India Returnable Transport Packaging (RTP) Market - Growth, Trends, and Forecast (2019 - 2024)

The India Returnable Transport Packaging (RTP) market is segmented by Material (Plastic, Metal, Wood), Circulation Type (Open/Pooling Systems, Closed), End-user Industry (Automotive, Food, and Beverages, Consumer Goods).

Market Snapshot

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Study Period:

2018-2024

Base Year:

2018

CAGR:

7.9%

Key Players:

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Market Overview

The India returnable transport packaging (RTP) market was valued at USD 531.4 million in 2018, and it is expected to reach a value of USD 846.5 million by 2024 registering a CAGR of 7.9% over the forecast period 2019 - 2024. Rising packaging material and supply-chain costs, environmental pressures, and government regulations are anticipated to make returnable transport packaging an attractive and profitable option in the region over the forecast period.

  • The rising cost of packaging, damage to goods in transit, availability of packaging material, and cost of disposing of the packaging material has now brought the attention of companies to sustainable packaging, and hence, businesses are realizing the importance of having a sustainable and low-cost packaging system in place.
  • 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 are all fueling the packaging industry growth. Thus, adopting better packaging methods, materials, and machinery to ensure quality has become very important for Indian businesses.
  • Retailers, especially from the United States and Europe, have been showing increasing interest in the Indian market, due to the growing 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.

Scope of the Report

Returnable transport packaging (RTP) is a multi-trip packaging medium (such as pallets, containers, etc.) in which goods are being transported multiple times between vendors and the customers.

By Material
Plastic
Metal
Wood
By Circulation Type
Open/Pooling Systems
Closed
By End-user Industry
Automotive
Food and Beverage
Consumer Goods
Electronics and Appliances
Other End-user Industries

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Key Market Trends

Automotive Segment to Witness Highest Growth

  • The automotive industry has evolved into an industry of complex supply chains and networks, requiring many activities to be streamlined and error-free to avoid abnormalities. Returnable transport packaging is aiding supply chains in the automotive industry by providing secure and eco-friendly methods to manage the flow of materials and information.
  • According to IBEF, the Indian automotive industry is the seventh-largest manufacturer of commercial vehicles and is expected to reach USD 251.4 - 282.8 billion (including component manufacturing) by 2026. Between FY12-17, the automotive exports witnessed a 4.3% CAGR and are further estimated to register a CAGR of 3.05%, over the period 2016-2026.
  • Initiatives, like ‘Make in India,’ ‘Automotive Mission Plan 2026’, and NEMMP 2020, are expected to boost the Indian automotive manufacturing sector and increase the adoption of returnable transport packaging into country’s automotive supply chain sector.
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To understand key trends, Download Sample Report

Food and Beverage Segment Occupies the Largest Market Share

  • The Indian food and grocery market is the world’s sixth-largest, with retail contributing to about 70% of the sales. As per the Agricultural and Processed Food Products Export Development Authority, between April - October 2018, exports of agricultural and processed food products was around USD 21.61 billion. Indian processed and agricultural foods are exported to more than a hundred countries, mainly to the Middle East, Southeast Asia, SAARC countries, the European Union and the United States.
  • According to Government of India, the global e-commerce giant, Amazon, is also planning to enter the Indian food retailing sector by investing USD 515 million in the next few years, which is also expected to boost the market forward.
  • Companies in beverages, processed foods, and alcohol industries have begun exploring alternative packaging solutions, including glass, to reduce the use of plastic due to concerns over plastic waste and possible bans by more state governments, following Maharashtra. These factors have fueled the adoptions of RTP in the country at a smaller scale too.
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Competitive Landscape

The India returnable transport packaging (RTP) market is highly competitive owing to the presence of many small and large players operating in the domestic as well as in the international market. The market appears to be moderately concentrated with the major players adopting strategies like product innovation and mergers and acquisitions. The companies are also investing heavily in the latest technology and R&D to continue to hold their share in the market. Some of the major players in the market are Signode India Limited, Nefab India Pvt Ltd, CHEP India Pvt Ltd, Flexol Packaging (India) Limited among others.

  • February 2019 - Nefab acquired Pacific Coast Packaging, a company that specializes in the design and manufacturing of custom wood,  foam,  and corrugated packaging products. The acquisition will serve to both strengthen the company’s product offering as well as boost its presence across the global market.
  • January 2019 - Signode Packaging Systems introduced SignodeSmart data collection software to maximize efficiency in corrugated operations. SignodeSmart, easily integrated into the unitizer’s programmable logic controller (PLC), provides real-time data reports at the unitizer and remotely, allowing plants to immediately identify improvement opportunities to increase production.

Major Players

  1. GEFCO India Private Limited
  2. Flexol Packaging (India) Limited
  3. CHEP India Pvt Ltd
  4. Nefab India Pvt Ltd
  5. Signode India Limited

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Expanding Food and Beverage Sector in India

      2. 4.3.2 Long-term Cost Benefits Associated with RTP

    4. 4.4 Market Restraints

      1. 4.4.1 Relatively Higher Initial Costs

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Material

      1. 5.1.1 Plastic

      2. 5.1.2 Metal

      3. 5.1.3 Wood

    2. 5.2 By Circulation Type

      1. 5.2.1 Open/Pooling Systems

      2. 5.2.2 Closed

    3. 5.3 By End-user Industry

      1. 5.3.1 Automotive

      2. 5.3.2 Food and Beverage

      3. 5.3.3 Consumer Goods

      4. 5.3.4 Electronics and Appliances

      5. 5.3.5 Other End-user Industries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Nefab India Private Limited

      2. 6.1.2 Signode India Limited

      3. 6.1.3 Holisol Logistics

      4. 6.1.4 CHEP India Pvt Ltd

      5. 6.1.5 Montara Logistics

      6. 6.1.6 Leap India

      7. 6.1.7 Leadec Group

      8. 6.1.8 FLEXOL Packaging (India) Limited

      9. 6.1.9 GEFCO India Private Limited

      10. 6.1.10 ORBIS Corporation

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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