Industrial packaging refers to the packaging solutions used for various goods transportation purposes across industries such as food and beverage, pharmaceuticals, chemicals, construction, and automobiles. Industrial packaging includes wood pallets, composite pallets, plastic pallets, drums, intermediate bulk containers, and crates. These packaging solutions offer protection, prevention of theft and damage, ease of handling, and transportation of heavy and bulk shipments. They aid in reducing costs associated with damaged goods during logistics and transit.
The Industrial Packaging Market is estimated to be valued at US$ 68,677.9 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the industrial packaging market is the increasing demand for sustainable packaging. Consumers and packaging regulations are putting pressure on companies to adopt eco-friendly packaging solutions. This has driven research and innovation towards developing packaging made from recycled or renewable content such as recycled plastics, paper, wood, and bio-based resins. Companies are focusing on lighter and compact packaging designs using minimum material which facilitate effective transportation and storage. Moreover, sustainable industrial packaging reduces carbon footprint and overall lifecycle costs. The adoption of reusable and recyclable pallets, containers, and drums is growing among end-use industries to support circular economy initiatives.
Porter's Analysis
Threat of new entrants: The threat of new entrants in moderate due to high initial investment required for large scale production facilities.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are various industrial packaging solution providers in the market.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for industrial packaging are commodity products supplied by numerous suppliers globally.
Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes available for industrial packaging.
Competitive rivalry: Intense due to presence of numerous global and regional players.
SWOT Analysis
Strength: Wide range of product portfolio and global presence of key players. Innovation in material and design of packaging products.
Weakness: High capital requirement and dependence on economic cycles for growth. Packaging waste disposal norms stringent in several countries.
Opportunity: Increasing e-commerce sales and demand from industries like food and beverages sector. Growth opportunities in emerging markets of Asia Pacific and Middle East & Africa.
Threats: Volatility in raw material prices can squeeze profits. Stringent environmental regulations around the world regarding packaging waste.
Key Takeaways
The global Industrial Packaging Market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing industrial production and consumption globally. The market size for 2023 is US$ 68,677.9 Mn.
Regional analysis- Asia Pacific dominates the global market and is projected to exhibit fastest growth during the forecast period owing to rapid industrialization in China and India. Countries like China, India, Japan and South Korea account for over 45% of the global demand.
North America and Europe are other major markets for industrial packaging due to well-established food processing and pharmaceutical industries. Stringent packaging waste norms will drive innovation in these regions.
Key players operating in the Industrial Packaging market are Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe, and B.A.G. Corp. Key players are focusing on developing sustainable packaging solutions to comply with changing regulatory environment across the world.
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