Reusable Packaging Market Forecasts to 2028 – Global Analysis By Product (Pallets, Crates, Dunnage, Intermediate Bulk Containers (IBC) and Other Products), Material (Plastic, Metal, Wood, Glass and Foam), End User and By Geography
According to Stratistics MRC, the Global Reusable Packaging Market is accounted for $109.34 billion in 2022 and is expected to reach $173.50 billion by 2028 growing at a CAGR of 8.0% during the forecast period. Reusable packaging is highly durable and collapsible, allowing for a low-cost return when empty. It is also simple to operate, clean, and repair. Primary consumer products such as industrial and transport packaging, as well as beverage containers, are examples of reusable packaging. Furthermore, this sort of packaging helps reduce material waste associated with the use of old cardboard, which frequently results in a high industrial carbon footprint.
According to the Reusable Packaging Association, switching to reusable packaging in the supply chain can reduce solid waste by 86%, CO2 emissions by 60%, and energy consumption by 64%.
Market DynamicsDriverThe increase in demand for the increase food & beverages
Reusable packaging is widely employed in the food and beverage industries due to its capacity to promote sustainability and ecological balance. Pallets, crates, and barrels are employed throughout the business, from raw material transportation to final goods production. Reusable items aid in providing a more secure shipping solution in the food and beverage industry. Small pallets enable food to be delivered and stored in less area. Reusable packaging would also allow the sector to reduce solid waste while simultaneously providing improved product protection.
RestraintVolatility in raw material prices
Prices for raw materials and energy used to manufacture returnable packaging are variable, and this is expected to continue throughout the projected period. The prices of these commodities have a direct impact on the value chain units, which comprise procurement and operating costs. A quick price increase or drop affects manufacturer’s profit margins as well. Furthermore, if the cost of raw materials rises, vendors will raise the price of their products or cut their profit margins, putting a damper on market growth.
OpportunityReverse logistics and closed-loop systems
Reusable packaging enables the implementation of reverse logistics processes and closed-loop systems. After goods are delivered, the packaging can be collected, cleaned, and returned to the point of origin for reuse. This closed-loop approach reduces the need for new packaging materials and optimizes transportation efficiency by eliminating the need to transport empty packaging. The integration of reverse logistics and closed-loop systems in the logistics industry can lead to improved sustainability, reduced costs, and enhanced overall supply chain performance.
ThreatCompatibility and standardization
Reusable packaging systems need to be compatible across various supply chain partners and industries to maximize their effectiveness. However, achieving compatibility and standardization can be challenging, as different companies may have unique packaging requirements, sizes, and handling processes. Lack of standardization can limit the scalability of reusable packaging initiatives and hinder broader adoption across industries.
Covid-19 ImpactThe COVID-19 pandemic has put market growth in jeopardy. The pandemic has had a significant impact on the automotive, aviation, and tourism sectors. Moreover, guidelines laid down by governments eliminating the use of single-use plastics are propelling the growth of the market. Governments are promoting the use of reusable packaging as it offers a longer lifespan and can be recycled. Europe, for instance, eradicated the use of single-use plastic products, including cutlery, cotton buds, and straws, with the emergence of Single-Use Plastic Derivatives (SUPD). Such initiatives are driving demand for reusable packaging products.
The Pallet segment is expected to be the largest during the forecast period
During the forecast period, the pallet segment is anticipated to have lucrative growth in the market. Reusable pallets provide long-term cost savings compared to single-use pallets. Instead of purchasing new pallets for each shipment, businesses can invest in durable and reusable pallets that can be used multiple times. Reusing pallets reduces the need for continuous pallet procurement, disposal, and replacement costs associated with single-use pallets. Additionally, reusable pallets contribute to environmental sustainability by reducing waste generation and resource consumption.
The Automotive segment is expected to have the highest CAGR during the forecast period
The automotive segment is expected to register a significantly fast revenue growth rate during the forecast period as this industry uses reusable packaging products for the transportation of finished and semi-finished auto components or parts from vendors to assembly units. Automation technologies streamline the manufacturing and assembly processes of reusable packaging solutions. Automation reduces labor costs, enhances productivity, and ensures the quality and uniformity of reusable packaging products. Furthermore, technologies such as RFID (radio frequency identification) tags, barcode scanning, and automated data capture systems are used to monitor the movement and location of reusable packaging units.
Region with largest shareThe Europe region market is estimated to witness the highest share of the global reusable packaging market during the forecast period, due to factors like people's implementation of stringent regulations and policies to promote sustainable packaging practices. The European Union's Circular Economy Action Plan and the Waste Framework Directive prioritize waste reduction, recycling, and reuse. These regulations encourage the use of reusable packaging and incentivize businesses to adopt more sustainable packaging solutions. Consumers are increasingly demanding eco-friendly packaging options, and businesses are responding by adopting reusable packaging to reduce waste generation and carbon footprint, which will propel the region in the market over the forecast period.
Region with highest CAGRThe Asia Pacific region has a booming e-commerce industry, with a large number of online retailers and delivery services. This sector relies heavily on packaging materials, and the adoption of reusable packaging can significantly reduce packaging waste. Reusable totes, collapsible containers, and other durable packaging options are gaining popularity in e-commerce logistics to optimize efficiency and reduce environmental impact. Additionally, several countries in the Asia Pacific region are implementing regulations and policies to promote sustainable packaging practices. For example, China has introduced the National Sword policy, imposing stricter regulations on imported waste and encouraging the use of reusable packaging. These initiatives drive the adoption of reusable packaging solutions and create a favorable market environment, which is anticipated to further support the expansion of this market over the course of the forecast period.
Key players in the marketSome of the key players in Reusable Packaging market include Alpega Group, Amatech, Brambles, Buckhorn, Cabka Group, Ckdpack Packaging, DS Smith, GEFCO, GWP Group, IFCO SYSTEMS, IPL Plastics, Menasha Corporation, Mjsolpac, Monoflo International, Mpact Limited, Multipac Systems, Myers Industries, Nefab Group, ORBIS Corporation, Plasmix Private Ltd, Rehrig Pacific Company, Reusable Transport Packaging, RPP Containers, Schoeller Allibert and Schutz.
Key DevelopmentsIn February 2022, the Coca-Cola Company announced its sustainable goal to boost the use of reusable packaging. The company has aimed to use reusable plastic or glass bottles for at least 25% of its portfolio by the end of 2030
In September 2021, Tesco collaborated with Loop, which is a platform for global reusable packaging, as a move towards sustainability. Around ten stores Tesco would offer products in reusable packaging and the range would cover nearly 88 products
In May 2021, Aeon launched products with Loop’s reusable packaging in 19 stores across Japan. Aeon is using reusable packaging system in its retail stores
Products Covered
• Pallets
• Crates
• Dunnage
• Intermediate Bulk Containers (IBC)
• Boxes
• Drums & Barrels
• Other Products
Materials Covered
• Plastic
• Metal
• Wood
• Glass
• Foam
End Users Covered
• Food & Beverages
• Automotive
• Chemicals
• Building & Construction
• Pharmaceuticals
• Logistics & Transportation
• Consumer Durables
• Other End Users
Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (
Drivers, Constraints, Opportunities,
Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements