Likewise other industries, COVID 19 also taken a toll on Industrial Bulk Packaging market with around 10.59% decline in 2020 in its revenue as compare to 2019
Industrial bulk packaging protects and secures products and goods to store or ship to consumers. Bulk packaging is typically used at production plants for packaging goods right after they are produced but can be used at different supply chain points.
Industrial bulk packaging is mostly used for products sensitive to external conditions or require highly stable and secure transport. This could mean products that could be hazardous, sensitive or products that contain components that are sensitive to each other.
Global Industrial Bulk Packaging market is expected to witness CAGR of 4.57% during the forecast period. The revenue generated by the global Industrial Bulk Packaging market in 2020 was over USD 20 billion and expected to generate revenue worth USD 30.42 million in 2027. The incremental growth opportunity offered by the global Industrial Bulk Packaging is estimated to be USD 189 billion between 2021 and 2027.
Interesting Facts about Industrial Bulk Packaging Industry
Huge Demand from Chemical Industry
There are lots of different driving factors in the industrial bulk packaging market. The major driving factor is the rising demand for industrial packaging in the chemical and construction industries. Products like chemicals and petroleum are boosting the demand for industrial packaging significantly. The rising trade among countries for different products requires safe and secure packaging over long distances and times, which is also expected to drive the growth of this market.
Advancement in Supply Chains
Manufacturers and companies globally are trying to improve their supply chains completely. This includes trying to reduce logistical costs, costs of raw materials, and improving the overall efficiency of their supply chain. This is expected to drive investments to fuel innovations in this industry, which will be a key factor over the forecasted period.
Intermediate Bulk Containers (IBC) Poised to Play Key Role in Future Growth
Intermediate bulk containers are a key segment in the industrial bulk packaging market that is expected to experience the highest growth over the forecasted time. Intermediate bulk containers, or IBCs for short, are the main kind of packaging used to store and transport materials like oil, gas, chemicals, and petroleum. IBCs have many benefits like multiple uses, large storage capacities, and their usability with various industrial materials and products, all while lowering the overall packaging costs are the reasons behind the expected growth of this industry.
Fluctuations in Raw Materials Prices
The biggest restraining factor in the industrial bulk packaging market is constantly changing prices for raw materials. One of the main materials used in industrial bulk packaging is polypropylene. The main materials used to manufacture polypropylene are naphtha and ethylene, which require crude oil and natural gas to manufacture. This means the costs of raw materials used in the industrial packaging process are very volatile, which can adversely affect this market's growth.
Another crucial factor that may hamper the growth of this market is the rising concerns over recycling and the environmental impacts of plastic globally. Industrial bulk packaging is a major source of plastic found in oceans and landfills worldwide. Governments are working hard to reduce the use of plastic in every way, and new rules and regulations are being placed to promote the manufacture of products in more eco-friendly ways. These factors will play a major role in the industrial bulk packaging market over the forecasted time period.
Use of Environmentally Sustainable Raw Materials
The packaging industry is expected to adopt and switch to using biodegradable and environmentally friendly materials over the forecasted period. There is an increasing demand for reusable, sustainable, and returnable bulk packaging in the industry, and market players are working hard to stop the use of plastic-based products.
Asia Pacific to Dominate the Market
Industrial Bulk Packaging market is dominated by the Asia Pacific with over 30% share in 2020. Strong growth in Asia Pacific is a result of huge industrialization in China, India, South Korea and Japan. Strong growth in share of international trade resulted into growing demand for Industrial Bulk Packaging in the region. AT present, China has become manufacturing hub for chemicals, pharmaceuticals and many other industrial commodities. This in turn fuelling the demand for Industrial Bulk Packaging. While, U.S., Germany, France, UK and Italy are facing sluggish growth.
Likewise other industries, COVID 19 also taken a toll on Industrial Bulk Packaging market with around 10.59% decline in 2020 in its revenue as compare to 2019
Asia Pacific is the largest regional market with highest share in the total volume of Industrial Bulk Packaging consumed in 2020
Ever increasing international trade and strong growth of end-user industries including chemicals and pharmaceuticals
Drums segment dominated the Industrial Bulk Packaging market in 2020 with over 25% share in 2020
Chemicals & petrochemicals was the largest application of Industrial Bulk Packaging in 2020 with over 35% share
Report Attribute | Details |
---|---|
Market Value in 2020 | USD 20.23 Billion |
Market Value in 2027 | USD 30.42 Billion |
CAGR | 4.57% between 2021 and 2027 |
Benchmarking Year | 2020 |
Past data | 2016 – 2019 |
Forecast period | 2021 – 2027 |
Report coverage | Market Size Valuation, Share Analysis and Growth Rate by Segments such as Type and Application, Company Share, Competitive Landscape and Trends Analysis |
Segments covered | Type Drums IBC Pails Totes/ Cracks Others Application Chemicals & Petrochemicals Food & Beverages Pharmaceuticals Others |
Regional scope | North America (U.S., Canada and Mexico), Europe (Russia, Spain, Italy, Germany, France, UK, Poland, Belgium, Netherland, Sweden, Denmark, Austria, etc.), Asia Pacific (India, South Korea, China, Japan, Taiwan, Singapore, Vietnam, Thailand, Indonesia, Malaysia, Australia, etc.), Latin America (Peru, Chile, Colombia, Brazil, Argentina, etc.), Middle East (KSA, UAE, Israel, etc.) & Africa (Egypt, Nigeria, South Africa, East African Community, etc.) |
Major Players Analysed | Cleveland Steel Container, Peninsula Drums, Hoover Ferguson Group, Inc., International Paper, Myers Container, Grief, Time Technoplast Ltd., BWAY Corporation, Composite Containers LLC and Eagle Manufacturing Company |
Portfolio Analysis | All major products and brands are mapped with benchmarking |