The Future of Retail Ready Packaging to 2024
In its new report - The Future of Retail-ready Packaging to 2021 - Smithers says that global retail-ready demand reached a total of 30.5 million tonnes of material in 2015 and was worth $62.8 billion. The market is expected to grow on average by around 4% annually across 2016–2021, reaching 38.7 million tonnes of paper and plastic materials and a value of $82.0 billion in 2021, at constant 2016 prices.
Retail- or shelf-ready packaging refers to designs where transit packaging is intended to be used directly or with minimal preparation directly in a retail environment.
Data from Smithers The Future of Retail-ready Packaging to 2021 shows how the Middle East as a region was worth $2.26 billion to retail ready packaging converters and suppliers in 2016; around 3% of the world market. This value will rise to $2.64 billion in 2021 – shadowing a global industry increase from $67.57 billion to $82.00 billion across the same time period.
As the market evolves there will be a shift in the types and uses of retail-ready packs (RRPs) in the region. Modified case and die-cut containers format RRPs will become increasingly popular at the expense of older shelf solutions – principally shrink-wrapped trays. As this happens there will be opportunities for enhanced advertising with premiumised corrugated RRPs printed on a new generation of digital (inkjet) printers. This includes the option for versioned promotional editions and localise designs for global brands selling to the Middle East.
Unsurprisingly fresh food and produce will remain the biggest end-use for RRP during the Smithers study period – 33% by volume in 2016. The growth rate for chilled and frozen foods will outstrip fresh food across 2016-2021, reflecting the wider availability of chill chain stores in the region.
Shelf-ready formats will also see above average growth in the household products, and cosmetics and toiletries segments – though consumption will be below par in the Middle East beverage segment.
A comprehensive prognosis for retail ready packaging in the Middle East and globally is available for purchase in The Future of Retail-ready Packaging to 2021.