05202024Mon
Last updateSun, 19 May 2024 8pm
>>

Increase in demand for bulk packaging products and solutions for pharmaceutical, chemical and food & beerages industry driving the industrial packaging market

Industrial packaging refers to the bulk packaged products used by various end-use industries (such as automotive, building & construction, food & beverage, and pharmaceutical) to ship or transport large quantities of raw materials or finished goods. It is especially suited for heavy, bulky, or large goods and hazardous materials.

Increase in the demand for packaging sacks and corrugated boxes, and high optimization of the pack size across various end-use applications driving the industrial packaging market.

The significant increase in the industrial packaging market can be attributed to several interconnected factors. First, the rapid expansion of global trade and the e-commerce sector has amplified the need for durable, reliable, and versatile packaging solutions to safeguard products during transit, leading to greater demand in this sector. Additionally, heightened awareness of sustainability and eco-friendliness has fueled the adoption of eco-conscious packaging materials. In this context, corrugated boxes, which are renewable, recyclable, and biodegradable, have gained prominence. Their lightweight yet robust nature makes them ideal for protecting a wide range of goods, further propelling the growth of the industrial packaging market. As companies strive to balance functionality, cost-efficiency, and environmental responsibility, the market has responded with innovative solutions and customized packaging options, driving its expansion. The increasing export and import of food grains in different regions is also expected to boost the demand for industrial packaging by 2028. Distributors of food grains prefer Flexible Intermediate Bulk Containers (FIBC) over other types of industrial packaging products, due to their low cost and higher operational efficiency.
The market for industrial packaging is highly fragmented owing to the number of large, medium, and small players present in the market. These competitors hold a substantial market share and are aggressively targeting each other and pricing their products accordingly. The presence of a large number of companies has increased the intensity of rivalry in the industrial packaging market. The market also has a large number of medium and small players who acquire minimal shares. These medium and small players also contribute to the overall competition within the market. The potential growth in the industrial packaging market has forced market players to expand their business with a diversified product portfolio and extend their geographical reach to tap into new markets. It further encourages new market entrants to cash in on the potentialities of the booming market.

Corrugated boxes to register highest growth rate in the forecast period

The industrial packaging market is categorized into various product types, including drums, IBCs, sacks, pails, crates, corrugated boxes, and others, encompassing items such as pallets, wrap films, wrapping strips, and flexible packing materials. Corrugated boxes are expected to exhibit the highest growth rate among the diverse product categories within the industrial packaging market. This growth can be attributed to their exceptional versatility and eco-friendly attributes. Corrugated boxes offer a sustainable packaging solution due to their renewable, recyclable, and biodegradable nature, aligning with the increasing global emphasis on environmental responsibility. Additionally, their lightweight yet sturdy construction makes them ideal for a wide array of industries, promoting safe and cost-effective transportation of goods.
Asia Pacific dominated the market in 2022 and is expected to show similar trends in the coming years.

Asia Pacific accounted for a significant share of the Industrial Packaging market in 2022. The region remains one of the important markets for industrial packaging companies due to demand for high-end bulk packaging products for automotive, building & construction, and chemical applications has been growing rapidly. Furthermore, emerging economies, such as India and China, and the growth of the food & beverage industry in the region where industrial packaging products are used on a large scale are the factors responsible for the high growth of industrial packaging in the Asia Pacific region.
Key players to expand their geographical presence through new product launches, acquisitions, and expansions

The market for industrial packaging is fragmented due to the presence of many players in the market. These players adopt collaborations and new product launches as their key strategies to achieve a global presence and cater to the needs of their customers. For instance, Berry Global Group, Inc launched a stretch hood film with a minimum of 30% recycled plastic content. This newly launched product will help the company to achieve sustainability goals and fulfil the requirement of UK and European plastic packaging regulations.
Saeplast, a brand of Berry Global, has launched three new polyethylene pallets, which provide safe, easy-handling, hygienic storage, and transport solution to the food processing factories and warehouses. The launched pallet is highly durable and reusable, and measures 120cm in length and 100cm in width. It can withstand rough handling, extremes of temperature from -30°C to +60°C and frequent washdown. These polyethylene pallets are available in flat top and raised lip versions, and can be easily maneuvered with a pallet jack or forklift.
Similarly, in January 2023, Mauser Packaging Solutions expanded its facility in Erkelenz, Germany. This expansion will include investment in additional warehouse space and the installation of new, state-of-the art reconditioning and recycled resin processing lines. The investment is expected to accelerate the company's level of vertical integration of its manufacturing capabilities.
The key players have been undertaking these strategies to leverage their strengths and developing better products. These developments are expected to positively impact the industrial packaging market in the next few years. Some of the most common strategies adopted by these players include product launches, mergers, and expansions.

Year-Month Deal Type Company 1 Description
October 2023 Acquisition Greif, Inc. Greif acquired Reliance Products, Ltd., a major producer of high-performance blow-molded jerrycans and small plastic containers in Canada. This acquisition brings an extended geographical presence and introduces new barrier technology to enhance its jerrycan and small plastic container product range.
September 2023 Expansion Greif, Inc. Greif, Inc. inaugurated its new IBC manufacturing facility in Dilovasi, Turkey. This strategic expansion bolsters the company’s worldwide footprint and enhances its capacity to cater to customers in Turkey and neighboring regions more effectively. Spanning 13,000 square meters, the Dilovasi facility is equipped with advanced industrial infrastructure, manufacturing, and assembly lines.
September 2023 Expansion Mauser Packaging Solutions Mauser Packaging Solutions expanded its production capabilities through investments in state-of-the-art equipment for the manufacture of composite intermediate bulk containers (IBCs) in its Toluca, Mexico facility. In response to the increasing need for IBCs, the facility has introduced a specialized production line for IBC cages, further increasing their capacity to produce UN-certified 275-gallon composite IBCs.
March 2022 Expansion Mondi Group Mondi Group strengthened its sustainable growth initiatives through a substantial investment of USD 315 million (280 million euros) in corrugated packaging. This significant investment was strategically aimed to meet the increasing market demand for sustainable packaging solutions across the fast-moving consumer goods (FMCG), eCommerce, and industrial sectors.

Source: Expert Interviews, Government Authorities, Related Research Publications, Government Publications, and MarketsandMarkets Analysis

 
   

www.marketsandmarkets.com

 

comments

Related articles

  • Latest Post

  • Most Read

  • Twitter

Who's Online

We have 11160 guests and one member online

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.