RRP is a high growth sector of the overall packaging market, having been adopted in the UK and Europe around 2005 and now spreading across the globe. The most popular type of RRP is corrugated board, which accounts for three-quarters of the total volume of materials used in 2011. Within this, die-cut display containers are the predominant choice, making up more than half the market, with decline-wrapped trays constituting 17% of demand and modified cases the remaining 5%.
The Future of Retail Ready Packaging to 2017 presents an analysis of the global demand for RRP and assesses the major influences driving demand for this type of packaging. The market is quantified and segmented according to type of material, end use application and geographic location, across 18 individual countries and 22 end use markets for the period from 2011 to 2017. This report provides raw material suppliers, converters, users, processors and others along the supply chain with an up-to-date view of the current state of the market.
The major driver of growth in demand for RRP will be the burgeoning development of supermarkets, especially in under-developed economic regions. The on-going formalisation of the retail supply chain in countries such as China, India and Brazil, as well as parts of Africa and South America, will provide the stimulus to maintain growth in demand for RRP, whilst preventing any marked decline in demand from other regions. Russia is also showing high growth.
The early adoption of RRP by European retailers is evident from the 38% share of demand enjoyed by Europe in 2011. The Americas accounted for a third of the total with Asia accounting for an additional 22% and the balance spread over the other regions. Asia is expected to show the highest growth rate with demand predicted to improve at a rate of 6.2% annually on average between 2012 and 2017. This region will also see the highest incremental tonnage demand over the period, with more than 2.2 million tonnes of extra material required to meet 2017 demand compared to projected 2012 tonnage. The Americas will contribute incremental demand for almost 1.2 million tonnes over this period, and a further 1.1 million tonnes of additional demand will emanate from Europe, in spite of declining markets in most of Western Europe.
FIGURE 1.1 Global demand for RRP by region, 2012 and 2017 ($ million)
Source: Smithers Pira
Three-quarters of RRP demand originates in the food sector, while the beverage industry accounts for a further 16%, with the balance in non-food products. Over the medium term, demand for RRP from the non-food category is forecast to increase by 3.1% on average per annum from 2012 to 2017, compared to 2.7% and 2.8% for food and beverages respectively. The food sector will contribute an additional 3.3 million tonnes of incremental demand for RRP materials in 2017, with a further 700,000 tonnes coming from the beverage market and 400,000 tonnes from non-foods.
High quality graphics go hand-in-hand with RRP and this is creating an opportunity for producers in increase the value-added element of their product portfolios. More and better paperboards are being developed and launched into the market by the paper mills, providing the material necessary for the demands of the retailers and marketers to create visually attractive packs to capture consumers' attention.
The Future of Retail Ready Packaging to 2017 is available until 31 October for £3,555, and for £3950 after that. For more information, please contact Bill Allen at +44 (0) 1372 80 2086, or via e-mail.