Studies forecast growth in material handling containers
A new study by The Freedonia Group Inc. states that the demand for rigid bulk packaging is expected to grow 2.1% annually to USD7 billion in 2013. This growth will take place due to an improvement in real manufacturing activity and a shift in the product mix toward larger, higher-value containers that offer enhanced performance and cost effectiveness.
The fastest growth is expected to take place in rigid intermediate bulk containers with demand increasing 4.2% annually through to 2013 because of the cost and performance advantages offered by smaller, single-use packaging.
The report also forecasts a better scene for material handling containers forecasting an above-average growth driven by the increased use of returnable and reusable containers to boost manufacturing efficiency and achieve cost savings.
Drums, being relatively cheaper, reusable and suitable for to shipping hazardous materials will continue being the leading rigid bulk packaging product type, says the report adding that the demand for drums will grow less than 1% annually due to the maturity of steel and fiber drums and a moderation in raw material pricing. Also retraining drum sales will be the competition from rigid and flexible intermediate bulk containers.
In 2008, non-durable goods markets like chemicals, food, plastics, rubber, fiber, petroleum, lubricants, and agricultural and horticultural products accounted for over 80% of rigid bulk packaging demand.
Chemicals, the leading rigid bulk packaging market, is predicted to advance at a below-average pace because of the maturity of many chemical product segments, increased imports and the movement of key customers to developing regions.
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