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  February 29th, 2024 | Written by

Industrial Packaging Market Set to Reach $107 Billion by 2033

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The global industrial packaging market is valued at US$ 70 billion in 2023. Projections indicate that sales of industrial bulk packaging solutions are expected to reach US$ 107 billion by 2033, with a compounded annual growth rate (CAGR) of 4.3% over the next decade.

The industrial packaging market is closely tied to worldwide import and export activities. Increased demand for products like pails and drums is observed across various heavy manufacturing sectors. Additionally, intermediate bulk containers (IBCs) and material handling containers are finding applications in logistics and the short-distance transportation of goods.

Numerous industries, including lubricants, paints & inks, chemicals, pharmaceuticals, and food & beverages, extensively utilize rigid plastic IBCs. The Rigid Immediate Bulk Container Association (RIBCA) in North America serves the preferences of corporations, firms, and individuals involved in the assembly or production of rigid bulk containers.

In recent years, heightened awareness regarding the adverse impacts of plastic has brought about significant changes in the packaging solutions industry. Government authorities, NGOs, and associations are actively undertaking initiatives such as awareness campaigns to educate about the harmful effects of plastics. This concerted effort has spurred the development of environmentally friendly industrial packaging products.

Key Insights from Market Analysis

  • Anticipated sales of industrial packaging are set to achieve US$ 107 billion by the end of 2033.
  • The Japanese market is projected to advance at a Compound Annual Growth Rate (CAGR) of 2.5% until 2033.
  • The global industrial packaging sector is valued at US$ 70 billion in 2023.
  • The overall global market is expected to witness growth at a CAGR of 4.3% until 2033.
  • Sales of industrial packaging in the German market are poised to experience an increase at a CAGR of 3.2% through 2033.

Key Trends:

In recent years, the industrial packaging sector has experienced a significant paradigm shift, marked by a heightened emphasis on sustainability and environmentally friendly practices. A surge in interest towards biodegradable, recyclable, and reusable materials reflects a broader commitment to environmental responsibility. Simultaneously, the industry has witnessed a transformative integration of automation and Industry 4.0 technologies, aimed at optimizing packaging processes, reducing labor costs, and enhancing overall operational efficiency. This technological evolution signifies a forward-looking approach within the industrial packaging landscape.

The dynamic landscape of industrial packaging has also been shaped by the relentless growth of e-commerce. Packaging solutions now need to ensure not only product protection during shipping but also deliver a positive unboxing experience for consumers. This shift in priorities is indicative of the industry’s responsiveness to changing market dynamics. Moreover, industrial packaging has moved towards greater customization, with a focus on meeting the unique needs and branding preferences of individual companies. The rise of digital printing technology has further facilitated this trend, allowing for shorter print runs, faster turnaround times, and the creation of highly detailed and customizable packaging designs. As the industry grapples with regulatory compliance challenges and navigates supply chain disruptions, it is evident that the industrial packaging sector is evolving in response to a complex interplay of environmental, technological, and market-driven factors.

Key Companies Profiled

  • Amcor Ltd.
  • Bemis Co., Inc.
  • Grief, Inc.
  • International Paper Company
  • Orora Ltd.
  • Sigma Plastics Group
  • WestRock Company
  • Mondi PLC

Competitive Strategies in Industrial Packaging:

  1. Mondi Group’s Investment in Hungary (June 2020): Mondi Group invested EUR 7 million in its Nyregyhaza facility, Hungary, enhancing its paper sack production capabilities. The investment focused on cutting-edge technology to elevate service standards, efficiency, and the quality of high-end paper sacks for food applications.
  2. Greif Inc.’s North America IBC Network Expansion (April 2020): Greif Inc. strengthened its North American IBC reconditioning network by acquiring a minority stake in Centurion Container LLC. This strategic collaboration aimed to enhance Greif’s capacity to provide sustainable packaging solutions, contributing to its competitive positioning.