Crates

Crates Global Market Outlook

MARKET OVERVIEW

Global Demand: $10.24 Billion (2023 E)

Global Demand CAGR: ~4 percent (2023E-2026F)

Global Market Demand

• Growing demand for collapsible crates and opportunities for crates under returnable packaging will keep up the demand in the forecast period. Stringent sustainability targets in the developed countries is pushing the buyer toward usage of recycled and refurbished crates

Global Market Size: Crates

• Growing demand for collapsible crates and opportunities for crates under returnable packaging will keep up the demand in the forecast period. Stringent sustainability targets in the developed countries are pushing the buyer toward the usage of recycled and refurbished crates

• The beer segment continues to be the major consumer of crates in the developed countries, owing to the strong presence of global beverage players, like ABInBev, Heineken, Carlsberg, etc., and regional brewers, like Beck’s, Bitburger, etc. Coca-Cola is the highest end-user among the soft drinks segment

• Western Europe consumes around 60 percent of beer crates and 80 percent soft drinks and water bottle crates in the European region. Germany is the largest consumer, owing to favorable returnable packaging system and strong crate supply base

• Returnable packaging and the use of refurbished crates are key trends governing the market to aid sustainability within the region among the buyers

Industry Drivers and Constraints : Crates

Drivers

• Advantages in Bulk goods transportation: Crates are cost effective, efficient for load handling, easy to handle, and resistant to chemicals. Standardized crates are easier in loading and unloading goods on a truck and can be easily handled with forklifts etc.

• End-use Industries: Apart from demand from the food and beverage industry, which is set to grow significantly in APAC, other major end-use segments, like chemicals, pharmaceutical, construction, metals & mining, etc., are increasingly adopting Crates due to benefits, like low cost and more convenient handling

• Low weight alternatives: As part of sustainability options, crates pooling, crates made of processed wood and paper are increasingly being adopted to reduce carbon footprint and overall sustainability targets

Constraints

• Raw Material Capacity Crunch: Restrictions across the regions in sourcing of lumber for Crates from the forest registries create supply constraints and increase in raw material prices

• Labor Intensive Process: Labor cost contributes to 8-11 percent of the total Crates cost, which discourages bulk packaging manufacturers in developed regions with high labor costs to enter the Crates segment. Shift to automation is capital intensive

• Limited Innovation: Scope of innovation is limited in Crates as it is a fairly simple manufacturing process. However, lightweight, composite crates are entering the market as part of innovations