Returnable Plastic Crate Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Returnable Plastic Crate Market is segmented By Material (High-Density Polyethylene, Polypropylene), By Application (Seafood & Meat, Fruits, Vegetables, Food & Beverage, Grocery, Dairy, Bakery, Others), By Product (Nestable, Stackable, Collapsible), By Capacity (Up to 10 Liters, 10 to 20 Liters, 20 to 40 Liters, 40 to 60 Liters, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Returnable Plastic Crate Market Overview

The returnable plastic crate market is estimated to reach at CAGR of 5.4% during the forecast period (2024-2031).

Returnable Plastic Crate (RPC) is used to transport produce from the field to grocery stores. These crates are preferred for product cooling and protection for perishable produce. The use of RPC in fresh produce supply chains creates new business opportunities for service providers such as farmers groups, cooperatives, traders, commercial farmers and plastic crate manufacturers.

RPC is replacing expensive single-use fiberboard cartons and locally made wooden crates due to its reusability and effectiveness over others. Many packages that use natural resources to manufacture are transported to landfills or decomposing underfoot as debris in marketplaces after each use. The RPC is majorly manufactured from high-density polyethylene or polypropylene. The RPCs are used globally to handle and store various types of fruits and vegetables can be highly cost-effective since RPC costs are lower than the savings that can result from reduced food losses.

Returnable Plastic Crate Market Summary

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Returnable Plastic Crate Market Dynamics

The global returnable plastic crate market growth is driven by the demand to reduce post-harvesting losses, as an alternative to replace single-use fiberboard cartons and increasing packaging demand for agricultural products.

The demand to reduce post-harvesting losses are expected to drive the demand for the returnable plastic crate market

The returnable plastic crate market is expected to drive with demand to reduce the post-harvesting losses. The use of returnable plastic crates for harvest, packing, transport and storage of fresh produce has repeatedly resulted in avoiding damage and postharvest losses of agricultural products. A study was carried out in Africa, which revealed that on average, 41.12% of the tomatoes transported from Kano to Lagos using raffia baskets got damaged. The use of RPCs in the region reduced the losses to 4.92%. The GEMS4 estimated that the tomato value chain required 6 million RPCs alone. Proper crating was identified as a practical and proven solution to reduce postharvest loss of perishable fresh fruits and vegetables in Nigeria.

Many countries have been facing pre-harvesting problems with high agricultural potential. For instance, Srilanka suffers from the annual loss of fruits during postharvest operation of about 210,000 metric tons, which is about 30 % to 40 % of the harvest, representing US$ 90 million losses in financial terms. The packing of fresh fruits and vegetables in poly-sacks for transportation leads to severe quantitative and qualitative losses, amounting to an estimated 20% loss during transportation and handling alone. Recent research has concluded that using plastic crates for transportation and handling reduces the losses from 30% to 5%, and the quality of fruits and vegetables reaching the consumer is appreciably improved.

The extra operational cost and care for the sanitization is likely to hinder the market growth

The returnable plastic crate market is impacted by the extra operational cost and care for sanitization. Washing and sanitizing of RPC is required after every use to meet the consumer standards for food shipments. With washing facilities located hundreds of miles apart, the economics of managing the freight becomes expensive. In addition, the automation of handling and assembling crates in a packaging environment is also expensive and problematic.

COVID-19 Impact Analysis

Due to the pandemic, stakeholders across the returnable plastic crate industry have seen a notable impact as all the production work, factories and other activities were closed. As a result, production was hindered by halts and supply chain disruption globally. Furthermore, after the pandemic, the governments still impose various restrictions, such as working with half the workforce and fewer operating hours hindering the production cycle of the market. The consumers are preferring the use of single-use solution as a preventive measure from the outbreak. As a result, the losses are incorporated with less demand from the associated industries. However, the market is expected to recover after the pandemic, with sectors aiming to work with higher production rates to recover from the incorporated losses.

Returnable Plastic Crate Market Segment Analysis

By material, the returnable plastic crate market is broadly classified into high-density polyethylene (HDPE) and polypropylene (PP)

The returnable HDPE crates are expected to grow at the fastest CAGR during the forecast period (2020-2027)

The returnable HDPE crates are expected to hold the largest market for returnable plastic crate market and are expected to continue their dominance in the forecast period. HDPE crates are widely used because it offers numerous benefits such as high impact resistance and UV resistant, better quality, ability to sustain harsh temperatures. Moreover, returnable HDPE crates offer fantastic durability and ensure economical storage and transportation. In addition, HDPE is known for its high strength-to-density ratio, which helps in making more rigid crates than PP.

The HDPE crates are majorly used in transporting fruit and vegetable on short and long routes as well. Thus, the crates help in reducing losses and improve safety and quality management in fruit and vegetable supply chains. Moreover, the increasing demand for transportation of dairy and grocery products is anticipated to boost the demand for returnable HDPE crates in the forecast period.

Returnable Plastic Crate Market Geographical Share

Europe region holds the largest market for global returnable plastic crate globally

Europe region holds the largest market share for the returnable plastic crate market globally and is expected to continue its dominance in the forecast period. The use of returnable plastic crates is increasing majorly in the supply to florists and the wholesale markets. The region's leading flower-producing countries, such as the Netherlands and Germany are the biggest importer of flowers. Also, In the UK, 80% of cut flowers are supplied from the Netherlands. The use of RPC has resulted in the reduction of waste, ease of handling and bulk density. For example, the bulk density of 50 cm spray carnations is approximately 15% higher with RPC than cardboard cartons. Moreover, the free area stacked in RPCs is greater than that of the traditional cardboard cartons used for dry storage. These scenarios are creating positive demand for a returnable plastic crate in the region.

The use of RPC’s in the fresh produce sector has been promoted in Europe by retailers majorly to ease shelf stocking and trace products through barcoding and more controlled temperature regulation. A further key advantage promoted by RPC providers was that it could be re-used instead of being recycled as with paperboard, making it more sustainable. With the successful use of RPC's in Europe, selected retailers within North America started to require suppliers to use reusable crates to pack fresh produce.

Returnable Plastic Crate Market Companies and Competitive Landscape

The returnable plastic crate market is moderately competitive with the local player’s presence, followed by the global companies, contributing to the significant share in the market growth. In addition, some of the key players contributing to the growth of the market are TranPak Inc., Brambles Chep, IFCO Systems, Schoeller Allibert, Tepsa, DS Smith, Rehrig Pacific Company, Gamma-Wopla, Mpact Limited, Ravensbourn Limited and others. Furthermore, the major players are adopting various new strategies to dominate the market, such as launching new products, expansions, acquisitions, and collaborations, contributing to the global growth of the returnable plastic crate market.

IFCO Systems

Overview: IFCO is one of the leading companies in developing a reusable plastic container (RPC) pooling system for fresh fruit and vegetables since 1992. The company offers products to a wide range of customers with its local offices and a team of over 1100 employees globally.

Product Portfolio: The Company offers a wide range of pooled equipment and solutions, with 70+ models of RPCs. The company offers RPCs for fruit and vegetable, meat, fish, eggs and baked goods.

Key Development: In 2021, IFCO Systems and Walmart have announced a multi-year business agreement that will expand the retailer's use of RPCs and make IFCO Walmart's exclusive RPC packaging provider for fresh fruits and vegetables distributed in the U.S.

The global returnable plastic crate market report would provide access to an approx: 69 market data tables, 68 figures, and 180 pages.