Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Industrial packaging is basically done to transport product from manufacturers to consumers while keeping the product safe. They are used to package heavy and highly sensitive to environment product in order to safeguard the product for longer durations and transport them properly.
The global industrial packaging market is estimated to account for US$ 59,735.3 Mn in terms of value and 75,907.0 Million Units in terms of volume by the end of 2019.
Drivers:
High demand for intermediate bulk container across various end-user industries is expected to propel the market growth of the industrial packaging. They are available in a variety of materials such as plastic, metal, paper, wood, and fiber. Intermediate bulk container is gaining huge demand from food &beverage industry as it is used to transport bulk amount of food due to the rapidly growing population around the globe.
Increasing demand for plastic industrial packaging due to its lightweight and durability properties is expected to drive the market growth of the industrial packaging. High-density polyethylene (HDPE), polyethylene terephthalate (PET), low-density polyethylene (LDPE), polypropylene (PP), and polystyrene &polyvinyl chloride are some of the plastic materials used for the manufacturing of plastic industrial packaging product.
Plastic material type dominated the global industrial packaging market in 2019, accounting for 52% share in terms of value, followed by metal and paper & wood, respectively.
Figure 1. Global Industrial Packaging Market, Revenue Share (%), By Material Type, 2019
Market Restraints
Strict regulations on the use of volatile organic compound due to its hazardous nature are expected to hinder the market growth of the industrial packaging. Moreover, pricing pressure on small vendors is further expected to restrict market growth.
Low penetration of the market across developing countries is projected to negatively impact the market growth of the industrial packaging. Also, poor road infrastructure across the developing region is again anticipated to hinder the market growth of the industrial packaging.
Industrial Packaging Market Report Coverage
| Report Coverage |
Details |
| Base Year: |
2019 |
Market Size in 2019: |
US$ 59,735.3 Mn |
| Historical Data for: |
2016 to 2019 |
Forecast Period: |
2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: |
4.2% |
2027 Value Projection: |
US$ 82,967.6 Mn |
| Geographies covered: |
- North America: U.S., Canada
- Latin America: Brazil, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, South Korea, Australia, Rest of Asia Pacific
- Middle East & Africa: South Africa, GCC Countries, Rest of Middle East & Africa
|
| Segments covered: |
- By Material Type: Metal, Plastic, Paper & Wood and Fiber
- By Product Type: Drums, IBC’s, Sacks, Pails, Crates, Bulk Boxes, Others
- By Category: Rigid Packaging and Flexible Packaging
- By Application: Agriculture & Horticulture, Automotive, Building & Construction, Chemicals & Pharmaceuticals, Engineering, Food & Beverage, Metal Products, Oil & Lubricants, Plastics & Rubber, Electronics, Tobacco and Others
|
| Companies covered: |
Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe and B.A.G. Corp
|
| Growth Drivers: |
- High demand for intermediate bulk container across various end-user industries
- Increasing demand for plastic industrial packaging due to its lightweight and durability properties
|
| Restraints & Challenges: |
- Strict regulations on the use of volatile organic compound due to its hazardous nature
- Low penetration of the market across developing countries
|
Market Opportunities
Growing demand for paper & jute sacks due to its low cost, lightweight, and durability benefits is projected to serve major growth opportunities for market. They are widely used in the transportation of food &agricultural products such as food grains. Increasing exports of the food grains around the globe due to rising demand for food is expected to augment the demand for paper &jute sacks, thereby fueling the market growth of industrial packaging.
Increasing launch of bio-based plastic packaging materials due to technological advancement is expected to bring new opportunities to the market of industrial packaging. For instance, in March 2019, Stora Enso has launched a new cost- and resource-efficient an alternative to plastic packaging, DuraSense, in response to the growing environmental concerns. The product is wood-based biocomposites that use a blend of wood fibers and polymers, which can be a fossil, bio-based or recycled, thus reducing the dependency on limited fossil resources.
Figure 2. Global Industrial Packaging Market – Opportunity Analysis
On the basis of product type, sacs dominated the global industrial packaging market in 2019 with around 26% of market share in terms of revenue, followed by drums and IBCs, respectively.
Market Trends/Key Takeaways
Flexible packaging is gaining traction in the market due to its lightweight and durability. They are increasingly replacing heavy metal cans. Moreover, increasing use of a robotic system for packaging is a growing trend in the market as it reduces the laborious task and error. Thus, growing adoption of the advance packaging technologies for packaging of the industrial products will favor the market growth over the forecast period.
Product innovation by major players in the market for expanding foothold in the industry is the current trend in the market. This trend is expected to augment the market growth of industrial packaging. For instance, in June 2018, Greif has launched GCUBE® Shield, for improving its range of GCUBE intermediate bulk containers (IBCs). It offers protected against oxygen permeation into the container and in turn, enhance the shelf-life of the product.
Global Industrial Packaging Market - Impact of Coronavirus (Covid-19) Pandemic
Measures such as lockdown, and cease in the economic activities has reduced the discretionary spending of a consumer, which has in turn has negatively impacted the sales of industrial packaging products. Many packaging solution and service providers have shifted their offerings, and are producing personal protective equipment (PPE) products, with an aim to meet the surge in sudden demand for PPE. In April 2020, Smurfit Kappa Smurfit Kappa introduced the ‘Design for Help’ line of products, which include workplace dividers, protective face masks, and temporary furniture such as tables and shelves.
Competitive Section:
Company Names
- Smurfit Kappa Group
- Cascades Inc
- Mauser Group B.V.
- Grief Inc
- International Paper
- Nefab Group
- Schutz
- Sonoco
- AmeriGlobe
- B.A.G. Corp
Few Recent Developments
- In June 2018, Greif has launched GCUBE® Shield, for improving its range of GCUBE intermediate bulk containers (IBCs). It offers protection against oxygen permeation into the container and in turn, enhances the shelf-life of the product.
- In March 2019, Smurfit Kappa Group (SKG) acquired Bulgarian corrugated board and packaging manufacturer Balkanpack. Balkanpack supplies corrugated packaging to the food, agricultural, cosmetic, pharmaceutical, and chemical industries.
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