Emerging markets to drive RRP growth

- Formalization of the retail supply chain in countries such as China, India and Brazil to support global growth

 

- Graphics and new substrates allowing creation of visually attractive packs

 

Retail ready packaging (RRP) demand is expected to reach US$63.4 billion by 2017, driven by growth in demand from the burgeoning development of supermarkets in under-developed economic regions.

 

The Future of Retail Ready Packaging to 2017 report by Smithers Pira focuses on the period from 2012 to 2017 and states that, in 2011, global demand amounted to 27 million tonnes of material with a value of more than US$54 billion, rising to US$62.3 billion and 32.1 million tonnes by the end of the period reported on.

 

The ongoing formalization of the retail supply chain in countries such as China, India and Brazil, as well as parts of Africa and South America, is cited as a key reason for this growth, and will provide the stimulus to maintain demand for RRP whilst preventing any marked decline in demand from other regions.

 

Russia is also showing a high level of growth according to the study.

 

For the period from 2012 to 2017, Asia is expected to show the highest growth rate with demand predicted to improve at an average rate of 6.2 percent annually. 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 of 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.

 

By sector, Smithers Pira said three-quarters of RRP demand originates in the food sector, while the beverage industry accounts for a further 16 percent, 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 percent on average per annum from 2012 to 2017, compared to 2.7 percent and 2.8 percent 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 to increase the value-added element of their product portfolios.

 

In addition, 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.

 

Read more on substrates here

Read more news from the Asia-Pacific region here

Read more news from India here

Read more news from South and Central America here