The industrial chemical packaging market is forecasted to expand at a compound annual growth rate (CAGR) of 4.0% by the year 2033. Insights from FMI suggest that the revenue share of the market is poised to increase significantly, climbing from US$ 133.58 billion in 2023 to US$ 197.52 billion by 2033. This growth projection underscores the industry’s resilience and adaptability in meeting the evolving demands of various sectors reliant on industrial chemical packaging solutions. It reflects a positive outlook driven by factors such as technological advancements and increasing emphasis on safety and sustainability.
The market is propelled by the increasing consumption of active pharmaceutical ingredients, driven by the presence of leading pharmaceutical companies in the country. In the United Kingdom, the industrial chemical packaging is bolstered by the presence of key industry players and is expected to create an incremental opportunity of US$ 1.7 billion from 2023 to 2033. Increasing investments in organic chemical production are set to further boost the demand for convenient packaging solutions. The United Kingdom is anticipated to witness a 1.5x growth in the demand for industrial chemical packaging, positioning it as the third-largest market in Europe.
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Growth Drivers:
- Increasing Demand for Chemicals: As various industries such as manufacturing, construction, automotive, and healthcare continue to grow, the demand for industrial chemicals rises, driving the need for efficient and safe packaging solutions.
- Stringent Regulations: Regulations regarding the transportation and storage of chemicals, especially hazardous ones, have become increasingly stringent. This mandates the use of high-quality packaging that ensures safety and compliance, thereby driving the demand for specialized industrial chemical packaging solutions.
- Technological Advancements: Innovations in packaging materials and technologies have led to the development of more durable, sustainable, and cost-effective packaging solutions. This includes advancements in barrier technologies to prevent chemical leakage and contamination.
- Focus on Sustainability: With growing environmental concerns, there is a shift towards sustainable packaging solutions within the chemical industry. This includes the use of recyclable materials, reducing packaging waste, and implementing eco-friendly manufacturing processes, which can drive growth for companies offering such solutions.
- Globalization of Trade: The globalization of trade has expanded markets for chemical manufacturers, leading to increased demand for packaging solutions that can withstand long-distance transportation and storage under varying environmental conditions.
- Rapid Industrialization: Emerging economies undergoing rapid industrialization, particularly in regions like Asia-Pacific and Latin America, are witnessing increased demand for industrial chemicals and consequently, industrial chemical packaging solutions.
Industry Restraints:
- Cost Pressures: The cost of specialized packaging materials and compliance with stringent regulations can put pressure on manufacturers, impacting profit margins. Balancing cost-effectiveness with regulatory compliance and quality standards poses a significant challenge.
- Complexity in Regulations: Compliance with diverse and evolving regulations across different regions and jurisdictions adds complexity to the design and manufacturing process of industrial chemical packaging. This complexity can slow down innovation and market entry for new players.
- Volatility in Raw Material Prices: Fluctuations in raw material prices, particularly for plastics and metals used in packaging, can affect the overall cost structure and profitability of chemical packaging companies.
- Health and Safety Concerns: Mishaps related to chemical spills, leaks, or accidents during transportation and handling can have serious health, safety, and environmental consequences. Ensuring the integrity and effectiveness of packaging systems to mitigate such risks is a constant challenge.
- Competition and Market Saturation: The industrial chemical packaging industry is highly competitive, with numerous players offering similar products and solutions. Market saturation in certain segments can lead to pricing pressures and reduced profitability.
- Limited Adoption of Sustainable Practices: While there is a growing emphasis on sustainability, some companies may be slow to adopt eco-friendly packaging solutions due to concerns about cost, performance, or perceived complexity in transitioning their operations.
Key Takeaways from Industrial Chemical Packaging
- Intermediate bulk containers are the most widely used packaging format for safe and easy transportation of industrial chemicals, as these containers are versatile, pallet mounted cost-effective. IBC’s currently account for more than 64% of industrial chemical packaging solutions sold worldwide.
- Backed by the presence of the renowned pharmaceutical companies in the country, the U.S. is the largest consumer of chemical packaging solutions. The U.S. market is anticipated to offer incremental opportunities worth US$ 4.4 Bn over the next decade.
- Recyclable and re-usable features make plastic preferred material in the industrial chemical packaging market. It is expected to account for over 40% of packaging solutions produced over the forecast period.
- After witnessing slight decline in FQ-20, Germany market is expected to register a y-o-y growth of almost 4% in the year 2021.
- Specialty chemicals segment will offer incremental opportunity of US$ 36.5 Bn between 2021 and 2031.
Industrial Chemical Packaging Landscape
Some of the key players dominating the global industrial packaging market are
- ProAmpac,
- Tote Systems International, LP,
- US Display Group,
- Myers Industries, Inc.,
- Assmann Corp. of America,
- DENIOS Ltd.,
- Hoover CS,
- Segezha Group GmbH,
- CLA Containers,
- Greif, Inc.,
- RIKUTEC Group,
- Müller Group,
- Knack Packaging Private Limited,
- Mauser Group B.V.,
- PVN Fabrics Pvt. Ltd.,
- Time Technoplast Ltd.,
- Pyramid Technoplast Pvt Ltd.,
- Tripura Containers Private Limited,
- East India Drums & Barrels Mfg. Co and
- Schuetz GmbH & Co. KGaA.
Recent Developments-
- In October 2020, Myers Industries, Inc. acquired Elkhart Plastics, Inc., which is the fifth-leading rotational molder in the United States, to strengthen its product portfolio. The move is seen as part of its long-term strategic plan for transforming the company into a high-growth producer of engineered plastic solutions.
- In April 2021, ProAmpac acquired two companies named IG Industries PLC and Brayford Plastics Ltd., based in the United Kingdom, for the production of recyclable packaging solutions.
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Key segments
By Packaging Format:
- Intermediate bulk containers (IBCs)
- Flexitanks
- Drums
- Pails & Jerry Cans
- Bags & Sacks
- Others (Bins & Liners, etc.)
By Material:
- Metal
- Plastic
- Paper & Paperboard
By Chemical Type:
- Specialty Chemicals
- Commodity Chemicals
By Region:
- North America
- Latin America
- Europe
- South Asia
- East Asia
- Oceania
- Middle East & Africa (MEA)
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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