Market Trends of Intermediate Bulk Container Industry
This section covers the major market trends shaping the Intermediate Bulk Container Market according to our research experts:
The Growth Of Chemical Industry Is Expected to Boost IBC Market
- The positive outlook of the chemical sector is expected to provide significant support to the IBC packaging. The demand is estimated to be driven by China, which is the most abundant chemical market.
- Moreover, the aggressive growth of the food industry in North America has directly affected the increased use of safe agrochemicals for the production and growth of crops. This has driven the ancillary demand for agrochemical packaging by large industrial producers who are largely dependent on Intermediate Bulk Containers.
- The use of rigid IBCs is increasing to carry hazardous and precious chemicals across long stretches of land and water without leakage. These IBCs can also be easily reinforced, which prevents fumes from escaping.
- While transporting hazardous chemicals, strict regulations declared by the United Nations (UN) are effective globally. In the case of hazardous chemicals, IBCs are often put under a lot of pressure. That is why it is important to use safe and durable packaging when handling chemicals. This leads to an increase in demand for single-use IBC.
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Asia Pacific Is Expected To Experience Fastest Growth
- Asia-Pacific is expected to register the highest growth rate among the other regions during the forecasted period. Therefore, the intermediate bulk container market in APAC is expected to garner significant business opportunities for the vendors.
- China was the world's leading chemical exporting country in 2019, with exports amounting to a value of USD 74 billion in 2019. According to Fuchs Petrolub, China's lubricants market amounted to some 7.3 million tons, making it the world's largest lubricant-demanding country in 2019.
- Moreover, Japan is the world's 4th largest importer & exporter of goods, and foreign trade accounts for 36.8% of the country's GDP. The country mainly exports motor vehicles (13.9%), auto parts and accessories (4.6%), electronic integrated circuits and microassemblies (3.9%), ships and boats (1.9%), and petroleum oils (1.6%). The country's main partners are China, the US, South Korea, Australia, Hong Kong, Saudi Arabia, and Thailand. The growth of such industries and booming trade have driven the demand for IBC's.
- The governments of China and India imposed strict lockdowns during the height of the COVID-19 outbreak. This eliminated production for nearly 3 months and created a significant backlog of orders. However, with conditions improving, the economy is under-recovery, and production has increased in most APAC countries. This has provided a market opportunity for the IBC players to provide on-demand IBCs.
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