PMMI, The Association for Packaging and Processing Technologies, released its 2014 State of the Industry: Packaging Machinery Shipments Study (SOTI) and 2014 Secondary Packaging Market Research Study at Pack Expo International and Pharma Expo 2014 on 2 November.
Yes, the study was conducted in the US, for and about the US market. Australia is also experiencing a surge in retail-ready packaging, so the corollary effects seen in the US are likely to be replicated here.
The rise in retail-ready packaging (RRP) is changing the role of secondary packaging, according to Pack Expo owner and producer, PMMI.
“Total U.S. consumption — an overall figure that includes imports, exports and domestic shipments — reached $9 billion in 2013,” stated Jorge Izquierdo, vice president, market development, PMMI. “Foods and beverages together continue to account for more than half of the shipments. This is consistent with what we’ve seen over the past 10 years.”
While SOTI illustrated a consistent overall market, PMMI’s 2014 Secondary Packaging Market Research Study revealed a dynamic industry segment surging on the fuel of consumer trends.
View the PMMI Retail ready packaging infographic.
“In 2008, when we last conducted this survey, every company we spoke to said they were trying to reduce their costs and improve their sustainability ratings in secondary packaging, and retailers demanded those changes because of consumer preferences. In contrast, roughly half of the 2014 study participants say they’ve implemented those changes and are satisfied with the results,” Izquierdo commented.
But secondary packaging has found a new area for growth as retail-ready products boom.
“Retailers are asking for more shelf display containers and as a result, we’re seeing secondary packaging going directly from pallet to store shelf,” Izquierdo noted.
Changes in primary packaging are also driving shifts in secondary packaging, the report added. Food (45%) and beverage (50%) producers noted changes such as switching flexible packaging and lightweighting primary packaging are resulting in the need for stronger support from secondary packaging.
The 2014 study also shows a decrease in RSC usage and corrugated fiberboard materials, and an increase in the use of recycled material content, overwrapped trays and shrink-wrapped pads.
Executive summaries of both reports are available online here.
