U.S. demand for rigid bulk packaging to approach $7 billion in 2013
-- Modern Materials Handling, 4/1/2009
According to Rigid Bulk Packaging, a new study from The Freedonia Group (www.freedoniagroup.com), demand for rigid bulk packaging is projected to increase 2.1% per year to $7 billion in 2013. Although a moderation in raw material prices after the sharp increases of the 2003–2008 period will restrain value growth, unit growth will improve. Gains will be bolstered by an improvement in real manufacturing activity as well as a shift in the product mix toward larger, higher-value containers that offer enhanced performance and cost effectiveness.
According to the report, the best opportunities will be found with containers offering a combination of total cost benefits, greater reusability and enhanced performance. Rigid intermediate bulk containers (RIBCs) will register the fastest gains, with demand increasing 4.2% annually through 2013 as a result of cost and performance advantages with smaller, single-use or shorter life packaging. Materials handling containers will also see above-average growth, driven by increased use of returnable and reusable containers.
Drums will continue to be the leading rigid bulk packaging product type based on their relatively low cost, reusability and amenability to shipping hazardous materials. However, the report predicts that drum demand will advance less than 1% annually as a result of the maturity of steel and fiber drums and a moderation in raw material pricing. In addition, competition from both rigid and flexible intermediate bulk containers will restrain drum sales.
Nondurable goods markets such as chemicals, food, plastics, rubber, fiber, petroleum, lubricants, and agricultural and horticultural products accounted for more than 80% of demand in 2008. Chemicals, by far the leading rigid bulk packaging market, will advance at a below-average pace as a result of the maturity of many chemical product segments, the increased presence of imports and the movement of key customers to developing regions. Plastic is the leading rigid bulk packaging material, with steel and paperboard also significant.
Focus on Reuseables
09/22/2009Focus on Reuseables
08/31/2008Plastic totes, containers and pallets
05/31/1998
View All On-Demand Webcasts
