Global Bulk Packaging Market - 2023-2030

Overview

Global Bulk Packaging Market reached US$ 25.2 billion in 2022 and is expected to reach US$ 32.1 billion by 2030, growing with a CAGR of 6.3% during the forecast period 2023-2030.

The global bulk packaging market is a vital segment within the broader packaging industry, playing a pivotal role in the transportation and storage of various goods, including chemicals, food products, construction materials and more. Bulk packaging sector has witnessed significant growth in recent years, driven by the expanding global trade, industrialization and the need for efficient, cost-effective and sustainable packaging solutions.

The ongoing urbanization and industrialization in emerging economies have fueled the demand for bulk packaging solutions, especially for the transportation of raw materials and finished goods. Statistics from countries such as China and India reflect the aforementioned trend, showing an increase in manufacturing activities and the corresponding need for bulk packaging.

The flexitank, accounts for over 1/3 rd of the market share. Similarly, Asia-Pacific known for its robust manufacturing sector, has also seen substantial growth in the adoption of bulk packaging. Asia-Pacific dominates the bulk packaging market, capturing the largest market share of over 1/3rd. The bulk packaging is set to play a pivotal role in the region as exports using flexitanks have increased by an average of 15% annually over the last five years.

Dynamics

E-commerce Boom and Increasing Global Trade

One of the primary drivers of the global bulk packaging market is the continuous growth of international trade. As per the World Trade Organization (WTO), global merchandise trade grew by 8% in 2022, rebounding from a decline of 5.3% in 2020. The aforementioned trade growth necessitates efficient and cost-effective packaging solutions, with bulk packaging being a favored choice.

Further, the rise of e-commerce, accelerated by the COVID-19 pandemic, has been a significant driver for the bulk packaging market. According to United Nations Conference on Trade and Development (UNCTAD), global e-commerce sales increased by 27% in 2020, reaching US$ 26.7 trillion. Bulk packaging is vital for the efficient handling and shipping of goods in this sector, which relies on safe and secure packaging solutions to meet the demands of online shoppers.

Technological Advancements and Expanding Chemical Industry

Advancements in technology have led to the development of more efficient and sophisticated bulk packaging solutions. Automation and robotics have improved packaging processes, reducing labor costs and increasing overall efficiency. Government investments in research and development have contributed to technological advancements in the bulk packaging industry.

For instance, chemical products often require specialized packaging to ensure safety during transportation and storage. According to United Nations Industrial Development Organization (UNIDO), the global chemical industry's output increased by 1.4% in 2022, with the demand for bulk packaging materials growing in tandem. Thus, the aforementioned fact is a major driver for the market.

Rising Material Costs and Supply Chain Disruptions

Bulk packaging materials, such as plastics, steel and paper, have witnessed a surge in prices in recent years. The respective increase in material costs poses a significant restraint on the market as manufacturers struggle to maintain profit margins while keeping prices competitive. The U.S. Bureau of Labor Statistics reported a 27% increase in the Producer Price Index for plastics and rubber products between January 2020 to August 2021.

Similalry, global supply chain disruptions, such as those experienced during the COVID-19 pandemic, have exposed vulnerabilities in the bulk packaging market. The World Trade Organization (WTO) reported that global trade in goods fell by 5.3% in 2020 due to the pandemic-related disruptions. The sudden shifts in demand and disruptions in the supply chain have led to delays and shortages, impacting manufacturers' ability to meet customer requirements.

Regulatory Compliance and Environmental Concerns

One of the significant restraints facing the global bulk packaging market is the increasing emphasis on regulatory compliance and environmental sustainability. Governments globally are enacting stringent regulations aimed at reducing the environmental impact of packaging materials.

For instance, the European Union's Single-Use Plastics Directive, which came into effect in 2021, restricts the use of certain plastic products, including single-use plastic packaging. According to the European Commission, single-use plastic products accounted for 70% of marine litter in European seas, prompting the adoption of these regulations.

Segment Analysis

The global bulk packaging market is segmented based on product, material, application and region.

Versatility and Ease of Use As An Alternative to Traditional Bulk Liquid Transport Methods

The global bulk packaging market has witnessed significant growth in recent years, driven by the increasing demand for cost-effective and efficient solutions for transporting liquids and dry bulk goods. One such innovation that has gained prominence in this market is the flexitank. Flexitanks are a versatile alternative to traditional bulk liquid transport methods such as drums, barrels and intermediate bulk containers (IBCs).

Asia-Pacific countries, notably China and India, have been at the forefront of flexitank adoption. According to China's General Administration of Customs, the country's exports using flexitanks have increased by an average of 15% annually over the last five years. India, too, has witnessed a surge in flexitank usage, driven by its growing chemical and agricultural exports.

U.S. and Canada have seen a steady rise in flexitank utilization, primarily in the food and beverage, chemical and pharmaceutical sectors. Data from U.S. International Trade Commission reveals that flexitank shipments have risen by 12% per annum on average since 2015. The use of flexitanks for liquid transport within the EU also has increased by approximately 8% annually in recent years, with notable growth in the chemical and wine industries.

Geographical Penetration

Economic Development, Increased Trade Activities and A Growing Emphasis On Sustainable Packaging Solutions

Asia-Pacific has witnessed remarkable growth in the global bulk packaging market over the past decade. The industry's substantial expansion can be attributed to various factors such as economic development, increased trade activities and a growing emphasis on sustainable packaging solutions. As the world continues to evolve, Asia-Pacific's role in shaping the future of bulk packaging remains pivotal.

One of the primary drivers of the bulk packaging market in Asia-Pacific is the region's robust economic growth. According to the Asian Development Outlook, Asia-Pacific experienced an average GDP growth rate of 5.5% in the past decade. The respective growth has led to increased industrialization, manufacturing activities and trade, all of which are integral to the bulk packaging industry.

China, the manufacturing hub of the world, reported a staggering US$ 3.5 trillion in manufacturing value-added in 2022, as per the National Bureau of Statistics of China. Similarly, Japan's Ministry of Economy, Trade and Industry reported that the country's manufacturing exports reached US$ 697 billion in 2021. The massive production necessitates efficient bulk packaging solutions to transport goods globally.

Competitive Landscape

The major global players in the market are: Shandong Anthente New Materials Technology Co., Ltd., BLT Flexitank Industrial Co. Ltd., Braid Logistics, Buscherhoff Spezialverpackung GmbH & Co. KG, Environmental Packaging Technologies Inc., KriCon, K Tank Supply Limited, Qingdao LAF Packaging Co. LTD. and MY FlexiTank.

COVID-19 Impact Analysis

The pandemic's initial shockwaves disrupted global supply chains, causing immediate ramifications for the bulk packaging industry. Government-imposed lockdowns, travel restrictions and workforce limitations led to production halts, which had a ripple effect throughout the supply chain. According to United Nations Conference on Trade and Development (UNCTAD), global trade volume decreased by 3% in 2020 compared to the previous year.

Furthermore, the pandemic-induced shift in consumer behavior further impacted the bulk packaging market. Governments globally encouraged social distancing and imposed lockdowns, leading to increased demand for essential goods. Consequently, the demand for bulk packaging materials for various industries surged. According to U.S. Census Bureau, packaging material exports for pharmaceuticals and food increased by 10% and 12%, respectively, in 2020.

While the pandemic posed numerous challenges, it also accelerated the adoption of technology within the bulk packaging sector. Governments recognized the importance of digitalization in ensuring the resilience of supply chains. Organizations, including the European Commission, initiated digitalization projects to improve traceability and transparency in the packaging industry.

Such technological advancements not only aided in monitoring and maintaining the supply chain but also paved the way for innovative solutions such as smart packaging and blockchain-based tracking systems. Such initiatives are anticipated to have a lasting impact on the bulk packaging market, making it more resilient to future crises.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has disrupted global supply chains in multiple ways. Ukraine, a key player in the agricultural sector, used to be a significant exporter of grains, including wheat and corn. The disruption has affected the supply of raw materials necessary for bulk packaging products, particularly in Eastern Europe. As a result, several countries reliant on Ukrainian agricultural exports have experienced difficulties in sourcing affordable packaging materials.

Sources indicate that countries such as Poland, Hungary and Romania have seen increased prices for packaging materials such as woven polypropylene bags, which are commonly used for packaging grains. The price surge directly impacts the cost structure of these nations' agriculture industries, ultimately affecting global food prices.

Further, The Russia-Ukraine conflict has also had a notable impact on energy costs and, consequently, the petrochemical industry. Governments globally have reported rising energy prices due to geopolitical tensions and sanctions imposed on Russia, which is a major oil and gas producer. The aforementioned fact, in turn, affects the production and pricing of plastic-based bulk packaging materials.

The rising cost of energy has led to higher production costs for plastic resins used in bulk packaging, such as polyethylene and polypropylene. Manufacturers and packaging companies are grappling with the challenge of passing these cost increases onto consumers without significantly affecting their profit margins, leading to potential price inflation in various product categories.

By Product

• Containers
  • Flexitanks
  • Bulk Container
• Flexible Intermediate Bulk Containers (FIBC)
• Rigid Bulk Containers
• Pails
• Drums
• Boxes
• Shipping Sacks
• Others

By Material

• Plastic
  • High-Density Polyethylene (HDPE)
  • Low-Density Polyethylene (LDPE)
  • Linear Low-Density Polyethylene (LDPE)
  • Polypropylene (PP)
  • Polyvinyl Chloride (PVC)
  • Polystyrene (PS)
  • Others
• Metals
• Wood
• Paperboard
• Others

By Application

• Food & Beverages
• Chemicals and Petrochemicals
• Paint, Dyes and Inks
• Pharmaceuticals
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On May 23, 2023, Tosca introduced a novel Life Cycle Analysis (LCA) tool with the objective of minimizing greenhouse gas emissions, as well as decreasing fossil fuel consumption and water usage during the transportation of bulk liquids. The tool achieves the respective goal by recommending that businesses consider adopting Tosca's collapsible Intermediate Bulk Container (IBC) solutions.
• On August 18, 2021, Sonoco ThermoSafe, a subsidiary of Sonoco and a prominent global provider of temperature control packaging, entered into a global partnership agreement with Korean Air, one of the largest air cargo carriers. The agreement focuses on the leasing of the innovative Pegasus ULD temperature-controlled bulk shipping container. Under this partnership, pharmaceutical freight forwarders can now directly access Pegasus ULD containers from Korean Air. Additionally, Korean Air and their shared clients will have the opportunity to utilize various other Sonoco ThermoSafe containers as part of this collaborative arrangement.
• On September 28, 2022, Mars introduced candy jars crafted from 15% recycled plastic, specifically designed for packaging M&M's, Starburst and Skittles bulk products. The respective jars are the result of a collaboration with packaging manufacturer Berry and are scheduled for release in October.

Why Purchase the Report?

• To visualize the global bulk packaging market segmentation based on product, material, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of bulk packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global bulk packaging market report would provide approximately 58 tables, 63 figures and 185 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies