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The intermediate bulk container market is estimated to grow at a CAGR of 7.16% between 2022 and 2027. The size of the market is forecast to increase by USD 4,026.05 million. The growth of the market depends on several factors, including the high demand for intermediate bulk containers from the construction industry, the growing manufacturing industry, and the rise in containerization.
This report extensively covers market segmentation by type (plastic, metal, and corrugated), end-user (chemical, pharmaceutical, food, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global intermediate bulk container market as a part of the global diversified support services market within the global commercial services and supplies market. The global diversified support services market covers companies primarily providing labor-oriented support services to businesses and governments. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rise in containerization is notably driving the market growth, although factors such as the volatility of raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Intermediate Bulk Container Market Driver
The rise in containerization is notably driving the market growth. Containerization is a system of intermodal freight transport using intermodal containers. The rise of container throughput is attributed to various factors, including the growth in international trade and the adoption of containerization for maritime shipping and inland transportation. The rise in port traffic is expected to be the major driver of containerization. For instance, container port traffic in India grew by more than 7.3% during 2022-23.
Containerization helps reduce congestion in ports, shorten shipping time, and reduce the losses resulting from damage and theft. Furthermore, the rapid rise in the demand for intermodal freight transport fuels the need for containerization. Intermodal freight transport refers to the method of transporting freight in intermodal containers using multiple modes of transportation without the need for handling the freight when changing the transport mode. Intermodal freight transport requires standard containers, as they provide a high level of efficiency and can carry more containers per day or per voyage. Therefore, the growing demand for intermodal freight transport will increase the need for containerization, which, in turn, will drive the global IBC market during the forecast period.
Significant Intermediate Bulk Container Market Trend
The revival in demand for material handling containers is an emerging trend in the market. The global economic recession of 2008 resulted in a decline in economic activities across industries, including manufacturing and construction, which reduced the demand for chemical and petrochemical products during 2008-2012. This economic downturn impacted industrial activities across the globe, which has subsequently reduced the demand for industrial packaging solutions. After the revamping of global industrial activities and a decline in crude oil prices from around USD 110 per barrel to USD 50 per barrel in 2016, the demand for material handling containers increased. In addition, the growth in the manufacturing of equipment parts, components, and other durable metal products used in the heavy machinery and automobile industry is driving the need for innovative packaging in warehouses and distribution centers for handling, storing, and distribution purposes.
A wide range of products, including heavy-duty and rigid containers, attached lid containers, stackable containers, and intermediate bulk containers, are used as material handling containers by different end-user industries. Therefore, such factors will boost the growth of the IBC market during the forecast period.
Major Intermediate Bulk Container Market Challenge
The volatility of raw material prices is a major challenge impeding the market. Intermediate bulk containers are available in different categories, such as rigid Intermediate bulk containers, flexible intermediate bulk containers, and folding intermediate bulk containers. These are made from different raw materials, such as metal (stainless steel), plastics, wood, and corrugated fiberboard. The prices of these raw materials fluctuate due to the disequilibrium in their demand and supply.
Metal intermediate bulk containers are the most suitable packaging materials for petrochemicals and paint products. Steel is widely used in the production of cordless garden equipment. Steel prices are unstable, owing to factors such as fluctuating raw material prices and excess steel production. A decline in oil prices also influences the price of steel. Steelmakers find it difficult to estimate raw material prices owing to the constant fluctuation. Such price fluctuations bring unpredictability to the market and adversely affect production costs, and reduce vendors' profit margins. Thus, fluctuations in raw material prices will affect the profit margins of intermediate bulk container vendors, which, in turn, will hinder the growth of the IBC market during the forecast period.
Key Intermediate Bulk Container Market Customer Landscape
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Intermediate Bulk Container Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Thielmann Portinox Spain SA - The company operates under one segment. The company under this segment manufactures stainless steel containers with the unsurpassed container. The key offerings of the company include intermediate bulk containers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the plastic segment will be significant during the forecast period. Plastic intermediate bulk containers are used for shipping and storing powder, granular, liquid, and bulk solids in the pharmaceutical and biotech industries.
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The plastic segment was valued at USD 5,129.59 million in 2017 and continued to grow until 2021. The plastic containers are used for storage at room temperature or below and offer excellent temperature regulation with a 20 degrees C-30 degrees C range. They include virtually all types of plastics like polyethylene, polypropylene, high-density polyethylene (HDPE), low-density polyethylene (LDPE), and HDPE-glycol homopolymer. Basically, advanced polymer allows for the structural strength and durability of plastic, along with an anti-oxidation formula that helps to slow the oxidation process. The material has superior strength, does not crack under extreme temperatures, is resistant to corrosion, and will not shatter or crack at high temperatures. Hence, the above-mentioned factors are expected to fuel the growth of the plastic segment in the global IBC market during the forecast period.
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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is expected to account for the largest market share of the global market during the forecast period. China is one of the leading consumers of intermediate bulk containers and contributes a considerable share of the market in APAC. Various countries in APAC, especially India and China, are witnessing a rise in population and an increase in urbanization. This is resulting in increased consumption of various products, such as food products, personal care products, and consumer goods. Therefore, the abovementioned factors encourage packaging vendors to invest heavily in this region, which will drive the market in the region during the forecast period.
APAC is the third-largest market for the pharmaceutical sector after North America and Europe. Factors such as the growing aging population, increased production of generic drugs, and impending expiry of patented drugs are boosting the pharmaceutical sector in APAC. The growth in the pharmaceutical industry in China has led to a significant number of innovative compounds entering the pipeline. In addition, the strong demand for pharmaceutical products in countries such as Vietnam, China, India, Sri Lanka, Myanmar, and Bangladesh is encouraging vendors to expand their businesses in these countries. Such factors are expected to fuel the growth of the regional market during the forecast period.
In 2020, the COVID-19 pandemic adversely affected the growth of the regional market. However, the lifting of lockdowns in different countries, including India, Japan, and China, and the emphasis on re-starting the operations of essential businesses, such as food processing, with a limited workforce, have led to a gradual recovery of the regional food industry. In addition, online food delivery services and delivery of a wide range of goods via e-commerce platforms since 2021 have positively affected the growth of the market in the region. Therefore, the regional IBC market is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Intermediate Bulk Container Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.16% |
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Market growth 2023-2027 |
USD 4,026.05 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.41 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, Canada, China, India, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Berry Global Inc., Bulk Lift International LLC, BWAY Corp., DS Smith Plc, FlexiTuff Ventures International Ltd., Global Pak Inc., Greif Inc., Hawman Container Services, Hoover Circular Solutions, HOYER GmbH, Intertape Polymer Group Inc., LC Packaging International BV, Material Logistics Handling Pty. Ltd., Mondi plc, OBAL CENTRUM s.r.o., Schafer Werke Gmbh, SCHUTZ GmbH and Co. KGaA, SIA Flexitanks, SYSPAL Ltd., Thielmann Portinox Spain SA, and Snyder Industries Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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