Rigid Intermediate Bulk Containers (RIBC) Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Rigid Intermediate Bulk Containers (RIBC)

The global market for RIBCs was valued at $3.7 billion in 2019 and is expected to grow at a rate of 4-5% until 2024, reaching $4.7 billion. RIBCs contribute to approx. 13 percent of the global bulk packaging demand. Overall demand is expected to dip in the next two years owing to continued closure of manufacturing facilities and limited cross-country sourcing options

• The major driver for growth of FIBCs will be the need for light weight and less costly means to carry heavy loads

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 to reach $32.3 billion in 2022. 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

Global Demand Analysis – RIBC

• The (Reconditioned Intermediate Bulk Container) RIBC market is expected to grow at a CAGR of 5–6 percent to reach $3.8 billion in 2020. The market is likely to foster the growth, due to increasing demand from major end-users, like chemical, petrochemical, and pharmaceuticals
• Globally, the IBC industry has an average utilization rate of 65 percent, and the manufacturers are able to meet the demand without any supply constraints

Global Market Demand (2018–2022F)

• The RIBCs market is expected to grow fast, due to the resurgence of chemical production. Chemicals accounted for more than 65 percent of the RIBCs demand, globally. The upswing in production of durable goods is another growth driver of RIBCs
• RIBCs contribute to 12 percent of rigid bulk packaging demand and would experience a strong growth in the next five years, owing to its long-term cost and performance advantages. The regulations for transportation of hazardous goods, ensure high demand for RIBCs
• The market is matured in the developed regions of North America and Europe. However, APAC might experience high growth for IBCs, owing to high capacity additions from pharmaceuticals and chemicals

Global Demand by Application

There has been consistent supply of RIBCs meeting the demand from major end-users, such as chemicals, food & beverage, petroleum and hazardous waste. Chemicals contribute to 67 percent of the RIBCs demand, due to high storage capacity, better stackability and ease of transportation.

Downstream Demand Outlook

• Chemicals occupy majority of RIBC demand. This increase is due to resurgence of production in many regions
•  Food & Beverage
• –Improved growth in food production and efficiency advantages will foster the growth for RIBCs in this segment
• –FIBCs will be a substitute in dry & granular food packaging, while RIBCs (collapsible plastic walls) will lead frozen fruits & vegetables, liquid food ingredients like purees, concentrates, syrups, vegetable oils & honey
• Petroleum and Lubricants: This industry uses large quantity bulk containers. The need for cost and space effectiveness play a vital role in determining the type of packaging
• Hazardous Waste: Stringent regulations from UN and DOT in the transportation of dangerous goods necessitate the need for RIBCs