Industrial packaging products such as pallets, crates, barrels, drums & Intermediate Bulk Containers (IBC) are extensively used for shipping & storing industrial goods. They provide protection to goods from damage and ensure safe delivery from producers to end-users. With growing global trade, the need for safe and efficient packaging solutions has increased.The global Industrial Packaging Market is estimated to be valued at US$ 68,677.9 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The opportunity in reducing wastage has been a major market driver. Industrial packaging helps decrease wastage at various stages of transportation and storage through effective protection of goods. Damage to goods can lead to wastage and loss of products. Use of proper industrial packaging plays a key role in avoiding wastage through breaks, leaks and other forms of damage. It is estimated that over 5% of goods transported globally get wasted every year mainly due to inadequate or improper packaging. Adopting standardized and reusable industrial packaging solutions can significantly reduce this wastage, thereby boosting supply chain efficiency for industries. This presents a major market opportunity for manufacturers of industrial packaging products.
Porter’s Analysis
Threat of new entrants: The industrial packaging market requires large capital investment to construct manufacturing plants and acquire high quality packaging material and machinery. Thus, threat from new entrants is low to moderate.Bargaining power of buyers: The presence of numerous industrial packaging manufacturers allows buyers to compare products and prices. Thus, the bargaining power of buyers is moderate to high.Bargaining power of suppliers: The industrial packaging market is fragmented with multiple raw material suppliers. Thus, dependence on key material suppliers is low and bargaining power of suppliers is moderate.Threat of new substitutes: Alternatives to conventional packaging include returnable transport items which pose low to moderate threat due to sustainability focus.Competitive rivalry: The market has few global players operating internationally while regional players cater to local demands. Competition is intense based on product innovation, quality, and pricing.
SWOT AnalysisStrengths: Established distribution network, product innovation, and economies of scale allow creation of value added packaging solutions.Weaknesses: Heavy reliance on cyclical industries, fluctuations in raw material prices, and rising labor costs impact profitability.Opportunities: Growth in e-commerce, food processing, and construction industries drive demand. Sustainable packaging presents new revenue streams.Threats: Volatility in disposable income affects consumer spending. Stricter regulations around plastic use may impact certain product segments.
Key TakeawaysThe global Industrial Packaging market is expected to witness high growth over the forecast period supported by expansion in core end use industries. The market size for 2024 is projected to reach US$ 68,677.9 Mn representing a CAGR of 5.4% between 2023 to 2030.
Regional analysis indicates North America currently accounts for the largest share supported by well-established food processing and manufacturing industries. However, Asia Pacific is identified as the fastest growing regional market with strong growth anticipated across China, India, and ASEAN countries.
Key players operating in the Industrial Packaging market are Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe, and B.A.G. Corp. Global leaders are focused on strategic acquisitions and partnerships to expand their geographic footprint and product portfolios.
Global Industrial Packaging Market Information: By Packaging Type (Flexible & Rigid), Materials (Metal, Plastic, Paper, And Wooden), Products (Bags, Boxes, Sacks, Barrels, Tanks, And Others), End-User, And Region - Global Forecast To 2023Market Scenario:Industrial packaging is utilized to transport goods from the producer to the consumer.
The increase in the demand for the industrial packaging is predicted to be propelled mainly by the development of the end-user industries such as good & beverages, construction, chemicals & pharmaceuticals, electronics, and others.
However, stringent regulations & policies for the utilization of non-degradable packaging may hinder the growth of the global industrial packaging market over the forecast period.Industrial goods are bulky, heavy, sensitive to external atmosphere and costlier to transport.
Industrial packaging is majorly differentiated from other types of the packaging in strength, thickness, and the level of the protection provided by it for extended storage.
Rise in the construction industry in prominent emerging economies in Asia Pacific, such as, China, India, Japan, and others, coupled with rise in population and evolution in the food & beverages industry is propelling the market.
Among these, the flexible packaging is anticipated to drive the global industrial packaging market over the forecast period, 2017-2023.
