Industrial packaging offer completely sealed packaging to highly sensitive product. Drums, crates, intermediate bulk container, bulk boxes, sacks, and pails are some of the industrial packaging materials. On the basis of packaging type, they are classified into flexible and rigid. Building & construction, automotive, chemicals & pharmaceuticals, food & beverage, plastics & rubber, agriculture, and oil & lubricants are some of the major end-user of industrial packaging.
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.
Growing international trade around the globe supported by favorable government policies is projected to propel the market growth of the industrial packaging. Growth in the automotive industry where it is used to transport the auto parts to the consumers is also projected to foster the market growth of the industrial packaging. Rapid urbanization and industrialization around the globe is further expected to augment the market growth of the industrial packaging.
Growth in the chemical industry along with the increasing trade of the chemicals products is expected to serve the major market opportunities over the forecast period. According to the India Brand Equity Foundation, total exports of dyes and dye intermediates, organic and inorganic chemicals, including agrochemicals, cosmetics and toiletries, essential oils and castor oil, stood at US$ 19.09 billion during the year 2018-2019. Moreover, the chemical sector is projected to double to US$ 300 billion by 2025, clocking an annual the growth rate of 15-20 percent.
Concerns associated with the use of plastic materials for industrial packaging is expected to hinder the market growth. Plastic has various environmental hazards due to which government have also imposed a ban on the use of plastic products, thereby hindering the market growth of industrial packaging.
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.
The growing use of paperboard for industrial packaging due to the growing trend of green consumption is expected to fuel the market growth of the market of the industrial packaging. For instance, in May 2019, Stora Enso introduced Cupforma Natura Solo™, a renewable paperboard for paper cups. The innovative material is suitable for hot and cold drinking cups, as well as for ice cream packaging. It is produced without a traditional plastic coating layer and designed for full-fiber recovery in a recycling process.
Partnership and agreements by major players is a current trend in the market. This is attributed to the growing focus of manufacturers to expand their market presence on the global level. For instance, in January 2020, Danimer Scientific, a developer and manufacturer of biodegradable materials, and Columbia Packaging Group (CPG), a producer of custom plastic bags and flexible packaging, announced a partnership to create compostable bags, film, and roll-stock for the flexible packaging market.
Global Industrial Packaging Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic has changed the buying pattern of consumers. Measures such as nationwide lockdown have led panic buying of food and hygiene products. Nestle S.A., a food and drink company, has reported quarterly growth in sales of 4.3% in North America and Europe in April 2020, as against the previous quarter. As per Coherent Market Insights (CMI), this is the highest growth in sales of the company in the past five years, which resulted as an outcome of panic buying. Kraft Heinz Company’s net sales increased by 3.3% in first quarter of 2020 as compared to first quarter of 2019, primarily attributed to the sudden in the segment of packaged food due to the pandemic. This has surged the market for packaging products and solutions.
Few Recent Developments
By Material Type
By Product Type
By Packaging Type
By End Use