Point Of Purchase Packaging Market: Growing Need To Sustain Offline Sales & Create Impulse Sale Opportunities
The global point of purchase packaging market is expected to witness significant growth over the forecast period on account of the growing organized retail market in emerging economies. Growing adoption of point of purchase (POP) packaging in organized retail stores including Walmart, D-mart, and Tesco is observed owing to the implementation of structured marketing strategies at these stores.
The presence of multiple marketing channels such as television, digital, & newspaper advertisement as well as billboards are available. However, advertising does not convert a potential customer into a buyer instantly. Moreover, it incurs a hefty share of the marketing budget. On account of the aforementioned factors, marketers and retail owners are always in the search for cost-effective marketing tools. In the retail market, nearly 70% of the buying decisions are made in the store. This indicates that the store environment majorly affects the buying process. As a result, brand & store owners focus extensively on product display.
The growing e-commerce industry is the key driver of the POP packaging market. The E-commerce market is witnessing growth across the world on account of technological advancement and higher consumer adoption rates. A large number of global players including Alibaba, Amazon, Flipkart, and eBay among others are offering their products all over the world. Traditional hypermarket giants such as Walmart, D-mart, and Tesco have also started e-commerce services on account of the growing acceptance of these channels. The declining retail market is expected to adversely affect the POP packaging industry as a reduction in the number of physical stores is likely to result in lesser opportunities for the point of purchase (POP) packaging market in the coming years.
The market is segmented based on product, material, end-use, and application which is further segmented across major regions including North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa.
Based on material, the POP packaging market is segmented into Paper, Foam, Plastic, Glass, and Metal. These materials offer retailers the option of displaying products economically. The paper material segment is expected to grow at a healthy rate owing to the availability of these materials in a variety of shapes and styles to meet the display requirements in retail environments. Packaging foam is a part of the protective packaging category and is used for the packaging/display of a product that requires cushioning. These are usually used in combination with other materials to enhance the overall appeal of retail displays.
Based on product, the market is segmented in to floor display, counter display, pallet display, gravity feed display, sidekick display, dump bin displays, and clip strip displays. Counter displays can be manufactured using materials such as cardboard, metal, and Plexiglas among others. These displays can take the form of acrylic displays, candy racks, glass display cases, hat displays, multi-purpose merchandisers, basket displays, counter easels, paper racks, and greeting card displays among others.
Based on end-use, the POP packaging market is segmented into hypermarket, supermarket, specialty stores, departmental stores, and convenience stores. Hypermarket is a large size, self-service retail store, which combines the products that are sold in departmental stores and supermarkets. Fundamentally, it is a large-size retail facility including full lines of groceries and general merchandise. A supermarket is a large-size, self-service retail store offering a wide variety of food and household merchandise that is organized into departments. It is larger than the specialty and convenience stores and smaller than hypermarket.
Based on application, the POP packaging market is segmented into food & beverages, personal care, pharmaceuticals, electronics, automotive, and others. Floor displays and counter displays are essential in the marketing of food & beverage products. Personal care products are displayed atop counters in retail stores owing to factors such as easy accessibility and increased visibility. In the highly competitive electronics industry, customized POP displays in the form of counter displays and pallets are highly used POP packaging solutions to grab the attention of consumers and make the buying experience appealing for the consumers. Others segment principally includes the packaging/display of products pertaining to industries such as home care and sports & recreation.
The POP packaging industry in Europe is driven by the shift in the demographic transition in regions such as West Europe toward the geriatric population in countries such as Germany and Belgium, which is characterized by the rising number of single households. This has prompted retailers and brand owners to innovate their advertising displays across the retail space to increase the appeal of products for the geriatric population, thereby, increasing the adoption of POP displays as promotional and advertising tools.
The point of purchase packaging market is consolidated and is characterized by the presence of both domestic and international players. The market participants compete principally on the basis of product differentiation and services offered. Key market players include International Paper, Menasha Packaging Company, LLC, Smurfit Kappa Display, DS Smith, Sonoco Products Company, Georgia-Pacific LLC, WestRock Company, Felbro, Inc., and FFR Merchandising. These players dominate the market by offering innovative packaging solutions coupled with rapid expansion on a global scale.
In-depth report on global point of purchase packaging market by Grand View Research:
https://www.grandviewresearch.com/industry-analysis/point-of-purchase-packaging-market