segment is the dominating segment in the transit packaging market. The segment dominates due extended shelf life provided to the food products and prevention of contamination. The transit packaging depends upon the type of packaging it provides which prevents transmission of oxygen and UV rays and prevents food spoilage as well. Th global consumption of packed food has increased the transit packaging demand in food sector.
The healthcare segment is the fastest growing segment in the transit films packaging market. The segment dominates due to sealed packaging and sterility provided by plastic packaging and protection of moisture resistance feature. The strict government regulations generated by particular regions check that pharmaceutical companies follow regulations purposed by regulatory boards like the FSSAI.
More Insights in Towards Packaging
- The global flexible packaging market size is estimated to grow from USD 283 billion in 2022 to reach an expected USD 445.82 billion by 2032, at 4.7% CAGR during the forecast period 2023 to 2032.
- The global food packaging market size was valued at USD 356.5 billion in 2022 and is expected to reach USD 659.80 Billion by 2032 and is poised to grow at a CAGR of 6.4% during the forecast period 2023 to 2032.
- The global smart packaging market size was estimated at USD 36.04 billion in 2022 to set a foot on USD 68.99 billion by 2032 with a registered CAGR of 6.8% from 2023 to 2032.
- The global plastic packaging market size reached USD 381.57 billion in 2022 and is projected to hit around USD 584.09 billion by 2032, growing at a CAGR of 4.4% from 2023 to 2032.
- The global intelligent packaging market size accounted for USD 24.23 billion in the year 2023 and it is predicted to hit around USD 54.38 billion by 2032, registering at a CAGR of 9.4% from 2023 to 2032.
- The global reusable packaging market size was estimated at USD 113.77 billion in 2022 and is projected to reach a revised size of USD 197.11 billion by 2032, growing at a CAGR of 5.7% from 2023 to 2032.
- The global recyclable packaging market size accounted for USD 28.7 billion in 2022 and it is predicted to hit around USD 46.15 billion by 2032, growing at a CAGR of 4.9% from 2023 to 2032.
- The global pharmaceutical packaging market size is estimated to grow from USD 117.23 billion to reach an estimated USD 322.50 billion by 2032, growing at a CAGR of 10.7% from 2023-2032.
- The e-commerce packaging market size is estimated to grow from USD 51,248 million in 2022 to reach an estimated USD 2,42,061 million by 2032, at a growing CAGR 16.8% from 2023 to 2032.
- The global pharmaceutical temperature-controlled packaging solutions market size was valued at USD 578.9 million in 2022 and is predicted to reach around USD 945.2 million by 2030, growing at a 6.30% CAGR from 2022 to 2030.
Transit Packaging Market Segment
By Material
- Metal
- Paper & Paperboard
- Plastic
- Wood
By Packaging Type
- Rigid
- Flexible
- Protective
By Product Type
- Trays & Crates
- Pallets
- Intermediate Bulk Containers
- Boxes & Cartons
- Barrels & Drums
- Inserts & Dividers
- Others
By End Use
- Food & Beverages
- Automotive
- Industrial
- E-commerce
- Chemicals
- Electricals & Electronics
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
- Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait
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About Us
Towards Packaging is a leading global consulting firm specializing in providing comprehensive and strategic research solutions. With a highly skilled and experienced consultant team, we offer a wide range of services designed to empower businesses with valuable insights and actionable recommendations. We stay abreast of the latest industry trends and emerging markets to provide our clients with an unrivalled understanding of their respective sectors. We adhere to rigorous research methodologies, combining primary and secondary research to ensure accuracy and reliability. Our data-driven approach and advanced analytics enable us to unearth actionable insights and make informed recommendations. We are committed to delivering excellence in all our endeavours. Our dedication to quality and continuous improvement has earned us the trust and loyalty of clients worldwide.
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