US Market for Rigid Bulk Packaging: RIBCs, Bulk Boxes, Drums, Material Handling Containers

Dallas, TX -- (SBWIRE) -- 03/07/2013 -- ReportsnReports.com adds “Rigid Bulk Packaging to 2017” new market research report to its store. Demand for rigid bulk packaging market is expected to reach $6.9 billion in 2017. Growth will accelerate from the performance of the recession-impacted 2007- 2012 period, and will reflect rebounds in manufacturing output and construction activity. Gains will also be driven by expanded use of larger, higher-value containers that offer enhanced performance and are more cost-effective than smaller types with shorter service lives.

RIBCs to be fastest growing bulk packaging product

RIBCs will be the fastest growing rigid bulk packaging product type through 2017, benefiting from a rebound in chemical production as well as cost and performance advantages over smaller, single-use, or shorter-lived packaging. Although RIBCs have a higher initial cost than other rigid bulk containers, these products offer increased storage space efficiency and longer service lives, allowing large-scale customers to realize significant long-term cost savings. Moderating growth to some degree will be competition from flexible intermediate bulk containers (FIBCs), which are substantially less expensive than RIBCs (although not as long-lasting) and capable of accommodating liquids if used in conjunction with a liner.

Material handling containers will also experience above average gains through 2017, aided by a rebound in durable goods production following declines during the 2007-2012 period. In addition, demand will be supported by increased emphasis on sustainability, which will lead to heightened usage of returnable and reusable containers in the production of durable goods as well as in the food and agriculture industries.

Healthy prospects for plastic drums will be based on advantages of lighter weight and lower cost than steel drums, along with continuing material enhancements, corrosion and impact resistance, and compatibility with most substances other than solvents and other chemicals that can degrade polyethylene. Despite the maturity of steel and fibre drums, drum demand will benefit from an upswing in manufacturing, especially in the chemical industry. Drums will remain a mainstay of the industry as a result of their relatively low cost, reusability, effectiveness in the safe transport of hazardous materials, and appeal to users not seeking to transition to IBCs.

Nondurable goods markets key to overall demand gains

Nondurable goods markets comprised over 80 percent of demand in 2012. Among these markets, chemicals and pharmaceuticals, and plastic, rubber, and fiber will experience the fastest gains through 2017. Advances will be driven by heightened manufacturing activity, especially in significant end markets for chemicals, plastic, rubber, and fiber products, such as motor vehicles and construction products. Increased requirements for these basic materials will result in greater demand for packaging used with bulk quantities.

Opportunities in the food and beverage market will benefit from consumer trends such as growing interest in convenient food preparation, which will support demand for a range of bulk ingredients employed in the manufacturing of such foods. The continued economic expansion will stimulate growth in consumer spending, including spending for food eaten or prepared away from home, boosting demand for drums and pails to ship food manufactured and/or distributed to foodservice venues.

Company Profiles

Company Profiles for over 30 players in the US industry including BWAY, Greif, International Paper, Letica, MAUSER, Menasha, and SCHÜTZ

Additional Information

This study examines the US market for rigid bulk packaging. Historical data (2007, 2012, and 2017) and forecasts for 2017 and 2022 are presented for drums, pails, material handling containers, bulk boxes, and rigid intermediate bulk containers (RIBCs). Markets for these products include chemicals and pharmaceuticals; food and beverage; plastic, rubber, and fiber products; petroleum and lubricants; agricultural and horticultural products; durable goods; and other (e.g., hazardous waste storage and handling). In many instances, rigid bulk packaging types and markets are further delineated. Historical data and forecasts on the consumption of major rigid bulk packaging raw materials (plastic, steel, and paperboard) are also presented. Excluded from this study are pallets and wood containers, and corrugated and solid fiberboard containers other than bulk boxes and corrugated RIBCs. The study also excludes cans, bottles, jars, and tubs used for the packaging of bulk sizes of foods and other consumer goods. Unless otherwise noted, all figures represent either shipments or demand for rigid bulk packaging in units or dollars. The term “shipment” includes production from all US manufacturing establishments that is then shipped to both US and foreign markets. “Demand” (or sales or apparent consumption) is defined as all shipments from US plants, plus imports, minus exports.

In addition, the key strategic and competitive variables affecting the US rigid bulk packaging industry are discussed, major players are identified and profiled, and US market share is presented. The entire study is framed within the context of overall economic conditions as well as developments and technologies affecting the rigid bulk packaging industry and its end users.

Throughout this study, demand is related to various indicators for comparative purposes and to facilitate further analysis. Tabular details may not add to totals due to rounding, and calculated ratios reflect unrounded numbers. Corporate information sources include annual reports, SEC Form 10-K filings, product catalogs, and other company information. Rigid bulk packaging-related revenues by company presented in the “Industry Structure” section are estimates based on information from company annual reports and/or fact books and consultation with multiple sources. Macroeconomic indicators presented in this study were obtained from The Freedonia Group Consensus Forecasts dated December 2012. Due to the Bureau of Economic Analysis’ use of chain weighted price indices, inflation-adjusted Gross Domestic Product components (2005 dollars) may not add to the total.

Information and data on rigid bulk containers were derived from a range of sources, including government publications and trade associations, online databases, and direct contact with industry participants. Historical data are based on data from various government agencies, including the US Bureau of the Census and US International Trade Commission, as well as various foreign trade and pricing series. Trade associations used as sources of information for this study include the American Chemistry Council, Fibre Box Association, Material Handling Industry of America, Petroleum Packaging Council, Plastic Drum Institute, Plastic Shipping Container Institute, Reusable Industrial Packaging Association, and Steel Shipping Container Institute.

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