Automotive and mechanical segments to outrun the chemicals segment with a higher growth rate expected during the forecast period
The folding IBCs are made from FDA approved and 100% recyclable materials that provides a safe and secure reusable package. Folding IBCs can withstand the effects of sun, wind, rain, ice or snow and allow for a long-term outdoor storage. These are highly preferred by manufacturers for storage of their products. Most of the demand for folding IBCs packaging comes from food and beverage industry. However, with the growing popularity of folding IBCs, it is also finding its application in many other industries such as chemicals, petrochemicals, cosmetics, etc. According to the market analysis, chemicals segment is expected to hold the highest market value of over US$ 220 Mn by the end of 2027. Most of the demand for folding IBCs to carry chemicals is contributed by hazardous chemicals, which holds a market share of over US$ 200 Mn by the end of 2027. However, in terms of growth rate, automotive and mechanical parts is expected to dominate the market with a CAGR of 5.3% during the forecast period.
Containerisation and returnable transport packaging for several applications is paving the way for cost optimisation
Folding IBCs is a part of the latest trend in the packaging industry where various applications are demanding containerization and returnable transport packaging. Containerization has made it possible for the shipping industry to transport products without being a financial burden. Earlier, a crew of 1000 people were required for shipping purposes as well as handling heavy containers; however, with the advent of intermediate bulk containers, a maximum of 21 crew members are enough, which has significantly reduced shipping costs and in turn created opportunities for increased revenue influx for the industry. Logistics companies are looking to capitalize on this by opting for folding IBCs as a viable solution for shipment of goods. The folding IBCs are also stackable. This helps in maintaining the efficiency of storage at warehouses.
Folding IBCs have also streamlined the trade between countries. As the emerging economies are now witnessing the rise in trade activities and are expecting to double the amount of trade that is carried out, there is an increase in demand for folding IBCs. Folding intermediate bulk containers offer several advantages such as reusability, leading to their wide applicability across various end users. Another factor which drives the need for folding intermediate bulk containers is their minimum contamination issue since IBCs are made mostly through aseptic technology which minimizes the need of drilling and consequently reducing the chances of contamination. Intermediate bulk containers are used for exports of almost every type of product which is a strong factor driving the growth of this market.
Easy availability of alternate packaging products for various applications to limit the growth of the folding IBCs market
There is a growing demand for packaging products, especially for sustainable packaging. This has fuelled the growth of biodegradable polymer materials such as polypropylene, leading to an alternative replacement for the rigid form of bulk packaging, such as, folding IBCs. Moreover, manufacturers, in order to reduce logistics cost, ensure that they use forms of packaging products that render efficiency in shipping and handling, leading to competitive advantage. Another alternative available to them is the flexible IBC. Flexible IBC carrier is simple to use and cost effective. Moreover, flexible IBC offers advantages over folding IBCs such as flexibility, variety in dimension, energy saving, and anti-static properties. Such properties attract many manufacturers which in turn hinders the growth of global folding IBCs market.
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