Global sales of bulk container packaging is estimated to be valued at US$ 13.6 Bn in 2017 and is projected to be valued at US$ 28.7 Bn by 2027. Sales revenue is projected to register a CAGR of 7.8% during the forecast period (2017–2027).
Increase in trade activities and the use of bulk containers for transportation in North America
North America off late has been witnessing a steep rise in demand of its food and chemical produce. One third of the agricultural land in the U.S. is meant particularly for exports, which drives the need for bulk packaging. Bulk containers offer several advantages such as reusability and cost efficiency, leading to their wide applicability across all regions of North America. Another factor driving the need for bulk containers is their minimum contamination issue as the IBCs are made using the blow moulding process that minimises the need for drilling and hence reduces chances of contamination.
Containerisation has led to significant low costs for the shipping industry
Bulk container packaging has made it possible for the shipping industry to transport products without being heavy on their pockets. Earlier, a crew of 1000 people was required for shipping purposes but with the advent of bulk containers, a maximum of 21 crew members are enough, which has significantly reduced the shipping costs and in turn has created revenue opportunities for the industry. Bulk containers have generated a great level of productivity for the shipping industry and have also helped them achieve significant profitability.
Market and political uncertainty is hampering the growth of the bulk container packaging market
The shipping industry is rattled by volatility of freight rates and the traffic on the trade routes is reducing significantly. This has led to an alarming situation for the bulk container packaging market with the market growing at a snail’s pace. Moreover, North America, specifically the United States has a robust relationship with Europe and political uncertainties in Europe; for example, Britain’s exit from the European Union has led to a significant drop in the exports and imports between the two nations due to which the bulk container packaging market is struggling to maintain its momentum.
Global Bulk Container Packaging Market, by Region
North America is estimated to account for 29.7% of the global bulk container packaging market in 2017 and is estimated to reach 30.8% of the global bulk container packaging market by the end of 2027, increasing by 110 basis points. The Western Europe region accounts for a significant share of the bulk container packaging market currently. However, this is expected to decline marginally by 80 basis points by the end of 2027.