Global Bulk Container Packaging Market - Segmented by Type (Drums, Pails, Material Handling Containers, Bulk Container Liners, RIBC, Flexi Tanks, and FIBC), Industry Verticals (Chemicals and Pharmaceuticals, Food & Beverage, Petroleum and Lubricants, Agricultural and Horticultural Products, and Durable Goods) and Region - Growth, Trends and Forecast (2018 - 2023)
The global bulk container packaging market was valued at USD 3.03 billion in 2017, and is expected to reach a value of USD 5.31 billion by 2023 at a CAGR of 9.81%, over the forecast period (2018 - 2023).The sheer volume of resources and products being transported across the world is a strong indicator of how important the global bulk container packaging market is. Bulk container packages are transported in a range of vehicles, from humongous cargo ships to even super long monster truck trailers. Transportation plays the most crucial role in the supply chain operations, as it allows the movement of goods from the place where it is manufactured, to the place where it is ordered. Globalization generates favorable circumstances by keeping manufacturing bases distant from consumption regions.
Transportation costs are considered the largest part of the total cost, hence there is a rising requirement for more innovative and cost-effective bulk container packaging solutions, to reduce the transportation costs on the whole. Flexible bulk packaging is expected to register a rapid growth than rigid bulk packaging. Improvements in flexible bulk packaging are generally led by film wrap and flexible intermediate bulk containers. Owing to its increased use in securing pallets and various packaging formats during shipment, film wrap is expected to show a positive growth. Correspondingly, the increase in theusage of films for bundling bulk and multipack items in retail settings,for instance in warehouse-style stores, is driving the growth of the market. In rigid bulk packaging, RIBCs and material handling containers are expected to grow at a faster rate, when compared to the established drums and pails.
Increasing Demand in the Oil and Petroleum Industry is Driving the Market
The increased demand in the oil and petroleum industry across the world is a major driver of the global bulk container packaging market. Bulk containers, being reusable and very durable, have a high operational value and incredible cost-efficiency. This, along with the increased trade in the global wine and beverages industry, is driving the global market. However, the highly-volatile costs of raw materials and stringent regulatory policies are significant restraints to the growth of this market. An improved trade relationship among the BRICS nations has had a positive and significant impact on the market for global bulk container packaging.
RIBC Type is the Fastest Growing Segment
Growth of plastic body RIBCs will continue to outrun the average in rigid bulk packaging industry, as plastic body RIBCs are foraying into various bulk packaging applications and is gaining a steady preference over smaller bulk containers. Gains for plastic body RIBCs will reflect the inherent advantages of these containers, including extended reusability, ease of handling, loading, filling, and dispensing, improved space utilization and design features that facilitate loading and unloading, or improve drainage. Higher costs associated with tracking, cleaning, and reuse of RIBCs will be the drawbacks preventing faster growth.
APAC is the Fastest Growing Region withthe Largest Market Share
Asia-Pacific is expected to have the highest growth rate during the forecast period. Although China is a major producer of FIBCs, much of the output has been designated for export markets. Strong gains in manufacturing activity, personal income levels, and consumer expenditures, combined with continued urbanization of the population, will continue to boost the demand for packaged goods in China. Additionally, increased exports of Chinese goods to more advanced consumer economies will create a need for more (quantitatively) and higher-quality packaging. Through 2018, the demand for bulk packaging in China is projected to increase by 8.6% per year and reach more than USD 10 billion, well above both the regional and global averages. All major product types are expected to experience robust gains.
Key Developments in the Market
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