MRO Magazine

Burgeoning Demand from the Chemical, Healthcare, and Food and Beverage Industry to Drive the Global Industrial Packaging Market Until 2020, Reports Technavio


June 30, 2016
By Business Wire News

LONDON

According to the latest market study released by Technavio, the global industrial packaging marketis expected to grow at a CAGR of 3.47% during the forecast period.

This research report titled ‘Global Industrial Packaging Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.

“When the products, especially from industries such as chemical, healthcare, and food and beverage need to be delivered from one production unit to other, the safety measure becomes more stringent as a large amount of product are being transported. This is when these industries increasingly demand for product packaging, considering its capacity and durability. This, in turn, boost the growth of the global industrial packaging market. The growth of the market is mostly attributed to the supply of convenient rigid bulk packaging solutions by companies to customers across all consumables verticals,” says Sharan Raj, a lead analyst at Technavio for research on packaging.

Request sample report: http://goo.gl/ttpBia

The report categorizes the global industrial packaging market into the following product segments:

  • Crates and totes
  • Sacks
  • IBCs
  • Others

Global industrial packaging market by crates and totes

With a market share of more than 26%, the packaging crates segment dominated the global industrial packaging market in 2015. Packaging crates are used for fresh produce products like fruits and vegetables during harvest, post-harvest handling, transportation, and storage. They are available in two types of materials: wood and plastic. Wood crates are the prominent ones in the market and they hold around 80% of the total crates packaging. The major advantage of wooden crates is that they have good ventilation and can be manufactured locally. However, increased demand for plastic crates can hinder the growth of the market during the forecast period.

Plastic crates are made of high-density polyethylene or polypropylene. The use of high density polyethylene is more as it offers ultra-violet protection and provides greater strength against impact. Plastic crates can be categorized as nesting, stacking, stacking and nesting, or collapsible containers. There are several advantages offered by plastic crates.

Global industrial packaging market by sacks

The construction industry has the highest share in terms of use of packaging sacks because of packaging of construction materials like sand and cement while making roads, ports, buildings, and other construction activities. However, the growth rate is slow, posting a below average CAGR of 1.86%. This leads to slow construction activities due to global economic slowdown.

“The construction market was growing moderately in 2014 and there are signs of positive growth in future. The emerging markets will be responsible for growth in this sector, thereby helping the sector to post a CAGR of more than 3% during the forecast period,” says Sharan.

Global industrial packaging market by intermediate bulk containers (IBCs)

Intermediate bulk containers consist mainly of two segments:

  • Flexible packaging
  • Rigid packaging

Rigid intermediate bulk containers (RIBCs) account for a larger share as compared to FIBCs, accounting for approximately 77% of the IBC market; moreover, this segment is expected to experience a high growth rate during the forecast period. Europe accounted for 30.71% of the global consumption for rigid bulk packaging in 2015. Germany has emerged as the largest market for rigid bulk packaging because of its strong performance in the end user industries.

The flexible intermediate bulk container (FIBC) market is growing at a CAGR of 7.85% during the forecast period. In 2014, the majority of market share in the global FIBC market was occupied by the chemical industries, amounting to 27.64%, followed by the food and pharmaceutical industries.

Global industrial packaging market by others

While the market is dominated by crates and totes, the demand for the other segments has also increased as most of the crates are made of wood, which, if untreated, can easily become contaminated.

Other packaging includes drums, pails, bulk boxes, and material handling containers. The drums segment accounted for the major share in the industrial packaging market compared to the other segments, accounting for 30.87% of the others market. Although, its share is expected to decrease gradually over the forecast period, but their popularity is not expected to diminish owing to their low cost, easy portability, and multiple types of use.

The top vendors highlighted by Technavio’s research analysts in this report are:

  • Greif
  • International Paper
  • Nefab Group
  • Schutz
  • Sonoco

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 208 123 1770
www.technavio.com