Industrial Packaging Market

Market Overview:

The global industrial packaging market size reached US$ 59.8 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 75.2 Billion by 2028, exhibiting a growth rate (CAGR) of 3.7% during 2023-2028. The increasing demand for packaging solutions, expanding e-commerce industries, emerging technological advancements, the introduction of sustainable packaging solutions, and changing consumer preferences are some of the major factors propelling the market.

Industrial packaging refers to the specialized packaging solutions designed for the transportation, storage, and protection of goods in industrial settings. It is specifically customized to meet the unique requirements and challenges of industries such as manufacturing, logistics, and distribution. It includes materials, techniques, and container types, including pallets, crates, drums, intermediate bulk containers (IBCs), and specialized boxes. It ensures the safe handling and preservation of products throughout the supply chain and I withstand rigorous conditions, including rough handling, transportation, and exposure to various environmental factors. It is produced from durable materials such as metal, wood, plastic, or corrugated fiberboard. Additionally, it may incorporate features such as cushioning, moisture resistance, or temperature control to protect goods during transit.

The market is primarily driven by the growing packaging demand among numerous sectors such as pharmaceuticals, cosmetics, personal care, and food and beverages (F&B). In addition, the widespread adoption of effective packaging solutions ensures product quality, safety, and efficacy, while also extending shelf-life which is influencing the market growth. Moreover, manufacturing companies are deploying modern technologies to produce recyclable pouches and aluminum cans with different thicknesses, densities, and strengths representing another major growth-inducing factor. Besides this, the recent onset of the coronavirus disease (COVID-19) pandemic with the implementation of mandatory lockdowns resulted in consumers shifting toward online shopping and e-commerce platforms further accelerating the market growth. Besides this, the expanding e-commerce and online platform channels escalated the demand for industrial packaging to meet the needs of the online retail industry propelling the market growth.

Industrial Packaging Market Trends/Drivers:

The increasing demand for industrial packaging solutions

The demand for industrial packaging solutions among numerous industries, particularly in developing countries is influencing the market growth. Additionally, the expanding e-commerce, the globalization of trade, and the emphasis on sustainability, and the adoption of eco-friendly packaging materials is contributing to market growth. Besides this, companies are seeking efficient and cost-effective solutions for packaging, offering safety and security requirements thus accelerating market growth. Along with this, businesses recognize the importance of protecting their products during storage, transportation, and handling leading to the increasing application of the product creating opportunities for manufacturers to meet the evolving needs of industries and consumers, propelling the market growth.

Emerging technological advancements

The market is growing due to several advancements that transformed the way products are packaged and transported. These advancements have improved efficiency, sustainability, and product protection. Additionally, the development of lightweight packaging materials, such as advanced plastics and composites offers enhanced strength while reducing the weight of packaging, resulting in reduced transportation costs and environmental impact representing another major growth-inducing factor. Besides this, the integration of smart packaging technologies including the use of sensors and radio frequency identification (RFID) tags that allow real-time tracking, monitoring, and data collection of packaged goods throughout the supply chain is accelerating the market growth. Also, smart packaging enhances visibility, improves inventory management, and allows better quality control. Along with this, the integration of automation and robotics in the packaging process increases productivity, reduces errors, and ensures consistent packaging quality propelling the market growth. Robotic systems are capable of handling complex packaging tasks, such as palletizing and case packing, with precision and efficiency.

The implementation of favorable government policies

Governments often provide financial incentives, tax benefits, and grants to promote the development and adoption of sustainable and eco-friendly packaging materials and practices. These incentives encourage manufacturers to invest in research and development (R&D) leading to innovative and more sustainable packaging solutions. Additionally, governments ensure the safety, quality, and environmental sustainability of packaging materials such as recyclability, and labeling requirements augmenting the market growth. Along with this, the expanding e-commerce industry, due to consumers turning to online shopping for secure and efficient packaging solutions is increasing the market growth. Furthermore, the extensive utilization of cost-effective plastic packaging materials such as low-density polyethylene (LDPE), polyvinyl chloride (PVC), and polypropylene (PP) offering advantages such as good insulation properties, and ease of production processes is augmenting the market growth.

Industrial Packaging Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global industrial packaging market report, along with forecasts at the global, regional and country levels from 2023-2028. Our report has categorized the market based on product, material and application.

Breakup by Product:

• Intermediate Bulk Containers (IBCs)
• Sacks
• Drums
• Pails
• Others

The report has provided a detailed breakup and analysis of the market based on the product. This includes intermediate bulk containers (ibcs), sacks, drums, pails, and others.

IBCs, also known as bulk containers, are large storage containers used for transporting and storing liquids, powders, and granular materials that are widely used in industries such as chemicals, pharmaceuticals, and food processing and offer advantages such as easy handling, stackability, and efficient storage space utilization influencing the market growth. Moreover, sacks produced of materials such as paper, plastic, or woven fabric, are commonly used for packaging bulk materials such as grains, cement, and fertilizers representing another major growth-inducing factor. They are cost-effective, lightweight, and provide protection against moisture and contamination.

Besides this, drums are cylindrical containers typically manufactured of steel, plastic, or fiberboard widely employed for the storage and transportation of liquids and semi-solids and offer durability, strength, and compatibility with various products, such as chemicals, oils, and lubricants industries accelerating the market growth. Apart from this, pails, also known as buckets, are small containers made of plastic or metal used for packaging paints, adhesives, and other industrial products that offer convenience, and ease of handling is propelling the market growth.

Breakup by Material:

• Paperboard
• Plastic
• Metal
• Wood
• Fiber

Plastic represents the largest share of the market

A detailed breakup and analysis of the market based on the material has also been provided in the report. This includes paperboard, plastic, metal, wood, and fiber. According to the report, plastic accounted for the largest market share.

The increasing demand for plastic materials such as polyethylene (PE), polypropylene (PP), polyethylene terephthalate (PET), and polystyrene (PS) in industrial packaging due to their versatility, durability, and cost-effectiveness is influencing the market growth. They provide excellent protection against moisture, impact, and other external factors, making them suitable for a wide range of industries, including food and beverages (F&B), pharmaceuticals, chemicals, and consumer goods. They also offer flexibility in design, allowing for customized shapes, sizes, and closures to meet specific product requirements. Moreover, plastic packaging is lightweight, which helps reduce transportation costs and carbon emissions during logistics and provides superior barrier properties, extending the shelf life of products and preserving their freshness and quality representing another major growth-inducing factor.

Breakup by Application:

• Chemical and Pharmaceutical
• Building and Construction
• Food and Beverage
• Oil and Lubricant
• Agriculture and Horticulture
• Others

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes chemical and pharmaceutical, building and construction, food and beverage, oil and lubricant, agriculture and horticulture, and others.

The industrial packaging market is driven by various applications across the globe. For instance, the expanding chemical and pharmaceutical industry requires specialized packaging solutions to ensure the safe handling and transportation of hazardous materials and sensitive pharmaceutical products augmenting the market growth. Moreover, the increasing demand for industrial packaging in building and construction for cement, bricks, tiles, and insulation products to protect the materials from moisture, damage, and transportation hazards is representing another major growth-inducing factor.

Apart from this, the significant expansion in the food and beverage (F&B) industry including packaging for beverages, dairy products, fruits and vegetables, meat and poultry, and processed food items to ensure product freshness, and protects against contamination is accelerating the industrial packaging market. Besides this, the oil and lubricant industry requires robust packaging solutions to prevent leakage, contamination, and damage during storage and transportation propelling the market growth. Furthermore, the extensive use of industrial packaging in the agriculture and horticulture sector for seeds, fertilizers, pesticides, and harvested crops to preserve product quality, ensure proper ventilation, and protect against moisture and pests creating a positive market outlook.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Asia Pacific exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific was the largest market for industrial packaging.

Asia Pacific is experiencing rapid industrialization and economic growth, leading to expansion in manufacturing and trade activities. The increased production and export of goods require robust industrial packaging solutions, thereby driving the market demand.

Asia Pacific dominating due to several emerging economies, including China, India, and Southeast Asian countries, which are significantly expanding in sectors such as automotive, electronics, pharmaceuticals, and food and beverage (F&B) that industries require reliable and efficient packaging to protect their products during transportation and storage propelling the market growth. Moreover, the growing middle-class population and urbanization in the region have fueled the demand for consumer goods, further driving the need for industrial packaging solutions.

Besides this, the availability of numerous packaging manufacturers and suppliers, offering several packaging materials and solutions to cater to diverse industry requirements in Asia Pacific is accelerating the market growth. Furthermore, government initiatives and investments in infrastructure development, particularly in logistics and transportation, are creating a positive market outlook for the industrial packaging market in the Asia Pacific region.

Competitive Landscape:

Nowadays, key players in the market are employing various strategies to strengthen their position and stay competitive. They are investing in research and development (R&D) to introduce innovative packaging solutions that address the evolving needs of industries and consumers including developing sustainable materials, incorporating smart packaging technologies, and designing packaging that enhances product protection and efficiency. Moreover, companies are implementing initiatives to reduce their environmental footprint including incorporating recyclable and biodegradable materials, optimizing packaging designs to minimize waste, and adopting sustainable manufacturing processes. Besides this, leading players are adopting a customer-centric approach by closely understanding customer needs and customizing their packaging solutions accordingly. They actively engage with customers, offer customized packaging solutions, provide value-added services, and establish strong customer relationships to enhance customer loyalty and retention.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Amcor plc
• Berry Global Inc.
• DS Smith PLC
• Global-Pak Inc.
• Greif Inc.
• International Paper Company
• Mondi plc
• Nefab AB
• Orora Limited
• Smurfit Kappa Group plc
• Sonoco Products Company and Westrock Company

Recent Developments:

• In July 2022, Mondi merged with Diamant, a German bike manufacturer, to wrap and preserve its branded mountain and trekking bikes as Diamant uses Mondi's pre-made paper protector bags instead of plastic bubble wrap around bike handlebars that will protect bikes during shipping while minimizing Diamant's plastic packaging by approximately 85% per year.
• In May 2022, Berry introduced a new range of high-strength refuse sacks produced from used plastics that would be made at the company's Heanor, Derbyshire production facility and accessible in the U.K.
• In May 2022, Smurfit Kappa Group P.L.C. invested E.U.R. 35 million to construct a packaging plant in Morocco involved in producing its products for applications in numerous sectors, such as pharmaceuticals, industrial, fast-moving consumer goods (FMCG), ceramics, agriculture, and automotive.

Industrial Packaging Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the industrial packaging market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global industrial packaging market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the industrial packaging industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.