A recent industry report estimates the demand for Retail Ready Packaging (RRP) to grow about 4 per cent between 2016 and 2021. Driving this demand are smaller supply chain costs, smaller retail outlets and smaller family units. The industry expects manufacturers to use 39 million tonnes, which is $82 billion (based on constant 2016 prices), of paper and plastic. The figure shows how RRP is rapidly outpacing other packaging solutions in the market, which also increases the industry’s need for case packer machines.
RRP vs. Traditional Packaging
Retail ready packaging, also called pallet, display and shelf ready packaging, refers to the outer packaging of retail items. It allows direct display of items onto the selling floor or shelf without the need to unpack each of the inner contents.
This solution offers a number of advantages over traditional packing in terms of stock handling, labour costs and product visibility. The rise in beverage and food sales are evident in non-traditional outlets, such as dollar and drugstores, and the growth of club stores and mass retailers.
Corrugated boxes, which are among major RRP product types, will provide the biggest opportunities for retail. Market analysts say that the augmented presence of value-added box types and the expansion of the retail user base will reinforce progress.
Gains for retail-ready folding cartons, corrugated floor display and plastic containers will be more moderate. But forecasts still show an overall upward trend for these RRP types.
Food Industry and RRP
Food is the number one market for RRP; it accounted for about three-fourths of demand in 2015. More businesses in the food industry will tackle RRP, fuelled by the labour costs savings resulting from product handling.
The industry expects mass retailers to promote retail ready packaging. Many stores can benefit from this option’s ability to speed up shelve stocking and improve shelf space efficiency.