Rigid Bulk Packaging Demand to Reach $6.7 Billion in 2015

Demand for rigid bulk packaging in the US is projected to advance 4.3 percent per year to $6.7 billion in 2015.  Gains will accelerate from the performance of the 2005-2010 period, reflecting improved manufacturing output and a rebounding economy.  Additionally, advances will be supported by a shift in the product mix toward larger, higher-value containers offering enhanced performance as well as greater cost-effectiveness than smaller containers with shorter service lives.  Moreover, value gains will reflect price increases in raw materials, especially plastics.  These and other trends, including market share and product segmentation, are presented in US Rigid Bulk Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Material handling containers are expected to experience the fastest growth through 2015, advancing 5.9 percent annually to $1.1 billion.  Gains will be driven by a rebound in durable goods production, and efforts to boost manufacturing efficiency and achieve cost savings.  Advances will also be supported by a continuing shift to reusable plastic totes and crates in food and agricultural applications.  Rigid intermediate bulk container (RIBC) demand is expected to climb 5.5 percent yearly to $825 million in 2015, stimulated by a rebound in chemical production as well as cost and performance advantages over smaller, single-use or shorter life packaging (e.g., bulk boxes, and steel and plastic drums).

Demand for drums, the leading rigid bulk packaging format in 2010, is forecast to increase 3.4 percent annually to $2.0 billion in 2015.  Though trailing the overall average due to the maturity of steel and fibre drums, growth will accelerate from the 2005-2010 performance based on an expected rebound in chemical output.  Pail demand will rise in line with the overall industry average, with prospects benefiting from a rebound in construction expenditures.  Below-average advances for bulk boxes will result from heightened competition from more reusable packaging forms, such as drums, material handling containers, RIBCs and flexible intermediate bulk containers. 

Plastic is the leading rigid bulk packaging material, with steel and paperboard also significant.  While all materials will experience a rebound in demand through 2015, the fastest gains are anticipated for plastic.  Steel and paperboard consumption will increase more slowly based on the maturity of most steel- and paper-based products.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.