Overview of the global transit packaging market

According to the market research analysts at Technavio, the global transit packaging market is predicted to grow at a CAGR of around 4% during the forecast period.  Surge in trade activities and the high demand from various end-user industries have complicated transit packaging management, which has led to the increased demand for efficient fleet management. The adoption of fleet management systems will help in managing fleet sizes, tracking and cleaning containers, and maintenance activities resulting in the effective and safe transportation of goods. These systems take care of issues related to container distribution and repositioning of empty containers, and help in improving operational efficiency, minimizing risk, and controlling cost. The growing safety for products while transportation has necessitated the use of corrugated boxes in the transit packaging market as they are more sustainable for the environment and can also be easily recycled.

APAC is the largest and the fastest-growing region in the transit packaging market and is anticipated to grow at a CAGR of around 5% during the forecast period. Strong production activities in economies such as China and India have propelled the demand for transit packaging in the region. Food and beverage sector is the major application area for transit packaging in the region owing to the high production of horticulture products. Factors such as urbanization, industrialization and surge in international trade will propel the demand for transit packaging in APAC. Also, the robust growth of e-commerce will propel the demand for transit packaging products in countries like China, Indonesia, Japan, and Australia.

Competitive landscape and key vendors

This market is highly fragmented and is characterized by the presence of numerous multinational, regional, and local vendors. The regional manufacturers of industrial packaging products are giving a tough competition to the international players by offering innovative solutions at lower prices.  However, the global players dominate the market in terms of cost, quality, features, and range of offerings. Vendors are finding huge scope for innovation and with an increase in consumption in the chemical, fertilizer, food, and pharmaceutical industries. It is expected that the international players will grow inorganically during the forecast period by acquiring regional or local players.

Leading vendors in the market are -

• Grief
• Mondi
• Pratt Industries
• Smurfit Kappa
• Sonoco

Other prominent vendors in the transit packaging market include BillerudKorsnas, Deufol, DS Smith, GWP Packaging, International Paper, NICKLIN, NNZ Group, OIA Global, Saxon Packaging, Svenska Cellulosa Aktiebolaget, and Smithpack.

Segmentation by products and analysis of the transit packaging market

• Corrugated boxes
• Pallets
• Crates

The pallets segment is the fastest-growing segment in the market and is anticipated to grow at a CAGR of around 6% during the forecast period. The high growth rate of this segment can be attributed to the growing demand for pallets from different industries such as retail and consumer goods. The use of palletized storage and transportation is one of the key considerations in modern logistics as it enables operational efficiency in terms of material handling. The growing requirement for wooden pallets owing to their sustainability and durability, will spur the growth prospects for this segment in the coming years.

Segmentation by end-users and analysis of the transit packaging market

• Food and beverages industry
• Electrical and electronics industry
• Consumer goods industry
• Industrial goods

During 2015, the food and beverages sector accounted for the largest end-user of transit packaging and occupied around 46% of the overall market share. Transit packaging products for the food and beverages industry are manufactured using high-tech equipment to prevent loose thread contamination and adhere to hygiene standards. Reefer containers are the most-used products owing to their usage in the transportation of perishable products. The increase in exports of food grains from Southeast Asia and Europe is expected to boost the growth prospects for the transit packaging market.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global transit packaging market?
• What are the key market trends impacting the growth of the global transit packaging market?
• What are the challenges to market growth?
• Who are the key vendors in the global transit packaging market?
• What are the market opportunities and threats faced by the vendors in the global transit packaging market?
• Trending factors influencing the market shares of APAC, Europe, North America, and ROW.
• What are the key outcomes of the five forces analysis of the global transit packaging market?

Technavio also offers customization on reports based on specific client requirement.

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