Metal Drums

Metal Drums Global Market Outlook:

• The global market for metal drums was valued at $12.2 billion in 2023 and is expected to grow at the rate of approximately 4–5 percent until 2027. Steel drum currently contributes to 67 percent of the global demand with the bulk drums category

• The pharmaceutical and food segment is expected to take away the majority of the market share, which was led by the chemicals industry, owing to the high demand from the manufacturing segments

Metal Drums Demand Market Outlook

• Shutdown in reconditioning and recycling facilities continues to affect the overall supply in the metal drums market. Increasing demand from industrial sectors, along with slow supply growth, has resulted in slight supply tightness

• Chemicals, agrochemicals, and food & beverage industries are the major end-use segments driving the demand for industrial drums. APAC is witnessing the highest growth rate around 6–7 percent

Global Market Size: Metal Drums

• Metal drums market is almost recovered in 2023 post the impacts caused by the COVID pandemic

• Metal drums will continue to dominate the market, accounting for more than 65 percent of total sales. Metal drums that have been restored are in high demand. They are refurbished and sold at a lower price than new drums

• From 2023 to 2027F, global metal drum demand is predicted to expand at a 4–5 percent annual rate. The category is almost out  of the impacts caused by the COVID pandemic and is expected to grow at a robust rate until 2027F

• Metal drums are commonly used for the transportation and storage of chemicals and agrochemicals, where strict standards on leak testing and hazardous spillage are required

• Metal drums are still used because of their durability and capacity to hold heavy loads. Colored metal drums are a recent trend for easy identification and inventory management

Global Capacity: Demand Analysis of Metal Drums

• From 2023 to 2027F, the global metal drums market is predicted to rise at a CAGR of roughly 4.5–5 percent, reaching a value of $14.7 billion. This is due to the pharmaceutical and food industries' high end-use demand, which has eclipsed the chemicals industry's strong demand due to COVID

• The metal drums business has an average utilization rate of 65–70 percent globally, and producers can meet demand without any supply limitations

Industry Drivers and Constraints : Metal Drums

Drivers

• Recovery from Impact of COVID-19: Multiple industries, such as chemicals and construction, witnessed significant demand loss during the pandemic. In 2022-2023, most of these industries have started recovering, with segments, such as industrial chemicals, agro-chemicals, petroleum products, witnessing 8–12 percent CAGR over 2023–2027, driving demand for metal drums

• Increase in demand from the major end-use segments, like chemical industry and pharmaceuticals, drives the demand for steel and plastic drums. In APAC, China has a higher end-use demand in food & beverage, which is around 7.9 percent CAGR, which is a major driver of growth in the emerging regions

• Demand from developing regions: Industrial drums market in APAC is in a developing phase and contributes to around 50 percent of the global drums demand. It is expected to grow at a CAGR of around 4–5 percent from 2023 to 2027. This is mainly due to lower cost of raw materials

Constraints

• Lack of innovation: There has not been any major development in the way drums are used or manufactured in the recent years. They have only few developments, in terms of valve and the body structure, which acts as a major demand constraint in the global industrial and chemical markets

• Refurbishing of drums: Major global converters have established facilities to refurbish/recondition drums in the developed regions, in collaboration with regional suppliers, which might affect the demand for new drums, as many buyers will give priority to recondition their already purchased drums. Thereby, eliminating the cost of buying a new drum

• Epoxy Lining: For steel drums, there is a requirement of epoxy lining for hazardous chemicals, which other industrial packaging options do not require, which saves cost

• Alternative products: The availability of Intermediate Bulk Containers (IBCs) is impeding the expansion of the steel drum market. When it comes to storage and transportation, IBCs are more cost-effective than steel drums. Steel drums have a round shape that leads in wasted space, but IBCs have a square design that maximizes space use.