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India Returnable Transport Packaging Market Analysis

The India returnable transport packaging (RTP) market was valued at USD 628 million in 2020, and it is expected to reach a value of USD 994.3 million by 2026, registering a CAGR of 7.9% over the forecast period 2021 to 2026. The growing packaging material and supply-chain costs, government regulations, and environmental pressures are anticipated to make returnable transport packaging an attractive and profitable option in the region over the forecast period.

• The packaging industry is situated among the high-growing sectors in India and developing at a rate of 22% to 25% per annum, according to the Packaging Industry Association of India (PIAI). According to a study by trade and commerce trade association, ASSOCHAM, the packaging industry in India is anticipated to reach USD 73.6 billion by FY 2020, resulting in its growing population and income levels.
• The rising cost of packaging, damage to goods in transit, availability of packaging material, and loss of disposing of the packaging material has now brought the attention of companies to sustainable packaging. Hence, businesses realize the importance of having a lasting and low-cost packaging system in place. With the growing demand for consumer goods, which includes even consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few years, driving the retail sector with significant growth across various industries.
• Additionally, the rise of the Indian middle class, the growth of organized retail in the country, rapid growth in exports, and India's e-commerce boom fuel the packaging industry's growth. Thus, the adoption of better packaging methods, materials, and machinery which ensures quality has become very essential for Indian businesses.
• Retailers, especially from the United States and Europe, have been showing interest constantly in the Indian market due to the vast amount of growth opportunities in this sector. This is highlighted by the fact that over 40 major international brands have entered the country over the last two years. Returnable packaging is constantly improving the way that businesses carry out the shipment of their products around in the region. Instead of one-way packaging that is used once and then thrown out, returnable packaging is reused, eliminating the recurring costs of packaging production.
• COVID-19 has impacted the economy with high transaction costs and uncertainty in India's transformed food supply chains. It puts food security at risk as 92% of food consumption in India is purchased, predominantly from the private sector. The government of India is facing the challenge of gathering resources between mitigating the impending food crisis and containing the contagion as the risk of sociopolitical tensions looms large. Amidst all these, the Returnable Transport Packaging Market was also affected significantly during April and May 2020 due to imposed lockdown and restrictions in India.

India Returnable Transport Packaging Market Trends

This section covers the major market trends shaping the India Returnable Transport Packaging Market according to our research experts:

Automotive Segment is Expected to Witness Significant Growth

India Returnable Transport Packaging Industry Segmentation

Returnable Transport Packaging (RTP) is a system of reusable racks, pallets, hand-held containers, or bulk containers that move products safely and efficiently throughout the supply chain. These packaging systems are constructed using durable materials like wood, plastic, and metal. Unlike one-way packaging, they are intended for multiple uses across various end-user industries, including Automotive, Food, and Beverages, Consumer Goods., Electronics and Appliances.