Bulk Container Packaging Market Competitive Dynamics and Global Industry Outlook


Global Bulk Container Packaging: Snapshot

The global bulk container packaging market is driven by their use in the transportation of dry and free-flowing chemicals or materials. The growing exportation of vegetable oil from Southeast Asia is driving the growth of this market. Similarly the rise in the exportation of wine from Europe will fuel the demand for bulk container packaging. the low cost and high operational efficiency is a key reason behind the use of bulk container packaging such as tank containers, barrels, and drums. Use of flexitanks lowers the cost of glass and bottling and hence used for exporting wine. It also reduces the cost of import duties and overall transportation cost of wine. The growth of the global bulk container packaging is thus predicted to be a healthy one.

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Shale gas is produced in high quantities in the U.S. and this gas is used as a feedstock for the production of other chemicals. The abundance of low cost feedstock across the globe is attracting many investors towards the chemicals industry and this is anticipated to create specific packaging and transportation requirements for which bulk container packaging will suit perfectly, driving the growth prospects of this market in the years to come.

Cost Fluctuation of Raw Materials to Hamper Growth of Bulk Container Packaging Market

The volatility in the pricing of raw materials such as polyethylene and polypropylene, which are required for the manufacturing of flexitanks, bulk container lining, and FIBC will be a key factor hampering the growth of the bulk container packaging market. These raw materials also happen to be petrochemical derivatives and thus with the fluctuation of crude oil price, the cost of these materials also get influenced. This will also act as a challenge for market players. However, the growing commodity trade in BRICS nations will create potential growth opportunities for the bulk container packaging market.

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Asia Pacific to Be Most Lucrative Market for Bulk Container Packaging in Future

Among regions such as Europe, Asia Pacific, North America, and the Rest of the World, it is estimated that Asia Pacific will most likely witness the fastest expansion or growth rate. The growth is attributed to the escalating exports of bulk chemicals and oils to Europe and North America. Europe is estimated to experience moderate growth in the bulk container packaging market. The high export of wines will be supporting the growth of this market in Europe. The Rest of the World (RoW) is anticipated to emerge as the second fastest expanding market for bulk container packaging on account of the increasing export of bulk chemicals and food products.

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Chemical Segment to Continue to Retain Dominant Hold

By application, it is estimated that the chemical segment will continue to lead in the market but witness moderate growth in the forecast period. The demand for bulk container packaging in applications such as pharmaceuticals and others will grow at a sluggish pace. The food and beverage segment is estimated to emerge as the second largest segment to lead in the market in the years to come. The need to prevent contamination of food as well as maintain hygienic standards will drive the demand for bulk container packaging in the food and beverage sector. The increasing exports from Europe and Southeast Asia are another reason for the growth of this segment.

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