Reusable Transport Packaging:

State of the Industry Report 2020 Table of Contents

Introduction 3 Reusable Transport Packaging: Global Market Overview 4 Reusable Transport Packaging Market: Demand Factors 8 Government Regulation 9 Public Concern for the Environment 11 Automation 13 Labor Availability 15 Economic Factors 17 Raw Material Availability 19 Transportation 21 2020 State of the Reusable Packaging Industry Survey Results 23 About the Survey 24 Demand for reusable transport packaging products & pooling services, prior 12 months 25 By Material Type 27 By Market Vertical 28 By Product Type 29 Demand for industry service providers, prior 12 months 30 Expected demand for reusable transport packaging products & pooling services, next 12 months 31 By Material Type 33 By Market Vertical 34 By Product Type 35 Expected demand for industry service provider, next 12 months 36 References 38

2 eusable transport packaging is ready for takeoff. Systems of product reuse will not only help to combat some of the planet’s greatest problems today such as climate change, waste, R pollution and natural resource depletions, but reuse will also form the future foundation for lasting economic growth driven by circular principles, innovation and value creation. RPA’s inaugural industry survey supports this optimistic view, as 85% of respondents expect that market demand for reusable transport packaging products and services will increase over the next year.

Responses to the survey took place between February 10 – March 13, 2020. During this period, the extent and depth of the novel coronavirus (COVID-19) impacts were not fully accounted on the respondents’ outlook for reusable transport packaging. With additional time for reflection on how COVID-19 is changing product sourcing, business operations and supply chain distribution, current commercial disruptions may reduce investments in the short term in favor of temporary measures for economic stability. However, lessons being learned from Covid-19, including the needs for supply chain resiliency, digitization and automation, will provide even more reasons to accelerate transformative systems with reusable packaging.

The Reusable Packaging Association is a non-profit trade organization promoting the use and value of reusable packaging systems. Established in 1999, RPA has two decades of experience in advocating reuse models for the transport packaging of goods. Our first State of the Industry Report serves to highlight where we stand today and where we can go tomorrow, collaboratively, for faster results and meaningful changes on how we design and manage packaging for optimal, sustainable performance in the distribution of goods.

Tim Debus President & CEO Reusable Packaging Association

3 Reusable Transport Packaging: Global Market Overview

In 2020, the global packaging market reached an estimated $950 billion in value.1 Approximately $200 billion of this market is considered “transport” or “transit” packaging.2 In this context, “transport” connotes the movement of raw materials, commodities, or finished goods from point of production or processing to point of use in a manufacturing or commercial setting involving a business-to- business item transfer or a business-to-consumer item delivery. Most transport packaging is categorized as tertiary in the distribution of bulk items but may also be considered secondary or, to a lesser extent, primary packaging, depending on other product packaging used.

Of the $200 billion global transport packaging market, roughly half meet the Reusable Packaging Association’s criteria for “reusable” packaging: designed and manufactured with the physical properties to ensure repeated and lasting uses in a system that features their recovery and return for the intended purpose.3 Into the global reusable transport packaging (RTP) market falls a wide variety of products, which together comprises the estimated $100 billion RTP market.

4 and barrels; intermediate bulk containers Rigid Containers, Crates, Global RTP (IBCs); dunnage and cargo protection; Totes, Trays, & Bins Market Size & racks; and carts and dollies. Each type $17.7 billion of RTP plays an important role in adding This category contains mostly handheld Segmentation both economic and environmental value units, some with open tops (no lids), to the supply chains in which they are made from plastic or other durable The global RTP market consists of utilized. Below are definitions of each material. Bins are larger, designed pallets; rigid containers, crates, type of RTP and its estimated global to distribute bulk or heavy products, totes, trays, and bins; plastic-corrugated market size. The 2020 market size of each ranging in size from full, half, or quarter boxes, panels, and sleeves; reusable category was estimated using a variety of pallet dimensions with varying heights. plastic containers (RPCs); tanks, drums, third-party sources.

Global Reusable Transport Packaging Market Value (USD billions)

Carts & Dollies $0.1 Racks $0.3 Pallets Dunnage & Cargo Protection $0.5 Rigid Containers, Crates, Totes, Trays & Bins Plastic-corrugated boxes, panels, and sleeves IBCs RPCs Tanks, Drums, and Barrels) IBCs $3.4 Dunnage & Cargo Protection Tanks, Drums, and Barrels Racks Carts & Dollies $3.8

RPCs $5.3 Pallets $62.3

Plastic-corrugated boxes, $6.7 panels, and sleeves

Rigid Containers, Crates, Totes, Trays & Bins $17.7

5 Trays are handheld packaging units for Foam-based Transport lightweight items or small unit quantities Packaging that typically have a lower profile and an Included in other categories open top and side for access in a stacked High-density, closed-cell foam made arrangement (i.e. bread tray). from extruded polyethylene and polypropylene are used in transport packaging applications such as trays Photo courtesy: Polymer Solutions International and dividers where lightweight material, Pallets $62.3 billion Portable, horizontal, rigid, composite platforms used as a base for assembling, storing, stacking, handling, and Photo courtesy: SSI Schaefer transporting goods as a unit load. Plastic-corrugated Boxes, (MH1-2016 standard). See “What Is a Panels, & Sleeves Pallet?” by Packaging Revolution. This is $6.7 billion Photo courtesy: Worldcell Extrusions the largest RTP segment, including both Plastic-corrugated packaging is pooled and one-way wood transactions, compression strength, insulation and constructed from extruded, twin-wall as all pallets even with varying degrees energy absorption characteristics are plastic sheets made from high-impact of durability are designed for extended desired. polypropylene, polyethylene or other reuse with repair options. plastic resin varieties and formed with a similar makeup to corrugated fiberboard Reusable Plastic Containers in which both upper and lower surfaces (RPCs) $5.3 billion are supported by fluted ribs. Containers that are specifically designed and used for the packing and transport

of perishable food items from farm or Photo courtesy: Schoeller Allibert food processing facilities to retail or food service establishments. Intermediate Bulk Containers (IBCs) $3.4 billion Reusable, multi-use industrial-grade Photo courtesy: Inteplast containers, predominantly mounted on A wide range of sizes and thickness can a pallet or designed for one-piece forklift produce multiple reusable product types use, for the mass handling, transport such as handheld boxes and bulk bins and storage of liquids, bulk solids and from rigid panels and sleeves. Photo courtesy: IFCO Systems powders.

6 Dunnage & Cargo Protection and removal ranging from 16 to 91 $0.5 billion gallons in capacity. Dollies are low, Components used as part or alongside mobile platforms or carts typically with packaging to protect goods and unit four wheels or casters that are used loads during shipment. Dunnage such as to transport heavy items, which are dividers, inserts and fillers can be placed often boxes or containers stacked with congruent dimensions to create a secure

Photo courtesy: Big 3 Precision Products vertical load.

Racks $0.3 billion Vertical structures that consists of several layers in the form of shelving for holding multiple items for moving and transport, often designed with wheels for unit Photo courtesy: Cargo Tuff mobility. inside packaging to separate or secure Photo courtesy: CDF Corporation goods, and dunnage such pallet wraps, straps and airbags can be used on or in Tanks, Drums, & Barrels between pallet units for load securement $3.8 billion Large packaging units, often made from steel, for the holding and transport of Photo courtesy: SSI Schaefer liquids, solids or powders in bulk that typically involve specialized fill and Carts & Dollies discharge technologies. $0.1 billion Industrial, roll-out carts are large Photo courtesy: Green Spider Pallet Wraps mobile bins generally used for trash or residential solid waste collection during movement. Protective reusable dunnage replaces single or limited-use fillers or shrink wrap to pack products or move pallets securely.

Photo courtesy: Georg Utz

7 Reusable Transport Packaging Market: Demand Factors

The global packaging market demand for reusable transport packaging changes based on a wide variety of external factors. To better understand expected demand for reusable transport packaging over the next five years, RPA has identified seven key macro factors expected to have the greatest influence over the market for reusable products and services:

• Government regulation • Public concern for the environment • Automation • Labor availability • Economic drivers • Raw material sourcing • Transportation

In the 2020 State of the Reusable Packaging Industry Survey, respondents were asked for their view on how each factor would impact demand for their company’s reusable transport packaging products and/or related services. In this section, we explore each factor alongside the respondents’ views.

8 Half of survey respondents said regulation will increase demand for reusables

Government Instead, reuse is typically lumped in promoting the circular economy. The Regulation together with recycling in the same goal EU released its new Circular Economy as an alternative to landfill disposal, Action Plan on March 11, 2020. To ensure Historically, government regulations despite universal acknowledgement of that all packaging on the EU market is regarding packaging focused primarily reuse as the preferred waste reduction reusable or recyclable in an economically on matters of product labeling, action. viable way by 2030, the Commission will consumer information disclosures, and target three focus areas. One of them packaged content safety. Government While recycling is an important involves driving design for reuse and oversight of packaging narrowed component of any regulatory framework recyclability of packaging, including depending on the intended function of aimed at landfill diversion, the lack of considering restrictions on the use of the packaging, the material from which policy differentiation between reuse and some packaging materials for certain it was produced, and the industry in recycling makes such regulations less applications where alternative reusable which it was used. More recently, effective by treating waste prevention products or systems are possible. however, increased awareness of the (reuse) activities the same as waste environmental burdens of packaging management (recycling). In other cases, Environmental Action Germany - specifically its contribution to solid narrowly-defined recycling targets may (Deutsche Umwelthilfe, DUH), a non- waste - has accelerated government not “count“ reuse initiatives towards profit, welcomed the Commission’s goal scrutiny and regulatory actions in meeting the recycling targets, effectively to reduce residual waste by 50 percent, countries around the world. penalizing implementation of the more implement mandatory targets for sustainable of the two models. recycled content and restrict unnecessary While some countries have established (over)packaging. However, it cautioned, waste reduction and recycling targets and Packaging regulation the EU must adopt ambitious measures outlined timeframes to achieve them, all in the European Union to promote reuse systems for packaging. have fallen short of enacting legislation The European Commission has long been that meaningfully emphasizes reuse as a a global leader in legislative efforts to more impactful approach over recycling. reduce solid waste, and, more recently,

9 Packaging regulation bans have been successful, including and Yield through Consumer Learning in the United States plastic bags in New York (SB1508), and Education (RECYCLE) Act of 2019. as well as Styrofoam food and drink The latter initiative seems more likely to Unlike the EU, the United States has, containers in Maine, Maryland and pass, albeit being the least likely to create in general, not legislated packaging Washington, D.C. More comprehensive a meaningful reduction in solid waste waste reduction targets. However, bills introduced in California (SB 54 and as a result, to act as a driver toward the introduction of China’s National and AB 1080) during 2019 were aimed the increased usage of reusables and the Sword policy in 2018 has exposed the in part on eliminating 75% of single-use urgently needed shift to circularity. underlying weakness of the United containers by 2030, but both measures States recycling infrastructure. National stalled in the face of opposition. Expected impact on Sword and related actions in Asia to ban the reusable transport recycled scrap material have resulted At the federal level, the proposed packaging industry in a flurry of U.S. legislative activity at legislation includes the ambitious Break the local, state and federal level. See Free From Plastic Pollution Act of 2020, While current regulations may not a summary of recent state and federal and the public education-oriented sufficiently emphasize product reuse initiatives here. Some product-specific Recycling Enhancements to Collection as a means to reduce solid waste, our

Survey Respondents’ Expected Impact of Government Regulation on Demand for Reusable Transport Packaging over the Next Five Years

39% 34%

14%

5% 6% 1%

Very Very positivePositive Slightly Slightly positivePositive NeutralNeutral Slightly Slightly Negativenegative Very Very Negative negative Don't Don’t Knowknow survey respondents indicated they services over the next 5 years?” or “How on demand for reusable packaging. feel government regulation will have a do you expect [government regulation] Another 39% felt government regulation neutral to positive impact on demand in to impact demand for your company’s would have neither a positive nor a the coming years. When asked “How do reusable packaging products and negative impact and 6% were unsure. you expect [government regulation] to services over the next 5 years?” nearly Only 6% believed government regulation impact the reusable packaging industry’s half of respondents felt government would have a negative impact on the demand for your company’s products/ regulation would have a positive impact reusable packaging industry.

10 95% of survey respondents said concern for the environment will increase demand for reusables

Public Concern The same poll found that climate change for the Environment scares 57% of teenagers and makes 52% of them angry, reflected in the Public concern for the environment has emergence of new terms such as “eco- been steadily increasing in recent years, anxiety” and “climate depression” that led by issues such as climate change, are impacting youth. ocean plastic pollution, shoreline littering, and solid waste generation. A It appears the public is even more poll conducted by The Washington Post apprehensive about ocean plastic. When and the Kaiser Family Foundation found given a list of 10 environmental issues protection to eliminate the negative that nearly 8 in 10 Americans believe that to consider, 65% of Americans said impact associated with the creation human activity is fueling climate change. they were either “concerned” or “very and shipping of products that become Almost 40% believe that climate change concerned” about plastics in the ocean, unsaleable due to damage. is a “crisis,” up from less than 25% five compared to 58% for climate change. years ago. For example, research from the Reusables help reduce Stiftung Initiative Mehrweg (SIM) environmental impact of the Fraunhofer Institute IBP (Germany) determined that reusable Reusable packaging plays an important plastic containers (RPCs), a type of role in reducing the environmental impact reusable packaging used to transport associated with packaging and logistics. fresh fruit and vegetables, generate While a reusable packaging item typically approximately 60% fewer greenhouse requires more resources to manufacture gas emissions than disposable transport than a single-use alternative, the former packaging. A thorough life cycle analysis requires fewer resources on a per-use was undertaken for both packaging basis over its useful life, even when the options, including their actual transport energy required for reverse logistics and performance in France, Germany, Italy, washing are included in the calculation. and the Netherlands. Researchers Additionally, reusables result in less solid determined that around 15 tonnes of

waste and provide superior product CO2 equivalent were emitted when RPCs

11 were used to ship 1,000 tonnes of fruit produced 31% less global warming sector, as companies respond to the and vegetables, versus over 37 tonnes of potential (CO2 equivalents) and 86% less demands of their customers. This is most

CO2 equivalent emissions for cardboard solid waste, while requiring 64% less certainly the case with environmental boxes. According to the study, shipments energy and 80% less water, even though concerns, as major consumer packaged of fruit and vegetables in RPCs required the RPCs were washed after every trip goods (CPG) companies and retailers just 3,070 kg of plastic versus 52,200 kg (the production of corrugated board is have made public pledges to reduce of corrugated cardboard for the same very water-intensive). the environmental footprint of their volume of produce shipped. packaging, specifically through the use of Expected impact on recyclable materials. Similarly, a 2017 study by Franklin the reusable transport Associates in the U.S. also identified packaging industry Respondents to our survey indicated reusables as the more sustainable they expect this concern to continue option. It compared RPCs with While public awareness and concern (for to pressure companies to make more corrugated containers for the shipment any issue) often impacts industries by sustainable packaging choices, including of eleven different types of fresh leading to government action, greater - reusable transport packaging. When produce. The study concluded RPCs and faster - impact can be felt in the private asked “How do you expect [public

Survey Respondents’ Expected Impact of Public Concern for the Environment on Demand for Reusable Transport Packaging over the Next Five Years

45%

40%

12%

3% 0% 0%

VeryVery positivePositive Slightly Slightly positivePositive NeutralNeutral Slightly Slightly Negativenegative Very Very Negative negative Don't Don’t Know know concern for the environment] to impact your company’s reusable packaging next five years. 12% felt there would be the reusable packaging industry’s products and services over the next neither a positive nor a negative impact, demand for your company’s products/ 5 years?” an overwhelming 85% of and 3% didn’t know. No respondents services over the next 5 years?” or “How respondents said that public concern for felt concern for the environment would do you expect [public concern for the the environment will positively impact negatively impact the reusable packaging environment] to impact demand for demand for reusable packaging over the industry.

12 Automation 81% of respondents said There is a long-standing relationship between reusable transport packaging automation will increase and automated operating environments. For example, the precision and demand for reusables consistency of packaging design elements and product specifications across reusables has enabled them to be efficiently picked up or retrieved consistent and optimal performance of Packaging selection can by robotic devices for many years in these systems. impact the performance of manufacturing systems such as those automated systems used in the automotive industry. The consistency and durability of design Likewise, the use of dimensionally and application are the attributes of Many automated systems have limited accurate and rigid reusable pallets have reusable packaging which are most tolerance for packaging performance been integral to the smooth operation of important in an automated environment. and specification. For example, a slightly automated storage and retrieval systems The fact that this packaging performance out-of-square pallet or an inadequately for decades. is achieved for every use contributes to stiff pallet might cause it to jam in successful automation. While durable, equipment, as might a container that is And while the symbiotic relationship feature-rich and high-performance susceptible to deformation. Chips from between reusables and automation is packaging can cost more compared to pallets or fiber debris from containers not new, the rapidly increasing adoption single-use disposable packaging, reuse can also compromise the performance of automated storage, handling, and models extending the product value of automation, and in the case of order fulfillment systems for efficiency allow companies to realize a lower food production operations, create a gains is resulting in an increasing overall cost over the reusable product’s sanitation concern. demand for reusables to enable the lifetime. The relationship between autonomous forklifts and pallets also favors reusables. Autonomous forklifts can be compromised by variability in their handling environment, including floor condition and pallet engagement. While human operators can deal with a loose pallet deck board, for example, an autonomous system as of yet does not have that capability. Pallets that exhibit Photo courtesy: Brüel Systems

13 some degree of damage may result in reusable packaging during the design of strength in wet environments such as difficulties for autonomous forklifts in process. As a result, providers have had those found in fresh produce and dairy. achieving a clean fork entry. As such, to create custom packaging solutions to As companies around the world such durable reusable pallets can provide a fit these automated systems, needlessly as SOK (Finland), Mercadona (Spain), reliable handling environment for peak increasing cost. Increasingly, packaging Shufersal (Israel) and Kroger (USA) turn performance. and automation designers are working to automation, RPCs and other reusables collaboratively throughout the process to have become containers of choice. Automation trends minimize solution costs. and reusables Communication - As Industrial Internet Order selection - Automated order of Things (IIoT) applications expand, Currently, several diverse trends are selection systems, such as those automated systems are increasingly strengthening the relationship between employed by Ocado, rely on standardized looking to communicate with packaging. reusables and automation: reusable packaging systems. IoT technologies in reusables can provide cost-effective communication Co-design - In the past, automated system Perishables - Corrugated packaging can be enhancement. engineers have not always considered subject to moisture absorption and loss

Survey Respondents’ Expected Impact of Automation on Demand for Reusable Transport Packaging over the Next Five Years

41% 40%

17%

2% 0% 0%

Very Very Positivepositive Slightly Slightly Positivepositive NeutralNeutral Slightly Slightly Negativenegative Very Very Negativenegative Don't Don’t knowKnow

Expected impact on demand for reusable packaging. When reusable packaging products and the reusable transport asked “How do you expect [automation] services over the next 5 years?” 81% of packaging industry to impact the reusable packaging respondents said that automation will industry’s demand for your company’s positively impact demand for reusable Respondents to our survey indicated products/services over the next 5 years?” packaging. Only 2% felt automation they expect the continued adoption or “How do you expect [automation] would negatively impact demand, and of automated systems to drive higher to impact demand for your company’s the remaining 17% were unsure.

14 53% of survey respondents said labor availability will increase demand for reusables

Photo courtesy: Relogistics Services

Labor Availability the Manpower Group, almost 70% of creating business opportunities. companies reported talent shortages in Prior to the COVID-19 crisis and resulting 2019, up 17% from 2018. Improved employee safety business impacts, the U.S. was in the midst of a very tight labor market. Since To further exacerbate the situation in Overexertion and bodily reaction, January 2018, the number of available material handling-intensive settings such which are injuries “resulting from jobs offered ample opportunities for as distribution or fulfillment centers, excessive physical effort directed at an people looking for work, resulting in absenteeism and turnover are very high. outside source” and may involve lifting, demand for labor exceeding supply in This challenge is compounded by the pulling, pushing, holding and carrying many markets. As of December 2019, practice of locating major distribution activities, are the leading nonfatal injury the unemployment rate remained at facilities in high-demand areas, resulting events involving days away from work, just 3.5%. According to a survey by in higher competition for employees. representing 34% of all such injuries. In the “transportation and warehousing” Reusable packaging can help address sector, where transport packaging is staffing issues in three ways. First, the use commonly handled, represents 12% of reusables can improve worker safety of the total overexertion and bodily and ergonomics, reducing injury and the reaction injuries. Reusables offer many associated loss of work hours. Second, features that promote worker safety, it helps improve the sustainability of which helps make companies that use companies, which has been shown to be reusables more attractive as well as an important consideration for employee helping reduce worker’s compensation recruitment. And finally, reusables can claims. Reusables aid ergonomics help facilitate conversion to automated through product features such as stable systems that will mechanize tasks, handholds and access doors. They reduce labor pressures and transfer also eliminate the need for box cutters worker productivity into other value- required to open corrugate containers Photo courtesy: ID Plastics

15 and promote unit load stability during disposable packaging. Increasingly, a Successful implementation handling and storage. Finally, reusables company’s sustainability profile is a of automated systems generate less debris and packaging factor in both employee and customer waste, reducing the threat of slip and fall retention and engagement. HP Workforce As discussed elsewhere in this report, injuries. reported that 56% of survey responders reusable packaging plays an important believe “ignoring sustainability in the role in enabling material handling Better company-wide workplace is as bad as ignoring diversity automation through such features as environmental reputation and inclusion,” and 40% indicated they dimensional accuracy, superior strength, would search for new employment if resistance to moisture and IoT capability. Reusable packaging is associated with their current company did not engage in Automation helps reduce staffing needs a lower environmental footprint than sustainable business practices. as businesses grow while improving

Survey Respondents’ Expected Impact of Labor Availability on Demand for Reusable Transport Packaging over the Next Five Years

35%

29%

24%

9%

3% 0%

Very Very positivePositive Slightly Slightly Positivepositive NeutralNeutral Slightly Slightly Negative negative Very Very Negative negative Don't Don’t Knowknow workplace conditions for employees next 5 years?” or “How do you expect This survey was conducted before the working with automation. [labor availability] to impact demand impact of the COVID-19 crisis was being for your company’s reusable packaging felt by U.S. businesses. They should be Expected impact on products and services over the next 5 taken to indicate respondents’ belief that the reusable transport years?” 53% of respondents indicated in tight labor markets, such as the one packaging industry labor availability would have a positive the U.S. was experiencing through Q1 impact on demand for reusable of 2020, will have a net positive impact When asked “How do you expect [labor transport packaging. 35% did not feel on demand for reusable transport availability] to impact the reusable labor availability would impact demand packaging. packaging industry’s demand for your either way, 9% felt it would have a company’s products/services over the negative impact, and 3% were unsure.

16 62% of survey respondents said economic factors will increase demand for reusables

Economic Factors Reduced waste management costs - Reusables generate less waste than Reusable packaging provides several single-use packaging, resulting in lower economic benefits that make them a disposal fees and requiring less labor compelling choice versus single-use associated with handling material for options in supply chains where reusables disposal or recycling. can be efficiently retrieved and placed Photo courtesy: Perfect Pallets Improved ergonomics and worker back into service. The economic benefits safety - Reusable packaging eliminates visual appeal and to boost sales. of reusables include: hazardous activities such as box cutting, Additionally, the use of reusables can Packaging material cost reductions - Even as well as the safety risks associated help retailers attain their sustainability though high-performance reusable with staples, exposed nails or packaging goals and improve their brand image. packaging may be more expensive to debris on the floor that can lead to slip Quality improvements - Sturdy reusable produce than disposable packaging, it and fall injuries. Ergonomic handles and packaging has been shown to reduce typically ends up being more economical access doors also help reduce the risk of physical damage to products they per use. injury and enhance productivity during stacking and stocking activities. hold during transit and handling versus expendable packaging, while Facilitating automation - Reusables help container ventilation helps reduced the facilitate automation, which provides cooling time for perishables, increasing economic benefits in terms of productivity freshness and prolonging shelf life. and inventory accuracy gains, as well as When used in food distribution, both of through improved storage space and these features act to reduce food waste. labor utilization. Stable unit loads built with reusables are more easily loaded and unloaded. Retail sales boost - When used at retail, reusable packaging designed for Transportation and storage efficiency - The placement in retail display fixtures, superior design for stacking allows for or modular pallets to promote floor products packed in reusables to more displays, have been proven to create fully cube trailers and improve freight Photo courtesy: Technology Container Corp

17 utilization, and also to increase safe next 5 years?” or “How do you expect This survey was conducted just before stacking height in storage. For example, [economic factors] to impact demand the impact of the COVID-19 crisis was the use of RPCs for the shipment of case- for your company’s reusable packaging being felt by most businesses in the ready meat can improve transportation products and services over the next 5 U.S. and Europe. However, although and storage efficiencies by 25%. years?” 62% of respondents indicated survey responses may not fully reflect economic factors would have a positive the highly unusual economic situation in Expected impact on impact on demand over this period. which many countries around the world the reusable transport But 17% felt economic factors would now find themselves, they still provide packaging industry have a negative impact on demand, the important insight from respondents as highest for any of the seven key factors to reusable packaging’s role in providing When asked “How do you expect investigated. 18% felt economic factors long-term economic value for users. [economic factors] to impact the reusable would not have an impact on demand, packaging industry’s demand for your and another 2% were unsure. company’s products/services over the

Survey Respondents’ Expected Impact of Economic Factors on Demand for Reusable Transport Packaging over the Next Five Years

42%

20% 18% 14%

3% 2%

VeryVery positivePositive Slightly Slightly Positivepositive Neutral Neutral Slightly Slightly Negative negative Very Very Negativenegative Don't Don’t Knowknow

18 Raw Material Availability 54% of survey respondents said raw material availability Reusable packaging is created using a variety of materials, including renewable will have no impact on demand resources, in the case of cellulose-based products, and highly recyclable non- for reusables renewable materials in the case of plastic and metal. As the global population grows and aspires to a higher standard of living, the strain on the earth’s ability consumption is Earth Overshoot Day — to production and consumption to meet the need for nonrenewable the date when humanity’s demands on changes, reach new high-water marks resources is increasing, requiring an nature exceed what analysts estimate for both resource extraction and waste urgent switch to a circular approach to the Earth can regenerate over the entire generation. raw material management. year. Calculated by the Global Footprint Network, the group pegged July 29 as As we shift our emphasis from the linear A report produced by the International Earth Overshoot Day for 2019, the earliest “take, make and trash” supply chain to a Resource Panel (IRP), part of the UN date on record since the Network began circular model that conserves resources, Environment Programme, reported ecological overshoot began tracking in reusable packaging can play a crucial that rising consumption driven by a the early 1970s. role. Because reusables are built to last, growing middle class saw resources they consume fewer raw materials on a extraction increase from 22 billion tons We have no choice but to plan for a world per-use basis than disposable packaging in 1970 to 70 billion tons in 2010. One that will clamor for more resources than over their long service life. When it graphic example of our collective over- ever before, and unless our approach eventually becomes uneconomical to repair, much reusable packaging can be recycled. In fact, most reusable packaging vendors have recycling programs in place whereby they will take back damaged packaging or at least connect the customer with a regional recycling partner.

As a packaging system designed for repeated reuse, reusables avoid the requirement for producing a new Photo courtesy: Kal-Polymers

19 disposable package for each shipment. recycled materials are common in pallets over the next 5 years?” or “How do A reusable container will last dozens or and thick-walled containers. you expect [raw material availability] often hundreds of uses. On a per-trip to impact demand for your company’s basis, reusables require significantly While some plastics are easily recycled, reusable packaging products and services lower levels of resources such as fossil others require extra effort. Ocean-bound over the next 5 years?” more than half of fuel and water. And at the end of their plastics refer to those that do not have respondents did not feel the issue would useful life, reusables can (and almost a ready recycled resin market, and as have much of an impact over the period. always are) recycled to produce new such are at greater risk of ending up in Just over one-third of respondents (35%) reusable packaging products. waterways and oceans. Increasingly, felt raw material availability would have reusable packaging suppliers are a positive impact on demand, 4% felt Recycled content usage developing processes for utilizing such the impact would be negative, and the and utilizing ocean-bound material in their reusable products. remaining 5% were unsure. plastics Expected impact on Aside from minimizing new raw material the reusable transport usage and enjoying high recycling packaging industry rates, reusable packaging production can also utilize a great deal of recycled When asked “How do you expect [raw content. Many plastic containers and material availability] to impact the pallets contain some recycled content reusable packaging industry’s demand ranging up to 100%. High percentages of for your company’s products/services

Survey Respondents’ Expected Impact of Raw Material Availability on Demand for Reusable Transport Packaging over the Next Five Years

54%

26%

9% 4% 5% 0%

Very Very positivePositive Slightly Slightly Positivepositive Neutral Neutral Slightly Slightly Negative negative Very Very Negativenegative Don't Don’t knowKnow

20 Reusable packaging can help make transport more efficient

Transportation

Reusable packaging drives transport Improved load value efficiency in several ways. It can help density In applications such as durable good increase the value density of a freight manufacturing, reusable packaging load through design that allows for It goes without saying that supply chains designers excel at creative solutions that higher stacking or improved part/ can reduce transportation cost on a regularly enable improved part density product density within the conveyance. per-item basis if more product that can in a container. Reusable packaging Also, highly stable unit loads comprised be loaded on a trailer or into an ocean designers also address the value density of reusables can be loaded and container. Reusables help improve the challenge through designing containers unloaded quickly, helping to reduce time value density of loads in several ways. In that best fit the conveyance, such as at the dock. the case of crushable products such as reusable bulk containers designed fresh produce or case-ready meat, for to optimize the utilization of ocean Additionally, reusables can help to example, the superior strength of RPCs containers. maintain product quality, resulting in allows for unit loads to stacked higher fewer delays or costly replacement than would be possible with disposable More efficient loading shipments resulting from product packaging. and unloading damage. Finally, through IoT enabled reusables, updated information about Because reusable handheld containers product condition or events can enable and bulk containers alike create tactical in-transit decisions as well as extremely stable unit loads, they can the collection of cumulative data to help be quickly loaded and unloaded from supply chain participants better optimize trailers, while standard containers can their supply chains. help streamline the receiving verification Photo courtesy: CHEP

21 process. Both of these benefits help potential part shortages, and also the expedite a quicker turnaround of cost of expedited shipments that may be transport vehicles at the dock. needed to replace damaged parts.

Avoiding load damage IoT enabled sensors can claims and expedited optimize transportation replacement shipments Photo courtesy: Polymer Logistics As IoT enabled sensors in reusable Reusables help to improve product packaging continue to gain acceptance, real-time the occurrence of distressed protection and are associated with they promise to help promote further merchandise at a granular level to less product damage than disposable transportation efficiencies. For example, enable a timely response, and through packaging. Regarding transport, the the enhanced accuracy of shipping and data analytics to identify bottlenecks or reduced occurrence of product damage receiving information can help improve other inefficiencies. translates into fewer time-consuming operational efficiency and accuracy. IoT delays during the receiving process, enabled sensors can aid in identifying in

Survey Respondents’ Expected Impact of Transportation on Demand for Reusable Transport Packaging over the Next Five Years

33% 31%

16%

11%

6%

0%

Very Very Positivepositive Slightly Slightly Positivepositive NeutralNeutral Slightly Slightly Negativenegative Very Very Negative negative Don't Don’t Knowknow

Expected impact on company’s products/services over the impact demand during the period. the reusable transport next 5 years?” or “How do you expect Nearly one-third (31%) did not feel the packaging industry [transportation] to impact demand for issue would have much of an impact your company’s reusable packaging over the period, 11% felt the impact When asked “How do you expect products and services over the next 5 would be negative, and 6% were unsure. [transportation] to impact the reusable years?” nearly half (49%) of respondents packaging industry’s demand for your felt transportation would positively

22 2020 State of the Reusable Packaging Industry Survey Results Survey Respondents’ Job Function About the Human Resources Finance 2% 1% Procurement/Buyer 2020 State of 4% Other 6% the Reusable Operations 7% Packaging Engineering 8% Sales/Marketing Industry Survey 47%

General Management 25% The first-ever State of the Reusable Packaging Industry Survey was an online survey conducted between February 10 and March 13, 2020 by the Reusable Survey Respondents’ Role in Their Organization Packaging Association. The survey’s intent was to gather insights into recent reusable transport packaging Other President or industry performance as well as expert 17% CEO predictions for the future growth of the 18% industry and the trends and market VP forces that will shape this growth. 15% Manager 35% Survey respondents included Director manufacturers and poolers of reusable 15% transport packaging products, primary users of these products, and service providers to the reusable transport packaging industry. Within their Survey Respondents’ Role in the organizations, nearly half of respondents Reusable Transport Packaging Industry were in the Sales or Marketing 32% 52 28% function and a quarter were General 47 23% Management. Over one-third were 38 17% Managers, 18% were Presidents or 28 CEOs, 15% were VPs and Directors, and the remaining 17% hold Other titles (Engineer, Analyst, etc.) ManufacturerManufacturer of reusable packagingPooler of reusablePoolerSupplier packaging or Service IndustryProvider for Supplier reusable packagingUser of Primarysystems reusable User packaging 24 Demand for reusable transport packaging products & related services over the prior 12 months

Photo courtesy: Relogistics Services Demand for reusable packaging products said demand had “increased slightly.” and related services have grown over Only 6% of manufacturers and 9% of the past 12 months (Feb/Mar 2019 - poolers reported a significant decrease 66% Feb/Mar 2020) according to 66% of in demand, and another 11% and 15%, of survey survey respondents. Nearly 70% of respectively, reported slight decreases. reusable packaging manufacturers and respondents poolers reported increases in demand, When asked “How has the reusable while closer to 60% of industry service packaging industry’s demand for your said demand providers reported the same. company’s products or services changed compared to 12 months ago?” suppliers for reusable When manufacturers and poolers were and service providers to the reusable transport asked to “Describe the demand for packaging industry likewise reported your company’s reusable packaging an increase in demand over the past packaging products or services today compared to 12 months, with 29% experiencing a 12 months ago,” 22% of manufacturers significant increase and 32% reporting products and and 21% of poolers indicated demand a slight increase. Only 7% reported a services has had “increased significantly,” while significant decrease, and 14% a slight 47% of respondents in each group decrease. increased Responses by Role in the over the past Reusable Transport Packaging Industry 12 months. 22% Increased 21% significantly 29% Increased 47% slightly 47% 32% 11% No change 9% 18% 11% Decreased 15% slightly 14% 6% Decreased 9% significantly 7% Manufacturer 3% Pooler Don’t know 0% 0% Industry Supplier

26 Prior 12-month demand for manufacturers & poolers of reusable transport packaging, by material type

Woven To analyze the impact of the material were visible between material types: categories also reported decreases used to manufacture reusable packaging a high of 83% of respondents in the during the period, indicating a variance on the prior 12 months’ demand,Composite results “wood” category reported increases over of demand changes for plastic products were segmented by response to the the period, the most of any material in the past year. question, “Approximately what % ofWoven your category. Demand for woven products was company’s reusable packaging is madeFoam from the following materials...” and The “rigid plastic” and “metal” categories similarly variable, as half of respondents Composite grouped by dominant material type. had the next highest number of indicated increases, a quarter decreases,

WovenMetal responses indicating increases, with 68% and a quarter were unsure. Respondents No less than 50% of respondents in any and 67%, respectively, and 23% of those in both the “foam” and “composite” Foam category of material reported increases increases were significant for the “rigid categories unanimously reported slight in demand over the last 12 Composite months.Wood plastic” category. Interestingly, 25-30% increases. However, differences in stated demand of respondents in each of the plastics Metal Woven

Flexible plasticFoam Manufacturer & Pooler Responses by Dominant Product Material Type Wood Composite

Rigid plasticMetal Rigid plastic Woven 23 45 8 20 5

Flexible Flexible plasticplasticFoam 0% 8 10% 20% 30%46 40% 50% 60% 15 70% 8 80% 2390% 100%

Wood Wood Composite 17 67 17

Rigid plastic Metal Metal Woven 67 33

Flexible Foam plasticFoam 0% 10% 20% 30% 40% 10050% 60% 70% 80% 90% 100%

Wood CompositeComposite 100

Rigid plastic Metal Woven Woven 25 25 25 25

Flexible plasticFoam 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Wood IncreasedComposite significantly Increased slightly No change

RigidDecreased plastic slightly Decreased significantly Don’t know Metal

Flexible plasticFoam 0% 10% 20% 30% 2740% 50% 60% 70% 80% 90% 100%

Wood

Rigid plastic Metal

Flexible plastic 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Wood

Rigid plastic

Flexible plastic 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rigid plastic

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Prior 12-month demand for manufacturers & poolers of reusable transport packaging, by market vertical

Mail & Parcel

To analyze the impact of different Consumer Goods (FMCG) and Mail & respondents reported increases, but customer verticals’ demand forHealth/Phar reusable Parcel industries reported increased 24% stated decreases over the period. ma packaging over the prior 12 months, demand over the prior 12-month period. 57% of Retail and Wholesale focused Mail & results were segmented by responseParcel to 80% of Healthcare/Pharmaceutical respondents reported increases, and the question, “Approximately whatIndustrial % respondents also stated increases, while 21% decreases. For manufacturers and of your company’s reusable packaging the remaining 20% indicated decreases. poolers mainly serving the Automotive Health/Phar revenue comes from customers ma in the 67% of Industrial-focused respondents industry, demand for the prior 12 Retail or Mail & following industries...” and groupedWholesale by reported increases, and only 17% months appears to have been mixed, Parcel dominant customer vertical served. indicated decreases. as 50% indicated an increase and 38% a Industrial decrease. 100% of respondents from manufacturersHealth/PharFMCG Food & Beverage-focused respondents ma and poolers focused on the Fast-moving were slightly less positive, as 67% of Retail or Mail & Wholesale Parcel

F&B ManufacturerIndustrial & Pooler Responses by Dominant Market Vertical

Health/PharFMCG ma

AutomotiveRetail or Automotive Mail & Wholesale 50 13 13 25 Parcel

F&B Food & BeverageIndustrial 0% 10 10% 20% 30% 5740% 50% 60% 70%10 80%10 90% 14 100%

FMCG Health/PharFMCG ma 50 50

Retail/WholesaleAutomotiveRetailMail or & WholesaleParcel 36 21 14 21 7

F&B Industrial Industrial 0% 1710% 20% 30% 40% 50 50% 60% 70% 17 80% 90% 17 100%

Health/PharFMCG Healthcare/Pharmama 40 40 20

AutomotiveRetail or Mail & Wholesale Mail & Parcel Parcel 100

F&B Industrial 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

IncreasedHealth/PharFMCG significantly Increased slightly No change ma Decreased slightly Decreased significantly Don’t know AutomotiveRetail or Wholesale

F&B Industrial 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FMCG 28

AutomotiveRetail or Wholesale

F&B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FMCG

Automotive

F&B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Automotive

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Dollies and other mobile platforms

Q14: Carts

Q14: Dollies and other mobile platforms

Q14: Racks

Q14: Carts

Q14: Dollies and otherQ14: mobileCargo protection platforms

Q14: Racks

Q14: DunnageQ14: inserts Carts

Q14: Cargo protection Q14:Prior Dollies and12-month other mobile platforms demand for manufacturers & poolers Q14: Drums, Barrels, and/orQ14: TanksRacks

of reusableQ14: Dunnage transportQ14: inserts Carts packaging, by product type Q14: Intermediate Bulk Containers (IBCs) Q14: Dollies and otherQ14: mobileCargo protection platforms

Q14: Drums, Barrels, and/orQ14: TanksRacks To analyze the impact of the typeQ14: of PalletsMore than 75% of respondents from and sleeves; Reusable plastic containers Q14: DunnageQ14: inserts Carts reusable transport packaging on the manufacturers and poolers of rigid (RPCs); Intermediate Bulk Containers Q14: Intermediate Bulk Containers (IBCs) priorQ14: 12 months’ Dollies demand,and otherQ14: results mobileCargo were protection platforms containers/crates/totes and pallets (IBCs); Cargo protection; and Dollies and Q14: Reusable plastic containers (RPCs) segmentedQ14: by response Drums, to Barrels, the question, and/orQ14: TanksRacksreported increased demand over the other mobile platforms stated increased “Which of the following types of reusable prior 12 months, and only 14% and 18% demand over the period. Between 60- Q14: DunnageQ14: Palletsinserts packaging does your company sell or rentQ14: Cartsindicated decreases, respectively. 65% of respondents from Foam-based Q14: Foam-based transport packaging products (checkQ14: all Intermediate that apply)...” Q14:andBulk grouped ContainersCargo protection by (IBCs) transport packaging products, Dunnage, product type selection. Two-thirds or more of respondents Carts, and Racks reported increases. Q14: Q14:Reusable Drums, plastic Barrels, containers and/or (RPCs) Tanks Q14: Racksfrom Plastic-corrugated boxes, panels Q14: Plastic-corrugated boxes, panels and sleeves Q14: DunnageQ14: Palletsinserts Q14: Dollies and otherManufacturer mobile platforms & Pooler Responses by Dominant Product Type Q14: Foam-based transport packaging products Q14: Intermediate Q14:Bulk ContainersCargo protection (IBCs) Q14:Rigid Q14:Reusable containers/crates/totes Rigid plastic containers/crates/totes containers (RPCs) 17 63 66 89 66 Q14: Drums, Barrels, and/orQ14: TanksCarts Q14: Plastic-corrugatedPlastic-corrugated boxes, boxes, panels panels, and & sleeves sleeves Q14: DunnageQ14: Palletsinserts 69 69 1515 88 8 8 Q14: Dollies and other mobile platforms 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-basedFoam-based transport transport packaging packaging products products Q14: Intermediate Bulk ContainersQ14: (IBCs)Racks 63 61 13 13 13 13 13 Q14:Reusable Q14:Reusable Rigidplastic plastic containers/crates/totes containers containers (RPCs) (RPCs) Q14: Drums, Barrels, and/orQ14: TanksCarts 12 54 54 10 10 17 7 7 Q14: Plastic-corrugatedPallets boxes, panels Q14:and sleeves Pallets 28 27 48 48 6 15 15 3 3 Q14: Dollies and otherQ14: mobileCargo protection platforms 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-based transport packaging products Q14:Intermediate Intermediate Bulk Bulk Containers Containers (IBCs)Q14: (IBCs)Racks 69 69 8 15 15 88 Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs) Dunnage inserts Q14: DunnageQ14: inserts Carts 64 64 9 9 18 Q14: Plastic-corrugated boxes, panels and sleeves Q14: CargoQ14: protection Pallets Q14:Cargo Dollies protection and other mobile platforms 0% 10% 3320% 30% 40% 50% 3333 60% 70% 80% 33 3390% 100% Q14: Foam-based transport packaging products RacksQ14: Drums, Barrels, and/orQ14: TanksRacks 60 60 2020 10 10 Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs) Carts Q14: DunnageQ14: inserts Carts 63 25 25 13 Q14: Plastic-corrugated boxes, panels and sleeves Q14: Intermediate Q14:Bulk ContainersCargo protection (IBCs) Q14:Dollies Dollies & other and mobile other platformsmobile platforms 0% 7 10% 20% 30% 60 60 40% 50% 60% 70% 13 80% 1390% 100%7 Q14: Foam-based transport packaging products Q14: Drums, Barrels, and/orQ14: TanksRacks Increased significantly Increased slightly No change Q14: Rigid containers/crates/totesQ14: Pallets Q14: DunnageQ14: inserts Carts Decreased slightly Decreased significantly Don’t know Q14: Plastic-corrugatedQ14: Intermediate boxes, Bulk panels Containers and sleeves (IBCs) Q14: Cargo protection 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Reusable plastic containers (RPCs) 29 Q14: Drums, Barrels, and/orQ14: TanksRacks Q14: Rigid containers/crates/totes Q14: DunnageQ14: Palletsinserts Q14: Foam-based transport packaging products Q14: Intermediate Q14:Bulk ContainersCargo protection (IBCs) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Q14:Reusable Drums, plastic Barrels, containers and/or (RPCs) Tanks Q14: Plastic-corrugated boxes, panels and sleeves Q14: DunnageQ14: Palletsinserts

Q14: Foam-basedQ14: Intermediate transport Bulk packaging Containers products (IBCs) Q14: Rigid containers/crates/totes Q14: Q14:Reusable Drums, plastic Barrels, containers and/or (RPCs) Tanks

Q14: Plastic-corrugated boxes, panels Q14:and sleeves Pallets 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-basedQ14: Intermediate transport Bulk packaging Containers products (IBCs)

Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs)

Q14: Plastic-corrugated boxes, panels Q14:and sleeves Pallets 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-based transport packaging products

Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs)

Q14: Plastic-corrugated boxes, panels and sleeves 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-based transport packaging products

Q14: Rigid containers/crates/totes

Q14: Plastic-corrugated boxes, panels and sleeves 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q14: Rigid containers/crates/totes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Prior 12-month demand for reusable transport packaging industry suppliers, by product/service

To analyze demand for various products to this question were then segmented by logistics equipment or services reported and services supplied to the reusable product/service provided to the industry. an increase in demand over the period, transport packaging industry, responses though 22% of respondents providing from respondents who identified 100% of respondents providing raw transportation and logistics reported themselves as a “supplier or service materials to the industry reported decreased demand, the highest of any provider for reusable packaging systems” increased demand over the prior 12 category. were asked to identify “Which product(s) months, as did 88% of technology Q2: Transportation / logistics equipment or services or service(s) does your company provide equipment or services providers. Only half of washing and sanitizing to reusable packaging systems (check all equipment and services providers Q2: Transportation / logistics equipment or servicesOver two-thirds of respondents providing that apply)...” and “How has the reusable reported increased demand over sortation and return services, asset repair Q2:packaging Transportation industry’sQ2: / logistics Engineering demand equipment for/ design your or services the prior 12-month period, 30% said equipment or services, engineering/ company’s products or services changed demand hadn’t changed, and 20% said Q2: TransportationQ2: / logistics Engineering equipment / design or servicesdesign services, and transportation and compared to 12 months ago?” Responses demand had decreased. Q2: TransportationQ2: / logistics Engineering equipmentQ2: / design Raw or materials services Industry Supplier Responses by Dominant Product or Service Type Q2: TransportationQ2: / logistics Engineering equipmentQ2: / design Raw or materials services

Q2: TransportationTransportation/logisticsQ2: TechnologyQ2: / logistics Engineering equipment Q2:equipment/svcs / design Raw or materials services 22 44 11 22

Engineering/designQ2: TechnologyQ2: Engineering equipmentservicesQ2: / design Raw or materials services 33 33 22 11

RawQ2:Q2: materials AssetTechnologyQ2: Engineeringrepair equipmentQ2: / design Raw or materials services 100

TechnologyQ2:Q2: AssetTechnology equipment repair equipment orQ2: services Raw or materials services 50 38 13

AssetQ2:Q2: repair AssetTechnologyQ2: equipment Sortationrepair equipment and Q2:or servicesreturn Raw or materials services 29 43 14 14

SortationQ2:Q2: AssetTechnologyQ2: and Sortationrepair return equipment services and return or services 18 55 18 9

Q2: WashingWashing/sanitizingQ2:Q2: AssetTechnology /Q2: sanitizing Sortationrepair equipmentequipment and return oror servicesservices 10 40 30 20

Q2: WashingQ2: Asset /Q2: sanitizing Sortationrepair equipment and return or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increased significantly Increased slightly No change Q2: WashingQ2: Asset /Q2: sanitizing Sortationrepair equipment and return or services Decreased slightly 0% 10%Decreased20% 30% significantly40% 50% Don’t60% know70% 80% 90% 100% Q2: Washing /Q2: sanitizing Sortation equipment and return or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q2: Washing /Q2: sanitizing Sortation equipment and return or services 0% 10% 20%30 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing / sanitizing equipment or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing / sanitizing equipment or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Expected demand for reusable transport packaging products & related services over the next 12 months

Photo courtesy: Brüel Systems Demand for reusable transport and 3% of poolers expect demand to packaging products and related services decrease in the coming year. is expected to grow over the next 12 For their part, when asked, “How do you 85% months (Feb/Mar 2020 - Feb/Mar 2021) according to 85% of survey respondents. expect the reusable packaging industry’s expect demand demand for your company’s products When manufacturers and poolers were or services to change in the next 12 for reusable asked, “How do you expect demand months?” industry service providers also for your company’s reusable packaging overwhelmingly felt demand for their transport products or services to change in the products and services would increase, packaging next 12 months?” 81% of manufacturers and 43% thought that demand would and 91% of poolers said they expect be significant. Only 4% of respondents products, and demand for their company’s products in this category felt demand would and services to increase; 28% and 47%, decrease over the coming year, and 11% services to respectively, expect those increases to predict there will not be much change. be significant. Only 6% of manufacturers increase over the next 12 months. Responses by Role in the Reusable Transport Packaging Industry

28% Increase 47% significantly 43% Increase 53% slightly 44% 39% 8% No change 6% 11% 6% Decrease 3% slightly 4% 0% Decrease 0% significantly 0% Manufacturer 6% Pooler Don’t know 0% 4% Industry Supplier

32 12-month demand expectations for manufacturers & poolers of reusable transport packaging, by material type

Woven To analyze the impact of the material With the exception of respondents The rigid and flexible plastic categories used to manufacture reusable packaging whose company mainly produces foam- were the only two in which any on expected demand for Compositereusable based reusable packaging, over 80% of respondents expected decreases in packaging during the next 12 months,Woven respondents representing all material demand during the next 12 months, as results were segmented by response to types expect increased demand for 3% and 8% of participants responded the question, “Approximately whatFoam % of their products in the next 12 months that way, respectively. 50% of foam- your company’s reusable packagingComposite is (only 50% of foam-based packaging based product respondents felt there made from the following materials...” respondents expected an increase in would be no change in demand, and grouped by dominant materialWovenMetal type. demand). Notably, 100% of respondents as did 17% of wood-based product

Responses overwhelmingly indicateFoam representing majority composite- and respondents and 8% of both rigid- and market expectations for growth in the woven-based reusable packaging plastic-based product respondents. CompositeWood coming year. products expect an increase in demand.

WovenMetal

Flexible Foam plastic Manufacturer & Pooler Responses by Dominant Product Material Type CompositeWood

Rigid plasticRigidWoven plasticMetal 33 55 8 3 3

Flexible Flexible plasticplasticFoam 0% 10% 20% 5430% 40% 50% 60% 70%31 80% 90%8 8100%

Wood CompositeWood 33 50 17

Metal RigidWoven plasticMetal 100

Flexible Foam plastic Foam 0% 10% 20% 50 30% 40% 50% 60% 70% 5080% 90% 100%

CompositeCompositeWood 100

Woven RigidWoven plasticMetal 100

Flexible plasticFoam 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increased significantly Increased slightly No change CompositeWood Decreased slightly Decreased significantly Don’t know Rigid plasticMetal

Flexible plasticFoam 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Wood 33

Rigid plasticMetal

Flexible plastic 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Wood

Rigid plastic

Flexible plastic 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rigid plastic

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 12-month demand expectations for manufacturers & poolers of reusable transport packaging, by market vertical

Mail

To analyze the impact of Health different Regardless of the dominant market (FMCG) industries reported expecting customer verticals’ on expected vertical served, respondents increased demand for their reusable Mail demand for reusable packaging overwhelmingly expected increased packaging products and services.

during the next 12 months,Industrial results demand for their companies’ reusable 90% of Food & Beverage- and 88% were segmented by response to the transport packaging products and of Automotive-focused respondents Health question, “Approximately what % of your services in the coming year. also expected increases, as did 83% Retail/Whol Mail company’s reusable packaging erevenue of Industrial- and 79% of Retail & comes from customers in the following 100% of respondents representing Wholesale-focused respondents. Only Industrial industries...” and grouped by dominant companies primarily focused on the Mail Industrial-focused participants reported market vertical served. HealthFMCG & Parcel, Healthcare & Pharmaceutical, expecting any decreases, with 17% and Fast Moving Consumer Goods Retail/Whol responding this way. Mail e

IndustrialF&B Manufacturer & Pooler Responses by Dominant Market Vertical

HealthFMCG

Retail/Whol AutomotiveMail Automotivee 25 63 13

Food & BeverageIndustrialF&B 38 52 5 5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FMCG HealthFMCG 50 50

Retail/Whol AutomotiveMail Retail/Wholesalee 43 36 14 7

IndustrialIndustrialF&B 17 67 17 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Healthcare/PharmaHealthFMCG 1 60 40

Retail/Whol AutomotiveMail Mail & Parcele 100

IndustrialF&B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increased significantly Increased slightly No change HealthFMCG Decreased slightly Decreased significantly Don’t know Retail/Whol Automotive e

IndustrialF&B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FMCG 34

Retail/Whol Automotive e

F&B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FMCG

Automotive

F&B 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Automotive

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Dollies and other mobile platforms

Q14: Carts

Q14: Dollies and other mobile platforms

Q14: Racks

Q14: Carts

Q14: Dollies and otherQ14: mobileCargo protection platforms

Q14: Racks

Q14: DunnageQ14: inserts Carts

Q14: Dollies and otherQ14: mobileCargo protection platforms 12-monthQ14: Drums, demand Barrels, and/orQ14: expectations TanksRacks for manufacturers & poolers Q14: Dunnage inserts of reusableQ14: transport Carts packaging, by product type Q14:Q14: Intermediate Dollies and other Q14:Bulk mobileContainersCargo protection platforms (IBCs)

Q14: Drums, Barrels, and/orQ14: TanksRacks

Q14: DunnageQ14:Q14: Palletsinserts Carts To analyze the impact of the type company sell or rent (check all that reported expecting increased demand Q14: Intermediate Bulk Containers (IBCs) ofQ14: reusable Dollies andtransport otherQ14: mobile Cargopackaging protection platforms apply)...” and grouped by product type over the next year; between 63- onQ14: expected Q14:Reusable Drums, demand plastic Barrels, containersfor and/orreusableQ14: (RPCs) TanksRacks selection. 75% of the remaining product types’ packaging during the next 12 months, respondents felt the same. Cargo Q14: DunnageQ14: Palletsinserts results were segmented by responseQ14: to CartsOver 80% of respondents representing Protection respondents had the largest Q14: Foam-basedQ14:the question, Intermediate transport “Which Q14:Bulk ofpackaging theContainersCargo following protection products (IBCs) companies focused on Rigid Containers/ share (33%) expecting a decrease over Crates/Totes, RPCs, IBCs, and pallets typesQ14: of Reusable reusable plasticpackaging containers does your (RPCs) the same period. Q14: Drums, Barrels, and/orQ14: TanksRacks Q14: Plastic-corrugated boxes, panels and sleeves Q14: Dollies and otherQ14: mobile ManufacturerDunnageQ14: platforms Palletsinserts & Pooler Responses by Dominant Product Type Q14: Foam-based transport packaging products Q14: Intermediate Q14:Bulk ContainersCargo protection (IBCs) Rigid containers/crates/totesQ14: Rigid containers/crates/totes 29 60 6 3 3 Q14: Q14:Reusable Drums, plastic Barrels, containers and/orQ14: (RPCs) TanksCarts Q14: Plastic-corrugated boxes, panels and sleeves Plastic-corrugated boxes,Q14: panels, DunnageQ14: & sleeves Palletsinserts 15 54 8 15 8 Q14: Dollies and other mobile platforms 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-basedQ14:Foam-based Intermediate transport Bulk packaging packaging Containers productsQ14: products (IBCs)Racks 13 50 13 13 13

ReusableQ14: Q14:Reusable plastic Rigid containers plastic containers/crates/totes containers (RPCs) (RPCs) Q14: Drums, Barrels, and/orQ14: TanksCarts 32 54 10 2 2

Q14: Plastic-corrugatedPallets boxes,Q14: panels Cargo Q14:and protection sleeves Pallets 39 45 9 3 3 Q14: Dollies and other mobile platforms 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-based transport packaging products Q14:Intermediate Intermediate Bulk Containers Bulk Containers (IBCs)Q14: (IBCs)Racks 23 62 8 8 Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs) Dunnage inserts Q14: DunnageQ14: inserts Carts 27 55 9 9 Q14: Plastic-corrugated boxes, panels and sleeves Cargo protection Q14: CargoQ14: protection Pallets Q14: Dollies and other mobile platforms 0% 10% 20% 30% 67 40% 50% 60% 70% 80% 33 90% 100% Q14: Foam-based transport packaging products Racks Q14: Drums, Barrels, and/orQ14: TanksRacks 10 70 10 10 Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs) Carts Q14: DunnageQ14: inserts Carts 13 63 13 13 Q14: Plastic-corrugated boxes, panels and sleeves Q14: Intermediate Q14:Bulk ContainersCargo protection (IBCs) DolliesQ14: Dollies& other mobileand other platforms mobile platforms 0% 10% 20 20% 30% 40% 50%60 60% 70% 80% 7 90% 7 7100% Q14: Foam-based transport packaging products Q14: Drums, Barrels, and/orQ14: TanksRacks Q14: Rigid containers/crates/totesIncrease significantly Increase slightly No change Q14: DunnageQ14:Q14: Palletsinserts Carts Decrease slightly Decrease significantly Don’t know Q14: Plastic-corrugated boxes, panels and sleeves Q14: Intermediate Q14:Bulk ContainersCargo protection (IBCs) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Q14:Reusable Drums, plastic Barrels, containers and/orQ14: (RPCs) TanksRacks 35 Q14: Rigid containers/crates/totes Q14: DunnageQ14: Palletsinserts

Q14: Foam-basedQ14: Intermediate transport Q14:Bulk packaging ContainersCargo protection products (IBCs) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Q14:Reusable Drums, plastic Barrels, containers and/or (RPCs) Tanks

Q14: Plastic-corrugated boxes,Q14: panels Dunnage Q14:and sleeves Palletsinserts

Q14: Foam-basedQ14: Intermediate transport Bulk packaging Containers products (IBCs)

Q14: Q14:Reusable RigidDrums, plastic containers/crates/totes Barrels, containers and/or (RPCs) Tanks

Q14: Plastic-corrugated boxes, panels Q14:and sleeves Pallets 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-basedQ14: Intermediate transport Bulk packaging Containers products (IBCs)

Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs)

Q14: Plastic-corrugated boxes, panels Q14:and sleeves Pallets 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-based transport packaging products

Q14: Q14:Reusable Rigid plastic containers/crates/totes containers (RPCs)

Q14: Plastic-corrugated boxes, panels and sleeves 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q14: Foam-based transport packaging products

Q14: Rigid containers/crates/totes

Q14: Plastic-corrugated boxes, panels and sleeves 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q14: Rigid containers/crates/totes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 12-month demand expectations for reusable transport packaging industry suppliers, by product/service

To analyze demand for various products demand for your company’s products 100% of respondents focused on Raw and services supplied to the reusable or services to change in the next 12 Materials expected significant increases transport packaging industry, responses months?” Responses to this question in the next year, and 71% of Asset Repair from respondents who identified were then segmented by product/ Equipment or Services and 67% of themselves as a “supplier or service service provided to the industry. Transportation/Logistics Equipment or provider for reusable packaging systems” Services agreed. were asked to identify “Which product(s) Regardless of the product or service, or service(s) does your company provide respondents overwhelmingly believed Q2: Transportationto /reusable logistics packaging equipment systems or (check services demand would increase in the coming 12

Q2: Transportationall / that logistics apply)...” equipment and “How or do services you months, as 80% or more of participants expect the reusable packaging industry’s responded in this way. Q2: Transportation / logistics equipment or services Q2: Engineering / design services

Q2: Transportation / logistics equipment or services Q2: Engineering / design services Industry Supplier Responses by Dominant Product or Service Type Q2: TransportationQ2: / logistics Engineering equipment / design or services Q2: Raw materials

Q2: TransportationQ2: / logistics Engineering equipment / design or services Q2: Raw materials Q2: TransportationTransportation/logistics / logistics equipment equipment or services or services 67 22 11 2 Q2: EngineeringQ2: / design Raw materials services Q2: Technology equipment or services

Engineering/designQ2: Engineering servicesQ2: / design Raw materials services 56 33 11 Q2: Technology equipment or services Q2: Engineering / design services Q2: RawTechnology materials equipmentQ2: Raw or materials services 100 Q2: Asset repair equipment or services

Q2: Technology equipmentQ2: Raw or materials services Q2: AssetTechnology repair equipment equipment or services or services 38 63 Q2: Raw materials Q2:Q2: AssetTechnology repair equipment or services AssetQ2: repair Sortation equipment and or return services services 71 29

Q2:Q2: AssetTechnology repair equipment or services SortationQ2: Sortation and return and services return services 55 36 9 Q2: Technology equipment or services Q2: AssetQ2: Sortationrepair equipment and return or services Q2: WashingWashing/sanitizing / sanitizing equipment equipment or services services 40 40 20 Q2: AssetQ2: Sortationrepair equipment and return or services Q2: Washing / sanitizing equipment or services Q2: Asset repair equipment or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing /Q2: sanitizing Sortation equipment and return Increaseor services significantly Increase slightly No change 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing /Q2: sanitizing Sortation equipment and return Decreaseor services slightly Decrease significantly Don’t know 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing /Q2: sanitizing Sortation equipment and return or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing / sanitizing equipment or services 0% 10% 20%36 30% 40% 50% 60% 70% 80% 90% 100% Q2: Washing / sanitizing equipment or services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Appendix

Photo courtesy: Perfect Pallets References

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