INDUSTRIAL PACKAGING MARKET ANALYSIS

Global industrial packaging market was valued at US$ 68,677.9 Million in 2022, exhibiting a CAGR of 5.42%, in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 104,758.5 Million by 2030. Industrial goods are heavy, bulky, sensitive to external atmosphere, and environmentally hazardous. As a result, it is essential to maintain the product for a longer period of time during storage and transportation, especially with hermetically sealed packaging that is protected from external contamination. Industrial packaging differs from other types of packaging in its thickness, strength, and level of protection for long-term storage. The major factors that are expected to drive the market growth during the forecast period are rising building and construction activities in emerging economies particularly India and China, increase in the number of food and beverage industry to meet Population growth and rapid export growth necessitate higher packaging standards for the worldwide market.

Global Industrial Packaging Market- Impact of Coronavirus (Covid-19) Pandemic

Global industrial packaging market is expected to witness slow growth in 2020-2021, as there was decreased demand for bulk packaging for chemicals, agriculture, and construction, among other applications. During COVID-19, there was rising demand for industrial packaging products for food and beverage and pharmaceutical applications. People are turning to panic buying and bulk stocking as a result of lockdowns. People ordered basic essentials and fresh food on online that increased demand for bulk industrial packaging solutions. Many affected countries' governments, including India's, told food industry players to increase production, in order to avoid supply-side shocks and shortages and to maintain uninterrupted supply. Fast-moving consumer goods (FMCG) companies increased  the manufacturing of industrial packaging products. Britannia Industries urged the Indian government to ensure interstate movement of raw material and packaging material suppliers. Hospitals, drugs, and PPE manufacturers responded to this  crisis, and thus, there was high demand for industrial packaging in the pharmaceutical industry. Demand for household essentials, healthcare, and medical goods and retail distribution of these products via online delivery was increased during pandemic. As a result, there was increased demand for industrial packaging solutions for the timely delivery of raw materials and finished goods to their respective end users. COVID-19 had mixed impact on global industrial packaging market.

Global Industrial Packaging Market- Drivers

• High Demand for Intermediate Bulk Container across various End User Industries

High demand for intermediate bulk container across various end user industries is expected to drive the market growth of the industrial packaging. It is  available in a variety of materials such as plastic, metal, paper, wood, and fiber. Intermediate bulk container has high demand from food &beverages industry, as it is used to transport bulk amount of food due to growing population around the globe. For instance, according to the SNS Insider reports, the Intermediate Bulk Container Market was valued at US$ 1300 million in 2022 and is projected to reach to US$ 1800 million by 2030, with a compound annual growth rate (CAGR) of 6.7% during the forecast period from 2023 to 2030.

• Emergence of Sustainable and Recyclable Packaging Materials

The trait of package design is sustainability. The environment benefits more from sustainable packaging. Due to concerns over the safe handling and recycling of packaging materials, new laws and policies requiring businesses to recover their packaging materials have been put in place. Consumer packaging materials was targeted because of the amount of packaging waste it produced. Governments and packaging associations are concerned about environmental effects of using commercial packaging. International packaging standards are different and are based on a range of laws. However, there is an enduring push for legislation requiring recyclable packaging and materials. For instance, Companies like Walmart and Coca-Cola are concentrated on packaging sustainability, as it is  increasingly profitable change. By utilizing more resource-efficient designs, and recycled and renewable materials, the Coca-Cola Company has increased the sustainability of its packaging. This factor is expected to drive the global industrial packaging market  growth during the forecast period.

Global Industrial Packaging Market- Restraints

• Stringent Regulations on Usage of Certain Packaging Materials

Stringent regulations regarding the use of certain packaging materials or the disposal of packaging waste increases the cost of production, and limits innovation. For instance, the European Union’s Single-Use Plastics Directive, banned certain types of single-use plastic packaging products. This factor is expected to hinder the global industrial packaging market growth during the forecast period.

Among material type, plastic segment dominated the global industrial packaging market in 2022, accounting for 57.60% share, in terms of value, followed by metal and paper & wood, respectively. High-density polyethylene (HDPE), polyethylene terephthalate (PET), low-density polyethylene (LDPE), polypropylene (PP), and polystyrene &polyvinyl chloride are some of the plastic materials that are used for the manufacturing of plastic industrial packaging product. For instance, according to India Brand Equity Foundation, the cumulative exports of plastics and related materials during 2021-22 were valued at US$ 13.34 billion, indicating increase of 33.4% from the 2020-21 exports that were US$ 10 billion.

Figure.1 Global Industrial Packaging Market, By Material Type, 2022

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Metal segment held the second position in global industrial packaging market, with the market share of 22.50%, in 2022. Metal packaging is commonly used for heavy-duty products that require extra protection. It includes materials like steel, aluminium, and tinplate.

Global Industrial Packaging Market- Regional Insights

Asia Pacific region held the largest share in the global industrial packaging market, in 2022, accounting for 45.70% market share, owing to huge demand from the food packaging industry in the region. Asia Pacific industrial market was valued at US$ 103.6 billion in 2022, and exhibiting a CAGR of 6.1% from 2023-2030. According to the IBISWorld, China is the largest region, accounting for 53% of the Asia Pacific industrial packaging market.

North America industrial packaging market was valued at 24.70% revenue in 2022, and it is expected to exhibit a CAGR of 5% from 2023-2030. According to IBISWorld, the U.S. is the largest market region, in North America accounting for 85% of the North America industrial packaging market.

Figure.2 Global Industrial Packaging Market, By Region, 2022

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Global Industrial Packaging Market - Key Players

Major players operating in the global industrial packaging market include Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe, and B.A.G. Corp.

Definition: Industrial packaging is used to transport product from manufacturers to consumers while keeping the product safe. These are used to package heavy and highly sensitive to environment product, in order to safeguard the product for longer durations and transport them properly.

Global Industrial Packaging Market -           

Key Developments

• In May 2022, Berry Global’s K.-based refuse sack business, launched a new range of high-strength refuse sacks manufactured from recycled plastics. The recyclable sacks were manufactured at the company’s Heanor, Derbyshire manufacturing site. Berry Global, Inc. produces and markets plastic packaging products. The company provides agricultural films, drink cups, plates, bottles, bowls, jars, containers, lids, tubes, closures, and trash bags, as well as offers tapes, adhesives, and other packaging products.
• In May 2022, Smurfit Kappa Group PLC, is a company that is engaged in the manufacturing, distribution, and sales of containerboard, corrugated containers, and other paper-based packaging products such as solid board, graphic board, and bag-in-box, invested US$ 35 million to build a packaging plant in Rabat, Morocco. The plant will manufacture products for applications in various sectors including industrial, pharmaceuticals, fast-moving consumer goods (FMCG), agriculture, ceramics, and automotive.
• In April 2020, Greif, Inc., a manufacturer of packaging products, and offers industrial packaging products such as steel, fiber, and plastic drums, rigid intermediate bulk containers, transit protection products, closure systems for industrial packaging products, water bottles, and reconditioned containers, acquired a minority stake in Centurion Container LLC, in order to expand its intermediate bulk container (IBC) reconditioning network in North America. This acquisition of Centurion Container LLC is expected to enhance the company’s IBC and IBC reconditioning businesses.

In September 2020, Mauser Packaging Solutions, is a company that provide large and small metal, plastic, fiber and hybrid packaging to companies in industries such as food & beverage, personal care, pharmaceuticals, chemicals, petrochemicals, agrochemicals, and paints, acquired EuroVeneta Fusti, through Joint Venture NCG-Maider, in Italy. This acquisition is expected to expand the company’s presence in Italy, and extend the offering of current plastic industrial packaging as well as steel drum packaging and reconditioning IBC services within the Italy market.