Industrial Packaging Market- Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2025

Industrial packaging is essential for the packaging of industrial goods and products, during or after the manufacturing process. Industrial packaging is different from others types of packaging. It mainly focusses on the strength and thickness of the materials used along with secured lock mechanisms and closures. Various industries use high-quality packaging to meet international packaging standards of providing protective packaging. Industrial goods are often bulky, heavy, and sensitive to hazards or external contacts, thus industrial packaging involves the use of different material such as stainless steel, wood, and plastics.

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One of the major factors propelling the global growth of this market is rapidly developing construction industry. According to Coherent Market Insights report, the global construction industry is projected to exhibit a CAGR of 5.8% from 2016 to 2021. Moreover, increasing trend of recyclable and biodegradable packaging materials such as plastics and paper & paperboard materials, along with increasing consumption of packaged food items coupled with growing industrialization in the emerging economies such as India, China, and Brazil has propelled the market growth. Advancement in technology such as nanotechnology in printing and films shows new opportunities for the growth of industrial packaging.

However, fluctuating prices of the raw materials used for the manufacturing of industrial packaging products, lack of marketing, branding, and distribution channels, lack of 100% commitments to the quality standards, and unavailability of skilled manpower are some of the major factors restraining the market growth.

Asia Pacific holds the largest market share in global industrial packaging market. It is projected to exhibit the fastest CAGR of 7.4% during the forecast period. The emerging economies in Asia Pacific such as India, China, South Korea, Vietnam, Malaysia, and Thailand are expected to propel the growth of industrial packaging market in the near future. Furthermore, industries such as petrochemicals, automotive, agriculture, oil and gas, food and beverages, chemicals, and metal fabrication have a high requirement for transportation, safe handling, and storage. These factors augments the market growth in Asia Pacific.

Among materials, plastics segment held the dominant position in 2016, with 45.0% market share. Availability of numerous grades of plastic, easy handling due to light weight, and due to its chemical inert property, are some of the major factors driving the demand for this segment.. Paper and paperboard accounted as the second largest segment in 2016, with 29.12% market share. This is mainly owing to its eco-friendly and biodegradable materials, which are used by many end-use industries.

Among the end users, chemicals and pharmaceutical industries has the largest market share in the industrial packaging market, owing to high adoption rate of industrial packaging products. According to American Chemistry Council (ACC), due to availability of cheap and abundant ethane and shale gas, there is boom in chemical industry in U.S, with starting of 294 new projects by 2017. According to U.S International Trade Administration, the world market of pharmaceuticals witness a growth rate of 4.9%, and is projected to grow from US$ 1 trillion to US$ 1.3 trillion from 2015 to 2020. Thus, increase in the demand for packaging of chemical and pharmaceutical goods is expected to drive the growth of industrial packaging market over the forecast period.

Plastic held the dominant position in 2016 and is expected to retain its dominance during the forecast period. Packaging holds a revenue of US$ 25.5 billion and is projected to exhibit a CAGR of 5.4% over the forecast period.

Asia Pacific held the dominant position in the global industrial packaging market in 2016 and is expected to retain its dominance throughout the forecast period.

Major Players in the Global Industrial Packaging Market

Some of the major players operating in the global Industrial packaging market include AmeriGlobe LLC, Beacon Converters, Bemis Company, Aphena Pharma Solutions, Cascades Inc., International Paper Company, United Drug Plc, and Sigma Plastics Group.

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