by The global Industrial Packaging Market is estimated to be valued at US$ 72400.24 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial packaging products such as drums, intermediate bulk containers, flexitanks, and others are used to protect, contain, and transport industrial goods and raw materials. Rapid industrialization and growth of manufacturing industries have increased the demand for cost-effective and environment-friendly packaging solutions. Industrial packaging helps reduce product damage during transportation and provides easy handling of goods. It ensures the safety of contents and prevents spillage, breakage, contamination, and other hazards. Materials used for industrial packaging include plastic, wood, paper & paperboard, and metals. Advantages of industrial packaging include moisture protection, durability, reusability, tamper-evident seals, and minimized costs of logistics.
Market key trends:
Growing e-commerce industry is a major trend fueling the growth of the industrial packaging market. E-commerce has increased the demand for efficient packaging solutions for shipping goods safely and securely over long distances. Manufacturers are developing sustainable and innovative packaging designs to meet the specific needs of the e-commerce sector. Growing popularity of flexitanks is another key trend witnessed in the market. Flexitanks offer advantages such as cost-effectiveness, lightweight, leak proof storage, and reusability for liquid cargo transportation. They can hold over 95% of the tank’s volume and reduce the freight space by over 80% as compared to drums. Moreover, flexitanks are easy to install and require less maintenance. Rising preference for biodegradable and recyclable packaging materials is expected to present lucrative opportunities over the forecast period.
Porter’s Analysis
Threat of new entrants: The industrial packaging market requires significant capital investments and strict adherence to quality and safety standards set by regulatory bodies. These barriers make the threat of new entrants moderate.
Bargaining power of buyers: Large industrial buyers have significant bargaining power due to their bulk purchasing abilities. This enables them to negotiate prices downwards.
Bargaining power of suppliers: Major suppliers in the industrial packaging market include manufacturers of raw materials like plastics, paper, and metals. Their bargaining power is moderate as there exist opportunities for backward integration for large packaging producers.
Threat of new substitutes: Substitute packaging materials like flexible films and fiber drums pose a medium threat. However, materials suitable for all applications and regulatory compliance make full substitutions difficult in the short run.
Competitive rivalry: The market is mature with slow growth rates making competition intense among established players. Margins remain under pressure due to incremental innovation and pricing wars.
Key Takeaways
The Global Industrial Packaging Market Size is expected to witness high growth, exhibiting a CAGR of 5.4% over the forecast period of 2023 to 2030, due to increasing industrial production volumes across sectors. The market size for 2023 is estimated to be US$ 72400.24 Mn.
Regional analysis: Asia Pacific is expected to dominate the industrial packaging market owing to the rapid growth of manufacturing industries in China and India. China accounts for over 30% of global manufacturing output. North America is anticipated to exhibit significant growth on account of recovery in U.S. industrial output from pandemic lows and reshoring trends.
Key players operating in the Industrial Packaging Market are Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe, and B.A.G. Corp. Major players are focusing on new product development through investments in R&D and acquisitions to expand their product portfolios and geographic footprint. Collaboration with end-use industries is another key strategy.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
