July 14, 2024

Industrial Packaging Market, Overview, key trends, Key Takeaways

Market Overview:

Industrial packaging products include pallets, drums, containers, crates, and other packaging solutions that are designed for industrial applications. These packaging products transport a variety of goods safely and efficiently across diverse end-use industries such as chemicals & pharmaceuticals, food & beverage, oil & lubricants, and building & construction. Industrial packaging provides protection against mechanical shock, vibration, temperature and humidity variations, and other hazards encountered during transportation and storage. Additionally, many industrial packaging materials are recyclable and reusable which reduces wastage and promotes sustainability.

Market key trends:

Focus on recycling and sustainability is a major trend in the industrial packaging market. Manufacturers are increasingly using recycled and recyclable materials such as plastic, paper & paperboard, and metals for packaging production. For example, Smurfit Kappa Group has introduced various recyclable packaging solutions made from paper and cardboard. Similarly, many companies offer reuse programs that allow returning packaging for recycling after use. Efforts to adopt reusable transit packaging systems also promote sustainability. The trend towards sustainable and eco-friendly industrial packaging aligns well with corporate environmental policies and regulation, and thereby supports market growth.

Porter’s Analysis
Threat of new entrants: The high capital requirements and economies of scale in the industrial packaging market pose significant barriers for new companies. However, low brand loyalty allows new players to target specific customer segments.
Bargaining power of suppliers: A few major companies dominate the raw material supply market for industrial packaging, giving them substantial bargaining power over manufacturers. However, the availability of raw material substitutes provides some countervailing power.
Bargaining power of buyers: Large industrial customers can negotiate lower prices due to their high purchase volumes. However, the use of specialized packaging limits the availability of close substitutes.
Threat of new substitutes: New composite and reusable packaging alternatives pose a potential threat, but extensive customer investments in existing packaging lines and the regulations surrounding product safety reduce the risk of widespread substitutions in the short term.
Competitive rivalry: The industrial packaging market is highly fragmented and competitive due to low differentiation between major brands. Intense price competition and market consolidation have been ongoing trends.

Key Takeaways

The Global Industrial Packaging Market is expected to witness high growth, exhibiting a CAGR of 5.42% over the forecast period of 2023 to 2030, due to increasing industrial production and globalization of supply chains.

Regional analysis: North America currently dominates the industrial packaging market owing to its mature industrial manufacturing sector. Asia Pacific is expected to see the fastest growth during the forecast period due to rising foreign investments, improving infrastructure, and increasing exports from countries like China and India.

Key players: Key players operating in the industrial packaging market are Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe, and B.A.G. Corp. These players are focused on product development and expansion strategies to strengthen their market position.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it