Jerry Cans

Jerry Cans Global Market Outlook:

• Global Canisters/Jerry cans market was valued around USD 2.4 Billion in 2023E by value and is expected to reach USD 2.8 Billion 2026, majorly driven by the increasing consumption in end use industries like pharmaceutical, chemicals etc.,

• Innovation and technical advancements in Co extrusion blow-molding in manufacturing process will facilitate sustained growth for HDPE canisters in Industrial and chemicals segment in the near future

Porter's Analysis on Jerry Cans-Developed Regions

Supplier Power

• HDPE resin supply base is highly consolidated with large global players like DoW chemicals

• But the prices of resins are highly regulated which translates into balanced bargaining power of suppliers

• Specialty resins like bio-based/bio-degradable resins would give more negotiation power to the manufacturers

Barriers to New Entrants

• Gradual replacement of HDPE canisters by alternative packaging formats like PET, pouches can also become a restraining factors to new players in the market

• The setting up of a plastic container manufacturing unit is not very capital intensive. However, the running cost of a plant is relatively high.

Intensity of Rivalry

• Major players are actively involved in acquisition to consolidate market position in most of the developed regions

• The industry is moderately consolidated and there is high rivalry in capturing the market. Competition is over expanding capacities and establishing local presence

Threat of Substitutes

• PET and flexible packaging products like pouches and bags poses a serious threat to the HDPE plastic canisters

• However, the product stability and other inherent physical properties of HDPE, makes it ideal for usage in pharmaceutical application

Buyer Power

• Players in Pharma and CPG space, with large volumes holds a better bargaining power

• Low product difference and production complexities add leverage to buyers

Cost Structure Analysis: Jerry Cans

• The raw material prices in North America, Europe, and LATAM regions are expected to increase slightly until the forecasted period, However, this price increase is a temporary surge. The price would get stabilized over the period

• In APAC, the HDPE and PET prices are expected to increase around 15 percent in the short term due to the increased demand from the various end-user industries during the recovery phase post pandemic

• Raw material contributes to around 70-80 percent of the Jerry cans cost and it’s a major cost driver, followed by fixed and labor cost

• HDPE has a solid supply in almost all the regions due to the surplus supply of the resins

• Fixed charges includes packaging, logistics, administrative, and other general expenses, and contribute to about 10-15 percent of the overall cost of the plastic bottles