Industrial packaging products are used across various end use industries such as manufacturing, food and beverages, automotive and construction. Industrial packaging is important as it helps in protecting, storing and transporting goods efficiently. Common industrial packaging products include wood pallets, metal pallets, plastic pallets, dunnage bags, cushioning, drum and barrels. They play a crucial role in logistics and supply chain activities of manufacturing companies.
The industrial packaging market is estimated to be valued at US$ 68,677.9 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for growth of industrial packaging market is the rising expenditure in manufacturing sector across developed as well as developing regions. For instance, according to World Bank data, the manufacturing sector output in Vietnam increased to US$ 170 billion in 2019 from US$ 150 billion in 2018, representing a healthy growth rate. Similarly, manufacturing sector spending rose substantially in countries such as India, China and certain ASEAN nations. This indicates higher production levels and increased trade volumes which will augment the demand for industrial packaging solutions during freight transportation and storage. Secondly, innovations in material science have led to new and advanced packaging materials such as renewable and biodegradable plastics. This is positively impacting the sustainable growth initiatives of end use industries.
SWOT Analysis
Strength: The industrial packaging market has strong presence of key global players with wide product portfolio. These companies have wide geographical presence and distribution network to serve various end-use industries. Technological advancements have enabled production of customized and sustainable packaging solutions.
Weakness: High initial investment requirement for setting up production facilities poses major challenge for new entrants. Dependence on raw material prices makes the industry susceptible to price fluctuations.
Opportunity: Growing e-commerce industry stimulates demand for protective and convenient packaging solutions. Rising need for safe transportation of goods is propelling innovations in packaging technology. Stringent regulations towards usage of eco-friendly materials present market opportunities.
Threats: Intense competition among existing players may lead to pricing pressure. Economic slowdowns can negatively impact production volumes across end-use industries.
Key Takeaways
The global industrial packaging market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing industrial production and manufacturing activities across regions. This rising manufacturing output stimulates demand for industrial packaging from various end-use industries like chemicals, food beverages, building construction, and automotive. The market size for industrial packaging is projected to reach US$ 68,677.9 Mn in 2023.
Regional analysis
Asia Pacific dominates the global industrial packaging market and is expected to exhibit the fastest growth over the forecast period. This can be attributed to presence of thriving manufacturing sectors, rapid industrialization, and growing exports from countries including China, Japan, and India. North America is another substantial market owing to strong economic growth and recovery in manufacturing activities in the US and Canada.
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 companies are focused on expanding their footprint through acquisition strategies and capital investments in production facilities to cater to growing demand.
