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Bulk Container Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 119 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4535842
The bulk container packaging market is expected to grow at a CAGR of 8.72% over the forecast period. The sheer volume of resources and products being transported worldwide is a strong indicator of the importance of the global bulk container packaging market.

Key Highlights

  • Globalization generates favorable circumstances by keeping manufacturing bases distant from the 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 transportation costs. The markets for bulk container packaging have continued to be dominated by the food and beverage and pharmaceutical sectors. According to estimates, the market for bulk container packaging will grow as more businesses and startups enter the food sector.
  • Additionally, bulk containers transport and store substantial quantities of liquid substrates, such as solvents and the most potent compounds. On the other hand, high-quality plastic-based bulk containers are very helpful for storing food and beverages because they guarantee the best possible freshness of consumable goods. It is anticipated that the industrial chemicals and food & beverage industries will jointly control a sizable portion of the global market during the projected period.
  • Companies are also involved in strategic initiatives to leverage the growing demand for the bulk container packaging market. For instance, Grief Inc., one of the companies in the bulk packaging space, announced its expansion in Texas through various investments in the drums and the IBC segments. However, minimizing the impact on the environment is impacting the overall packaging market. Reuse is a major trend in packaging because of the increased pressure to prolong the lifecycle of finite resources by reusing containers.
  • The gains from the worldwide bulk container packaging business declined dramatically between March 2020 and September 2021 due to the COVID-19 outbreak. The expansion of the food and beverage business has been negatively impacted by restrictions on dine-in restaurants and a halt in online food and beverage ordering activities, which has disrupted the supply chain process. Therefore, there is a noticeable impact on the demand for bulk container packaging among consumers of food and beverages.
  • A rise in international trade in pharmaceuticals and chemicals is being seen in the post-COVID era. Manufacturers emphasize sterile bulk container packing to ensure the safety of medications and other products while in transportation, which will increase demand for bulk container packaging on the international market. There has also been an impact of the Russia-Ukraine war on the overall packaging ecosystem.

Bulk Container Packaging Market Trends

Demand for Plastic-based Packaging Solution is Expected to be a Significant Factor in Growth

  • Over the years, a trend that has taken hold of the industrial bulk packaging industry is the soaring demand for plastic-based packaging solutions such as pails and drums over any other solution produced from various materials like metal and glass. Utilizing plastic items from a production perspective aids in reaching economies of scale.
  • Additionally, using plastics as a raw material enables different manufacturing firms to achieve their standards for creating items with the best qualities, such as dependability, durability, and lightness.
  • Along with combustible, explosive, toxic, and hazardous things, dangerous commodities include radioactive substances. In light of this, the trafficking of these items has increased the demand for plastic drums for industrial uses, which has aided in the growth of the drums market.
  • The use of these plastic barrels aids producers in pleasing consumers by enabling them to select their most favored color from a wide range of choices, which in turn improves the marketing and advertisement alternatives for their goods. To produce bulk containers and ensure market sustainability over time, manufacturing businesses are anticipated to turn their attention toward biodegradable materials (plastics).
  • Additionally, consumers are more likely to use lightweight transportation containers. As a result, the demand for bulk containers made of plastic is rapidly rising worldwide. Nevertheless, several regulatory organizations have established guidelines for using plastic as a packaging material.

North America to Account for a Significant Share in the Market

  • The United States is one of the largest bulk container markets globally. The increasing expansion in the chemical industry, owing to the newfound shale resources, is expected to strengthen the demand for bulk containers in the region. Also, the country's immense exports from the chemical and pharmaceutical sector keep a constant demand for rigid bulk containers, such as drums and pails.
  • The country also has a well-established reconditioning infrastructure, boosting pooling networks. Moreover, governments in North America encourage using recycled plastic for manufacturing plastic products, including containers and bottles.
  • However, the industry is increasingly affected by the US-China trade wars. In recent times, increased tariff by the US government on Chinese chemical imports has escalated the import-export scenario of the country's chemical industry trade, directly impacting the demand for bulk containers from the industry.
  • The chemical sector makes substantial use of bulk container packing. The United States produces a lot of shale gas, which is then utilized as a feedstock to make other chemicals. Many investors are drawn to the chemicals business by the availability of low-cost feedstock worldwide. The bulk container packaging will work best for the unique packaging and transportation needs resulting from this, driving this market's growth prospects over the following years.

Bulk Container Packaging Market Competitor Analysis

The major companies include Greif Inc., Bemis Company Inc., TechnipFMC, Braid Logistics, National Bulk Equipment, Signode Industrial Group, Mondi Group, and Bermis Company Inc., among others. The market is neither fragmented nor consolidated. Hence, the market concentration will be moderate.

In March 2022, to further solidify its position throughout the flexitank sector of liquid bulk logistics, SIA Flexitanks expanded its footprint in Africa. With offices in Cape Town and KwaZulu-Natal, SIA Flexitanks, the largest independent flexitank company in the world, formally announced the establishment of SIA Africa. SIA Africa will hold a strong position in the South African market. With this development, SIA is loading flexitanks in more than 70 nations worldwide, keeping with our international growth.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Use of Flexitank, among Regional End-user Industries
4.2.2 Growing Export of Bulk Container Packed Products
4.3 Market Challenges
4.3.1 Growing Environmental Concerns over the Use of Plastic
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter Five Forces
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5.1 By Type
5.1.1 Drums
5.1.2 Pails
5.1.3 Material Handling Containers
5.1.4 Rigid Intermediate Bulk Containers
5.1.5 Pallets
5.1.6 Dunnage Air Bags
5.1.7 Other Types
5.2 By End-user Industry
5.2.1 Chemicals and Pharmaceuticals
5.2.2 Food and Beverages
5.2.3 Other End-user Industries
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6.1 Company Profiles*
6.1.1 Greif Inc.
6.1.2 SIA Flexitanks Ltd.
6.1.3 Trans Ocean Bulk Logistics Ltd.
6.1.4 SCHÜTZ GmbH & Co. KGaA
6.1.5 Braid Logistics
6.1.6 National Bulk Equipment, Inc.
6.1.7 Signode Industrial Group
6.1.8 Meyer Industries Limited
6.1.9 Mondi Group
6.1.10 Berry Global Inc.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Greif Inc.
  • SIA Flexitanks Ltd.
  • Trans Ocean Bulk Logistics Ltd.
  • SCHÜTZ GmbH & Co. KGaA
  • Braid Logistics
  • National Bulk Equipment, Inc.
  • Signode Industrial Group
  • Meyer Industries Limited
  • Mondi Group
  • Berry Global Inc.