Rigid bulk packaging: Key market research findings
- Globalization and international trade drive market growth
- Increasing preference for RIBC
- Key vendors – Berry Plastics, Brambles, Greif, Sonoco, and West-Rock
The market research analysts at Technavio predict the global rigid bulk packaging market to grow at a CAGR of over 4% between 2016 and 2020. Globalization and international trade are the primary drivers that fuel growth in this market. The two principal factors driving the global rigid bulk packaging market are the innovative progression which reduces the cost of transportation and the increase in the liberalization of the trade and capital market which increases export and import activities. During 2015, North America accounted for more than 32% of the market share to dominate the global rigid bulk packaging market. The demand for rigid bulk containers for export of food products, especially oilseeds, corn, grains, and feeds, in the US and Canada and the-the rise in mergers and acquisitions are some of the factors that will fuel the growth of the market in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the rigid bulk packaging segments based on product type.
“The growing popularity of rigid intermediate bulk containers (RIBC) is the latest trend in the global rigid bulk packaging market. These containers are highly reusable and designed for transporting bulk fluids. Besides, they are stackable in nature, thereby reducing the space consumed in a warehouse. RIBCs cubic in nature and voluminous than their cylindrical counterparts. They can also be integrated with tracking systems to control and monitor the consignments,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
The drums segment was the dominant shareholder in the global rigid bulk packaging market by occupying almost 37% of the overall market space in 2015. Drums are made of different materials like steel, rigid plastics, and fibers (paperboard) and are available in a range of options including open-top drums, narrow-mouth drums, wide-mouth drums, and welded top drums. Their low cost, easy portability, and multifunctionality are some the factors responsible for the booming of this segment. However, the growth of this segment is likely to stabilize in the coming years due to the competition from the RIBC segment.
The key vendors in the global rigid bulk packaging market include Berry Plastics, Brambles, Greif, Sonoco, and West-Rock. The rigid bulk packaging market is highly fragmented due to the presence of several well-established international and local suppliers. The level of competition will further increase among the market vendors in terms of pricing, which has led to price wars among the vendors. Due to the growth of the pharmaceutical and chemical industries, rigid packaging industries find huge scope for innovation in their products. It is expected that the international players will grow during the forecast period by acquiring regional or local players. The competitive environment in this market is predicted to intensify with the increase in product extensions, technological innovations, and M&As.
A more detailed analysis is available in the Technavio report, Global Rigid Bulk Packaging Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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