DUBLIN, Nov. 10, 2023 /PRNewswire/ — The “Global Industrial Packaging Market (by Material Type, End User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)” report has been added to ResearchAndMarkets.com’s offering.
The global industrial packaging market is poised for substantial growth, projected to achieve a market value of US$68.91 billion by 2023, with a notable Compound Annual Growth Rate (CAGR) of 5.02% during the forecast period. Industrial packaging plays a crucial role in safeguarding and facilitating the storage and distribution of finished Fast-Moving Consumer Goods (FMCG) and products, providing heavy-duty customized solutions.
Defining Industrial Packaging
Industrial packaging encompasses specialized, durable packaging solutions designed for the wrapping, containment, and sealing of FMCG during storage and distribution. It serves to protect products from damage and contamination throughout their journey, supporting various industries, including transport, warehousing, logistics, and end-use applications. Common packaging formats in this industry include drums (steel, plastic, and fiber), intermediate bulk containers (flexible and rigid), sacks, pails, crates, and totes.
The global industrial packaging market is segmented by material type into seven categories: corrugated boxes, intermediate bulk containers (IBC), sacks, drums, pails, crates, and others. Corrugated boxes are the largest and fastest-growing segment in the industrial packaging market, versatile in packing items of various sizes and shapes, offering customization to meet specific company requirements.
By end-user, the market is segmented into food & beverages, chemicals & pharmaceuticals, building & construction, agriculture & horticulture, plastics & rubber, oil & lubricants, and others. The food and beverages sector dominates the industrial packaging market, driven by population growth, urbanization, consumer preference for packaged and processed food, and the rise of e-commerce and online platforms for the sale of essential daily items, FMCG, and fresh food.
Geographically, the global industrial packaging market is divided into four regions: North America (including the US, Mexico, and Canada), Europe (encompassing Germany, France, Italy, the UK, Spain, and Rest of Europe), Asia Pacific (covering China, Japan, India, South Korea, and Rest of Asia Pacific), and the Rest of the World (ROW). The Asia Pacific region leads the global industrial packaging market, with the highest growth rate attributed to factors such as a growing working population, increased currency rates, rising e-commerce sales, higher individual per capita income, and the numerous benefits offered by industrial packaging solutions, including safety, cost-effectiveness, durability, strength, environmental friendliness, and logistical convenience. China is a major contributor to the Asia Pacific market, driven by demand from the food packaging industry, retail sales of grain, oil, food & beverages, and steady growth in sectors like automotive, construction, and healthcare.
Drivers: Surging E-commerce
The industrial packaging market is experiencing growth fueled by rising disposable income, increased internet access, and the shift in consumer preferences towards online shopping. This has led to increased demand for industrial packaging solutions as e-commerce orders are often individually packaged to ensure safe delivery. Protective industrial packaging is also essential for the secure transportation of goods, including potential product returns, further boosting the industrial packaging market.
Challenge: Raw Material Price Volatility
Fluctuations in the supply of raw materials and basic chemicals used in packaging materials production pose a challenge. For example, crude oil and natural gas, sources of raw materials for insulated packaging, have volatile prices. As raw material costs increase, so do industrial packaging prices, hindering market growth. Additionally, small vendors reducing profit margins to maintain consistent prices hinder the industry’s attractiveness, resulting in business closures and market shrinkage.
Trend: Adoption of Nanotechnology
The adoption of nanotechnology is growing in the industrial packaging sector. Nanoparticles are mixed with polymer chains to enhance packaging materials’ barrier properties and tensile strength. Nanocoatings applied to packaging surfaces provide an extra layer of protection against dirt, dust, and stains. Nanosensors are used to monitor food freshness and quality by detecting chemical changes. This trend, incorporating nanotechnology into industrial packaging solutions, further propels market growth.
The COVID-19 pandemic significantly impacted the industrial packaging market due to reduced productivity, business closures, and shifts to online work. Lockdown policies led to reduced production in various end-user industries, resulting in lower demand for industrial packaging services. Industries such as construction, oil, agriculture, which rely on bulk packaging and industrial packaging, were particularly affected. However, post-COVID prospects for the industrial packaging market are positive. Initiatives like the COVAX Facility have supported the production and distribution of essential vaccines, including HBV vaccines, contributing to the recovery of the industrial packaging market.
The industrial packaging market is fragmented, with numerous international, regional, and local vendors. Local manufacturers often provide innovative solutions at lower prices than international vendors, leading to price competition. Key players in the market include Amcor PLC (Bemis Company, Inc.), Mondi PLC, WestRock Company, Packaging Corporation of America (PCA), Sonoco Products Company, Grief, Inc., Berry Global Group, Inc., International Paper Company, Orora Limited (Orora Packaging Solutions), Sealed Air Corporation, Global-Pak, Inc., BAG Corporation, and NEFAB Group AB.
Top Impacting Factors
- Rising Demand from End User Industries
- Rise in Modern Retailing
- Increasing E-commerce
- Volatility in Raw Material Prices
- Recycling and Environmental Concerns
- Increased Integration of Artificial Intelligence (AI)
- Emergence of Sustainable and Recyclable Packaging Materials
- Increasing Adoption of Nanotechnology
- 3D Printing
For more information about this report visit https://www.researchandmarkets.com/r/rvoug5
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Originally published at https://www.prnewswire.com/news-releases/nanotechnology-revolutionizes-industrial-packaging-as-market-expands-at-5-02-cagr-301984981.html
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