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Ready, set, go: Retail-ready packaging on the rise

By Jenni Spinner+

18-Jun-2014

Retail-ready packaging demand is growing around the world, thanks to retailers seeking easier shelf stocking.
Retail-ready packaging demand is growing around the world, thanks to retailers seeking easier shelf stocking.

PMMI reports the market for shelf-ready food and beverage packaging is growing, thanks to retailers hungry for presentable products and simple stocking.

PMMI, the Association for Packaging and Processing Technologies, conducted a study delving into the retail-ready packaging (RRP) market. Its work reveals the thoughts of food and beverage brand owners, equipment manufacturers, and retail leaders on drivers, and opportunities, in the market.

Growth factors

Paula Feldman, director of business intelligence for PMMI, said population and economic growth fuel demand for RRP, as a result of increased traffic and stock turnaround retailers must deal with.

RRP enhances shelf appeal and supply chain efficiency, so retailers often see it as a must-have, and use their considerable leverage with manufacturers to make it happen,” she said. “As they adjust their packaging requirements, manufacturers must continue to innovate to stay competitive.”

Retail demands

According to PMMI, supermarkets and big-box stores such as Sam’s Club and Costco are a big push behind the growth projected in RRP for the next year, especially in Asia (6.2%) and Africa (4.7%). While developing markets saw a high rate of growth, the strongest RRP presence is in Europe (where the market is expected to grow about 1.3%), followed by North America (1.6%).

The consumer packaged goods respondents indicated a willingness to invest in packaging machinery dedicated to RRP, if it would lead to reduced costs down the road. Factors considered include overall lifetime cost of equipment, labor expenses, flexibility, and reliability.

Of those polled, 79% reported confidence in the eventual payoff of investment in RRP equipment. Material preferences were mixed; most expressed preference for rigid, but 67% reported they would opt for flexible if it would produce cost savings.

The report, “Retail Ready Packaging: Research and Analysis,” is available through the PMMI website.

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