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New York, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report 'Industrial Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)' -
Key Highlights
The industrial packaging market highly depends on global import and export activities. While products, such as drums and pails, have huge demand from heavy manufacturing industries, other products, such as materials handling containers and IBCs (Intermediate Bulk Containers), have huge applications in logistics and short-distance transportation of goods.
Rigid plastic IBCs are used in various industries, such as the food and beverage industry, pharmaceutical industry, chemical industry, and paints, inks, and lubricant industry. The Rigid Intermediate Bulk Container Association (RIBCA) of North America fosters the interests of persons, firms, and corporations engaged in the business of manufacturing or assembling rigid intermediate bulk containers.?
Recently, the industrial packaging company, Mauser, presented its new skINliner barrier technology during a customer event in Heidelberg, Germany. The Mauser skINliner barrier technology combines the advanced barrier performance of multilayer plastic film technology (e.g., against hydrocarbons and/or oxygen) with the logistical and lifecycle benefits of rigid packaging. The new modular packaging design provides reuse and recyclability.
In line with the changing demand for sustainable and recyclable industrial packaging products in the market, the companies have been launching new and innovative products in the market as per the requirements. For instance, in May 2022, Berry Global's UK refuse sack business launched a new range of high strength refuse sacks, manufactured from recycled plastics.
Furthermore, the increase in the utilization of shipping containers drives the market. In line with the increasing demand in the market, the companies have been collaborating with each other to offer new and innovative products in the market as per the customers requirements.
For instance, in April 2022, Novvia Group acquired Southern Container, LLC, a distributor of fiber, plastic, glass, and metal packaging products. In line with the acquisition of Southern Container, Novvia would be strengthening its Inmark business along with strengthening its market position in the market.
While, over the past few years, awareness among the population regarding the harmful effects of plastic usage has been growing drastically. Many public campaigns and initiatives have been taken by the government authorities, associations and NGOs, among others have resulted in increased awareness among people. Thus, plastic packaging consumption has witnessed a significant decline in the last few years.
The COVID-19 outbreak, and subsequent lockdowns affected industrial activities worldwide. Some of the effects of lockdown included supply chain disruptions, lack of availability of materials used in manufacturing process, labor shortages, fluctuating prices that caused inflation in production costs, etc.
Key Market Trends
Food and Beverages Segment is Expected to Drive the Market in the Forecast Period
The most used industrial packaging for food and beverage industries are drums, IBCs, corrugated boxes, pallets, and sacks. However, the packaging has to be certified as food grade. For instance, IBC totes (designed with stainless steel tanks or poly-caged totes) are certified by the DOT/UN to ensure the packaging used does not cause contamination for the food products.
Drums are widely used in the alcohol industry. The main alcohol transported in drums is beer across the world. The drums are made of steel, plastics, or fiber. However, the steel drums are regarded as the safest by the US Department of Transportation, which is expected to drive further storing and transporting of beverages in steel drums.
The rising production volume of craft beer is expected to increase the demand for steel drums in the market. For instance, according to the Brewers Association, the share of craft beer from the entire beer production volume in the United States accounted for 13.1% in 2021, compared to 12.2% in 2020. This is expected to drive the demand for steel drums.
Corrugated packaging is mainly used for the packaging of processed foods, fresh food, and produces and beverages. For many different food goods, corrugated packaging is becoming a viable alternative to plastic packaging. Paper packaging, for example, may be created more simply from recycled materials and recycled or composted.
The surge in ecological packaging options has been driven by this rapid wave of popular interest. According to Food Dive, 67% of customers globally believe it is critical that the items they buy come in recyclable packaging, with 54% indicating it is a factor they consider when purchasing. These sentiments aren't going away, with a whopping 83% of younger buyers prepared to spend more for products that are packed in a sustainable manner.
Asia Pacific to Hold a Significant Market Share
In the last few decades, the industrial sector in China, one of the major market shareholders in the Asia Pacific, has witnessed astonishing growth. The growth of the sector has placed the country among the leading manufacturer and exporters of various types of goods. According to the National Bureau of Statistics of China, in 2021, the industrial sector contributed 32.6% of the country's GDP.
Furthermore, the country's value-added industrial output, an important economic indicator, went up 9.6% Y-o-Y in 2021. In December alone, the industrial output grew 4.3% from a year earlier, and 0.42% from November.
Moreover, the adoption of industrial drums in the packaging industry is increasing. The packaging manufacturer is focusing on recycling, downgauging, optimizing pack size, and safety. Industrial drums offer these features to many corporations and companies to effectively maintain sustainability initiatives. According to the Industrial Steel Drum Institute (ISDI), steel drums provide safe transport for approximately 50 million metric tons of material worldwide every year.
Considering the growing demand several vendors operating in the market are focusing on offering a broad portfolio of industrial packaging products. For instance, Plastene offers a variety of transport and storage containers (Jumbo bags/FIBCs) for both dry and liquid (bulk) goods. Jumbo bags are increasingly substituting plastic, paper, and cardboard packaging solutions for industrial customers.
Rest of Asia-Pacific comprises South Korea, Singapore, Hong Kong, and others. South Korea's largest industries are electronics, automobiles, telecommunications, shipbuilding, chemicals, and steel. South Korea's 5 biggest export products by value in 2021 were electronic integrated circuits, cars, refined petroleum oils, phone devices including smartphones, and automobile parts or accessories. In aggregate, those major exports accounted for well over a third (36%) of South Korea's overall exports (source: International Trade Center). This has majorly catered to the demand for industrial packaging.
Competitive Landscape
The Industrial Packaging Market remains highly fragmented due to the existence of numerous international, regional, and local vendors. Local manufacturers of industrial packaging products cater to unique, innovative solutions at a price lower as compared to the international vendors, resulting in an intense price battle.
May 2022 - Berry Global's UK refuse sack business launched a new range of high-strength refuse sacks manufactured from recycled plastics. The recyclable sacks would be manufactured at the company's Heanor, Derbyshire manufacturing site and would be offered in the United Kingdom.
May 2022 - Smurfit Kappa Group PLC planned to invest EUR 35 million to build a packaging plant in Rabat, Morocco. It would be involved in the manufacturing of its products for applications in various sectors, including industrial, pharmaceuticals, fast-moving consumer goods (FMCG), agriculture, ceramics, and automotive.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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