The nestable drums have estimated to account for market size worth USD 335.3 million in 2024 and is anticipated to reach a value of USD 446.3 million by 2034. Sales are projected to rise at a growth rate of 2.9% over the forecast period between 2024 and 2034. The revenue generated by nestable drums in 2023 was USD 321.8 million.
High-density polyethylene nestable drums are one of the favored materials in the nestable drums market with a high market share of 70.3% compared to other types. Excellent durability, resistance to chemicals and unique design offering for space optimization have led to its high usage for storage, transport of various chemicals, food and beverages, waste management and several industrial applications.
Nestable Drums Industry Forecast
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 321.8 million |
| Estimated Size, 2024 | USD 335.3 million |
| Projected Size, 2034 | USD 446.3 million |
| Value-based CAGR (2024 to 2034) | 2.9% |
Nestable drums are made in several sizes and capacity ranges to accommodate products from different end-use industries. Nestable drums with a capacity of 101 to 140 liters have found major applications in the market and are expected to dominate the nestable drums market in the assessment period.
This is because of its versatility, efficiency in storage, handling and transport of bulk materials and cost-effective nature for a wide range of industries including chemicals, food processing, and industrial applications.
The chemical industry as compared to other end-use industries has registered a higher market share of 53.1% in 2024. The chemical industry needs safe and secured packaging products for the storage of a wide range of chemicals and hazardous substances to prevent their leakage, damage, and spillage of chemicals during storage and transport.
This ensures high-quality chemical substances without degradation of their integrity to desired end users. The nestable drums market has experienced positive growth in 2024 with a growth of USD 13.5 million from the previous years and is predicted to rise 1.3 times the current value through 2034.
The below table presents the expected CAGR for the global nestable drums market over several semi-annual periods spanning from 2024 to 2034.
| Particular | Value CAGR |
|---|---|
| H1 | 2.8% (2023 to 2033) |
| H2 | 3.0% (2023 to 2033) |
| H1 | 2.7% (2024 to 2034) |
| H2 | 3.1% (2024 to 2034) |
In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 2.8%, followed by a slightly higher growth rate of 3.0% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 2.7% in the first half and remain relatively moderate at 3.1% in the second half.
In the first half (H1) the market witnessed a decrease of 10 BPS while in the second half (H2), the market witnessed an increase of 10 BPS.
Global Trade Expansion Fuels Nestable Drum Market Growth
Growth in demand for nestable drums is expected to result from expanding intercontinental trade. Consequently, the adoption of nestable drums as a packaging solution has increased among industrial users owing to their ideal properties such as durability, resistance to external factors that are susceptible to damage the products and versatility to serve diverse end-use industries.
Nestable drum manufacturers are consistently emphasizing improvement in product design and value creation for end users. Nestable drums are profitable for both the manufacturers because of their lower production cost and for consumers due to their perfect balance between performance, cost and manageability.
Since global trade of industrial products has also increased threefold during the past decade, it necessitated non-traditional industries to use these drums. The volume of world merchandise trade including imports and exports rose by 2.7% in 2022, as per the reports from the World Trade Organization. Some of these industries include chemical manufacturers, food-grade ingredient manufacturers, paints and ink manufacturers, etc.
The demand for nestable drums is expected to be very high in the eastern part of the globe. Demand is also anticipated to be driven by the widened use of larger, higher-value nestable drums which ensure increased performance and are also economical in terms of cost and space optimization due to their efficient stack ability during transportation and when not in use.
Rising Construction Demand Boosts Nestable Drum Utilization
With rising disposable income, consumers are spending on building new houses or renovating earlier homes with improved interior design and facilities. The building and construction industry in major regions like the USA, India, the UK, and China is growing at a steady pace.
There were more than 919,000 construction establishments in the USA in the first half of 2023, as per the survey from The Associated General Contractors (AGC) of America, Inc. Construction industry requires several types of raw materials such as adhesives, sealants, waterproofing agents, cleaning solvents and many more.
Waterproofing solutions and protective coatings may lose their functionality if exposed to uncertain environmental conditions.
The rising building and construction industry and the need for packaging solutions to avoid contamination of these materials at the time of handling at construction sites and transport have created numerous opportunities for the market.
Nestable drums are used primarily for storing these liquid components because of their notable properties that ensure the safety of inert products and bulk storage of liquids on construction sites where space and storage efficiency is crucial.
The growth of the pharmaceutical industry and the above-mentioned features make it a suitable packaging option for storing different liquids and related materials used in building and construction work driving the demand for nestable drums.
Raw Material Costs and Tariffs Challenge Nestable Drums Market
Escalating raw materials prices and related input costs have led to increased costs for a variety of bulk containers including nestable drums. Moreover, the lack of imports in case of tense situations among countries is limiting the supply of raw materials combined with a delayed delivery has led to the spike in the raw material prices and consecutively, limiting the profitability of the nestable drums manufacturers.
Some countries like China have imposed serious tariffs for importing plastic, leading to disturbance in the supply chain and a rise in the price. These high prices have resulted in hesitation among end users towards the adoption of nestable drums.
Industrial packaging manufacturers are also under incessant pressure from the demand side to offer products with minimized and reasonable costs while improving overall product offerings. These factors may cause hindrances for the nestable drums over the assessment period.
The global nestable drums market recorded a CAGR of 2.2% during the historical period between 2019 and 2023. Market growth of nestable drums was positive as it reached a value of USD 321.8 million in 2023 from USD 294.9 million in 2019.
The nestable market is experiencing growth due to its increased usage in food and beverage, chemicals, medical, cosmetics and personal care industries. Nestable drums are used for bulk storage of mainly liquids such as chemicals, paints, foods, beverages, etc.
These drums offer the necessary protection from external factors that at prone to contaminate or degrade their product quality. HDPE nestable drums are showing notable growth because they allow for easy washing of drums and multiple times reusability. These drums are anticipated to grow at a rate of 2.6% in the valuation period.
The building and construction industry also has major applications for nestable drums for the packaging of essential products like concrete admixtures, mortar mixes, tile grout and insulating materials at the time of storage, shipping and transport. Nestable drums offer the required protection for these products from different external elements like sunlight, humidity, pests and contaminants to prevent them from losing their originality and quality.
Packaging manufacturers across the globe are working on advancements in terms of material and improved features in nestable drums. The rise in demand for safe packaging options from several end users is expected to create opportunities for the market.
Leaders in the market with annual sales above USD 12 million and 15% to 20% of the global market, are referred to as Tier 1 companies. These industry leaders stand out for having a large product variety and a high production capacity. These industry giants stand out for having a wide geographic reach, a wealth of production experience in a variety of package styles, and a strong customer base.
They offer a variety of services, such as recycling and manufacturing, using state-of-the-art equipment, according to legal requirements, and offering the best possible quality. Among the well-known businesses in tier 1 are Grief Inc., Time Technoplast Ltd., Snyder Industries, LLC, BEWI Group and Coexcell.
Mid-size businesses with annual revenue between USD 5 to USD 12 million that are based in certain areas and have a significant impact on the local market are considered Tier 2 enterprises.
They are distinguished by having a significant international presence and in-depth industry expertise. These market participants may not have cutting-edge technology or a broad worldwide reach, but they do guarantee regulatory compliance and have good technology.
Among the well-known businesses in tier 2 are Curtec, Müller Group, ENPAC, DENIOS, Engels Group NV, Linen Plus inc., Seton Canada, General Container Corp. and Illing Company.
Tier 3 comprises most small firms with less than USD 5 million in revenue that are industry-specific and operate locally. Due to their specialization in serving the demands of the local market, these companies are classified as belonging to the tier 3 sharing sector. They only operate on a small scale and within a limited geographic area.
Within this specific context, Tier 3 is categorized as an unstructured market, denoting an industry that is significantly less formalized and structured than its organized rivals.
The section below covers the future forecast for the nestable drums market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is anticipated to remain at the forefront in North America, with a CAGR of 1.4% through 2034.
In South Asia and Pacific, India is projected to witness a CAGR of 5.5% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 1.4% |
| Germany | 1.0% |
| China | 4.4% |
| UK | 1.2% |
| Spain | 2.5% |
| India | 5.5% |
| Canada | 1.3% |
The expanding chemical industry In China is expected to create huge opportunities for the nestable drums market. Nestable drums market in China is anticipated to grow at a CAGR of 4.4% by 2034.
China is considered to be the world’s largest chemical producer because of its advanced research and development, production facilities, well-developed industrial ecosystem and strong government support which leads to high volume production of various chemicals. As per the Information Technology & Innovation Foundation, chemical production in China contributed to more than 44% of the global chemicals produced.
Chemicals are primary materials for various industries, and maintaining their quality is of crucial importance. In order to store these chemicals till the time of usage, the need for packaging products like nestable drums has risen in China. Nestable drums are preferred for the storage of chemicals due to their barrier properties for several external agents for preserving the integrity and chemical composition of chemicals.
They can be customized to meet specific industry requirements, including size, material, and safety features. The growing chemical production across China is boosting the demand for nestable drums for the safe storage of various hazardous and non-hazardous chemicals and related substances.
The nestable drums market across various states in India is expected to experience huge demand from the increasing export of edible oil from India as compared to other South Asia and Pacific regions. The market is estimated to grow at a rate of 5.5% in India in upcoming years.
Due to huge agricultural land and suitable climatic conditions, India is one of the leading producer of various agricultural products such as grains, fruits and vegetables, oilseeds and edible oils, etc. This abundant availability have resulted in increased export of edible oils to various developing and developed countries.
According to Department of Food and Public Distribution, in 2022 to 2023, India exported more than 3.46 million tons of edible and minor oils which generated for USD 1.7 billion. Oil exporters in India prefer industrial drums over other bulk packaging products because of their operational efficiency and effectiveness in shipping bulk quantities of commodities in liquid form.
Nestable drums have emerged as a cost-effective transport packaging solution for shipment because of their resistance towards moisture and chemicals. This ensures the delivery of high-quality oil with any spills and leakage to the desired destination or end user. High production and export of edible oils from India, consequently propelling the demand for nestable drums.
The section contains information about the leading segments in the industry. In terms of material, high density polyethylene (HDPE) is estimated to account for a share of 70.3% by 2034. By end use, the chemicals industry is projected to dominate by holding a share of 53.1% by the end 2034.
| Material | High Density Polyethylene (HDPE) |
|---|---|
| Value CAGR (2034) | 2.6% |
Among the two types of materials used for making nestable drums, HDPE made nestable drums are expected to lead the nestable drums market and grow at a CAGR of 2.6% in the assessment period
Although different variants of plastic are used more producing nestable drums, HDPE-made drums are used more often because of their suitable factors for use in food and beverage, chemicals, pharmaceuticals, construction and other industrial purposes.
HDPE nestable drums are highly resistant to impact, and chemicals such as acids, bases, solvents and moisture, preventing rust and corrosion and allowing for rugged and harsh use in manufacturing units and construction sites.
These drums are also considered to be lightweight and inexpensive to produce than metals and other high-performance plastics offering ease in handling and affordable for all types of businesses ranging from SME’s to big market players.
HDPE is recyclable, making it a sustainable and environmentally friendly choice and aligning with regulatory standards related to packaging materials and their impact towards the environment. These properties have led to the adoption of HDPE for making reliable and highly efficient nestable drums across several industries.
| End Use | Chemicals |
|---|---|
| Value CAGR (2034) | 2.8% |
The chemicals industry among other end users like pharmaceuticals, cosmetics personal care and other industrial applications is estimated to dominate the nestable drums market with a CAGR of 2.8% over the forecast period.
Chemical industries deal with various chemicals and hazardous substances for multiple purposes or as raw materials for different industries. These substances need to be stored with utmost safety as they can be harmful in case of exposure in the surroundings or direct contact with human beings.
This led to the need for packaging products providing a secure environment like nestable drums from different chemical producers for storage and transportation of these chemicals. Nestable are used for their storage due to their resistance to chemicals and other external factors such as humidity, sunlight, and moisture, and suitable for various chemical storage needs.
Nestable drums made from HDPE prevent the leaching of harmful substances from the drums materials which ensure the purity of inert chemicals and maintain their functionality. Nestable drums can be customized in different sizes as per the requirement of the storage of chemicals in desired quantities by the end user.
Factors like these are anticipated to showcase an escalating demand for nestable drums from global chemical industries in the assessment period.
Key players in the nestable drums industry are putting efforts in research and development for introducing new products to fulfill the demand of the end users. They are also focusing on strategic merger and acquisitions, partnerships for exchange of technology and related resources to expand their geographical footprint.
Key Developments in Nestable Drums Market:
The material segment in then nestable drums market is divided into high density polyethylene (HDPE) and Polyethylene Terephthalate (PET).
The capacity range for nestable drums includes up to 60 liters, 61 to 100 liters, 101 to 140 liters and above 140 liters.
End users related to nestable drums market are food and beverage, chemicals, pharmaceuticals, building and construction and other industrial.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The nestable drums industry is projected to witness CAGR of 2.9% between 2024 and 2034.
The global nestable drums industry stood at USD 321.8 million in 2023.
Global nestable drums industry is anticipated to reach USD 446.3 million by 2034 end.
North America is set to record a CAGR of 2.1% in assessment period.
The key players operating in the nestable drums industry are Grief Inc., Time Technoplast Ltd., Snyder Industries, LLC, BEWI Group and Coexcell.
Nestable Drums Market
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