Market Trends of Europe Rigid Bulk Packaging Industry
Robust Demand from the Food and Beverage Segment Aids the Market Growth
- Europe's bulk rigid packaging market is one of the fastest-growing global markets, driven by the growing needs of end-use industries such as food and beverage industries. As per the EU Food and Drink Industry Report 2022, the European Union is also the world's biggest exporter of food and drink products, with exports amounting to EUR 156 billion (USD 169.71 billion).
- For instance, rapeseed oil dominates in markets like Europe, owing to its abundant production in the regional market and its wide application in the biodiesel, food, and animal feed industries. Germany and France are the leading consumers of rapeseed oil in the regional market.
- Moreover, the utilization of vegetable oil in mechanical industries for making lubricants and oleochemicals, which is a non-food applicant, has a significant share in the global market. The increasing demand for vegetable oils in Europe drives the need for safe bulk packaging mediums.
- Europe is the world's largest wine producer and exporter. The increasing production and consumption of wine in Europe will drive the growth of the European rigid bulk packaging market. The increasing wine production, consumption, and export will lead to an increase in the need for cost-efficient and secure transportation solutions.
- Furthermore, the rigid bulk packaging market is anticipated to benefit from the expanding food & beverage sector, driven by factors such as population growth, higher disposable incomes, and increased consumer spending. Many food items, such as ready-made meals, need multiple ingredients in large amounts, leading to an increased need for sturdy bulk packaging materials.
- Wine producers in Europe use rigid bulk packaging for their wine transportation because it allows for twice the volume of shipment compared to individual unit shipments. According to OIV, Approximately 4.6 million hectoliters of wine were produced in Romania in 2023.
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Germany is Anticipated to Witness a Robust Growth in the Future
- Industries are the backbone of Germany's economy. It is one of the most competitive and innovative industries in the world. Germany's manufacturing industry accounts for around 23% of Gross Value Added (GVA), a level that has remained stable over the past two decades. This is higher than the EU average of 16.2%. Even globally, Germany boasts one of the most robust industrial economies in the world. Its industry contributes more to GDP than that of France, the United Kingdom, or the United States.
- Owing to the increasing market demand, the manufacturers are innovating industrial bulk containers, drums, pails, and other products with varied technological advancements. For instance, in August 2023, a German-based industrial packaging company, Schütz GmbH & Co, announced that it would continue developing and improving its IBC and parts. The packaging specialist would present the CC/FC Breather, an innovative ventilation system specially designed for the IBC series.
- According to Germany Trade and Invest (GTAI), Germany has the largest pharmaceutical market in Europe and the fourth largest globally. One of the main reasons for the growth of the Pharmaceutical market in Germany is the high level of investment in the pharmaceutical sector. Germany has a strong and well-known pharmaceutical sector, with several leading pharmaceutical companies. IBCs and other bulk containers are used extensively in the pharmaceutical industry for storage, transportation, and as in-container blending vessels. The growth in the pharmaceutical industry would proportionately increase the demand for rigid bulk packaging in the country.
- Also, it addresses the increasing issue of plastic waste, which has been a major issue in recent years. Since January 2023, all packaging in Germany was required by law to be recyclable or reusable. The implementation of this law in Germany is taking important steps to reduce waste and safeguard the environment by requiring the use of reusable or recycled packaging. Therefore, rigid bulk packaging manufacturers across the country are considering more recyclable and reusable materials.
- Various initiatives in the food industry undertaken in Germany are expected to strengthen the rigid bulk packaging market growth. According to Statistisches Bundesamt, in 2023, Germany exported milk and dairy products worth around USD 12.95. Such massive exports and import value is expected to create a growth opportunity for the market studied in the region.
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