Market Trends of Rigid Bulk Packaging Industry
The Industrial Containers and Drums Segment is Expected to Hold a Significant Share
- Industrial drums are frequently used for transporting and storing hazardous and non-hazardous commodities. They are most commonly used in the chemical, fertilizer, oil, and petroleum industries. One factor supporting the growth of the industrial drum market is the continued expansion of these segments and rising international trade activities over the past 10 years.
- Traditional blue plastic drums are familiar in storage facilities, supermarkets, and warehouses. Many industrial objects fit in blue plastic drums. Food-grade plastic drums are ideal for securely storing and transporting food. Additionally, plastic drums used in the food business should be properly decontaminated and certified as safe before transporting and storing consumables over an extended period.
- Further, the expanding agricultural industry in the country is anticipated to generate considerable demand for steel drums, particularly in chemicals, food grains, and fertilizer applications within the region. According to the International Grains Council (IGC) report published in April 2024, global grain production has consistently increased from 2,227 million metric tons in FY 2020/2021 to 2,301 million metric tons in FY 2023/2024. This rising demand trend is expected to continue during the forecast period, leading to an increased demand for rigid bulk packaging containers and drums.
- One of the most common types of industrial storage is plastic drums. The long-term storage and transportation of large quantities of industrial commodities serve multiple functions and offer numerous advantages. Most plastic drums are blue and made of HDPE (high-density polyethylene), a robust type of plastic that can be molded easily and lasts for many years. Plastic drums come in a variety of sizes, often ranging from 30 to 220 liters.
- Moreover, fiber drums are becoming more prominent in the chemical and fertilizers industry because they improve productivity and reduce expenses. The expansion of fertilizer and chemical traffic between various countries is predicted to accelerate the growth of different industrial drums.
- Further, the rise in the demand for chemicals and petroleum lubricants from various end-user industries and a significant focus on strengthening the supply chain capability is expected to drive the need for industrial steel drums. According to InfralineEnergy, India is the second-largest lubricant consumer in the region and the third-largest globally, after the United States and China.
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Asia-Pacific to Hold the Largest Market Share
- The rapidly evolving industrial and manufacturing industry in Asia-Pacific is expected to increase the usage of rigid bulk packaging as manufacturers continue expanding their manufacturing bases to emerging economies like China, India, and Indonesia. China has shown optimistic growth in the production of fiber drums. In terms of value, it has a strong hold over other countries such as Malaysia and Singapore.
- The rising concerns for sophisticated product packaging solutions by local and renowned players have translated into better quality fiber drums. The growing retail industry and the increasing preference for lightweight bulk containers such as recyclable fiber drums are key factors affecting the fiber drums market. The primary benefit of utilizing fiber drums is their recyclability, leading to a positive outlook for the rigid bulk market in Asia-Pacific.
- The Chinese economy maintains a high speed of growth, which has been stimulated by consecutive increases in consumer consumption and capital investment, industrial output, and import and export for over two decades. The demand for industrial packaging in China has followed a similar trend in the past few decades. Also, both production and demand are expected to continue to grow in the next decade, which is expected to support the growth of the industrial packaging market in the country.
- India is the world's top supplier of generic pharmaceuticals, according to the Indian Brand Equity Federation. The Indian pharmaceutical industry supplies more than half of the global demand for vaccines, 40% of the generic demand in the United States, and 25% of all pharmaceuticals in the United Kingdom. Globally, India ranks third in terms of pharmaceutical production by volume and 14th by value. The country's pharmaceutical packaging business will grow as the pharmaceutical industry grows, driving the rigid bulk packaging market in the region.
- Also, the growth of chemical and allied industry exports from Asian countries is driving the demand for rigid bulk packaging products like drums, containers, drums, and pails. Data from the Reserve Bank of India and the Directorate General of Commercial Intelligence reveal that in fiscal year 2023, India exported organic and inorganic chemicals worth over INR 2435.36 billion (USD 29.02 billion). This marked an uptick from the prior fiscal year's valuation of INR 2189.07 billion (USD 26.08 billion). As a result, this surge in chemical exports is poised to strengthen the market during the forecast period.
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