Rigid industrial packaging recorded a volume sale of ~1.85 billion units, equating a value of ~US$ 26 billion in 2018, as per the latest report published by Future Market Insights (FMI).
Rigid industrial packaging has been gaining rising momentum in a number of commercial sectors owing to its enhanced protective capabilities against harsh environmental factors. FMI's study opines that fast-paced industrialization and increasing demand for chemicals and pharmaceuticals continue to influence the growth prospects of rigid industrial packaging market.
Manufacturers Capture Opportunities Arising from Chemical Industry
According to the study, one of the important growth drivers is an increase in inter-continental trade activities, which necessitate newer industries – such as bio-chemical, food grade ingredient, and processed food – to use rigid industrial packaging format. Furthermore, the market remains heavily dependent on four key end-use industries including chemicals & solvent, food & beverage, oil & lubricants, and automotive.
The study opines that high demand for steel drums, pails, and rigid intermediate bulk containers (IBCs) from chemicals & solvent industry continue to influence the growth strategies. Additionally, manufacturers are focused on increasing the production of plastic drums and bulk boxes to capitalize on rapidly expanding automotive and food & beverage industries.
Despite the cloud swirling around the ill effects of plastic, manufacturers continue to use plastic as a convenient material for rigid industrial packaging, owing to technical and operational advantages and lower costs as compared to metals. Accounting for ~50% revenue share in 2018, sales of rigid containers made up of plastic are likely to witness significant growth in the future, backed further by the lightweight property and advances in technologies of polymer processing. However, low degradability of plastic will remain a key concern among manufacturers as well as end users.
As per the study, reuse of containers is gaining ground in the rigid industrial packaging space, and to align with the current trends, manufacturers are placing more focus on R&D activities and innovations to increase the efficiency of products and maximize repeat use. The trend of customization has also been noticeable in the market, as manufacturers are inclining towards offering products that meet end users' specific requirements.
Growth prospects of the rigid industrial packaging, as identified by the FMI study, are high in East Asia, representing a revenue share of 50% in 2018. An exponential rise in manufacturing activities in the region along with expansion of F&B industry has surged the demand for safe and contamination-proof packaging. Favorable government policies on intercontinental trade activities along with increasing number of OEMs will continue to create opportunities for market players in East Asia.
The study identifies restraints that could possibly hamper the growth of the rigid industrial packaging market. Rapid emergences of new companies from developing countries, catering to the needs of local customers at reasonable costs, are likely to squeeze the global player's margin in the market. These players are further under the pressure from end users to reduce the overall costs.
The business intelligence highlights the competitive landscape in the rigid industrial packaging market, by conducting a thorough analysis on the key growth strategies of the market players. Acquisitions and partnerships with local players remain a strategic focus area of key stakeholders for enhanced global footprint.
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This study tracks growth of the global rigid industrial packaging market from 2019 to 2029. The global rigid industrial packaging is likely to spectate a steady rise at 4.5% value CAGR over the course of the forecast period, according to FMI's projections.
Source Link: https://www.prnewswire.com/news-releases/rigid-industrial-packaging-market-is-expected-to-grow-at-a-cagr-of-4-during-the-forecast-period-2019-to-2029–future-market-insights-300893900.html
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