Market Research Logo

Rigid Bulk Packaging


Attention: There is an updated edition available for this report.

US demand to reach $6.9 billion in 2017
Demand for rigid bulk packaging is expected to reach $6.9 billion in 2017. Growth will accelerate from the performance of the recession-impacted 2007- 2012 period, and will reflect rebounds in manufacturing output and construction activity. Gains will also be driven by expanded use of larger, higher-value containers that offer enhanced performance and are more cost-effective than smaller types with shorter service lives.

RIBCs to be fastest growing bulk packaging product
RIBCs will be the fastest growing rigid bulk packaging product type through 2017, benefiting from a rebound in chemical production as well as cost and performance advantages over smaller, single-use, or shorter-lived packaging. Although RIBCs have a higher initial cost than other rigid bulk containers, these products offer increased storage space efficiency and longer service lives, allowing large-scale customers to realize significant long-term cost savings. Moderating growth to some degree will be competition from flexible intermediate bulk containers (FIBCs), which are substantially less expensive than RIBCs (although not as long-lasting) and capable of accommodating liquids if used in conjunction with a liner.

Material handling containers will also experience above average gains through 2017, aided by a rebound in durable goods production following declines during the 2007-2012 period. In addition, demand will be supported by increased emphasis on sustainability, which will lead to heightened usage of returnable and reusable containers in the production of durable goods as well as in the food and agriculture industries.

Healthy prospects for plastic drums will be based on advantages of lighter weight and lower cost than steel drums, along with continuing material enhancements, corrosion and impact resistance, and compatibility with most substances other than solvents and other chemicals that can degrade polyethylene. Despite the maturity of steel and fibre drums, drum demand will benefit from an upswing in manufacturing, especially in the chemical industry. Drums will remain a mainstay of the industry as a result of their relatively low cost, reusability, effectiveness in the safe transport of hazardous materials, and appeal to users not seeking to transition to IBCs.

Nondurable goods markets key to overall demand gains
Nondurable goods markets comprised over 80 percent of demand in 2012. Among these markets, chemicals and pharmaceuticals, and plastic, rubber, and fiber will experience the fastest gains through 2017. Advances will be driven by heightened manufacturing activity, especially in significant end markets for chemicals, plastic, rubber, and fiber products, such as motor vehicles and construction products. Increased requirements for these basic materials will result in greater demand for packaging used with bulk quantities.

Opportunities in the food and beverage market will benefit from consumer trends such as growing interest in convenient food preparation, which will support demand for a range of bulk ingredients employed in the manufacturing of such foods. The continued economic expansion will stimulate growth in consumer spending, including spending for food eaten or prepared away from home, boosting demand for drums and pails to ship food manufactured and/or distributed to foodservice venues.


PRESS RELEASE

US Demand for Rigid Bulk Packaging to Reach $7 Billion in 2017

Demand for rigid bulk packaging is forecast to advance 3.9 percent per year to$7.0 billion in 2017, accelerating from the performance of the 2007-2012 period.The improved outlook is based on a recovery in the overall economy, particularly in themotor vehicle and construction markets -- which were the hardest-hit segments duringthe 2007-2009 recession. This recovery will also spur turnarounds in output of chemicalproducts, fabricated metal products, and plastic materials, which will boost demand forrelated bulk packaging. Additionally, gains will be driven by expanded use of larger,higher value containers that offer enhanced performance and are more cost effectivethan smaller containers with shorter term service capability. Moreover, while the longterm trend of outsourcing manufacturing to lower cost regions has lessened the share ofthe US manufacturing sector in the overall economy, the development of abundantnatural gas supplies is expected to fuel increased investment in US chemical productionas well as that of related downstream goods, which will have a positive impact on rigidbulk packaging demand. Plastic accounts for the largest share of material use in rigidbulk packaging, with steel and paperboard also significant. These and other trends arepresented in Rigid Bulk Packaging, a new study from The Freedonia Group, Inc., aCleveland-based industry market research firm.

Rigid intermediate bulk containers (RIBCs) and material handling containers areexpected to experience the fastest growth through 2017. Opportunities for RIBCswill be supported by a rebound in chemical production as well as advantages of costeffectiveness and reusability. Material handling container growth will be driven by anupswing in production of durable goods such as motor vehicles and fabricated metalproducts following declines during the 2007-2012 period. In addition, plastic drums areforecast to log above average gains as a result of advantages over steel drums in terms of cost, weight, and corrosion resistance. However, competition from RIBCs as well asthe entrenched position of steel and fibre drums in certain applications will moderateadvances. Despite the maturity of steel and fibre drums, drums will remain a widelyused rigid bulk packaging type as a result of their relatively low cost, reusability,effectiveness in the safe transport of hazardous materials, and appeal to users notwishing to transition to intermediate bulk containers.

  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table RIGID BULK PACKAGING SUPPLY & DEMAND (million dollars)
  • MARKET ENVIRONMENT
    • General
    • Macroeconomic Outlook
      • Table MACROECONOMIC INDICATORS (billion 2005 dollars)
    • Demographic Trends
      • Table POPULATION & HOUSEHOLDS (million persons)
    • Manufacturing Outlook
      • Table MANUFACTURERS' SHIPMENTS
    • Packaging Industry Overview
      • Table PACKAGING SUPPLY & DEMAND (billion dollars)
      • Paper
      • Plastic
      • Metal
      • Glass & Wood
    • Competitive Bulk Packaging
    • Historical Market Trends
      • Table RIGID BULK PACKAGING MARKET, 2002-2012
    • Pricing Trends
      • Table RIGID BULK PACKAGING PRICES (dollars per unit)
    • Environmental Issues
    • Regulatory Considerations
      • Transport & Handling
      • Other Regulations
    • Foreign Trade
      • Table FOREIGN TRADE IN RIGID BULK PACKAGING (million dollars)
    • International Activity
  • MATERIALS
    • General
      • Table RAW MATERIAL USE IN RIGID BULK PACKAGING
    • Plastic
      • Table PLASTIC USE IN RIGID BULK PACKAGING BY PRODUCT (million pounds)
    • Steel
      • Table STEEL USE IN RIGID BULK PACKAGING BY PRODUCT (million pounds)
    • Paperboard & Wood Panels
      • Table PAPERBOARD & WOOD PANEL USE IN RIGID BULK PACKAGING BY PRODUCT (million pounds)
  • PRODUCTS
    • General
      • Table RIGID BULK PACKAGING DEMAND BY TYPE (million dollars)
    • Drums
      • Table DRUM SHIPMENTS BY TYPE (million units)
      • Steel Drums
        • Table STEEL DRUM SHIPMENTS BY TYPE (million units)
        • Table STEEL DRUM DEMAND BY MARKET (million dollars)
      • Fibre Drums
        • Table FIBRE DRUM SHIPMENTS
        • Table FIBRE DRUM DEMAND BY MARKET (million dollars)
      • Plastic Drums
        • Table PLASTIC DRUM SHIPMENTS
        • Table PLASTIC DRUM DEMAND BY MARKET (million dollars)
    • Pails
      • Table PAIL SHIPMENTS BY TYPE
      • Plastic Pails
        • Table PLASTIC PAIL SHIPMENTS BY TYPE (million units)
        • Table PLASTIC PAIL DEMAND BY MARKET (million dollars)
      • Steel Pails
        • Table STEEL PAIL SHIPMENTS BY TYPE
        • Table STEEL PAIL DEMAND BY MARKET (million dollars)
    • Material Handling Containers
      • Table MATERIAL HANDLING CONTAINER SHIPMENTS BY TYPE (thousand units)
      • Plastic Material Handling Containers
        • Table PLASTIC TOTE SHIPMENTS
        • Table PLASTIC CRATE SHIPMENTS
      • Steel Material Handling Containers
        • Table STEEL MATERIAL HANDLING CONTAINER SHIPMENTS
      • Markets
        • Table MATERIAL HANDLING CONTAINER DEMAND BY MARKET (million dollars)
      • Producers
    • Bulk Boxes
      • Table BULK BOX SHIPMENTS
      • Markets
        • Table BULK BOX DEMAND BY MARKET (million dollars)
      • Producers
    • Rigid Intermediate Bulk Containers
      • Table RIGID INTERMEDIATE BULK CONTAINER SHIPMENTS BY TYPE (thousand units)
      • Plastic Body RIBCs
        • Table PLASTIC BODY RIBC SHIPMENTS
      • Plastic RIBC Producers
      • Metal Body RIBCs
        • Table METAL BODY RIBC SHIPMENTS
      • Metal RIBC Producers
      • Other RIBCs
        • Table OTHER RIBC SHIPMENTS BY TYPE
      • Producers of Other RIBCs
      • Markets
        • Table RIGID INTERMEDIATE BULK CONTAINER DEMAND BY MARKET (million dollars)
  • MARKETS
    • General
      • Table RIGID BULK PACKAGING DEMAND BY MARKET (million dollars)
    • Nondurable Goods
      • Table NONDURABLE GOODS MARKET FOR RIGID BULK PACKAGING (million dollars)
      • Chemicals & Pharmaceuticals
        • Table CHEMICAL & PHARMACEUTICAL PRODUCT SHIPMENTS (billion dollars)
        • Table CHEMICAL & PHARMACEUTICAL PRODUCT MARKET FOR RIGID BULK PACKAGING BY TYPE (million dollars)
        • Table CHEMICAL & PHARMACEUTICAL PRODUCT MARKET FOR RIGID BULK PACKAGING BY CHEMICAL (million dollars)
        • Table INDUSTRIAL CHEMICAL MARKET FOR RIGID BULK PACKAGING (million dollars)
        • Table PHARMACEUTICAL MARKET FOR RIGID BULK PACKAGING (million dollars)
        • Table PAINTS & COATINGS MARKET FOR RIGID BULK PACKAGING (million dollars)
        • Table DETERGENT & CLEANER MARKET FOR RIGID BULK PACKAGING (million dollars)
        • Table AGRICULTURAL CHEMICAL MARKET FOR RIGID BULK PACKAGING (million dollars)
        • Table OTHER CHEMICAL MARKETS FOR RIGID BULK PACKAGING (million dollars)
      • Food & Beverages
        • Table FOOD & BEVERAGE SHIPMENTS (billion dollars)
        • Table FOOD & BEVERAGE MARKET FOR RIGID BULK PACKAGING (million dollars)
      • Plastic, Rubber, & Fiber
        • Table PLASTIC, RUBBER, & FIBER SHIPMENTS (billion dollars)
        • Table PLASTIC, RUBBER, & FIBER MARKET FOR RIGID BULK PACKAGING (million dollars)
      • Petroleum & Lubricants
        • Table PETROLEUM & LUBRICANT PRODUCT SUPPLY & DEMAND
        • Table PETROLEUM & LUBRICANT MARKET FOR RIGID BULK PACKAGING (million dollars)
      • Agricultural & Horticultural Products
        • Table AGRICULTURAL & HORTICULTURAL INDICATORS
        • Table AGRICULTURAL & HORTICULTURAL MARKET FOR RIGID BULK PACKAGING (million dollars)
    • Durable Goods
      • Durable Goods Outlook
        • Table DURABLE GOODS SHIPMENTS (billion dollars)
      • Rigid Bulk Packaging Demand
        • Table DURABLE GOODS MARKET FOR RIGID BULK PACKAGING (million dollars)
    • Other Markets
      • Table OTHER MARKETS FOR RIGID BULK PACKAGING (million dollars)
  • INDUSTRY STRUCTURE
    • General
    • Industry Composition
      • Table US RIGID BULK PACKAGING SALES BY COMPANY, 2012 (million dollars)
    • Market Share
    • Acquisitions & Divestitures
      • Table SELECTED ACQUISITIONS & DIVESTITURES
    • Competitive Strategies
    • Manufacturing & Development
    • Marketing
    • Distribution
    • Cooperative Agreements
      • Table SELECTED COOPERATIVE AGREEMENTS
    • Company Profiles
      • Berenfield Containers Incorporated
      • Berry Plastics Corporation
      • BWAY Corporation
      • Chem-Tainer Industries Incorporated
      • Cleveland Steel Container Corporation
      • Greif Incorporated
      • Hedwin Corporation
      • Hoover Materials Handling Group Incorporated
      • IBC North America Incorporated
      • International Paper Company
      • IPL Incorporated
      • Koch Industries Incorporated
      • Letica Corporation
      • LINPAC Group Limited
      • Longview Fibre Paper and Packaging Incorporated
      • Macro Plastics Incorporated
      • MAUSER AG
      • Menasha Corporation
      • Molded Fiber Glass Companies
      • Myers Container LLC
      • Myers Industries Incorporated
      • Nashville Wire Products Manufacturing Company
      • North American Container Corporation
      • North Coast Container Corporation
      • Norton Packaging Incorporated
      • Packaging Corporation of America
      • Rock-Tenn Company
      • Schoeller Allibert Limited
      • SCHÜTZ GmbH & Company KGaA
      • Sharpsville Container Corporation
      • Snyder Industries Incorporated
      • Sonoco Products Company
    • Additional Companies in the Rigid Bulk Packaging Industry

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report