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Retail-ready packaging predicted to rise

Freedonia reports brick-and-mortar stores will require more retail-ready packaging to cut operation costs and remain competitive in the e-commerce age.

Freedonia reports brick-and-mortar stores will require more retail-ready packaging to cut operation costs and remain competitive in the e-commerce age.
Freedonia reports brick-and-mortar stores will require more retail-ready packaging to cut operation costs and remain competitive in the e-commerce age.

Demand for retail-ready corrugated displays is projected to increase 3.2% annually to $1.8 billion in 2023, according to Freedonia’s new study, Retail-Ready Packaging.

According to analyst Cara Brosius, “Retail displays are designed to enhance the visibility of various products and therefore represent an important means for consumer packaged goods companies to drive product sales. With many consumers increasingly shopping the perimeter of supermarkets rather than the center of the store, displays are valued for the exposure they provide, especially when placed in high-traffic locations.”

The study says gains will be restrained by the limited amount of floorspace that can be occupied by displays, especially because most stores already use displays in the areas to which they are suited, such as end-caps and in large walkways between aisles. They do not limit visibility of other products or prevent customers from comfortably walking or pushing a shopping cart in these areas.

Meanwhile, the demand for all types of retail-ready packaging in the U.S. is projected to increase 6.1% annually to $7.9 billion in 2023. Here, Freedonia expects corrugated boxes continue to dominate, accounting for more than half of sales, and will have the largest share of growth due to their wide applicability. However, all other types of retail-ready packaging compete with corrugated boxes due to their advantages over boxes, including material reduction and better aesthetics.

The 182-page study is available for $5,100 from The Freedonia Group.

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