Increase in the use of jerry cans observed across various end-use industries
Jerry cans are used for storing different kinds of liquids such as fuels, cooking oils and industrial chemicals. The global petroleum and lubricants market is expected to grow at a significant rate in the near future given the rapid increase in automobile sales. The Shell Company of Thailand predicts that its lubricant business will grow by 5-10 percent over the next few years and subsequently, the penetration of jerry cans is likely to be high. Middle East and Africa is also one of the largest exporters of petroleum oil. The Middle East and North Africa region accounts for 50.5 trillions of petroleum exports as quoted by the World Bank, which by itself intensifies the need for efficient transportation solutions across borders to eliminate any occurrences of spillage etc. As jerry cans significantly aid in the safe and secure transportation of bulk liquids, the global market for jerry cans is expected to experience profits with the growth of the petroleum and lubricants market.
Agricultural chemicals is another lucrative end-use segment in the global jerry cans market, as jerry cans are the first choice for storing agrochemicals. The agrochemical consumption is especially high in Latin America. It is estimated that the Brazilian market is expected to grow by an average of 9.8% per year followed by Argentina, which is estimated to witness a growth of 7.7% per year. This will help boost the jerry cans market in the Latin America region. Among the various uses of jerry cans in the food and beverages industry, demand from the palm oil market is witnessing increasing growth. Global palm oil demand is showing an increasing trend of production in countries such as Indonesia and Malaysia. This is due to the rapid population growth, which ultimately leads to an increase in the consumption of food and cosmetic products.
Food & Beverages is the dominant end use segment in the global jerry cans market with a market share of more than 50% during the forecast period. The Food & Beverages and Petroleum & Lubricants end-use segments are anticipated to witness a rise in basis points. The Agrochemicals segment is expected to represent an incremental $ opportunity of US$ 191.6 Mn over forecast period.
Increasing inclination towards the use of jerry cans with barrier coating
Several companies prefer barrier coatings in jerry cans for storing agricultural chemicals and industrial chemicals. In Europe, there is an inclination towards jerry cans with barrier coating. Most of the manufacturers have started taking initiatives to offer jerry cans with 2-3 layers of barrier coating such as EVOH or polyamide to fulfil this specific demand from end users. There is also an increasing demand for two layer jerry cans in the packaging of agrochemicals such as pesticides, fungicides etc. One of the barrier layer is made up of polyamide and the other layer is made up of HDPE to ensure maximum chemical resistance in jerry cans.
The growing use of flexitanks can be a hindrance in the growth of the global jerry cans market
Palm oil is being exported using flexitanks in various palm oil producing countries due to the benefits offered by flexi pouches and tanks. Palm oil is solid until 350C. Therefore it needs heating for discharge at the destination site. The integrated heating system of the flexi tank makes it possible to heat the palm oil for discharge without the need for a heater pad (thus saving the cost of heater pad). The specific gravity of palm oil is between 0.90-0.95 depending on the type. 26,000 litres capacity of the flexitank makes it possible to transport 2,000 litres more per container creating a savings of 8% on the overall freight cost.
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