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The global HAZMAT Packaging Market is estimated to be valued at US$ 13.80 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hazardous materials (HAZMAT) packaging refers to specialty packaging products that are used for transportation and storage of hazardous materials. Hazardous materials include industrial chemicals, bio-medical waste, toxic substances, flammable items and other dangerous goods. HAZMAT packaging involves designing resilient packaging solutions that can withstand high impact, prevent spillage and protect handlers and the environment from any harmful exposure to these materials. These packaging products include drums, IBCs, cartons, boxes and bags that are made using specialized materials such as plastics, metals and rigid corrugated containers. They come equipped with features such as leak-proof valves, air pockets and pressure relief panels. HAZMAT packaging serves to be a safe and sustainable solution for transporting hazardous goods via road, sea or air in bulk as well as smaller quantities. Their importance lies in enabling hassle-free logistics while maintaining the highest safety standards for hazardous cargo.
Market key trends:
The global HAZMAT packaging market is expected to witness significant growth due to robust expansion of industries that generate hazardous byproducts such as chemical & petrochemical, pharmaceutical, oil & gas and waste management. One of the key trends driving market revenues is the rising global trade of chemicals & petrochemicals. Chemical manufacturers are increasingly outsourcing production to developing Asian countries, generating higher demand for specialty packaging solutions for international chemical shipments. Furthermore, stringent environmental and transportation safety regulations around the world regarding carriage of dangerous goods have bolstered the use of UN-certified packaging for hazardous materials. Continuous innovations in materials and design of packaging containers to achieve higher resistance against drops, chemicals and extreme temperatures while reducing overall weight are also fueling the HAZMAT packaging industry growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the HAZMAT Packaging Market is low. Meeting stringent regulations and certifications along with high investment cost required for production facilities pose entry barriers for new players.
Bargaining power of buyers: The bargaining power of buyers in the HAZMAT Packaging Market is moderate. Large buyers such as oil and chemical companies have significant bargaining power due to huge purchase volumes. However, the need for specialized packaging limits shifting between suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. The presence of several raw material suppliers for metal, plastic and other materials used in packaging production lowers their bargaining power. However, certification requirements create switching costs for buyers.
Threat of new substitutes: The threat of substitution in the HAZMAT Packaging Market is low. Strict compliance with transportation and storage regulations limits use of alternatives to specialized packaging for hazardous materials.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous global and regional players offering customized solutions.
Key Takeaways
The global HAZMAT Packaging Market is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period of 2023 to 2030, due to increasing industrialization and stringent regulations regarding transportation of hazardous materials.
Regional analysis
North America is expected to dominate the HAZMAT Packaging Market during the forecast period. This is attributed to stringent government regulations and presence of major oil & gas and chemical industries in the US and Canada. Asia Pacific is anticipated to exhibit the fastest growth rate owing to growing industrial sectors and infrastructure development in countries such as China and India.
Key players
Key players operating in the HAZMAT Packaging Market are Greif Inc., Hoover Ferguson Group, Inc., Mauser Group B.V., Eagle Manufacturing Company, Balmer Lawrie & Co. Ltd., Meyer Steel Drum, Inc., Hazmatpac, Inc., Air Sea Containers, Inc., Peninsula Drums, and Fibrestar Drums Limited.
