Chemical drums are cylindrical plastic or metal containers primarily used for storing, transporting, and distribution of industrial and agricultural chemicals. Chemical drums help secure the transportation and storage of industrial and hazardous liquids and powders. They provide a cost-effective solution for safely handling, distributing, and storing chemicals. Rising demand from end-use industries such as agriculture, paints and coatings, oil and petrochemicals is fueling the growth of the global chemical drums market.
The global Chemical Drums Market is estimated to be valued at US$ 21.44 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Growing demand for plastic drums: Plastic drums are increasingly being preferred over metal drums due to advantages such as lightweight, resistance to corrosion, and durability. Additionally, plastic drums also help minimize handling costs. Rising environmental concerns regarding disposal of metal drums is further propelling the demand for plastic drums. Key players are focusing on developing recyclable plastic drums to further boost adoption.
Threat of new entrants: Low requirements for capital and brand building makes this market susceptible to new entrants. However, established network of suppliers and distribution channels pose a barrier.
Bargaining power of buyers: Large buyers can negotiate on price and demand better service levels which impacts margins. Buyers have moderate power given the availability of substitutes.
Bargaining power of suppliers: Barrels are commodity inputs and globally sourced hence supplier power is moderate. Global suppliers ensure availability of raw materials.
Threat of new substitutes: IBC’s and flexible intermediate bulk containers are substituting barrels for certain applications. However, drums remain popular for bulk packaging needs.
Competitive rivalry: Intense competition exists amongst key global players. Industry players differentiate through product quality, durability, customer service and supply chain efficiencies.
The global Chemical Drums market is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: North America dominates the global market currently owing to strong demand from chemical industry in U.S. and Canada. Asia Pacific is expected to be the fastest growing market led by countries like China and India where chemical production is increasing rapidly.
Key players: Key players operating in the Chemical Drums market are Greif, Inc., Mauser Group, SCHÜTZ GmbH & Co. KGaA, Time Technoplast Ltd., Hoover Ferguson Group, Balmer Lawrie & Co. Ltd., Sicagen India Ltd., Industrial Container Services, LLC, Fibrestar Drums Limited, Snyder Industries, Inc., Sonoco Products Company, Great Western Containers Inc., Myers Container LLC, Myers Industries, Inc., and Eagle Manufacturing Company. Industry leaders focus on developing sustainable packaging solutions and expanding into high growth geographies.