In 2020, total sales of transit packaging saw a sharp decline due to the Covid-19 crisis as the lockdown was implemented and all the factorial units were closed, which resulted in the manufacturing companies losing a lot. Now by 2021, global manufacturers are giving full attention to improving their sales and profitability through product innovation and improvement.
Leading corporations including SGS SA, Nefab AB, Eltete TPM Ltd., International Paper Co, Papier-Mettler KG, BEUMER Group GmbH & Co. KG, Deufol SE, Mondi Group PLC, Honeycomb Cellpack A/S, and Yinghua Plastic Products Co., are making high investments in the establishment of research institutes in different regions to come up with improvements in their offerings. They are adopting business strategies such as sales contracts, strategic alliances, acquiring technical expertise, product approvals, patents and events, joint ventures, partnership agreements, collaborations, digital marketing, mergers and acquisitions, capacity utilisations, technological advancements etc to lead the global market for transit packaging with largest market share.
For instance, Nefab AB announced expansion in the North American footprint. The company has added sites in Houston, TX, Tucson, AZ and Gainesville, FL, with the aim of supporting the customers' ambitions in the respective regions. With a growing presence in North America and around the world, the company is looking forward to innovation and R&D activities. In addition to this, International Paper Co., announced the decision of sharpening its industrial packaging. The company diverted its focus on accelerating profit margin in corrugated packaging and absorbent cellulose fibers and is expecting an increase of $350-$400 million in annual
Asia Pacific is expected to lead the global market for transit packaging through 2030 owing to increasing demands from the end users. Presence of leading manufacturing companies that produce and distribute superior class transit packaging globally and concern for better and efficient packaging solutions is driving the market in North America. The growing preference for transit packaging solutions is creating immense opportunities for the key players to extend their presence throughout the world. Other key regions are Latin America, Europe, Japan and MEA.
The retail marketplace has been witnessing a revolution with rapid expansion of ecommerce, which in turn has transformed the landscape throughout the supply chain. The pick & pack ecommerce methodology utilizes an additional secondary packaging & load utilization, thereby leading to demand for secondary as well as protective transit packaging materials.
Surging trade activities along with robust demand from end-use industries have made the transit packaging management complex. This has further resulted into introduction and rapid adoption of efficient fleet management for enabling management of track and tracking and cleaning containers, fleet sizes, and maintenance activities, in order to offer safe and effective transportation of goods. Increasing emphasis on safety of products during transportation has led to development and adoption of corrugated boxes in transit packaging, as they facilitate recycling and are sustainable for the environment.
Environmental issues have played a fundamental role in the selection, product design, and business practices associated with transit packaging. Large retailers now demand for less wasteful, more efficient packaging, and their motivation for employing “greener” packaging materials rows in tandem with environmental sensitivities of companies driving the marketplace for transit packaging.
According to a new Future Market Insights research report, a steady expansion has been slated for the global transit packaging market between the forecast period 2017 and 2026. Over US$ 200,000 Mn worth of transit packaging are poised to be sold worldwide by 2026-end.
Europe to Remain Fast-expanding Market for Transit Packaging
Robust production activities across various industries in Europe have resulted into huge adoption of transit packaging solutions, with food & beverage prevailing as the largest application area. Other factors including surging international trade, industrialization, and urbanization will further propel demand for transit packaging in Europe. Europe is anticipated to remain fast-expanding as well as become most remunerative market for transit packaging by 2026-end.
Cartons have been witnessing robust demand in the retail and consumer goods sector over the past few years. Utilization of cartons in storage and transportation of goods is key in modern logistics as it enables efficiency in terms of material handling. In terms of revenues, cartons will account for the largest market share during 2017 and 2026, based on packaging type.
Ecommerce, Pharmaceuticals & Third Party Logistics to Remain Dominant End Use Industries in the Market
Transit packaging solutions for ecommerce, pharmaceuticals and third party logistics are manufactured by employing high-tech equipment for preventing loose thread contamination and maintaining hygiene standards. These three end use industries are expected to remain dominant in the global transit packaging market, in terms of revenues. Pharmaceuticals will remain the fast-expanding end use industry of transit packaging through 2026.
Polyurethane and paper & paperboard are expected to remain the most lucrative materials for production of transit packaging products, with sales poised to exhibit the highest CAGRs in the market through 2026.
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Occupancy of a large number of local, regional, and multinational vendors has made the nature of the global transit packaging market highly fragmented, with regional players increasingly competing with international players through provision of innovative solutions at competitive prices. The international players however will retain their dominance in the market in terms of range of offerings, features, quality, and cost.
The market vendors are seeking wide scope for innovation, owing to growing demand from the pharmaceutical, food, fertilizer and chemical industries. International players are likely to expand inorganically in the foreseeable future through acquisition of local or regional players. Key participants fuelling growth of the global transit packaging market include SGS SA, Nefab AB, Eltete TPM Ltd., International Paper Co, Papier-Mettler KG, BEUMER Group GmbH & Co. KG, Deufol SE, Mondi Group PLC, Honeycomb Cellpack A/S, and Yinghua Plastic Products Co.
A segmentation analysis delivered in the report submits insights on the global market for transit packaging. The market is characterized based on end use industries, packaging type, material type, and region. Analyses on the Y-o-Y growth comparison, market share comparison, and the revenue comparison in accordance with relevant market numbers has been delivered in this chapter. The global market for transit packaging has been divided regionally into Asia-Pacific excluding Japan, Europe, Middle East & Africa, Japan, Latin America, and North America.
- North America
- Latin America
- Polyethylene Terephthalate
- Polyvinyl Chloride
- Ethylene vinyl alcohol
- Paper & Paperboard
- Wooden crates
- Corrugated boxes
- Intermediate Bulk Containers
- Other Packaging Type
End Use Industries
- Building & Construction
- Food & Beverages
- Electrical & Electronics
- Industrial Machinery and Equipment
- Third Party Logistics
- Consumer Goods