The global point of purchase packaging market size was valued at USD 13.0 billion in 2020 and is anticipated to grow at a CAGR of 5.9% during the forecast period. Point of purchase packaging solutions is increasingly being adopted by retail stores for the advertisement of products while increasing sales simultaneously.
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Point of purchase packaging sparks impulse shopping among consumers before leaving the store. These packaging solutions are usually placed in high-traffic areas to increase effectiveness. Brands in the market are using point of purchase packaging solutions to relay marketing messages and reinforce brand loyalty. Point of purchase packaging serves as an effective tool and a new medium of marketing.
Point of purchase packaging offers a communication medium with the relevant audience, grabbing their attention and influencing their buying behavior. Market players are designing customized point of purchase packaging solutions and offering schemes such as discounted products, bundled products, or complementary products to increase the effectiveness of these packaging solutions.
The high growth in organized retail stores and increasing footfall in discount and convenience stores have supported the growth of the point of the purchase packaging industry. The increased importance of product presentation in the retail environment, which results in higher brand recognition has increased the demand for point of purchase packaging across the globe.
The increasing demand for consumer goods drives the growth of the point of the purchase packaging market, especially in emerging economies. The increasing population and rising demand from personal care and food & beverages sectors supplement the market growth.
The growing inclination of consumers towards beauty trends and the introduction of innovative personal care products in the market at competitive prices by market players further augment market growth. Other factors influencing the point of purchase packaging market include improving lifestyles, penetration of organized retail stores, and increasing disposable income.
The market in Asia Pacific region offers lucrative growth opportunities for market players. There has been an increasing consumption of fast food in the region owing to the adoption of the western lifestyle and the rising disposable income of consumers. Global players are expanding their business in this region to increase their customer base and improve geographical outreach.
The demand for point of packaging solutions has also increased in departmental stores, convenience stores, and other small retail stores as they are becoming organized in order to compete with the large retail format. Small retail stores including departmental stores, convenience stores, grocery shops, and others are increasingly adopting the point of purchase packaging solution to increase their consumer base and enhance business.
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The market is primarily segmented on the basis of material, product, industry, end-use, and region.
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On the basis of material, the market is segmented into glass, paper, plastic, metal, and others. In 2019, the paper segment dominated the global market owing to its affordability, ease of customization, and growing environmental concerns. Stringent regulations in some countries regarding the use of non-biodegradable packaging solutions would further support the growth of this segment.
Government initiatives along with substantial investment in the promotion of sustainable packaging solutions would accelerate the growth of this segment. The increasing awareness regarding brand owners to reduce packaging costs and volumes and create brand differentiation in the global market has resulted in increased adoption of these packaging solutions.
On the basis of product, the market is segmented into pallet display, endcap display, floor display, counter display, sidekick display, and others. In 2020, the pallet display segment accounted for a significant share in the global market. The demand for pallet displays is high owing to its effectiveness for marketing and branding, reduced labor costs, minimal setup and storage, and higher profit margins.
On the basis of industry, the market is segmented into food and beverage, personal care and cosmetics, pharmaceutical, electronics, automotive, and others. The food and beverage segment accounted for a major share of the market in 2019. Point of purchase packaging for food and beverages provides a simple and economical method for packaging food products, while also providing product information, and influencing the sale and consumption of products by leveraging the impulse buying behavior of consumers.
On the basis of end-use, the market is segmented into supermarkets and hypermarkets, convenience stores, specialty stores, and others. Supermarkets and hypermarkets accounted for a major share of the market in 2020. Supermarkets and hypermarkets bridge the gap between manufacturers and customers by offering a wide range of product variety at the same location.
Consumers are increasingly shopping from these stores owing to heavy discounts, and availability of a large variety of products under a single roof, and promotional offers to attract consumers. Retailers are taking advantage of this and adopting the innovative point of purchase packaging solutions to expand business opportunities.
North America dominated the global point of the purchase packaging market in 2020 owing to increasing population, growth in the food & beverages and personal care sectors and changing consumer preferences. The presence of large and established retail chains, significant investments in marketing campaigns, and the growing need for enhanced product presentation drive the growth in this region.
Large brands operating in the region are focusing on the personalized and customized point of purchase packaging solutions to create an impact on consumers and enhance brand awareness. Packaging enables companies to differentiate brands and offer personalization.
The leading players in the point of purchase packaging market 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.