Steel Drum Industry Analysis in Southeast Asia

Southeast Asia Steel Drum Industry Outlook from 2023 to 2033

The total sales of steel drums in Southeast Asia are estimated to be valued at US$ 423.6 million in 2023 and are projected to reach US$ 835 million by 2033. The revenue is anticipated to expand at a CAGR of 7.0% in the assessment period 2023 to 2033.

The Southeast Asia steel drum business was valued at US$ 395.8 million at the end of 2022 and is anticipated to exhibit a y-o-y growth of 7.5% in 2023. The chemical segment by end-use will likely account for over 1/5th of the share in terms of value by 2023.

The stainless steel segment, with an estimated share of 85%, leads the Southeast Asia steel drum business in terms of the material category. It is poised to expand at a CAGR of around 7.5% from 2023 to 2033. In terms of head type, the tight head segment is expected to create a total financial potential of around US$ 348 million in the projection period.

Attributes	Key Insights
Southeast Asia Steel Drum Business Size (2022A)	US$ 395.8 million
Southeast Asia Steel Drum Business Estimated Revenue (2023E)	US$ 423.6 million
Southeast Asia Steel Drum Business Projected Revenue (2033F)	US$ 835 million
Value-based CAGR (2023 to 2033)	7.0%

Southeast Asia Steel Drum Business Landscape

The Southeast Asia steel drum business is expected to experience a lucrative growth outlook during the forecast period. The latest estimation predicts that there will be a significant increase in sales from 2023 to 2033. It is projected to cultivate additional openings of US$ 439.2 million while expanding 2.0 times the current value during the forecast period.

Steel drums boast several advantages in terms of durability and longevity, owing to which it is considered a highly sustainable as well as cost-effective solution, favoring consumers and the environment. Additionally, as environmental concerns continue to rise, businesses and consumers are increasingly seeking packaging solutions that are eco-friendly and help minimize their carbon footprint.

Key manufacturers in the region, such as Sicagen, Grief Inc., and Mauser Packaging Solutions, have also been actively investing in sustainable manufacturing practices such as wastewater management and recyclability to uphold their circular economy goals. Several steel drum manufacturers in Southeast Asia have integrated drum reconditioning services into their portfolio to support the growing demand for eco-friendly and sustainable solutions.

Steel drums are expected to gain immense popularity due to their high versatility, durability, and cost-effectiveness. They are projected to find applications across several sectors as the demand for reliable storage and transportation solutions rises. Their exceptional strength makes them suitable for storing a wide range of materials, including chemicals, petroleum products, as well as food and beverages.

In recent times, the chemical and petroleum businesses have showcased rapid growth across several countries in Southeast Asia. For instance, according to Malaysia's Ministry of Investment, Trade and Industry (MITI), the country’s chemical sector is estimated to rise by over 30% in the next seven years.

The Government of Vietnam also launched an industrial development strategy in 2022. It will help the local petrochemical sector to expand by around 10% every year till 2040. Such initiatives are further poised to propel the steel drum business across Southeast Asia.

Construction and Chemical Sectors to Support Steel Drum Demand

Southeast Asia is expected to witness a CAGR of 7.0% during the forecast period. Southeast Asia’s steel drum business is an important segment of the region's well-established packaging sector. The business serves a wide range of sectors, including chemical, pharmaceutical, construction, food and beverage, and manufacturing.

The business is set to be affected by the region's growing industrialization, which is projected to increase the need for reliable and safe packaging solutions. The construction sector, particularly in countries such as Vietnam, Thailand, Indonesia, and Malaysia, is witnessing a high demand for steel drums for the storage and transportation of construction materials.

Steel drums are anticipated to be used in a variety of sectors, including chemical, petroleum, food and beverage, pharmaceutical, agriculture, and more. They are set to be chosen based on their robustness, longevity, and capacity to handle hazardous contaminants. As steel barrels are more environmentally friendly and recyclable than plastic ones, they are set to gain high popularity.

To increase the effectiveness and quality of steel drum production, manufacturers are making investments in cutting-edge production technology. Stricter laws governing the transfer of hazardous goods are further driving the demand for steel barrels.

2018 to 2022 Southeast Asia Steel Drum Industry Outlook Vs. 2023 to 2033

The Southeast Asia steel drum business exhibited a CAGR of 4.6% during the historical period from 2018 to 2022. It reached a value of US$ 395.8 million in 2022 from US$ 330.4 million in 2018.

Historical CAGR (2018 to 2022)	4.6%
Historical Value (2022)	US$ 395.8 million

The demand for steel drums in Southeast Asia steadily increased due to the region's expanding industrial sector. The rise in manufacturing activities, along with the need for efficient storage and transportation solutions, has further facilitated this growth.

Another factor that helped the sales to rise is the presence of stringent regulations associated with the safe storage and transportation of hazardous materials. Steel drums have been preferred over other alternatives due to their ability to meet the required safety standards.

The business has been influenced by the need for sustainable packaging solutions and the increased awareness of environmental problems. As they are strong and recyclable, steel barrels are becoming immensely popular among businesses trying to lessen their environmental effect. Manufacturers can now satisfy clients’ needs with greater product quality, efficiency, and customization possibilities thanks to technological advancements in steel drum production.

It has been noted that certain manufacturers are being acquired by larger players in the business. Competition has grown as a result of this consolidation, and product offers can get better.

Over time, consumer tastes have changed. For instance, several businesses now choose alternative packaging materials for certain uses, such as plastic drums or intermediate bulk containers (IBCs).

The Southeast Asian steel drum business has been impacted by global economic situations such as trade disputes, exchange rate volatility, and economic downturns. The availability of raw materials and components required for the manufacturing of steel drums has been impacted by supply chain interruptions, as demonstrated during the COVID-19 epidemic.

Semi-annual Southeast Asia Steel Drum Business Update

The table presents the expected CAGRs for Southeast Asia steel drum space over several semi-annual periods spanning from 2022 to 2033. In the first half (H1) of the decade from 2022 to 2032, the field is predicted to surge at a CAGR of 7.7%.

It is set to be followed by a slightly lower growth rate of 7.4% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2023 to H2 2033, the CAGR is projected to drop slightly to 7.2% in the first half and remain relatively moderate at 7.0% in the second half.

Particular	Value CAGR
H1 (2022 to 2032)	7.7%
H2 (2022 to 2032)	7.4%
H1 (2023 to 2033)	7.2%
H2 (2023 to 2033)	7.0%

Trends, Hindrances, and Opportunities in Southeast Asia Steel Drum Business

Attributes	Key Factors
Southeast Asia Steel Drum Business Trends	Growing Development: There has been a lot of development going on in Southeast Asia, especially in nations such as Malaysia, Thailand, Vietnam, Indonesia, and Thailand. Steel barrels are in high demand as they can be used to package a wide range of industrial goods, including building materials, lubricants, and chemicals. Rising Concerns of Environmental Impact: There has been a drive for sustainability and a rising awareness of environmental issues. Due to these, steel barrels are now preferred over plastic ones since they are more durable and can be recycled. Tight Standards and Regulations: Government bodies in Southeast Asia have been enforcing strict standards when it comes to the handling and transportation of hazardous chemicals. As they are sturdy and dependable, steel barrels are set to be used for these applications. Technical Developments: The steel drum manufacturing sector has witnessed technical developments meant to enhance the products' quality, effectiveness, and customizability for customers. This covers developments in manufacturing procedures, closures, and coatings. E-commerce Boom: The surge in e-commerce and the growth of logistics networks in the region have led to a rising need for robust and safe packaging options, such as steel drums, to guarantee the safe transportation of products.
Growth Hindrances	Competition from Alternative Packaging Materials: Plastic drums and intermediate bulk containers (IBCs), which are more affordable, lighter, and better suited for specific uses, would compete with steel drums through 2033. Volatile Raw Material Prices: A number of factors, including changes in trade regulations, supply chain interruptions, and worldwide demand, can affect the price of steel and other raw materials used in the production of drums. This can have a negative effect on steel drum prices and production costs. Sustainability Initiatives and Environmental Concerns: Although steel drums are robust and recyclable, there is a growing emphasis on lowering the environmental impact of packaging. This has prompted research on substitute materials that are thought to be more environmentally friendly.
Upcoming Opportunities	Industrialization and Construction Activities: Steel drums are in constant demand for the packaging of a range of industrial products due to Southeast Asia's ongoing industrialization and construction initiatives, particularly in Indonesia, Thailand, Vietnam, and Malaysia. Emphasis on Sustainable Packaging: Steel drums stand to benefit greatly from the increased focus on sustainability and environmental issues. Their resilience and capacity for recycling would make them a desirable substitute for single-use plastics. Developing E-commerce and Logistics Sector: As the region's networks for e-commerce and logistics surge, so does the demand for durable and safe packaging options, such as steel drums, to guarantee the safe movement of goods.

Comparative View of Adjacent Southeast Asia Steel Drum Businesses

The section covers a comparative view of three businesses similar to the Southeast Asia steel drum business. As per estimations, the Asia Pacific sachet packaging ecosystem would lead out of the three businesses.

The sales of steel drums in Southeast Asia are set to reach a valuation of US$ 423.6 million by 2023. The Southeast Asia medical device packaging and Asia Pacific sachet packaging businesses attained valuations of around US$ 2,022 million and US$ 3.7 billion, respectively, in 2023.

Factors Pushing Steel Drum Sales in Southeast Asia:

CAGR (2023 to 2033)	7.0%
Estimated Value (2023)	US$ 423.6 million
Growth Factor	Steel drums to help meet regulatory requirements and expand the chemical business in Southeast Asia.
Key Trend	The expanding industrial sector, which necessitates reliable and durable packaging solutions for transporting goods, is a leading trend.

Key Trends in Southeast Asia Medical Device Packaging Landscape:

CAGR (2023 to 2033)	5.6%
Estimated Value (2023)	US$ 2,022 million
Growth Factor	The focus on infection control and aseptic packaging clarifications for medical devices would push the need for advanced packaging materials and methods.
Key Trend	The aging population in Southeast Asia is leading to increasing demand for medical devices, thereby augmenting the need for medical device packaging solutions.

Opportunities in Asia Pacific Sachet Packaging Space:

CAGR (2023 to 2033)	8.0%
Estimated Value (2023)	US$ 3.7 billion
Growth Factor	Increasing demand for sugar, salt, and sauce sachets among fast food outlets such as Taco Bell, Burger King, and Pizza Hut is driving sales.
Key Trend	Increasing use of sauces and condiments in China and India is expected to push sales of sachet packaging solutions to store liquids.

Category-wise Insights

The table below highlights the demand for steel drums in Southeast Asia by capacity and material type. Under material type, the carbon steel segment will likely remain dominant in the assessment period.

The carbon steel segment is set to showcase a significant CAGR of 7.2% through 2033 in the field of steel drums in Southeast Asia. The 55-gallon steel drums capacity segment is projected to surge at a CAGR of 7.4%.

Segment	Value-based CAGR (2023 to 2033)
Carbon Steel (Material Type)	7.2%
55 Gallon (Capacity)	7.4%

Steel Drums with a Capacity of 55 Gallons are Highly Preferred

Based on the capacity, the standard 55-gallon drum size is anticipated to hold over 4/5th of the share by 2023. Moreover, it is poised to gain a significant share and consequently account for about 90% by 2033.

Stringent business standards necessitate the use of common steel drums for industrial usage, which is the UN-rated 55-gallon steel drum. These drums are set to be utilized by all large-scale sectors for the storage and transportation of a wide variety of goods.

It is considered the primary steel drum that most manufacturers keep in stock, thereby ensuring constant availability. This ready availability ensures a stable supply even in Southeast Asia. This would enable businesses to minimize lead times for procurement, thereby making it a widespread choice.

Carbon Material to Gain Traction in Southeast Asia’s Steel Drum Business

The carbon steel segment is estimated to dominate the ecosystem with a share of about 90%. It is further expected to develop supplementary avenues of US$ 348.6 million during the forecast period.

The cost-effective nature of carbon steel would make it the primary choice for steel drum manufacturers across Southeast Asia. Moreover, the falling prices of hot-rolled carbon steel sheets are further aiding in the segment’s growth.

The carbon steel segment is expected to remain the predominant choice throughout 2033. However, the stainless steel segment is poised to steadily gain a significant share in the evaluation period. This is owing to the rapid growth of the chemical petrochemical. And pharmaceutical sectors in the region.

Pharmaceutical sales across Southeast Asia are expected to increase by around 50% in the next five years. This is projected to be driven by the flourishing biopharmaceutical sector and increasing government support across countries such as Thailand and Indonesia.

Competitive Landscape

Key manufacturers of steel drums in Southeast Asia are trying to focus on increasing their production capacity to meet the surging demand from regional customers. They are expanding their product portfolio to cater to a wide variety of end users. The Southeast Asia steel drum ecosystem is highly competitive, with several key players dominating the field.

Prominent companies in this business include Mauser Packaging Solutions, Greif Inc., Balmer Lawrie & Co. Limited, Time Technoplast Ltd., Schütz GmbH & Co. KGaA., and PT Rhem Indonesia, Tbk. In recent times, leading manufacturers have been exploring the use of not only sustainable materials but also production methods. They are also focusing on expansion in order to increase production capabilities.

For instance,

• In June 2021, Mauser Packaging Solutions announced the introduction of a new range of stainless steel drums for the chemical and pharmaceutical sectors.
• In March 2021, Schutz Container Systems announced the launch of a new line of steel drums featuring self-closing lids.
• In January 2021, a leading supplier of environmentally friendly packaging solutions, Enviro-Pak, created a new range of steel drums composed entirely of recycled materials.

Scope of the Report

Attribute	Details
Estimated Southeast Asia Steel Drum Business Revenue (2023)	US$ 4.6 billion
Projected Southeast Asia Steel Drum Business Revenue (2033)	US$ 7.2 billion
Value-based CAGR (2023 to 2033)	7.0%
Forecast Period	2023 to 2033
Historical Data	2018 to 2022
Business Analysis	Value (US$ million) and Volume (metric tons)
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Capacity Material Head Type End-use Country
Key Companies Profiled	Mauser Packaging Solutions Greif Inc. Balmer Lawrie & Co. Limited Time Technoplast Ltd. Schütz GmbH & Co. KGaA. PT Rhem Indonesia, Tbk. PT Karya Sarana Drumindo. Pelangi Indah Canindo Malayan Metal Works Sicagen India Limited Nippon Steel Drum Co. Ltd. Saeng Thai Metal Drum Co., Ltd. HAS Industries Pte Ltd Jurong Barrels & Drums Industries Pte Ltd Global Barrels Industries Pte Ltd EcoDrum Sdn Bhd PT. PRAJAMITA INTERNUSA Saeng Thai Metal Drum Company Limited (STD) Pyramid Technoplast Ltd Indonesia Raya Makmur PT.

Southeast Asia Steel Drum Industry Outlook by Category

By Capacity:

• 55 Gallons Steel Drums (Standard Size)
• Other than 55 Gallon

By Material:

• Carbon Steel
• Stainless Steel

By Head Type:

• Tight Head
• Open Head

By End-use:

• Chemicals
• Petroleum and Lubricants
• Paints, Inks, and Dyes
• Food and Beverages
• Building and Construction
• Healthcare and Personal Care
• Others

By Country:

• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Burma (Myanmar)
• Cambodia
• Brunei
• Timor-Leste
• Laos

Frequently Asked Questions

At what rate did the Southeast Asia steel drum business expand from 2018 to 2022?

The business expanded at a CAGR of 4.6% from 2018 to 2022.

What was the worth of the Southeast Asia steel drum business in 2022?

The worth of the business in 2022 was US$ 395.8 million.

In 2033, what will the size of the Southeast Asia steel drum space be?

In 2033, the space is anticipated to reach US$ 835 million.

What is the key driver for the Southeast Asia steel drum business?

The rising utilization of steel drums across the industrial sector is a key driver.

Who are the top 3 players operating in the ecosystem?

The top 3 players operating are Mauser Packaging Solutions, grief Inc., and Time Technoplast Ltd.