The global demand for steel drums & IBCs generated sales of US$ 13 Bn in 2018, with growth to hover at 4% mark during the next decade, according to a new study. Increasing global trade and growing proclivity to invest in efficient transportation are supporting market growth, according to the authors.
Increasing focus on achieving cost-effectiveness in logistics, along with growing transportation of hazardous and non-hazardous materials have brought steel drums and IBCs at the center stage. Moreover, steel drums & IBCs are considered as one of the safest forms of packaging for dangerous goods such as chemicals. As such, demand has remained steady over the years. The market is likely to be influenced by reusability that results in cost-savings and traceability that enhances consumer services.
Growing Demand for Steel Drums & IBCs in China
East Asian countries continue to offer significant opportunities for steel drums & IBC manufacturers. The demand for steel drums & IBCs in China, South Korea, and other East Asian countries is driven by increased spending on trade activities and the growing demand for chemical packaging. The growing investments in increasing production facilities are likely to create significant growth opportunities for steel drum and IBC providers.
In addition to East Asia, South Asia is likely to remain a lucrative region for the steel drums & IBCs market as end-use industries are likely to push the demand during the assessment period. Expanding cross-border trade across this region is expected to propel sales. Further, key investments in the European economies focused on IBC production by companies such as Mauser Packaging Solutions and Greif reflect the opportunities offered by the European economies.
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Chemical Industry Remains the Largest Consumer
The chemical segments are expected to hold approximately 40% share in the global steel drums & IBCs market in 2019. The growing incidents of storage and transportation of hazardous chemicals are expected to support this consumption as steel drums & IBCs are perceived to be safe packaging solutions for such goods. As chemicals pose health risks on leakage and leach, the demand for packaging solutions that prevent exposure to the external environment continues to rise, driving steel drums & IBCs’ demand.
Companies operating in the steel drums & IBCs market focus on maximizing the production on account of the constant demand growth from the chemical and petroleum and lubricants. Apart from these sectors, newer solutions are also being designed to address the requirements of the food processing and pharmaceutical sectors which include exceptional performance, enhanced handling and labor savings. Moreover, manufacturers continue to emphasize the production of customized solutions that are designed to meet specific end-use requirements. Leading manufacturers of steel drums & IBCs are likely to consider expansion of global footprint through acquisitions or collaborations with regional providers.
These insights are based on a report on Steel Drum & IBCs Market by Future Market Insights.