World demand for bulk packaging to grow 5.8% annually
That’s according to World Bulk Packaging Market a new report at Reportlinker.com.
Shipping sacks to remain largest segment
Although shipping sacks will continue to represent the largest product type, shipping sack demand will exhibit below average growth through the forecast period and beyond. Strong price competition and increasing use of alternative products -- such as flexible intermediate bulk containers (FIBCs) and various rigid bulk packaging types, including material handling containers and drums -- will serve to limit gains in shipping sack demand. Demand for drums will benefit from an upswing in global chemical and pharmaceutical production, as chemicals comprise by far the leading application for drums. Growth in pail demand will be slightly below average, due to competition from other packaging formats, including drums, bulk boxes and shipping sacks. Plastic pails will experience faster gains than their steel counterparts as a result of their lighter weight, which substantially reduces shipping expenses.
Strong growth in Asia, but US to remain leading market
The most rapid gains will be seen in the world's developing regions. The Asia/ Pacific region will remain the largest regional market in the world, due to its large food and beverage, and chemical and pharmaceutical industries. Overall, the fastest growth will be seen in Asia, specifically in China, India and Indonesia. Other developing countries such as Brazil, Mexico and Russia are also expected to see healthy gains. In contrast, advances will be generally below average in North America and Western Europe, where markets are more established.
The US, which accounted for 27 percent of global sales in 2010, is the largest national bulk packaging market in the world by a wide margin. Other large, but mature markets include Japan and Germany. While Japan will remain one of the largest national markets in the world, the country is forecast to see the slowest growth rate through 2015. Nonetheless, good opportunities will still be found in developed countries, especially for flexible bulk packaging products such as film wrap.