Point of purchase packaging market worth $20.39 billion by 2028: Report

The global Point Of Purchase packaging market size is expected to reach USD 20.39 billion by 2028 according to a new study by Polaris Market Research. The report “Point of Purchase Packaging Market Share, Size, Trends, Industry Analysis Report, By Material (Glass, Paper, Plastic, Metal, Others); By Product (Pallet Display, Endcap Display, Floor Display, Counter Display, Side Kick Display, Others); By Industry; By End-Use; By Regions; Segment Forecast, 2021 – 2028” gives a detailed insight into current market dynamics and provides analysis on future market growth.

The different materials used for point of purchase packaging include glass, paper, plastic, metal, and others. In 2020, the paper segment dominated the global market. Growing environmental concerns and increasing initiatives to reduce manufacturing waste has increased its adoption worldwide. There has been increasing adoption of paper-based packaging solutions owing to their ease of use, the convenience of transport, and ability to recycle, according to the report. 

The pallet display segment accounted for a significant share in the global market in 2020. Pallet packaging solutions are increasingly being used owing to their impact on consumers, enhanced brand awareness, ease of setup, and reduced labor costs. Point of purchase packaging solutions offers enhanced brand power along with influencing the impulse buying behavior of consumers, says the report. 

Explosive population growth and the shift of consumers to urban areas increase the demand for these packaging solutions. The purchasing power, buying & behavioral habits, and preferences of millennials have changed over the years, thereby supporting market growth.

The market is segmented into food and beverage, personal care and cosmetics, pharmaceutical, electronics, automotive, and others, based on end-user. The food and beverage segment accounted for a major share in the global point of the purchase packaging market in 2020. Point of purchase packaging plays a major role in the marketing of food products by attracting consumers to innovative packaging, communicating information regarding the food products, and enabling accurate identification of products.

Health and fitness consciousness have also increased in countries such as China and India due to improving lifestyles and changing food habits. Consumers are more aware regarding their nutritional intake, and consumption of healthy & organic food products. Leading players in the market are also taking initiatives to increase awareness among consumers through these packaging solutions.

Supermarkets and hypermarkets account for a major share of the market. The growing presence of supermarkets and hypermarkets in developing regions of Asia and Latin America along with increasing preferences of consumers to shop from large retail stores fosters market growth.

Lucrative offers and policies offered by prominent players, which favor consumers as well as supermarkets & hypermarkets, along with the innovative point of purchase packaging solutions for effective marketing and branding are expected to boost sales through modern trade stores. The entry of the foreign retailers in the market, through tie-ups, franchise agreement, and joint ventures further boost the market growth.

North America emerged as the largest market in 2020 and is expected to maintain its dominance over the forecast period. There has been an increasing demand for point of purchase packaging from established retail chains in the region. The increasing population, growing investments in marketing and branding campaigns, and the existence of an organized retail market boost the growth of the point of the purchase packaging market in the region.

However, Asia-Pacific is expected to grow at a significant rate during the forecast period. Brands operating in the market are taking initiatives to offer brand differentiation and value to the consumer, while also providing necessary information about the packaged goods. Small retail stores in the region are increasingly adopting these packaging solutions owing to their affordability and high effectiveness. Vendors in the global market are expanding their geographical presence and product portfolios to strengthen their presence. The developing nations of Asia-Pacific would provide significant growth opportunities in the market.

Some of the major market participants include DS Smith, Felbro, Inc., Georgia-Pacific LLC, Marketing Alliance Group, Creative Displays Now, Swisstribe, Smurfit Kappa Display, FFR Merchandising, International Paper Company, Fencor Packaging Group Limited, Menasha Packaging Company, LLC, Hawver Display, WestRock Company, and Sonoco Products Company.

Polaris Market Research has segmented the point of purchase packaging market report on the basis of material, product, industry, end-use, and region