The global crates market size was valued at US$ 5.3 billion in 2022 and is likely to exhibit a year-on-year (YoY) growth rate of 4% in 2023, reaching around US$ 5.61 billion. With the growing adoption of crates across various end-use industries, the demand is slated to increase at 5.9% CAGR between 2023 and 2033, totaling around US$ 9.95 billion by 2033.
Key Statistics:
· The crates market saw steady growth in 2022, with worldwide revenues up of collapsible crates by 4.4% year over year.
· Emerging trends reveal that revenue of nestable crates may nearly double between 2023 and 2033, with a ten-year CAGR of 5.8%.
· Based on material type, global demand for plastic crates enjoyed year-on-year (YoY) growth of 6.3% in 2022, while the wooden crates segment expanded at 4.7% in 2022.
· Plastic crates are the most traction-gaining crates, with a market share of over 69% in the global market in 2023.
Consumer demand for plastic crates has increased significantly due to HDPE’s strong resilience and the huge carrying capacity of collapsible crates made of HDPE. Also, fruits, vegetables, drinks, and other items are stored or transported in crates in the food and beverage business. According to market research, the food & beverage end-use segment may increase at a CAGR of 6.7% over the forecast period.
In 2023, the United States crates market is projected to expand 1.8 times the current sales, bucking initial skepticism about how the market may perform. Across the whole of North America, total sales of crates reached US$ 1.3 billion.
Sustainable Materials Revolutionizing the Global Crates Market
Crates Pooling Creating Opportunities for Collapsible Crates in the Market
As per the key insights that the Reusable Packaging Association shared, the global transport or transit packaging market is estimated to hold nearly 21% of the global packaging market. This includes transporting raw materials, commodities, or finished products involving business-to-business or business-to-consumer product transport.
Out of this global transport packaging market, the reusable packaging market holds a significant value share of 50%. The global reusable transport packaging (RTP) market includes various products such as crates and others, which comprise the estimated worth of US$ 100 billion reusable packaging market. Crates, including rigid containers and trays, are counted to record a value of US$ 17.7 billion in the RTP market.
It is analysed that the end users are moving toward including reusable packaging for transportation over single-use packaging formats based on these facts. Most end users outsource shipping and logistics to rental services with a high demand for crates for transporting bulk packages.
Future Market Insights estimates that the crates pooling/renting services may create an opportunity to boost sales of collapsible crates as they consume less storage space during return transit and save the additional cost of transportation.
The Surge in Grocery Delivery and Pickup Amplifying Crate Sales
It has been witnessed that grocery delivery & pickup has increased significantly during the last three years, and the trend is likely to continue during the forecast period.
People are keen to order products from their homes to save their precious time and money. The e-commerce industry is significantly gaining momentum, attributing to a jarring spike in the pickup and delivery of essential products such as groceries, vegetables, fruits, and general medicines.
As per FMI, online grocery sales increased by more than 28% in 2021 compared to last year and crossed 41% in 2022. The demand for crates among e-commerce giants such as Amazon, Big Basket, Carrefour Hypermarches, Fresh Direct LLC., and many others increased exponentially for delivering grocery products to consumers’ doorsteps.
End users are switching to these products as crates are an easy and convenient packaging format for material handling. They are sturdy and reusable, ensuring the product’s quality during transportation.
Regional Outlook
Innovation Propels the United States Crates Market to New Heights
Growth in the E-commerce Industry and the Growing Popularity of Eco-friendly Crates is Spurring Market Growth in the United States
According to FMI analysis, the United States crates market is projected to expand at 5.5% CAGR between 2023 and 2033, reaching a valuation of around US$ 941.48 million in 2023. The United States may hold a considerable share of 17.4% of the global crates market in 2023.
Growth in the United States crates market is driven by flourishing export business, the e-commerce industry’s significant expansion, and the growing popularity of eco-friendly carte packaging.
The country’s strong presence of leading crate manufacturers is expected to play a key role in boosting market growth in the forecast period.
Investor’s Paradise: India’s Transformative Journey in the Crates Market
Amid the rapid growth of end-use industries such as food & beverages, pharmaceuticals, automotive, and logistics, India’s crates market is set to expand at a prominent CAGR of 7.6% between 2023 and 2033, reaching a valuation of US$ 974.75 million by 2033.
Several industries, including food and beverage, pharmaceuticals, and retail, have experienced substantial industrialization and expansion due to increased international commerce and several favourable measures by the government of India. Make-in-India initiatives and industry-specific incentives are boosting the establishment of numerous manufacturing enterprises in India.
The significant expansion of these industries may provide momentum to the growth of the crates market in India during the forecast period. Demand is particularly for plastic crates in the country due to their low costs and easy availability. They are being increasingly used for the transportation of numerous products by end-use industries.
Competitive Landscape
Some of the leading manufacturers of crates market are Brambles Limited, Schoeller Allibert AB, NEFAB GROUP, Myers Industries, Inc., DS Smith PLC, Dynawest Limited, Craemer UK Ltd, SABIC, Supreme Industries Limited, and Rehrig Pacific Company, Inc.
Crate manufacturers have reshaped the product so consumers are drawn to acquire crates. They also provide their customers with lightweight and environment-friendly crates.
These insights are based on a report Crates Market by Future Market Insights.