Industrial Chemical Packaging Market

Key Points Covered in Industrial Chemical Packaging Market Study

• Market estimates and forecast 2015-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Industrial Chemical Packaging Market and How to Navigate
• Recommendation on Key Winning Strategies

Download a Comprehensive Report Snapshot

2016-2020 Global Industrial Chemical Packaging sales Compared to 2021-2031 Forecast

Driven by flooding demand for chemicals essentially used in the food and pharmaceutical industry, the global industrial chemical packaging market will register positive growth. Also, surge in demand for organic chemicals and various other types of additives is resulting in increasing sales of sustainable packaging solutions. 

According to the report, the market is estimated to grow at 4.0% CAGR between 2021 and 2031 in comparison to 3.6% CAGR registered during 2016-2020.

Manufacturers in the industrial packaging industry are adapting to the needs of modern-day consumers. Therefore, the focus is on consistent improvement in production technology as market players aim for competitive edge.

Leading players are leveraging their cutting-edge technologies to maintain their supremacy in the market. Established markets already use automated technologies for cutting, welding and shaping different types of packaging solutions required by various industries.

State-of-the-art leak detecting machinery and advanced testing solutions are designed for making sure that chemical packaging solutions adhere to international safety standards and complies with weight handling capacity.

How is Expansion of Diverse Industry Verticals Spurring Market Growth?

 In the past decade, manufacturing industries including original equipment manufacturers and various types of value-added services providers have witnessed a surge in demand for food & beverages, cosmetics, and pharmaceutical products. Emergence of new entrants in production and related services will offer lucrative growth opportunities.

 Increase in production capacities of various end-use industries such as food & beverages and chemical processing, wide range of new industrial applications of chemicals in cosmetics & personal care and automotive, and research & development services have led to a sharp rise in demand for industrial chemical packaging.

High Demand for Safe Packaging Solutions to Improve the Sales

 Innovation-driven packaging industry always comes up with more effective packaging solutions than traditional alternatives. In recent years, it the demand for safe packaging solutions has increased, specially designed for transporting high-value goods.

 Innovative bulk packaging solutions developed for safe packaging of harmful chemicals, such as intermediate bulk containers, are made to cater for a wide range of applications. Rigid intermediate bulk containers are designed for liquid and granulated forms of chemicals goods and flexible intermediate bulk containers are made for easing the movement of chemicals in powdered form.

 Manufacturers and exporters are using high-quality industrial packaging for their high-value goods, for risk-free transit of chemicals. Shipping and logistics partners also prefer spill-proof packaging to avoid wastage of goods, and the surface of the transport vehicle or ship also remains unaffected.

Demand for Accessories and Support Products to Bolster Growth

Players in the packaging industry are confined to the production of primary and secondary packaging solutions, in which goods are to be packed directly or secondarily. Due to the advancement of technology and launch of latest packaging solutions, demand for accessories and complementary products required for industrial packaging are rising across the globe.

 Accessories such as different types of lids, caps & closures, locks and pallets are used for efficient usage of industrial chemical packaging solutions, thus, making it easy to handle for logistical partners along with end-user industries.

 Rising demand for improvement in these accessories as a part of improved packaging solution will create opportunities for growth of the market.

Impact of the COVID-19 Crisis On Industrial Chemical Packaging Market

Unprecedented outbreak of COVID-19 pandemic resulted in the implementation of stringent restrictions and lockdowns, disrupting supply chain activities across manufacturing facilities. However, certain relaxations were allowed for essential goods which resulted in continued production and movement in food & beverages and pharmaceutical industries.

The demand for food and feed additives continued, especially as consumers resorted to panic buying. Besides this, the increasing demand for medical equipment and essential drugs caused sharp rise in industrial chemical packaging application within the pharmaceutical sector.

These factors helped the demands for chemical packaging to consistently rise, despite the COVID-19 induced challenges.      

Country-wise Insights

What Makes U.S. the Largest Market for ICP Solutions in North America?

As per the Federal Hazardous Substances Act (FHSA), all toxic, corrosive, flammable and irritant products require labelling and safe packaging as it may result in illness or damage to the people and surrounding where it is stored or transported.

Strict regulations from regulatory authorities regarding specific labelling of all types of hazardous materials on packaging had a profound impact on the chemical packaging market in the U.S.

The U.S. market is driven by increasing consumption of active pharmaceutical ingredients. This trend is expected to continue on account of the presence of leading pharmaceutical companies in the country.

Based on aforementioned factors, the U.S. has emerged as the largest market accounting for nearly 60% of sales of industrial chemical packaging solutions in North America in 2021.

How Industrial Chemical Packaging Market will expand in the U.K.?

The industrial chemical packaging market in the U.K. is driven by the presence of some of the leading market players. The U.K. market is estimated to create incremental opportunity of US$ 1.7 billion, during 2021-2031.

Increasing investments towards the production of organic chemicals will fuel the demand for convenient packaging solutions. The demand for industrial chemical packaging in the U.K. is anticipated to grow of 1.5x over the forecast period, making it the third-largest market in Europe.

How are Favorable Chemical Transport Policies Aiding Growth in Germany?

The European Chemical Industry Council (CEFIC), along with various European regulatory authorities has set specific quantitative limits on the packaging of hazardous chemicals while domestic and international transport. It is necessary for the chemical industry to comply with regulations on classification, labelling and packaging (CLP Regulations) meant for smooth and damage-free movement of hazardous materials across the globe.

Home to one of the largest automobile industries in the world, Germany will accounts for approximately 17% of the Europe market through 2031. Surge in demand for various dyes and pigments along with paints & coatings will create opportunities for sales in Germany.

Why is India Considered as Lucrative Market for Industrial Chemical Packaging Market?

India is the second-largest food producer in the world. Growth in consumption and production of various fertilizers, pesticides and agrochemicals in the recent decade will create opportunities for sales of industrial chemical packaging.

The country ranks as the largest producer of agrochemicals, according to the India Brand Equity Foundation (IBEF) and the chemical industry of India covers more than 70,000 commercial products.

Overall sharp rise in exports of chemicals produced in India results in high demand for packaging solutions fit for international transportation of hazardous materials. As per FMI analysis industrial chemical packaging market in India is estimated to register growth at 6.3% CAGR over the upcoming decade.

What Makes China Largest Consumer of Industrial Chemical Packaging Solutions Globally?

China is the world’s largest producer of chemicals.  As per The European Chemical Industry Council (CEFIC) it accounted for more than 40% of chemicals sold across the globe. China held around 46% of the East Asia market in 2020.

The rising sophistication of industrial output in China and rapid investments helped manufacturers to upgrade to advanced production technologies and the easy availability of raw materials and financial resources contributed towards the growth in production of all types of chemicals in the country.

Category-wise Insights

Which Packaging Format is Most Widely Used for Industrial Chemical Packaging?

The intermediate bulk containers (IBC) accounts for ~64% of the total industrial chemical packaging solutions sold across the world.  A variety of intermediate bulk containers are produced by manufacturers in all parts of the world, such as rigid intermediate bulk containers made up of plastic and stainless steel.

Intermediate bulk containers having a capacity of 800-1,250 liters are the most used type across and they occupy nearly half of total intermediate bulk containers sold. Overall, the intermediate bulk containers will offer incremental opportunity of more than US$ 34.1 billion between 2021 and 2031.

Why is Plastic More Preferred for Industrial Chemical Packaging?

As per FMI, plastic emerged as the most preferred material used by manufacturers of industrial chemical packaging. Approximately 40% of industrial chemical packaging solutions are produced using plastics as raw material in 2020.

Different variables of recyclable plastics such as high-density polyethylene (HDPE), low-density polyethylene (LDPE), polypropylene (PP) and polyvinyl chloride (PVC) are most famous plastic types used because they offer durability and strength required for easy handling of industrial chemicals.

Heavy investments in research & development have enabled producers to develop metallized polyethylene terephthalate (MET-PET), which does not absorb moisture and is 100% recyclability makes it perfect for safe transportation of hazardous and high-value chemicals to the farthest places.

Specialty Chemicals will Exhibit Higher Demand

The specialty chemicals segment is anticipated to exhibit growth at 4.4% CAGR during the forecast period. Outpouring demand for various specialty polymers, polymer additives, dyes & pigments and a wide range of pharmaceutical and agricultural chemicals results in the growth of production and consumption of specialty chemicals.

Rapid rise witnessed in demand for active pharmaceutical ingredients for the production of various medicinal drugs and feed additives will spur the demand for industrial chemical packaging.

The specialty chemicals segment will create total incremental opportunity of more than US$ 36.5 billion between 2021 and 2031.

Competitive Landscape

Companies operating in industrial chemical packaging market are aiming at strategic expansions and collaborations with key end users such as, chemical manufacturers and logistical partners to expand market reach of their products and to develop industry specific industrial chemical packaging solutions.

• In October 2020, Myers Industries, Inc. acquired Elhkart Plastics, Inc., which is the fifth largest rotational molder in USA, to strengthen its product portfolio. The move is seen as part of its long term strategic plan for transforming the company in to high growth producer of engineered plastic solutions.
• In April 2021, ProAmpac acquired two companies named IG Industries PLC and Brayford Plastics Ltd., based in UK for production of recyclable packaging solutions.

Scope of Report

Key Questions Answered in the Report

• What is the current value of the global industrial chemical packaging market? 

  The industrial chemical packaging market is projected to exceed an evaluation of US$ 124.9 billion by 2021.

• At what rate did the industrial chemical packaging market register growth in the last 5 years?

  The industrial chemical packaging market recorded solid growth at 3.6% CAGR in the last five years between 2015 and 2020.

• What is the demand outlook for the industrial chemical packaging market between 2021 and 2031? 

  The industrial chemical packaging market is anticipated to register a stable rise in demand after a period of reducing sales during COVID-19 in 2020. As per FMI, the market will register growth at a CAGR of 4.0% between 2021 and 2031. 

• What are key trends dominant in the industrial chemical packaging market? 

  Global key players in the industrial chemical packaging market are manufacturing packaging solutions made up of sustainably sourced raw materials, which offer easy re-usability and recyclability of all types of industrial chemical packaging solutions.

• What are key drivers influencing sales of industrial chemical packaging solutions? 

  Sharp rise witnessed in international trade of different types of liquid and solid chemicals across the continents drives the sales of industrial chemical packaging solutions.

• What is the market share of North America in the global industrial chemical packaging market outlook? 

  North America is the second-largest market for industrial chemical packaging solutions and is likely to hold 25% global sales, over the estimated period.

• What is the market share of the top five companies operating in the industrial chemical packaging market? 

  The top five estimated global players in the industrial chemical packaging market are Grief, Inc., ProAmpac, Segheza Group, Myers Industries, Inc., and Time Technoplast Ltd., These major companies are estimated to hold a market share of more than 25%-30% in 2020 the global industrial chemical packaging market.

• At what rate will the industrial chemical packaging market register growth in Europe? 

  According to the FMI analysis, the Europe industrial chemical packaging market is anticipated to register growth at a CAGR of 2.4% between 2021 and 2031. 

• Which are the 5 major countries showing high demand for industrial chemical packaging solutions?

  The U.S., Canada, China, India and Germany are among major markets for industrial chemical packaging solutions, recording consistently high demand. 

• At what rate, South Asia industrial chemical packaging market will register growth?

  As per FMI, the South Asia industrial chemical packaging market is anticipated to increase at 6.5% CAGR over the upcoming decade.

Industrial Chemical Packaging Market by Category

By Packaging Format:

• Intermediate bulk containers (IBCs)
  • RIBCs
    • Up to 800 Litres
    • 800 Litres to 1,250 Litres
    • Above 1,250 Litres
  • FIBCs
• Flexitanks 
• Drums
  • Metal 
    • Standard 210 Litres
    • Other than 210 Litres
  • Plastic
    • Up to 50 Litres
    • 50- 100 Litres
    • 100-200 Litres
    • Above 200 Litres
• Pails & Jerry Cans
• Bags & Sacks
• Others (Bins & Liners, etc.)

By Material:

• Metal
  • Steel
  • Tin
• Plastic
  • Polyethylene
    • LDPE
    • HDPE
  • Metalized polyethylene terephthalate (MET-PET)
  • Polyvinyl Chloride (PVC)
  • Polyamide (PA)
  • Polypropylene (PP)
  • Polystyrene (PS)
  • Others
• Paper & Paperboard

By Chemical Type:

• Specialty Chemicals
  • Paints & Coatings
  • Adhesives & Sealants
  • Specialty Polymers
  • Food & Feed Additives
  • Polymer Additives
  • Active Pharmaceutical Ingredients
  • Agrochemicals
  • Dyes & Pigments
  • Others (Fragrances & Flavours, Personal Care Ingredients, etc.)
• Commodity Chemicals
  • Monomer & Polymer Resins
  • Inorganic Chemicals
  • Organic Chemicals
  • Petrochemicals
  • Others

By Region: 

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa (MEA)