Freedonia: Omni-channel retail will boost demand for material handling containers

According to a new study from The Freedonia Group, demand for material handling containers is forecast to grow 2.3% annually through 2023 to $1.2 billion.

In unit terms, demand is expected to reach 20.2 million. The research indicates sustainability concerns will support gains as reusable containers decrease costs and contribute to source reduction efforts. These and other trends are presented in Rigid Bulk Packaging, a new study from The Freedonia Group, a Cleveland-based industry research firm.

The research points to the increased popularity of omni-channel retail, which has boosted demand for material handling containers in grocery and department stores where employees fulfill online orders by picking items from the store for delivery or pickup. These locations commonly use carts of plastic totes to keep orders separate.

However, the reusability of material handling containers will also prevent further growth for new units, the research suggests. Another factor preventing faster gains will be the trend toward lean manufacturing, which will cause manufacturers to cut down on excess product, resulting in lower demand for storage and shipment packaging.

Demand for all types of rigid bulk packaging (pails, drums, bulk boxes, material handling containers and rigid intermediate bulk containers) in the U.S. is forecast to increase 2.4% annually to $7.3 billion in 2023. Growth will be driven primarily by an increased output of chemicals and pharmaceuticals. Healthy construction activity will boost production of paint, coatings, and other building materials that are packaged in pails, drums, and similar containers.

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