Industrial Packaging Market Expected to Reach $99.6 Billion by 2033

According to a new report published by Allied Market Research, titled, “Industrial Packaging Market," The industrial packaging market size was valued at $65.9 billion in 2023, and is estimated to reach $99.6 billion by 2033, growing at a CAGR of 4.3% from 2024 to 2033. 

Industrial packaging is used to pack products during or after manufacturing. These packed goods are often heavy, bulky, sensitive to external atmosphere, and hazardous to environment, thus is necessary to conserve the product during storage and transit. Industrial packaging encompasses drums, intermediate bulk containers (IBCs), sacks, pails, crates, and totes, which are made of materials such as paperboard, plastic, metal, wood, and fiber.

Increased globalization is a key factor that boosts the industrial packaging market. Rise in building & construction activities in Asia-Pacific is expected to drive the industrial packaging market during the forecast period, as several countries in this region witness ongoing urbanization. In addition, growth in population across the globe boosts the food & beverages industry as industrial packaging preserves the food products and maintains its efficacy during transportation and distribution. Moreover, due to the rise in international trade, resulting in rise in the exports and imports, which involve long-distance travel and requirement of superior packaging standards in the international market lead to higher demand for industrial packaging.

In 2023, the chemical & pharmaceutical segment accounted for the highest Industrial Packaging Market Share, and is expected to grow at a CAGR of xx% from 2024 to 2032. Chemicals are sensitive to external atmosphere and hazardous to environment; thus, large number of steel drum and rigid IBCs are required to store and ship the chemicals. The rise in geriatric population across the globe and growth in chronic diseases, boost the growth of pharmaceutical industry. Moreover, the growth in emphasis on rural health programs, lifesaving drugs, and preventive vaccines drives the pharmaceutical industry, thereby leading to the increased use of industrial packaging.

Commonly, industrial packaging are made of paperboard, plastic, metal, wood, and fiber. In 2023, plastic segment held the largest market share in terms of revenue, and the same segment is anticipated to grow with a higher CAGR during the forecast period. Plastic packaging offers lightweight, durable, and flexible solutions for a range of industries, including food and beverage, healthcare, and consumer goods, with options such as bags, films, bottles, and containers.

Furthermore, the report is also analyzed based on the application of industrial packaging in different industry verticals, including chemical and pharmaceuticals, building and construction, oil and lubricant, agriculture and horticulture, and others. In 2023, chemical and pharmaceuticals segment held the largest market share in terms of revenue. On the other hand, food and beverages segment is anticipated to grow with a higher CAGR during the forecast period.

However, volatile organic compound (VOC) emission during the manufacturing and curing processes of plastic packaging has led to the formulation of various regulations on packaging manufacturers. Moreover, regulatory norms on industrial packaging related to food contact application and pharmaceutical products are expected to hamper the Industrial Packaging Market Growth. Conversely, increase in R&D activities for innovation of industrial packaging solutions are expected to provide new opportunities for the manufacturers.

In 2023, Asia-Pacific dominated the global Industrial packaging market, in terms of revenue. Moreover, the market in Asia-Pacific is anticipated to grow with the highest CAGR, owing to growth in the construction of commercial buildings in the region.

Furthermore, key players in the Industrial packaging market are adopting various development opportunities such as product launch, acquisition, geographic expansion, and others. For instance, in July 2023, Conner Industries, Inc., a top-tier supplier of lumber, industrial wood crates & pallets, and comprehensive packaging solutions, declared on Tuesday the inauguration of a new manufacturing plant situated in Guthrie, Kentucky. This recent venture into the manufacturing sector in southern Kentucky strengthens Conner's presence in the integrated packaging division, facilitating expansion of its operational footprint.

However, various businesses in the Industrial packaging market are expected to witness a slow growth rate in the coming year, owing to the looming recession in major countries driven by the Ukraine-Russia war. The inflation has already led to higher prices of raw materials used in the industrial sector.

Key companies profiled in the Industrial packaging market report include Grief, Inc., Mondi PLC., Amcor Limited, Westrock Company, International Paper Company, Bemis Company, Inc., Orora Limited, Mauser Group, Sigma Plastics Group, and Wuxi Sifang Drums Limited Company.

KEY FINDINGS OF THE STUDY

• The report provides an extensive analysis of the current and emerging Industrial packaging market trends and dynamics. 
• Depending on product, the sacks segment held the largest market share in terms of revenue in 2023.
• By material, the plastic segment accounted for the highest market share in 2023.
• By application, in 2023, the chemical and pharmaceuticals segment held the largest market share in terms of revenue. On the other hand, food and beverages segment is anticipated to dominate the Industrial Packaging Market Foorecast
• Asia-Pacific is projected to register the highest growth rate in the coming years.
• The key players within the Industrial packaging market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the Industrial packaging industry.
• The report provides an extensive analysis of the current trends and emerging opportunities in the market. 
• In-depth Industrial packaging market analysis is conducted by constructing estimations for the key segments between 2024 and 2033.