The industrial packaging market is estimated to be valued at US$ 68,677.9 Million in 2022 and is expected to exhibit a CAGR of 5.42% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial packaging refers to the packaging used for industrial manufacturing, logistics, and transport purposes. It involves protecting industrial and commercial goods from damage caused during transit or storage. Some common types of industrial packaging include sacks, drums, crates, IBCs, and various woven/plastic materials. Key end-use industries such as chemicals, construction, automotive, pharmaceuticals, food & beverages, and machinery utilize industrial packaging solutions for their supply chain operations.
Market Dynamics:
The industrial packaging market is expected to witness significant growth over the forecast period, primarily driven by increasing demand from key end-use industries. For instance, according to the World Economic Forum, the global construction industry is projected to double in output by 2060. With the growth in the construction sector, demand for industrial packaging of construction materials and tools is also anticipated to rise substantially. Further, stringent government regulations regarding the safe handling and transportation of hazardous chemicals are compelling chemical manufacturers to adopt high-quality industrial packaging solutions. Major players in the market are focused on introducing packaging products made from recyclable and eco-friendly materials to capitalize on the growing sustainability movement across various industries.
SWOT Analysis
Strength: The industrial packaging market is consolidated with the presence of a few key players. The market has high entry barriers like capital cost, which protect the industry from new entrants. Most players in this industry have strong brand recognition and loyal customer base developed over years of operations.
Weakness: Raw material price volatility can squeeze margins for packaging manufacturers. Constantly evolving regulatory frameworks related to packaging waste management increase compliance cost for players.
Opportunity: Growing e-commerce sector is generating strong demand for effective packaging solutions during transit of goods. Bio-degradable and sustainable packaging options present an opportunity area for innovations.
Threats: Stricter environmental regulations around recycling and disposal of packaging waste pose a challenge. Substitutes like reusable packaging reduce reliance on disposable options.
Key Takeaways
The Global Industrial Packaging Market is expected to witness high growth, exhibiting CAGR of 5.42% over the forecast period, due to increasing demand from industries like chemicals, food and beverage and construction.
Regional analysis: North America holds the major share in industrial packaging market due to strong presence of manufacturing and process industries in US and Canada. Asia Pacific region is growing at the fastest pace owing to expansion of industrial activities in China and India.
Key players: 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.
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