Demand for Rigid Bulk Packaging to Reach $7 Billion in 2013

Demand for rigid bulk packaging is projected to increase 2.1 percent per year to $7.0 billion in 2013.  Although a moderation in raw material prices after the sharp increases of the 2003-2008 period will restrain value growth to some extent, unit growth will represent an improvement from the historical period.  Gains will be bolstered by an improvement in real manufacturing activity as well as a shift in the product mix toward larger, higher-value containers that offer enhanced performance and cost effectiveness.  These and other trends, including market share and product segmentation, are presented in Rigid Bulk Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The best opportunities will be found with containers offering a combination of total cost benefits, greater reusability and enhanced performance.  Rigid intermediate bulk containers (RIBCs) will register the fastest gains, with demand increasing 4.2 percent annually through 2013 as a result of cost and performance advantages vis-à-vis smaller, single-use or shorter life packaging.  Material handling containers will also see above-average growth, driven by increased use of returnable and reusable containers to boost manufacturing efficiency and achieve cost savings.   

Drums will continue to be the leading rigid bulk packaging product type based on their relatively low cost, reusability and amenability to shipping hazardous materials.  However, drum demand will advance less than one percent annually as a result of the maturity of steel and fibre drums and a moderation in raw material pricing.  In addition, competition from both rigid and flexible intermediate bulk containers will restrain drum sales.  Demand for pails will expand in line with the rigid bulk packaging average, with plastic types continuing to dominate based on their light weight, low cost, and corrosion and impact resistance. 

Nondurable goods markets such as chemicals, food, plastics, rubber, fiber, petroleum, lubricants, and agricultural and horticultural products accounted for more than 80 percent of demand in 2008.  Chemicals, by far the leading rigid bulk packaging market, will advance at a below-average pace as a result of the maturity of many chemical product segments, the increased presence of imports and the movement of key customers to developing regions.   Plastic is the leading rigid bulk packaging material, with steel and paperboard also significant. 

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.