Regarded as the best substitute for metal and glass, the demand for plastic has grown significantly over the past few decades. Plastic pails in particular are quite in demand, mainly due to the flourishing of the food and beverage, construction, and housing industries. In 2015, the global plastic pails market was valued at more than US $5 billion. According to analysts at Technavio, the market is expected to grow at a CAGR of 4% by 2020.
When seen from a geographical perspective, APAC holds the largest share of the market, followed by Europe, North America and Latin America, respectively. It is clear that an increase in the amount of disposable income in APAC is the major contributor to the growth of the plastic pails market in the region. That being said, there are several other reasons why APAC currently has the biggest market for plastic pails.
To begin with, sustainable packaging is an emerging trend in APAC. This is because environmental legislation has been established that calls for the adoption of eco-friendly packaging materials. With suppliers increasingly substituting synthetic raw materials with natural ones such as plant-based polymers, the demand for plastic pails has grown substantially. HDPE, which is the primary raw material used in the production of plastic pails, also has its largest market (more than 50% of the overall market) in the APAC region. This further explains how APAC is driving the global plastic pails market.
Global Category Spend on Plastic Pails 2015–2020 (US$ billions)
Source: Technavio
Secondly, there has been substantial improvement in the physical attributes of pails and production capabilities of manufacturers. Not only are today’s plastics lightweight and durable, there have been a number of innovations in the shape and size of plastic pails. For example: rectangular pails are quite popular, as they offer excellent stacking capabilities and help optimize space during transit. Thus, with these types of improvements and capabilities, the plastic pails market in APAC is poised to grow substantially in the forthcoming years.
The third major reason, and one which we have mentioned previously, is that APAC is undergoing a number of construction activities, investment in infrastructure, and housing activities. Construction activities in APAC account for 45% of the global construction industry. This in turn is driving the plastic pail industry that packages paints, chemicals, and other industrial products for the construction industry. When combined with growth in population, higher disposable incomes, and increase in urbanization, it becomes even clearer as to why APAC holds such a large portion of the global plastic pails market.
Lastly, the market for plastic pails is growing globally, for the simple reason that, when compared with other packaging materials, plastic pails provide better performance. Not only are they durable and sturdy, they are also cheap and serve as suitable replacements for glass and metal. Due to these qualities, several industries are switching to plastic pails for product sales.
Looking for a detailed analysis of the plastic pails market?
Order the 2016 Procurement Market Intelligence Report on the Global Plastic Pails Market
You might also like to read:
The 2016-2020 Report on Global Recycled Plastics Market
The 2016-2020 Report on Global Rigid Plastic Packaging Market
