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 bulk packaging is a packaging of heavy industrial goods in order to protect them from damages and contamination. Industrial bulk packaging is widely done across various manufacturing facilities such as food & beverages, chemicals & petrochemicals, and pharmaceuticals. On the basis of packaging type, they are classified into drums, pails, and jerry cans.
Mexico industrial bulk packaging market is estimated to be valued at US$ 613.3 million in 2021 and is expected to exhibit a CAGR of 5.4 % over the forecast period (2021-2028).
- In 2019 and 2020, Mexico saw a dramatic decrease in packaging and processing machinery acquisition, mostly driven by perceived political instability, unclear government policies, and heightened risk concerning foreign direct investment, exchange rate fluctuations, and the slowdown of the economy as a result of the global pandemic.
- In 2019, the packaging material production industry represented 1.7% of Mexico’s GDP, 5.8% of the industrial sector GDP, and 8.5% of manufacturing GDP. In terms of 2019 volume, Mexico produced 12.8 million tons of packaging containers and packaging materials with a value of USD 16 billion.
Chemicals & Petrochemicals in application held dominant position in Mexico industrial bulk packaging market in 2020, accounting for 64.6% share in terms of value, followed by Food & Beverage and Pharmaceuticals, respectively. Owing to growing massive growth of chemicals and petrochemicals industry in Mexico is expected to propel the sales of industrial bulk packaging during the forecast period. Drums, pails and industrial bulk containers are mostly preferred packaging solutions among the chemical manufacturing companies.
Mexico Industrial Bulk Packaging Market: Drivers
Growth in the pharmaceutical industry in Mexico is primarily fueling the market growth of the industrial bulk packaging. They are widely used in the storage of medical devices and other pharmaceutical products. Growing demand for plastic-based packaging products such as drums in the country is also anticipated to augment the market growth of the industrial bulk packaging over the forecast period.
Increasing export of food &agriculture products in the Mexico is expected to propel the market growth of industrial bulk packaging. According to The International Trade Administration, Mexico became the United States’ second-largest agricultural partner in 2018. U.S. agricultural and related product exports to Mexico totaled USD 19 billion with overall bilateral agricultural trade of USD 45 billion. Moreover, Mexico was the top export destination for corn, wheat, and rice by volume in 2018.
Mexico Industrial Bulk Packaging Market: Opportunities
The increasing popularity of flexible intermediate bulk containers (IBCs) in the country is projected to bring new opportunities to the market of the industrial bulk packaging. These are lightweight and thus encouraging manufacturer to increase the production of flexible intermediate bulk containers in order to meet the rising demand. Hence, the growing demand for flexible intermediate bulk containers will favor market growth over the forecast timeframe.
Growth in the chemical industry in the Mexico country is projected to offer potential opportunities to the market of industrial bulk packaging. Increasing investment in the chemical industry in promoting modern economy as it plays a very important role in almost all sectors such as communications, food, clothing, housing, transport, etc. will further favor the market growth. Thus, growth in the chemical industry is expected to augment the market growth of the Mexico industrial bulk packaging.
Increasing wine trade in Mexico owing to increasing consumption of wine around the globe is a major trend in the market. Rapidly growing population coupled with the increasing disposable income and changing spending patterns is creating demand for various consumer goods. Moreover, the growing transportation of minerals and semi-finished products is also expected to propel the market growth of Mexico industrial bulk packaging.
Merger and acquisition by key manufacturers for market expansion is a growing trend in the industry. This trend is expected to spur the market growth of the Mexico industrial bulk packaging. For instance, in April 2018, ORBIS Corporation a provider of reusable packaging and part of Menasha Corporation, has acquired Response Packaging, headquartered in Piedmont, South Carolina. Response Packaging has 245 employees in the U.S. and Mexico and serves the automotive and industrial markets.
Mexico Industrial Bulk Packaging Market Report Coverage
||Market Size in 2021:
||US$ 613.3 Mn
|Historical Data for:
||2017 to 2019
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 886.1 Mn
- By Product Type: Drums, IBC, Pails, Jerry Cans
- By Application: Chemicals & Petrochemicals, Food & Beverages, Pharmaceuticals, Others
Mauser Group B.V., Greif, Inc., International Paper Company, Hoover Container Solutions, Inc., Menasha Corporation, Cleveland Steel Container Corporation, Composite Containers LLC
- Growth in the pharmaceutical industry
- Increasing export of food & agriculture products
|Restraints & Challenges:
- High cost of the logistics
- Poor road infrastructure and strict rules and regulations on industrial packaging for direct food contact and healthcare products
Figure 1. Mexico Industrial Bulk Packaging Market Share, By Product Type, 2020
Key Takeaways of the Graph:
- Among product type, the Drums held dominant position in the market and accounted for 43.9% share in Mexico industrial bulk packaging market in 2020. The segment is expected to reach US$ 195.2 million in 2028.
- Drums segment is expected to be the attractive product type of industrial bulk packaging among the manufacturers for its enormous usage of it in the chemical and petrochemical industry.
Mexico Industrial Bulk Packaging Market: Restraints
The high cost of the logistics and poor road infrastructure in the Mexico is projected to restrict the market growth of the industrial bulk packaging.
Strict rules and regulations on industrial packaging for direct food contact and healthcare products is expected to curb the market growth. Also, strict regulations on the use of volatile organic compounds are further expected to limit the market growth of Mexico industrial bulk packaging.
Mexico Industrial Bulk Packaging Market: Competitive Landscape
Major players operating in Mexico industrial bulk packaging market include, Mauser Group B.V., Greif, Inc., International Paper Company, Hoover Container Solutions, Inc., Menasha Corporation, Cleveland Steel Container Corporation, Composite Containers LLC
In July 2018, Greif, the global provider of industrial packaging products and services, has announced the launch of GCUBEShield, in the category of GCUBE intermediate bulk containers (IBCs). It has improved product stability, shelf-life, and operational performance.