Point of Purchase Packaging Market

Point of Purchase Packaging Market Outlook (2023-2033)

The global point of purchase packaging market is projected to expand at a CAGR of 6.6% through 2033. As such, worldwide demand for point-of-purchase packaging solutions is anticipated to reach a market value of US$ 31.5 billion by the end of 2033, up from US$ 16.6 billion in 2023.

Retail stores are adopting point of purchase packaging solutions for the advertisement of different products to drive their sales growth. These packaging solutions spark impulse shopping among people before leaving the store. Products packed in point-of-purchase packaging solutions are generally placed in areas with high traffic to attract people’s attention.

A wide variety of brands are using these solutions to reinforce brand loyalty and relay marketing messages. These solutions work as a new medium and effective tool for marketing. Point-of-purchase packaging grabs people’s attention, offers a communication platform with the relevant audience, and influences their purchasing behavior.

Industry players are providing customized point-of-purchase packaging services. They are offering various schemes, including bundled products, discounted products, or complementary products, to boost the effectiveness of these solutions.

Growing footfall in convenience stores and growth in organized retail stores have supported the opportunities in the global market. Furthermore, the growing importance of product presentation across the retail environment has resulted in increased brand recognition, thereby driving the sales of industrial products.

The presence of numerous marketing channels such as newspapers, digital mediums, and television advertisements, along with billboards, will assist in the generation of lucrative growth opportunities in the industry.

On the flip side, advertisements do not convert any potential customer into a buyer immediately. Around 70% of the decisions to buy any product are taken in stores in the retail industry. These factors indicate the significant role that is played by the store environment to purchase any product. Many people get convinced through communication with store managers or salespersons and purchase products. Product presentation in the retail industry is aimed at creating a consumer-friendly environment. Based on these factors, store and brand owners concentrate extensively on the display of different products.

Further, a noticeable growth across the retail industry is projected to contribute to the growth opportunities for point of purchase packaging solution providers with an increased requirement for effective marketing strategies.

Report Attributes	Details
Market Size (2023)	US$ 16.6 Billion
Expected Market Value (2033)	US$ 31.5 Billion
Projected Growth Rate of Market (2023-2033)	6.6% CAGR
Canada Market Growth Rate (2023-2033)	5.1% CAGR
Germany Market Growth Rate (2023-2033)	4.6%
Key Companies Profiled	Creative Displays Now DS Smith Fellbro, Inc. WestRock Company Swisstribe Marketing Alliance Group International Paper Hawver Display

Why is Demand for Point-of-Purchase Packaging Services Increasing Rapidly?

“Rising Demand for Various Consumer Goods Aiding Market Progress”

The market for point-of-purchase packaging is estimated to expand at a noticeable speed owing to the growing demand for different consumer goods, especially across emerging economies. In addition, the rising population and increasing demand from food & beverages and personal care sectors are projected to supplement growth avenues in the global market.

The increasing inclination of people towards beauty products along with the introduction of numerous innovative products for personal care at competitive prices by industry players is estimated to augment growth opportunities in the global market.

Other factors that are likely to influence demand for packaging products include increasing disposable income and penetration of organized retail stores. In addition, improvement in the lifestyle of people is also expected to impact sales of industrial products.

“Emergence of Customized Point-of-Purchase Packaging Solutions”

The point-of-purchase services provide customized and specific target marketing. The messages for marketing can be modified as per the region or store and according to consumer preferences. Moreover, the effectiveness of point-of-purchase packaging for the consumer, region, and store segment is comparatively easier if compared to the effectiveness of television and some other advertisement strategies.

The units of point of purchase are effective channels and these are adopted at an increased rate due to their properties for instance reusability. In addition, increasing emphasis to optimize marketing techniques based on competition is also predicted to impact market growth.

The growing use of recyclability material for the production of these packaging solutions further targets people who are inclined to use environment-friendly products. These factors are anticipated to boost demand for these products and thus drive market growth.

What Can Dent Market Growth Prospects to Some Extent?

“Rising e-Commerce Sector can Limit Market Growth Opportunities”

In recent years, the e-Commerce market is growing at a noticeable speed that can further restrict the adoption of point-of-purchase packaging solutions. In addition, increasing operation costs of these packaging solutions might impede market growth.

Moreover, the lack of awareness about point-of-purchase packaging solutions can challenge growth impetuses in the global market.

Why does North America Dominate the Global Market?

“Rapidly Growing Personal Care Sector in North America”

Among the regional markets, the market in North America is likely to hold a dominating position across the globe due to the rising regional population and changing consumer preferences. In addition, rapid growth in the personal care and food & beverages sectors is also estimated to bolster market growth.

The presence of established and large retail chains is also predicted to contribute to regional market growth. Moreover, industry players are investing a handsome amount in different marketing campaigns. The increasing requirement for enhanced product presentation is also projected to push growth opportunities in the regional market.

Prominent suppliers in the regional market are concentrating on customized and personalized point-of-purchase packaging solutions to create a noticeable impact on people across the region. These players are taking efforts to enhance brand awareness. Further, packaging solutions also enable companies to differentiate brands and thus offer personalized services.

Country-wise Insights

Why is the Popularity of Point of Purchase Packaging Increasing in Germany?

“Growing Innovation by Industry Players in Germany”

The market in Germany is anticipated to expand at a CAGR of 4.6% because of the increasing geriatric population. This factor has stimulated brand owners and retailers to innovate their advertising displays in the respective space. The motive of this initiative is to bolster the appeal of different products and thus propel the adoption of point-of-purchase displays as advertising and promotional tools.

Which is a Prominent Market for Point of Purchase Packaging in North America?

“Significant Growth in Personal Care and Food & Beverage Sectors in the U.S.”

Sales of point-of-purchase packaging in the U.S. market were more than US$ 3.5 billion by 2022-end. This growth in the market is attributed to the rising population. In addition, significant growth in the personal care and food & beverages sectors is also contributing to market growth.

There is a noticeable change in the preference of consumers for packaging solutions that can also drive market growth.

The Canadian market is anticipated to advance at a CAGR of 5.1% through 2033.

How Can Japan Provide Lucrative Opportunities for Industry Players?

“Adoption of Western Lifestyle Driving Demand for These Packaging Solutions”

The market in Japan is predicted to progress at a CAGR of 3.6% through 2033 due to the rising consumption of fast food there. In addition, the adoption of the western lifestyle by people is also predicted to propel the demand for industry solutions.

Increased disposable income of Japanese can also stimulate their expenditure capacities. Moreover, players are also expanding their businesses to generate leads.

Category-wise Insights

Why are Paper-Based Point of Purchase Packaging Solutions the Most Popular?

“Increasing Environmental Concerns Driving High Demand for Paper-based Point of Purchase Packaging”

The market is divided into paper, foam, plastic, glass, and others based on material type. Among these, paper-based point-of-purchase packaging solutions are likely to dominate the global market owing to growing environmental concerns. In addition, the ease of customization and affordability can also contribute to increased demand for these products.

Various countries around the world are supporting the use of stringent regulations for the use of non-biodegradable packaging solutions. Industry players are also investing at an increased rate to promote sustainable packaging solutions that can also accelerate market growth.

Brand owners are concentrating to reduce the cost of packaging. Moreover, this differentiation in the global industry has also resulted in the growing adoption of sustainable packaging solutions.

Will Supermarkets/Hypermarkets Continue to Lead Global Market?

“Supermarkets/Hypermarkets Offer Wide Variety of Products”

Based on distribution channels, the market is classified into supermarkets/hypermarkets, departmental stores, and others. Among these, supermarkets/hypermarkets are estimated to dominate the global market as they bridge the gap between customers and manufacturers by offering various products at the same level.

People prefer these stores due to the availability of numerous products and heavy discounts under one single roof. These stores also provide various promotional offers to attract people.

Which Sector is a Key End User of Point of Purchase Packaging Solutions?

“Food & Beverage Industry Accounts for Leading Market Share”

The global market is classified into food & beverages, personal care, pharmaceuticals, electronics, automotive, and others based on application. Among these, the food & beverages industry is projected to account for the largest share of the global market. The industry solutions ensure an economical and simple method to pack multiple food products while influencing sales and providing product information.

Competitive Landscape

Manufacturers of point-of-purchase packaging products are taking efforts to develop eco-friendly and sustainable solutions to generate novel growth opportunities in the global market.

Key players in the point-of-purchase packaging market are Creative Displays Now, DS Smith, Fellbro, Inc., WestRock Company, Swisstribe, Marketing Alliance Group, International Paper, and Hawver Display.

Segmentation of Point of Purchase Packaging Industry Research

• By Material Type :

  • Paper
  • Foam
  • Plastic
  • Glass
  • Other Materials

• By Distribution Channel :

  • Supermarkets/Hypermarkets
  • Departmental Stores
  • Others

• By Application :

  • Food & Beverages
  • Personal Care
  • Pharmaceuticals
  • Electronics
  • Automotive
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa