Global Rigid Bulk Packaging Market - Segmented by Material (Plastic, Metal, Wood), Type of Packaging (Industrial Bulk Containers, Drums, Boxes), By End-user Industry (Food, Beverage, Industrial), and Geography - Growth, Trends, and Forecast (2018 - 2023)
Trends driving the Rigid Bulk Packaging Market
Over the last few decades, global bulk packaging has received very scant attention compared to consumer packaging. However, recently, governments and organizations across the world have come to realize the importance of safe and sustainable industrial packaging. The growing trend of sustainability buoyed by legislations across various countries has driven the demand for recycling and reusability in industrial packaging. Some of the major drivers contributing to the growth of this market include the emergence of sustainable and recycling packaging materials, steady growth in construction activity and increased demand for food and packaging transport materials across the globe. Further, the greater need to improve logistics costs, bill of materials, and enhance overall efficiency across the supply chain, is expected to drive investments in innovation among the industrial packaging manufacturers over the forecast period. These factors have been buoyed by companies and governments focused on claiming the necessary measures to reduce packaging wastage. These trends are expected to drive the rigid bulk packaging market during the forecast period.
Robust Trade Relations to Drive the Market in United States
The rigid bulk packaging market in the United States is bolstered by the presence of major market players and strong manufacturing industries, such as chemicals, pharmaceutical, food & beverages, and automotive. The country is also the third largest exporter, after China and the European Union, as well as the second largest importer of goods in the world. These good mainly constitute of industrial machinery, medical equipment, petroleum products, and automotive parts and supplies. According to the World Bank, the exports of goods in 2014 accounted for 13.5% of the GDP and reduced to 12.56% in 2015. Though there is a dip in this export growth, the country’s focus on strengthening their trade relations during the forecast period are expected to aid the market growth. The country is known to be the largest producer of nuclear energy accounting for almost 33% of the world’s nuclear power and is focused to continue to sustain its position. This trend has been buoyed by construction of two new reactors with a gross electrical capacity of 2,500 MW. Further, US shale gas production additions accounted for 10 million metric ton (MMT) increase in bulk liquid chemicals in 2016, which have been driven by the continued low natural gas prices in the U.S., which resulted in a significant expansion of methane-based projects. Also, the aim to replace imports from South America, the Black Sea, and the Middle East has driven domestic fertilizer production in the country. All the said factors are expected to strengthen the rigid bulk packaging market in the country.
Industrial Bulk Containers to Witness Fastest Growth
IBC’s are mainly used for the storage and handling of materials in the oil & gas, chemical, and petrochemical sectors. These containers are available in three forms these include flexible, rigid and foldable IBC’s. Further, IBCs ensure product safety and cost effective packaging solutions, as well as helps in down gauging the overall packaging cost owing to its features, like multiple usage, large storage capacity, usability with different industrial products. The need for corrosion resistant and a suitable container for the storage and handling of both hazardous and non-hazardous liquid applications has driven the usage of intermediate bulk containers in the chemicals, pharmaceutical, food & beverage, and oil and lubricants sectors. The IBC market has witnessed a significant growth during the forecast period, owing to the ease in transportation and storage employing these solutions, coupled with the increased import and export of chemicals and oil & gas across various regions. Further, the increased demand for reusability and sustainable packaging has driven the adoption of returnable bulk containers, particularly for exports.
Key Developments in the Market