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23 February, New York, USA, 2021 – The global industrial bulk packaging market reached USD 21.5 billion in 2018. The market is expected to register a notable growth rate of 4.3% CAGR during the 2021-2027 period, thanks to the growing demand for the industrial sector, and e-commerce. The rising demand for e-commerce remains a key driver for industrial bulk packaging as major e-commerce players bring in promising efficiency through wholesale retailing to global consumers. The advancements in technologies like 3D printing, and automation in manufacturing promise to make the global industrial bulk packaging market landscape an innovative, and competitive field during the forecast period. Some key players in the global industrial bulk packaging market are Ameri Globe, Alpine FIBC ABC, and Polymer Industries among others.
Rising Demand in the Pharmaceutical Industry Remains a Key Driver to Growth
The packaging for the pharmaceutical sector remains a sophisticated, and challenging requirement. On one hand, bulk packaging for drugs requires manufacturers to take into account the containment of products, which is a key requirement to distribution systems, manufacturers, and the product itself. Moreover, the packaging requires a solution that is leak-proof for liquid dosage, allows diffusion, and permeation of the product. Furthermore, alteration of drugs can have a disastrous effect on patients, and hence, a product needs protection from biological contamination, oxygen, light, moisture, and mechanical damage. The rising demand for higher material storage capacity in the pharmaceutical industry, and growing material advancements in conventional products like pails, drums, and IBCs to handle mass drug logistics remain a promising new arena for growth for players in the global industrial bulk packaging market.
Covid-19 Impact Likely to Remain a Short-Term Restraining Factor
The global industrial bulk packaging market is likely to reel from the short-term adverse impact of the Covid-19 crisis during the 2021-2022 period. The market has undergone a decline in demand from industries like Agriculture, chemicals, and construction during the 2019-2020 period. However, the market has also received a major boost in rising demand for essentials in the Food and Beverage sector, and FMCG sector. Moreover, the growth of e-commerce during the worldwide lockdowns has also been a major boon for future growth, thanks to the increasing adoption of e-commerce platforms, and the incessant need for packaging solutions. The Covid-19 pandemic has also led to shifts in consumer behavior and turned average consumers into panic buyers during the beginning of the pandemic. This resulted in major growth for sales of ordinarily used products like fresh food, staples, and toilet paper, among others. Governments around the world have also ordered ramping of production capacities to meet potential shortages in demand, and this has led to further growth for players in the global industrial bulk packaging market. Such orders were issued in several key countries around the world including the United States, UK, India, among others. The shortage of pharmaceutical equipment like PPE, drugs, and the promise of large-scale vaccination drives in the future also spell a bright prospect for growth of the global industrial bulk packaging market.
Rising Demand from Construction and Chemicals Promises Robust Growth
According to the World Bank forecast, countries around the world need to spend 4.5% of their GDP in optimistic scenarios in construction to keep up with global infrastructural development. In other scenarios, this spending is likely to double as demand for renewable energy, using decentralized technology for next-gen electric vehicles, and other forms of transportation will take place. Moreover, countries like India and China have announced major initiatives of their own like the Belt & Road initiatives to become global trade hubs of the future. On the other hand, the Indian finance minister has announced that India will spend more than $1.2 trillion by 2025 on improving the infrastructure in the country.
Moreover, the demand for products like petroleum will likely reach their pre-pandemic levels in 2021, thanks to a growing opening up of the global economy. The growing demand for transportation infrastructure, and optimistic future for petroleum, and other chemicals due to growing demand will likely register significant growth for the industrial bulk packaging market in the near future.
Volatility in Raw Materials Remains a Restraint for Growth
Products like ethylene and naphtha are key to manufacturing polypropylene which is essential for growth in the global industrial bulk packaging market. The products are largely made from crude oil and natural gas. The falling prices of crude oil, and natural gas in key regions like the United States remain a major promise for growth during the 2021-2027 period. However, despite the falling prices of crude oils, there remains volatility in product pricing as destabilization in crude oil supply chains, and closure of conventional onshore oil and gas sites remains a restraint for growth in the global industrial bulk packaging market.
Growth in APAC Region Remains a Bright Spot for Future Prospects
The global industrial bulk packaging market is expected to witness robust growth in the APAC region, thanks to the growing demand for FMCG, construction, chemicals, and other industrial sectors. The large population and rising disposable incomes are also expected to further growth during the forecast period, in combination with strong production, and consumption trends. Apart from leading countries like India, and China, smaller countries like Vietnam, South Korea, Singapore, New Zealand have also witnessed robust growth during the forecast period. The growth in key regions like North America and Europe will also remain robust, thanks to the growing demand for EVs, and some key progressive measures. For example, the United Kingdom has announced that petrol and diesel vehicle manufacturing will be outlawed by 2030. The concerns for a sustainable future, growing demand for EV infrastructure globally, and key use of industrial bulk packaging in the construction sector will be a major boon for growth during the 2021-2027 period.
The Global Industrial Bulk Packaging Report is Segmented as follows:
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