Global Transit Packaging Market 2016-2020
About Transit Packaging
Transit packaging involves protected transportation and handling of goods in large quantities from manufacturing centers to distribution centers, where they are packaged for the customers. Transit packaging products include corrugated boxes, pallets, crates, cases, cushions, foam and are suitable for numerous applications in the electrical and electronic, chemical, pharmaceutical, and food and beverages industries.
Technavio’s analysts forecast the global transit packaging market to grow at a CAGR of 4.45% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global transit packaging market for 2016-2020. To calculate the market size, the report considers the revenue generated by vendors is taken into account.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Transit Packaging Market 2016-2020
Technavio recognizes the following companies as the key players in the global transit packaging market: Greif, Mondi, Pratt Industries, Smurfit Kappa, and Sonoco.
Other Prominent Vendors in the market are: BillerudKorsnas, Deufol, DS Smith, GWP Packaging, International Paper, NICKLIN, NNZ, OIA Global, Saxon Packaging, Svenska Cellulosa Aktiebolaget, and Smithpack.
Commenting on the report, an analyst from Technavio’s team said: “Adoption of fleet management systems will be a key trend for market growth. Transit packaging management is complicated because of increased trade activities and high demand from diverse industries such as food and beverages, consumer care, electrical and electronics, and many more. In addition, it includes container distribution, fleet sizing, repositioning of empty containers, tracking containers, and maintenance activities. These issues can be solved using fleet management techniques, in turn improving operational efficiency, minimizing risk, and controlling cost.”
According to the report, the increased demand from the chemicals and petroleum industries is a major growth driver. Shale gas, from which natural gas is extracted, is produced in high quantities in the US. This gas acts as a feedstock in the production of other chemicals. The availability of abundant low-cost feedstock is attracting a lot of investors in the chemicals industry, which is fueling the production of myriad chemicals worldwide. This burgeoning industry has its own set of needs for packaging and transportation to the points of sale and end-markets.
Further, the report states that fluctuations in the prices of raw materials is a major challenge faced by vendors in the global transit packaging market. For example, the price of paper pulp, the main raw material used in the manufacture of corrugated boxes, have volatile prices based on their demand-supply scenario. The widening of the demand-supply gap in the last few years has led to a substantial increase in the cost of raw materials. The price of wood has risen by 10%-15% over the last two years, increasing the price of paper pulp. In July 2014, the average price of the pulp reached $832.02, indicating a 184% increase from June. The price of paper pulp is expected to rise further in the forecast period, affecting the market. Additionally, the price of kraft paper which accounts for 75% of the total input cost in the manufacturing of corrugated boxes has increased by 15% since 2013, thus increasing the cost of production.
Greif, Mondi, Pratt Industries, Smurfit Kappa, Sonoco, BillerudKorsnas, Deufol, DS Smith, GWP Packaging, International Paper, NICKLIN, NNZ, OIA Global, Saxon Packaging, Svenska Cellulosa Aktiebolaget, Smithpack.
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