Tertiary Packaging - Recommendations to companies for strengthening their foothold in the market

Tertiary Packaging Market: Overview

Tertiary packaging is a type of wrapping which protects the manufactured products. Tertiary packaging is used to smooth the progress of the transport and safe handling of goods or grouped packaging. Transportation and protection of goods are the main purposes of tertiary packaging. Tertiary packaging prevents physical damage occurred during transport and faulty handling. Tertiary packaging of the goods changes with product type, mode of transportation and storage services.

It also known as Outer packaging includes slip sheets, pallets, stretch wrap and strapping labels used for the shipment and distribution of goods. Transit or transport packaging are the other names by which it is known. Tertiary packaging is very rarely seen by the final consumer as it is removed by retailers. Distributors, warehouses and freight companies are the frequent users of tertiary packaging materials. Additionally, export companies are one of the major users of tertiary packaging. Some of the tertiary packaging is disposable while some can be reused. Corrugated brown carton is one of the most widely used tertiary packaging.

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Tertiary Packaging Market: Drivers

The market for tertiary packaging was driven by various factors such as growing demand from logistics and warehousing activities, rise in export from China and other Asia countries and increasing trading activities. There is increasing demand for tertiary packaging from various end-users such as pharmaceutical, household appliances, personal care and food and beverages is projected to drive the global market in upcoming years. In pharmaceutical industry, tertiary packaging is used for bulk shipping of pharmaceuticals.

Containers and barrels are used as tertiary packaging in pharmaceutical industry. The consumers is more focused on environmental issues such as material reduction, light weighting and space saving. Increasing demand for light weight and sustainable tertiary packaging materials is expected to provide huge opportunity for tertiary packaging manufacturers. In warehousing and logistics, pallets are used as tertiary packaging. Stretch wrappers which are used to unitize pallet loads are also a type of tertiary packaging. Environmental and recycling issues of tertiary packaging materials are expected to hinder the growth of the market over the forecast period.

Tertiary Packaging Market: Region-wise Outlook

Asia Pacific is anticipated to be the fastest growing market for tertiary packaging in the next few years. Increasing demand for tertiary packaging from logistics and warehousing activates in developing countries such as India, Malaysia, Indonesia and Thailand. China is considered among the major consumer of tertiary packaging in Asia Pacific region. Asia Pacific was followed by Europe. Increasing demand for eco-friendly and low cost packaging is driving the demand for tertiary packaging in this region.

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Western Europe is likely to be major consumer of tertiary packaging however, Russia and Central Europe is projected to show higher demand for tertiary packaging in near future. North America had third largest demand for tertiary packaging in 2013. U.S. dominated the demand for tertiary packaging in North America region. Increasing demand from consumer goods, personal care and food industry has been driving the demand for tertiary packaging in this region.

Mexico and Canada are likely to exhibit higher demand owing to increasing logistics activities. Rest of the world had the least share in tertiary packaging market. However, the scenario is expected to change over the forecast period with increasing warehousing and logistics activities in this region. Countries such as Argentina, Brazil, Saudi Arabia, Egypt and South Africa are showing rapid growth in the tertiary packaging market since the last few years. The market is expected to show significant growth in this region.

Some of the key manufacturers in the tertiary packaging market are WRAP, Deufol SE, Huhtamaki Group and Rexam PLC among others.

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