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You are here: Home / Announcements / Increase in demand for bulk packaging products and solutions for pharmaceutical, chemical, and food & beverages industries driving the industrial packaging market

Increase in demand for bulk packaging products and solutions for pharmaceutical, chemical, and food & beverages industries driving the industrial packaging market

March 2, 2023 By Guest Contributor

Industrial packaging refers to the bulk packaged products used by various end-use industries (such as automotive, building & construction, food & beverage, and pharmaceutical) to ship or transport large quantities of raw materials or finished goods. It is especially suited for heavy, bulky, or large goods and hazardous materials.

The industrial packaging market has witnessed a significant increase in the demand for corrugated boxes for the supply of goods to grocery stores, retailers, pharmacies, and hospitals, during the COVID-19 pandemic. Furthermore, the increasing opportunities in e-commerce and offline retail sectors have resulted in accelerating demand for corrugated boxes in packaging applications. The increase in exports of food grains from Southeast Asia and Europe is expected to boost the demand for industrial packaging by 2025. Distributors of food grains prefer Flexible Intermediate Bulk Containers (FIBC) over other industrial packaging products due to their low cost and higher operational efficiency.

The industrial packaging market is highly fragmented due to the number of large, medium, and small players present in the market. These competitors hold a substantial market share, aggressively targeting each other and pricing their products accordingly. The presence of many companies has increased the intensity of rivalry in the industrial packaging market. The market also has many medium and small players who acquire minimal shares.

These medium and small players also contribute to the overall competition within the market. The potential growth in the industrial packaging market has forced market players to expand their business with a diversified product portfolio and extend their geographical reach to tap into new markets. It further encourages new market entrants to cash in on the potentialities of the booming market.

Figure 1: Evolution of Industrial Packaging

industrial packaging
Source: Related Industry Publications, Industry Journals, and MarketsandMarkets Analysis

 

Figure 2: Attractive Opportunities in the Industrial Packaging Market

industrial pkg 2

Impact of COVID-19 on the industrial packaging industry

People are resorting to panic-buying and bulk stocking due to the fear of lockdowns. More people are ordering daily staples and fresh food through online channels, which leads to an increase in the demand for bulk industrial packaging solutions. Governments of many affected countries, for instance, India, have asked the food industry players to ramp up production to avoid supply-side shocks and shortages and maintain uninterrupted supply.

The demand for industrial packaging in the pharmaceutical industry, is expected to remain robust as hospitals, drugs, and PPE manufacturers are responding to the crisis. The demand for household essentials, healthcare, and medical goods is not expected to decrease dramatically, and retail distribution for these types of products through online delivery can be expected to increase.

Asia Pacific dominated the market in 2020 and is expected to show similar trends in the coming years.

Asia Pacific accounted for a significant share of the Industrial Packaging market in 2020. The region remains one of the important markets for industrial packaging companies due to demand for high-end bulk packaging products for automotive, building & construction, and chemical applications has been growing rapidly. Furthermore, emerging economies, such as India and China, and the growth of the food & beverage industry in the region where industrial packaging products are used on a large scale are the factors responsible for the high growth of industrial packaging in the Asia Pacific region. 

Key players to expand their geographical presence through new product launches, acquisitions, and expansions

The market for industrial packaging is fragmented due to the presence of many players in the market. These players adopt collaborations and new product launches as their key strategies to achieve a global presence and cater to the needs of their customers. For instance, Saeplast, a brand of Berry Global, has launched three new polyethylene pallets, which provide safe, easy-handling, hygienic storage, and transport solution to the food processing factories and warehouses. The

launched pallet is highly durable and reusable, and measures 120cm in length and 100cm in width. It can withstand rough handling, extremes of temperature from -30°C to +60°C and frequent washdown. These polyethylene pallets are available in flat top and raised lip versions, and can be easily maneuvered with a pallet jack or forklift.

Similarly, in January 2023, Mauser Packaging Solutions has expanded its facility in Erkelenz, Germany. This expansion will include investment in additional warehouse space and the installation of new, state-of-the art reconditioning and recycled resin processing lines. The investment is expected to accelerate the company’s level of vertical integration of its manufacturing capabilities.

The key players have been undertaking these strategies to leverage their strengths and developing better products. These developments are expected to positively impact the industrial packaging market in the next few years. Some of the most common strategies adopted by these players include product launches, mergers, and expansions.

Table 1: Key Deals in 2020

industrial pkg 3

 

Written by Anwaar Logde, Senior Research Analyst– Chemical & Materials and Tejvir Singh, Associate Manager – Chemical & Materials, MarketsandMarkets

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