Industrial packaging: Key market research findings
- Globalization and international trade drives market growth
- Crates and totes account for the majority share of the market’s revenue
- Key vendors – Grief, International Paper, Nefab, Schutz, and Sonoco
Technavio’s market research analysts predict the global industrial packaging market to grow at a CAGR of more than 3% between 2016 and 2020. The increasing demand for industrial packaging is stimulated primarily by globalization and international trade. Innovative progression and the recent increase in the liberalization of the trade and capital market are resulting in reduced cost of transportation and increased export and import activities. During 2015, the APAC region dominated the global industrial packaging market by accounting for almost 33% of the overall market share. The growing population coupled with a rise in currency rates are factors that will drive growth in the industrial packaging market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the industrial packaging segments based on the application.
“Of late, there has been a rise in the use of biodegradable alternatives in the packing market across the globe. Biodegradable films provide the same mechanical performance during the course of their useful lifetime as compared to original plastic films. They also achieve 100% biodegradation after the end of their useful lifetime and before the next cultivation season. Cellulose and starch are the most popular choices in making biodegradable films owing to their cost-efficiency and ability to plasticize easily when being blended with other materials,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
The crates and totes segment accounted for a share of more than 26% to become the primary revenue generator in the worldwide industrial packaging market. Packaging crates are used for fresh produce products like fruits and vegetables during harvest, post-harvest handling, transportation, and storage, and are available in wooden and plastic forms. Wooden crates account for around 80% of the total crates packaging owing to its self-supporting structure, good ventilation, and easy availability. Plastic crates are made of high-density polyethylene or polypropylene and can be categorized as nesting, stacking, stacking, and nesting, or collapsible containers.
The key vendors in the global industrial packaging market include Grief, International Paper, Nefab, Schutz, and Sonoco. The market is highly fragmented due to the presence of numerous multinational, regional, and local vendors. Manufacturers of industrial packaging products offer innovative solutions at a lower price than their international competitors, resulting in intense price wars. The smaller and local vendors compete in terms in terms of quality, features, and range of offerings and prices. To sustain the level of competition in the market, vendors are coming up with innovative products that can be used for packaging chemicals, fertilizers, and pharmaceuticals. It is expected that the international players will grow inorganically during the forecast period by acquiring regional or local players.
A more detailed analysis is available in the Technavio report, Global Industrial Packaging Market 2016-2020.
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