CHEMICAL DRUMS MARKET ANALYSIS

Global Chemical Drums Market is estimated to be valued at US$ 14.64 Bn in 2023 and is projected to reach US$ 21.44 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 5.6% during the forecast period from 2023 to 2030.

The market's growth is due to the rising demand for chemical drums across various end-use industries, including chemicals, automotive, and food & beverage. Chemical drums play a vital role in the safe storage and transportation of chemicals, thus ensuring their integrity and preventing leaks or spills. The increasing use of chemicals in various industrial processes fuels the demand for reliable and efficient packaging solutions like chemical drums.

Furthermore, the global chemical drums market is driven by the growing need for innovative packaging solutions that enhance safety and efficiency in chemical handling. Manufacturers are increasingly focusing on developing chemical drums with improved structural integrity, resistance to corrosion, and advanced features such as tamper-evident closures and leak-proof designs. These innovations contribute to the market's growth by meeting the evolving demands of end-users for secure and efficient chemical packaging.

The automotive industry also contributes to the demand for chemical drums as they are used for the storage and transportation of automotive chemicals, lubricants, and solvents. The food & beverage industry relies on chemical drums for the safe storage and transport of food-grade chemicals and ingredients.

Overall, the growth of the global chemical drums market is driven by the increasing demand from end-use industries, the need for innovative packaging solutions, and the focus on safety and efficiency in chemical handling and transportation.

Global Chemical Drums Market Regional Insights

• North America: With its well-established chemical industry and strong safety regulations, North America is expected to be a major market for chemical drums. The region's robust manufacturing sector, including automotive and chemicals, drives the demand for chemical drums. Key countries such as the U.S. and Canada contribute significantly to the market, holding a substantial market share of approximately 25%.
• Europe: Europe is another significant region in the chemical drums market, supported by a strong industrial base and stringent safety regulations. Countries like Germany, France, and the U.K. play a major role in driving the demand for chemical drums in Europe. The region's emphasis on sustainable packaging solutions and compliance with environmental standards which further contributes to market growth. Europe holds around 20% of the market share in the global chemical drums market.
• Asia Pacific: The Asia Pacific region is expected to experience a significant  growth in the chemical drums market. Rapid industrialization, particularly in countries like China, India, and Southeast Asian nations, drives the demand for chemical drums in this region. The expanding manufacturing sector, increasing chemical production, and a growing focus on safety standards contribute to the market's growth. Asia Pacific accounts for approximately 35% of the market share in the global chemical drums market.

Figure 1. Global Chemical Drums Share (%), By Region, 2023

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Global Chemical Drums Market Drivers:

• Increasing chemical production: Rising production of chemicals in various industries, such as chemicals, pharmaceuticals, and petrochemicals, fuels the demand for chemical drums. As chemical manufacturers strive to meet the growing demand for their products, the need for reliable and safe packaging solutions like chemical drums becomes essential. For instance, On 29 Jun 2023, according to the American Chemistry Council, U.S. chemical production slowed going into the second half of 2023 as demand for chemicals softened and a risk of recession remained high
• Growing industrialization and manufacturing activities: The ongoing industrialization and increasing manufacturing activities across regions contribute to the demand for chemical drums. As manufacturing sectors expand, the need for efficient storage and transportation of chemicals and related materials grows, thus driving the demand for chemical drums. For instance, on 23 Feb 2023, as per NES Fircroft Efficient storage and transportation of chemicals and related materials are crucial for the chemical industry. In 2022, the industry faced challenges such as uncertain demand, rising production and transportation costs, and increased energy prices
• Emphasis on product integrity and leakage prevention: Chemical drums play a crucial role in maintaining the integrity of chemicals during storage and transportation. They provide a secure and leak-proof containment system that protects the chemicals from exposure to external factors, such as moisture, contaminants, and temperature fluctuations. The emphasis on product integrity and preventing leakages drives the adoption of chemical drums.
• Increasing awareness of sustainable packaging: Growing awareness of environmental sustainability and the need for responsible packaging solutions propel the demand for eco-friendly chemical drums. Manufacturers are increasingly focusing on developing recyclable and reusable drum options and reducing the environmental impact of their products. The emphasis on sustainable packaging practices influences the purchasing decisions of companies, thus driving the growth of the chemical drums market.

Global Chemical Drums Market Opportunities:

• Emerging markets: The rapid industrialization and economic growth in emerging markets present significant opportunities for the global chemical drums market. Countries in Asia Pacific, Latin America, and Africa are experiencing increased manufacturing activities, thereby driving the demand for chemical drums. Companies can capitalize on these growing markets by expanding their presence and offering tailored solutions to meet the specific needs of these regions.
• Customization and value-added services: Providing customized drum solutions and value-added services can be a significant opportunity in the global chemical drums market. Companies can offer tailored drum sizes, specifications, and designs to meet the specific requirements of different industries and customers. Value-added services like drum labeling, tracking systems, and drum maintenance services can enhance customer satisfaction and foster long-term partnerships.
• Increasing demand for sustainable packaging: With growing environmental awareness, there is a rising demand for sustainable packaging solutions, including chemical drums. Companies can capitalize on this opportunity by developing eco-friendly drum options using recyclable or bio-based materials. Emphasizing sustainability certifications and promoting the recyclability or reusability of drums can attract environmentally conscious customers.
• Strategic partnerships and acquisitions: Collaborations, partnerships, and acquisitions present opportunities for companies to expand their market reach and capabilities. Forming strategic alliances with suppliers, distributors, or other players in the value chain can enhance distribution networks and increase market penetration. Acquiring complementary businesses or technologies can also drive growth by expanding product offerings or entering new geographical markets.

Global Chemical Drums Market Trends:

• Increasing adoption of intermediate bulk containers (IBCs): There is a growing trend towards the adoption of intermediate bulk containers (IBCs) as an alternative to traditional chemical drums. IBCs offer larger storage capacities, improved handling efficiency, and reduced transportation costs. Their stack ability and compatibility with automated systems make them an attractive choice for bulk chemical storage and transportation.
• Rising demand for UN-certified drums: With the increasing focus on safety and regulatory compliance, there is a rising demand for chemical drums that are UN-certified. These drums undergo rigorous testing to meet specific United Nations performance standards for the safe transportation of hazardous materials. UN-certified drums provide assurance to manufacturers, distributors, and end users that their chemical products are handled and transported safely. For instance, on 26 July 2022, In 2022, there was a rising demand for chemical drums that are UN-certified, as evidenced by the regulatory changes and industry reports. The Pipeline and Hazardous Materials Safety Administration (PHMSA) amended the regulations to harmonize with international standards, including the 21st revised edition of the UNMR and the IAEA Regulations for the Safe Transport of Radioactive Material
• Shift towards lightweight drum designs: To address sustainability concerns and improve handling efficiency, there is a trend towards lightweight drum designs. Manufacturers are developing drums using materials that provide strength and durability while reducing the overall weight. Lightweight drums offer advantages such as reduced shipping costs, improved handling ergonomics, and lower environmental impact.
• Growing focus on reusable and recyclable drum solutions: Environmental sustainability is a key trend in the packaging industry, including the global chemical drums market. There is an increasing focus on developing reusable and recyclable drum solutions. Companies are exploring materials that can be easily recycled, implementing drum return and refurbishment programs, and thereby promoting the use of eco-friendly materials to reduce waste and carbon footprint.

Global Chemical Drums Market Restraints:

• Environmental concerns: The environmental impact of plastic drums, which are commonly used in the chemical industry, is a significant restraint. Plastic drums are primarily made from non-biodegradable materials and contribute to plastic waste and pollution. Increasing environmental regulations and customer demand for sustainable packaging solutions pose challenges for plastic drum manufacturers and drive the need for eco-friendly alternatives.
• Volatility in raw material prices: Global chemical drums market is influenced by fluctuations in raw material prices, such as steel, plastic resins, and fiberboard. Variations in raw material costs can impact the overall production costs and profitability for drum manufacturers. Price volatility can make it challenging to maintain consistent pricing and profitability margins, thus affecting the stability and growth of the market.
• Competition from alternative packaging solutions: Chemical drums face competition from alternative packaging solutions, such as intermediate bulk containers (IBCs), flexitanks, and bulk tankers. These alternatives offer benefits like higher storage capacities, more efficient transportation, and reduced packaging waste. The availability and adoption of these alternatives can limit the demand for chemical drums in certain applications or industries.

Counterbalance: The growth of industries such as chemicals, pharmaceuticals, and oil and gas, where chemical drums are widely used for storage and transportation has driven market growth and chemical drums, particularly those made of metal, are durable and resistant to various chemicals, further fueling their demand.

Global Chemical Drums Market Analyst Viewpoint

Global chemical drums market is expected to witness steady growth over the forecast period. Several end-use industries such as chemicals, pharmaceuticals, agriculture, and petrochemicals require chemical drums for storage and transportation of various chemicals. This is likely to drive the demand for chemical drums. Moreover, increasing trade of chemicals across regions would necessitate adequate packaging solutions such as chemical drums.

However, stringent regulations associated with the transportation and disposal of chemicals drums may limit market growth to some extent. Often, disposing off used chemical drums involves additional handling costs, due to hazardous nature of chemical residue. High costs associated with drum recycling and disposal can act as a restraint.

The Asia Pacific region is expected to continue dominating the global chemical drums market during the forecast period. This is due to the presence of large chemicals and pharmaceutical industries along with rising industrial and construction activities in the region. North America and Europe are also expected to capture significant shares due to the large presence of chemical manufacturers.

Adoption of re-useable and returnable chemical drums is expected to gain traction over the forecast period. Many companies are offering chemical drums that can be reused and returned multiple times thus reducing per-unit packaging costs. Development of lightweight and corrosion-resistant chemical drums using advanced plastic materials will provide new opportunities for market players.

Figure 2. Global Chemical Drums Market Share (%), By Material type, 2023

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Recent Developments

New product launches

• In 2021, Stericycle launched the bio-contain 100% recycled chemical drum. This drum is manufactured using post-consumer High Density Polyethylene (HDPE), making it 100% recycled. It is specifically designed to get  recycled and meet the requirements of the US EPA's Universal Waste Rule. The Bio-Contain drum offers an eco-friendly solution for chemical storage and transportation.
• In 2020, Sealed Air (packaging company known for its brands: Cryovac food packaging and Bubble Wrap cushioning packaging) introduced the ChemSafe 9500 Drum. This chemical drum focuses on providing enhanced safety and security. It features a double-wall construction for added strength and protection. The drum is equipped with a tamper-evident seal, thus ensuring the integrity of the contents during storage and transportation.

Acquisition and partnerships

• In 2022, Greif (industrial packaging products and services leader with a vision to be the best performing customer Service Company) completed the acquisition of Sonoco Products Company's (global packaging solutions leader) chemical drums business. This strategic move enabled Greif to enhance its product portfolio in the global chemical drums segment and broaden its customer base, thus strengthening its position in the market.
• In 2021, Berry Global (leaders in plastic packaging manufacturing, process & sustainable product innovation & design) acquired the chemical drums business of RPC Group PLC (largest supplier of plastic packaging). This acquisition enabled Berry Global to expand its range of chemical drums products and extend its market reach, thus tapping into new customer segments and regions.

Top Companies in Global Chemical Drums Market

• Greif, Inc.
• Mauser Group
• SCHÜTZ GmbH & Co. KGaA
• Time Technoplast Ltd.
• Hoover Ferguson Group
• Balmer Lawrie & Co. Ltd.
• Sicagen India Ltd.
• Industrial Container Services, LLC
• Fibrestar Drums Limited
• Snyder Industries, Inc.
• Sonoco Products Company
• Great Western Containers Inc.
• Myers Container LLC
• Myers Industries, Inc.
• Eagle Manufacturing Company

Definition: Chemical drums refer to rigid containers specifically designed for the storage, transportation, and handling of various chemicals. They are typically made from materials such as steel, plastic or fiberboard and are available in different sizes and configurations to accommodate different chemical volumes and properties. Chemical drums are designed to provide a secure and protective enclosure for hazardous or non-hazardous chemicals, thus ensuring safe containment and preventing leaks or spills during storage and transportation. They often feature closures, seals, and labeling to comply with safety regulations and thereby facilitate proper identification of the contents. Chemical drums play a critical role in maintaining the integrity and safety of chemicals throughout their lifecycle in various industries, including chemicals, pharmaceuticals, automotive, and more.