U.S. demand for rigid bulk packaging to increase 3.1% per year to $7.2 billion in 2020

Amid growth in reusable packaging and expected gains in chemical and pharmaceutical output, U.S. demand for rigid bulk packaging is expected to increase 3.1% per year to $7.2 billion in 2020.

These are among the findings of a recent report from The Freedonia Group. U.S. demand for rigid bulk packaging is expected to show solid growth through 2020, driven by an expansion in chemical and pharmaceutical output as well as trends favoring high-value reusable systems. Products such as rigid intermediate bulk containers (RIBCs) will post above-average gains, though advances will slow due to competition from cheaper alternatives. Bulk boxes, with their low cost and widespread usage in packaging plastic, rubber and fiber goods, will also register fast growth.

According to the report, users are looking for packaging solutions that reduce costs, increase efficiency, and promote sustainability efforts, so many are opting for containers with longer lives or low-cost options that use environmentally friendly materials. The full study explores the outlook for rigid bulk packaging in each of the major markets, which materials have the greatest opportunities for growth, and how renting, pooling, and resale efforts affect demand for reusable systems.

According to the study, pails and drums will hold the largest share of rigid bulk packaging demand. Pails benefit from their ability to be used with a wide range of mid-sized applications, such as paints and coatings and food and beverages. Drums will also continue to be a critical product for the packaging of larger sized loads, though growth will be mitigated by the popularity of RIBCS, which are large-capacity containers with greater space efficiency.

RIBCs will post the fastest growth through 2020, primarily due to their storage and handling advantages as well as their well-established reconditioning infrastructure. Because new RIBCs are expensive, many suppliers offer used RIBCs or pooling services to their customers as a way to lower the initial investment required. Resale and pooling practices are also common for plastic and steel material handling containers. However, these practices will restrain the need for new RIBCs and material handling containers, resulting in slower demand growth.

The largest market for rigid bulk packaging is chemicals and pharmaceuticals, holding more than 40% of total demand. Rigid containers are used extensively in the packaging of chemicals due to the high concentration of liquid products. This characteristic makes it less likely for rigid packaging to lose ground to lower cost flexible alternatives, a factor which is affecting many other markets. Particularly strong opportunities are also expected for plastic, rubber, and fiber goods.

This study analyzes the US rigid bulk packaging market. It presents historical demand data (2005, 2010 and 2015) plus forecasts (2020 and 2025) by material, product, and market. In addition, the study considers market environment factors, examines the industry structure, and analyzes company market share.

Click here to download the full report.