Due to rising commodity demand from different end-use sectors, the U.S. market is expected to experience substantial growth. Sustainable business practices are gradually being incorporated by key food & beverage, pharmaceutical, and automobile firms based in the U.S., which is projected to accelerate consumer demand in turn. Because of their sustainability and economic and ergonomic advantages, core industries are largely drawn to returnable transport packaging goods.

Low cost per travel in the medium term and lowered expenses associated with the procurement and recycling of expendable packaging are the major economic advantages. Returnable packaging removes waste from packaging going into landfills and is thus very reusable. The adoption of sustainable packaging solutions by end-users to boost their brand image, coupled with increasing regulatory pressure regarding the use of plastic packaging, is expected to drive the market growth.

However, as a result of their return journey, higher transport costs are found in the case of RTP goods. In addition, these items occupy a large storage area and need repairs regularly. Furthermore, stealing or misplace in goods is often found, thus prompting the incorporation of tracking systems, resulting in higher costs of material handling. This could have a negative effect on the market for goods.

Product Segment

Based on the product type, the market is segmented into Pallets, Crates, Intermediate Bulk Containers, Drums & Barrels, Bottles, Dunnage and Others. The pallets segment has the largest share in the market in 2019 and the market is forecasted to grow with the significant rate of above 6.5% CAGR over the forecast period. Pallets not only provide transported products with protection from mechanical ruptures, but also result in fast handling of them. Less packaging waste benefits from the recycled and recyclable nature of pallets. This has contributed to an increased demand from diverse sectors such as food & beverages, automobile, electronics, agriculture, clothes, building & construction, freight forwarding, logistics, and pharmaceuticals for returnable pallets.

Material Segment

In terms of the Material segment, the market is segmented into Plastic, Metal, Wood, Glass, and Foam. In 2019, the plastic segment has the fastest growth in the market in 2019 and the market is forecasted to grow with the significant rate of above 7% CAGR over the forecast period. The growth of this segment can be due to the various advantages provided by returnable plastic packaging that include temperature, chemical resistance and water. In addition, the replaceable plastic wrapping is lightweight and can be molded into a number of shapes and looks. Wood also has some outstanding qualities, such as high electrical resistance, resilience, and flexibility, in addition to being an organic content.

The Asia Pacific region has the largest share in market with a CAGR of more than 35.2% in 2019 and is anticipated to continue with the same position during the forecast years 2018-2028. Increased demand for returnable packaging from densely populated countries such as India and China can be due to the growth of the industry in the Asia Pacific region, as packaging ensures cost savings, partial sustainability and the protection of packaged goods. In addition, the growing use of returnable packaging in the automobile, food & beverage, healthcare, consumer durables, aerospace and construction industries is expected to drive the growth of the Asia Pacific market for returnable packaging.

Europe region is anticipated to provide a high CAGR of over 7.5% during the forecast period. The region having a dominance for a number of developed economies and is also expected to give suppliers a number of opportunities from the growth of returnable packaging market. The European area, in terms of both value and volume, is expected to lead the market during the forecast period. A strong manufacturing base, increased demand for reusable packaging from different end-use industries and the presence of main producers of returnable packaging in the region can be credited to the development of the European market for returnable packaging.

The major players of the global returnable packaging market are Brambles, Schoeller Allibert, Menasha Corporation, DS Smith, Myers Industries, Nefab Group, and Rehrig Pacific Company. Moreover, the market comprises several other prominent players in the returnable packaging market as IPL Plastics, Schutz GmbH & Co. KGaA, and Vetropack Holding. The returnable packaging market consists of top, medium level and a number of domestic players in the global market. In addition to this, the well-established players in the industry have made various strategies and research & developments to compete with other players in the regional and global market.