Global Market Outlook on IBCs

  • The global market for RIBCs was valued at $3.3 billion in 2017 and is expected to grow at a rate of 5–6 percent until 2020, reaching $4 billion. RIBCs contribute to ~13 percent of the global bulk packaging demand 
  • Currently, FIBCs contribute to 12 percent of the demand for flexible bulk packaging and are expected to undergo the fastest growth of 6–7 percent among other flexible bulk packaging material and reach 13 percent by 2020. The major driver will be the need for light weight and less costly means to carry heavy loads

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Demand Market Outlook –FIBCs 

  • Globally, food & beverage and chemical together contribute to more than 45 percent of the demand, making them the major end-use segments 
  • The APAC is expected to witness the fastest demand growth at 8–9 percent until 2020, in spite of the limiting factor of less prevalence of FIBC handling equipment in this region

Supply Base Outlook –FIBCs

Globally, FIBC supply base is highly fragmented. Greif Flexibles and AmeriGlobe are the major players with global manufacturing locations. Since FIBC manufacturing is a labor-intensive process, suppliers in APAC who have low labor costs are considered to be the cost-effective option.

Global Market Outlook –Rigid Bulk Packaging 

Market Growth and Drivers 

  • The global bulk packaging market is expected to grow at a CAGR of 4.5–5 percent from 2017 to reach $31 billion in 2021. The market is expected to foster growth, mainly due to the increasing demand from chemical, petrochemical, pharmaceutical, and crop science industries, which rely on rigid bulk containers for packaging their products 
  • Chemical industry witnessed a strong Y-o-Y growth rate of 3.4 percent from 2015 to 2016, thereby driving the demand for rigid bulk packaging further

Rigid Bulk Packaging Types 

  • IBCs are one of the predominantly used packaging types in rigid bulk packaging, due to their high storage capacity 
  • Other packaging formats, such as drums, bulk boxes, and material handling containers are also expected to foster growth, due to the advantages it offers over the other packaging types, such as storage and handling efficiency, greater reusability, and emphasis on sustainability and closed-loop supply chains