Based on the report published by Freedonia Group, a Cleveland-based industry research firm, the demand for retail ready packaging in the United States is predicted to increase by 5.2% annually or $6.2 billion in 2020 from the $4.83 billion in 2015. It is expected that retail ready packaging will outpace the overall packaging market average.
Retail ready packaging or RRP refers to shelf ready packaging, display ready packaging and pallet ready packaging. RRP also refers to secondary packaging used for retail products that arrive in a manner that allows the items to go directly into the shelves or the selling floor without the need to unpack the inner contents. RRF is widely used today because it has several advantages over the traditional retail packaging in terms of labor costs, stock handling and product visibility.
RRF is supported by mass retailers and club stores including drug and dollar stores that gain increased volume of sales from food and beverages. Club stores and discount grocery stores require their vendors to ship products using retail ready packaging so that they can sell the merchandise directly from the secondary packaging.
Corrugated boxes are one of the major product types of RRF. It represents more than 50% of the overall demand for packaging. It also provides the strongest opportunities for growth that will be supported by the expansion of retail user base and the increased presence of value-added box types. Gains from RRP corrugated floor displays, folding cartons and reusable plastic containers are expected to be more moderate than the corrugated boxes although growth will be helped by overall retail trends that promote increased use of RRP.
The most predominant product that uses RRP is food that accounts for at least ¾ of the demand in 2015. Savings in labor costs resulting from reduction in handling requirements during stocking will fuel the growth of RRP.
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