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.
Increasing demand for packaging sacks and corrugated boxes and high optimization of the pack size across various end-use applications drives the industrial packaging market.
The significant increase in the industrial packaging market can be attributed to several interconnected factors. First, the rapid expansion of global trade and the e-commerce sector has amplified the need for durable, reliable, and versatile packaging solutions to safeguard products during transit, leading to greater demand in this sector. Additionally, heightened awareness of sustainability and eco-friendliness has fueled the adoption of eco-conscious packaging materials.
In this context, corrugated boxes, which are renewable, recyclable, and biodegradable, have gained prominence. Their lightweight yet robust nature makes them ideal for protecting a wide range of goods, further propelling the growth of the industrial packaging market. As companies strive to balance functionality, cost-efficiency, and environmental responsibility, the market has responded with innovative solutions and customized packaging options, driving its expansion.
The increasing export and import of food grains in different regions is also expected to boost the demand for industrial packaging by 2028. Distributors of food grains prefer Flexible Intermediate Bulk Containers (FIBC) over other types of industrial packaging products, due to their low cost and higher operational efficiency.
The market for industrial packaging is highly fragmented owing to the number of large, medium, and small players present in the market. These competitors hold a substantial market share and are aggressively targeting each other and pricing their products accordingly. The presence of a large number of companies has increased the intensity of rivalry in the industrial packaging market. The market also has a large number of 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
Figure 2: Attractive Opportunities in the Industrial Packaging Market
Corrugated boxes to register the highest growth rate
The industrial packaging market is categorized into various product types, including drums, IBCs, sacks, pails, crates, corrugated boxes, and others, encompassing items such as pallets, wrap films, wrapping strips, and flexible packing materials. Corrugated boxes are expected to exhibit the highest growth rate among the diverse product categories within the industrial packaging market. This growth can be attributed to their exceptional versatility and eco-friendly attributes. Corrugated boxes offer a sustainable packaging solution due to their renewable, recyclable, and biodegradable nature, aligning with the increasing global emphasis on environmental responsibility. Additionally, their lightweight yet sturdy construction makes them ideal for a wide array of industries, promoting safe and cost-effective transportation of goods.
Asia Pacific dominated market in 2022 , trend expected to continue
Asia Pacific accounted for a significant share of the Industrial Packaging market in 2022. 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 expand geographical reach with 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, Berry Global Group, Inc launched a stretch hood film with a minimum of 30% recycled plastic content. This newly launched product will help the company to achieve sustainability goals and fulfill the requirement of UK and European plastic packaging regulations.
Saeplast, a brand of Berry Global, has launched three new polyethylene pallets, which provide safe, easy-handling, hygienic storage, and transport solutions to 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 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 develop 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 2022-2023
Written by Anwaar Logde, Senior Research Analyst– Chemical & Materials and Tejvir Singh, Associate Manager – Chemical & Materials, MarketsandMarkets