CLEVELAND, Oct. 3, 2016 /PRNewswire/ -- Demand for rigid bulk packaging in the US is expected to expand 3.3 percent per year to $7.2 billion in 2020, spurred primarily by a favorable production outlook for chemicals and pharmaceuticals, the largest market for rigid bulk packaging products. The popularity of reusable systems, which are sold at a higher price than products intended for single use, will sustain value gains, though a less frequent replacement rate will mitigate growth somewhat. These and other trends are presented in Rigid Bulk Packaging, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Industry study Rigid Bulk Packaging is available at http://www.freedoniagroup.com/DocumentDetails.aspx?ReferrerId=RF-PRNEWS&StudyID=3460
Pails will hold the largest portion of total rigid bulk packaging demand, due to their performance and cost advantages in small volume applications. These benefits allow them to either be reused or disposed of, depending on the preference of the user. According to analyst Katie Wieser, "The availability of both steel and plastic models, as well as pails with removable and nonremovable heads, also provides flexibility in applications."
Rigid intermediate bulk containers (RIBCs) are expected to see the fastest growth through 2020, boosted by the preference for reusable systems and the advantages of these containers over drums in terms of storage and shipping efficiency. However, drums will remain an important part of the packaging mix due to their frequent use in a number of chemical markets and, in the case of steel drums, their amenability to international shipping regulations and practices. Plastic drums will see the fastest gains based on their light weight and the performance advantages of plastic in terms of cleanliness and durability.
Prospects for all rigid bulk packaging formats will be mitigated by competition from flexible formats, such as flexible intermediate bulk containers (FIBCs), shipping sacks, and large pouches. Flexible formats can provide cost savings to the user due not only to their lower price but also to their lower weight, which can reduce costs related to shipping. Flexible formats will make inroads into markets that have a high concentration of dry or solid products that do not require substantial protection.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group