Latin America Rigid Bulk Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Latin America Rigid Bulk Packaging Market is Segmented by Material (Plastic, Metal, Wood, and Other Materials), by Product (Industrial Bulk Containers, Drums, Pails, Bulk Boxes, and Other Bulk Containers), and by End-User Industry (Food, Beverage, Industrial, Pharmaceutical, and Chemical, Other End-User Industries), and by Country (Brazil, Mexico and Rest of Latin America). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Latin America Rigid Bulk Packaging Market Size

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Latin America Rigid Bulk Packaging Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 6.54 Billion
Market Size (2029) USD 7.30 Billion
CAGR (2024 - 2029) 2.22 %
Market Concentration Medium

Major Players

Latin America Rigid Bulk Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Latin America Rigid Bulk Packaging Market Analysis

The Latin America Rigid Bulk Packaging Market size is estimated at USD 6.54 billion in 2024, and is expected to reach USD 7.30 billion by 2029, growing at a CAGR of 2.22% during the forecast period (2024-2029).

  • Latin America's bulk packaging market is on the rise, owing to the increasing export trade in food and beverage products. Intermediate bulk containers are needed at different stages in the food & beverage supply chain, such as storage, transportation, and distribution of products like syrups, sauce, alcoholic & non-alcoholic beverages, etc. Intermediate bulk containers help maintain the quality & freshness of products while allowing for efficient handling & logistics management. According to US UN Comtrade, beer exports from the region amounted to USD 5.76 billion in 2022, up from USD 4.06 billion in 2017.
  • Additionally, the growth for lightweight, recyclable, and environment-friendly rigid packaging is attributable to the escalated awareness of sustainable packaging practices in line with the region's environmental sustainability objectives. For example, Mexico's Secretariat of Environment and Natural Resources, SEMARNAT, has put measures in place to decrease plastic waste and encourage sustainable packaging practices, prompting packaging manufacturers to move away from traditional packaging and towards eco-friendly options such as paperboard bulk containers or recyclable rigid plastic drums, barrels or pails.
  • The growth of the rigid bulk container market in Chile is mainly driven by the tomato processing companies. Chile is one of the largest exporters of tomato puree to Latin America and North America. These tomato pastes are processed and transported using a variety of bulk containers. This leads to the growth of the market for industrial bulk containers and drums for clean and safe transport and quality preservation during international shipments.
  • However, inflation was driven by the economic recovery after COVID-19, geopolitical tensions from the Ukraine war, the global climate crisis, and the current global banking crisis. The World Bank predicts economic growth for Latin America in 2023 at 1.6%. The International Monetary Fund's (IMF) World Economic Prospects report forecasts inflation at 13.3% in 2023. As a result, raw material prices and other costs associated with manufacturing the rigid packaging options are expected to be on the higher side.
  • Furthermore, Latin America has a significantly growing pharmaceutical and chemical industry across the globe. Notably, the rigid bulk packaging market in Latin America is expected to grow on the back of the increasing use of chemicals in end-use sectors such as construction, pharmaceutical, polymers, and resins, as well as the high complexity of reaching end-users. The chemical distribution industry in Latin America remains highly diversified. Thereby, it demands high-quality industrial bulk packaging options for the transportation and storage of such chemicals.

Latin America Rigid Bulk Packaging Market Trends

Robust Food and Beverage Production Aids the Market

  • The food industry in Latin America is changing to meet the population's needs. Agricultural output in Latin America and the Caribbean has increased significantly over the past 10 years. The region has one-third of the world's freshwater resources and more than one-fifth of medium to high-potential worldwide farmland. Latin America and the Caribbean as a whole are already the biggest net food exporters in the world.
  • Latin America and the Caribbean agricultural production is expected to grow by 14% in the next decade, according to the latest report from the United Nations Food and Agriculture Organization (OECD-FAO). According to the report, 64% of this increase would be attributable to crop production, and 28% would come from the livestock sector. Therefore, there would be a strong demand for plastic and steel drums for the agriculture and farming industries for storing agricultural produce and fertilizers.
  • The region will continue to be the world's biggest producer of soybeans, with 53% of global production projected by 2031. While the region's share in global cereal production is lower, its share in maize production is expected to increase by nearly 18% by 2031. Yield increases are projected to continue, with an average yield increase of about 10% by 2031 across most major crop commodities.
  • According to a report by the OECD-FAO in May 2022, the region is projected to represent 18% of world food exports by 2031. With strong supply growth, the region is set to strengthen its position as an exporter. By 2031, soybeans, sugar, fish meal, maize, beef, and fish oils would represent 61% of world exports. The level of trade openness in the region would have a major impact on the sector and global food security. This export trade would bolster the market for bulk containers with tracking and tracing applications.
  • Further, as per the report published by the Agricultural Markets Advisory Group (GCMA) in March 2023, Mexico would rank 10th on the list of the largest food producers in the world in 2023. According to GCMA's agri-food perspectives 2023 report, Mexico's total food production is expected to reach 290 million tonnes in 2023, which is higher than the 287 million tonnes reported in 2022. This includes the production of grains and oilseeds, as well as fruits and vegetables, livestock, and processed products. This growth is expected to be witnessed in the forecast period, proportionately driving the market for rigid bulk drums and containers across the country.
Latin America Rigid Bulk Packaging Market - Total Agricultural Food Production, Million Tones, Mexico, 2022 and 2023

Brazil is Expected To Hold a Significant Market Share

  • Brazil is one of the top Latin American nations for economic growth and foreign direct investment and attained an economic growth of USD 4244.21 million in July 2023 (Trading Economics). Plastics make up over 40% of Brazil's most prominent packaging industry, according to a survey on Brazilian Plastic Packaging conducted in June 2022 by Biointerface Research in Applied Chemistry. Plastic manufacturing volume climbed by 6.8% when broken down by grade. The immense demand from the industrial packaging sector globally drives this trend.
  • Brazil's landscape of rigid bulk packaging is changing. The product product manufacturers are increasingly pressuring packaging suppliers to create eco-friendly designs. As a result, more and more rigid packaging alternatives are emerging with less weight and higher biodegradability. According to a survey conducted by Russell Publishing in March 2022, a new edible, biodegradable, and antibacterial substance was discovered in Brazil to combat the proliferation of single-use plastic waste. Research on environmentally friendly packaging, including edible, biodegradable, and antimicrobial polymers, is being driven by growing worries about plastic waste.
  • Brazil is forecasted to be one of the fastest-growing beer markets, and the market demand is anticipated to increase in the forecast period as well. To meet the growing demand for premium and craft beers, currently led by the brands Heineken and Baden Baden, the company invested in the modernization of its production units in Sao Paulo, which includes increasing the production capacity of Heineken at the Araraquara brewery. In February 2022, Heineken invested USD 64 million in the Brazilian state of São Paulo, the company informed during a press conference with São Paulo's Governor João Doria. Therefore, this kind of expansion and investments from several big brands may bolster the need for rigid bulk containers, drums, and barrels.
  • Notably, Brazil is one of the significant contributors to the market share in Latin America. The country is a mature market in the pharmaceutical industry in the region. The market in the country witnessed various product innovations, especially pharmaceutical packaging products, owing to significant vendors across the country. The region's expanding pharmaceutical production, the increased availability of over-the-counter medicines, and significant investments made by local businesses all contribute to the enormous growth of the Brazilian pharmaceutical sector. These trends would lead to an upsurge in pharmaceutical rigid bulk packaging demand nationwide.
  • According to the United Nations' COMTRADE database, Brazil's pharmaceutical exports amounted to USD 1.43 billion in 2022. In 2022, the United States accounted for the largest share of Brazil's pharmaceutical exports, with a value of almost USD 196 million. Intermediate Bulk Containers (IBC) are widely used for pharmaceutical exports. The bulk containers not only help in safe storage but also ensure proper dispensing and reduce pharmaceutical wastage.
Latin America Rigid Bulk Packaging Market - Leading Countries of Destination for Pharmaceutical Exports, In USD Million, Brazil

Latin America Rigid Bulk Packaging Industry Overview

The Latin America Rigid Bulk Packaging market is moderately consolidated with the presence of major players like ORBIS Corporation, Greif Inc., Alpa Group, and Monoflo International in the market. These players in the packaging market are adopting acquisition and partnership strategies to enter the market and grow their offerings.

In February 2023, Grieff Inc. introduced a rebrand of the circularity program for its industrial packaging products. Built on one of the industry's most robust sustainability programs, Greif's track record of helping customers achieve and exceed sustainability objectives aligns with the company's recently announced sustainability objectives for 2030, including a more comprehensive focus on the circular economy, greenhouse gas reduction, and diversity, equity and inclusion (DEI) initiatives.

Latin America Rigid Bulk Packaging Market Leaders

  1. ORBIS Corporation

  2. ALPLA Group

  3. Greif Inc.

  4. Monoflo International

  5. Rheem Chilena SpA

*Disclaimer: Major Players sorted in no particular order

Latin America Rigid Bulk Packaging Market Concentration
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Latin America Rigid Bulk Packaging Market News

  • September 2023 - Mauser Packaging Solutions expanded its production capabilities recently through investments in the manufacture of composite intermediate bulk containers (IBCs) in its Toluca, Mexico facility. A new line focused on IBC cage production was installed in the facility to support the manufacturing of UN-certified 275-gallon composite IBCs in the region.
  • June 2022 - Greif, Inc., a renowned provider of industrial packaging products, unveiled the launch of high-performance industrial cans in the Brazilian market, which are suitable for packaging agrochemicals, chemicals, flavors, fragrances, and beverages. The reduced weight allows for up to 7% more cans per pallet and 6.7% more warehouse storage capacity. The lighter weight reduces collection costs for recycling as well.

Latin America Rigid Bulk Packaging Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Dynamics

      1. 4.4.1 Market Drivers

        1. 4.4.1.1 Growing Food and Agricultural Exports from Latin America

        2. 4.4.1.2 Construction and Infrastructural Activity Aids Market Growth

      2. 4.4.2 Market Restraints

        1. 4.4.2.1 Severe Inflation and Increased Price of Raw Material May Dent the Market Growth

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Material

      1. 5.1.1 Plastic

      2. 5.1.2 Metal

      3. 5.1.3 Wood

      4. 5.1.4 Other Materials

    2. 5.2 By Product

      1. 5.2.1 Industrial Bulk Containers

      2. 5.2.2 Drums

      3. 5.2.3 Pails

      4. 5.2.4 Bulk Boxes

      5. 5.2.5 Other Bulk Containers

    3. 5.3 By End-user Industry

      1. 5.3.1 Food

      2. 5.3.2 Beverage

      3. 5.3.3 Industrial

      4. 5.3.4 Pharmaceutical and Chemical

      5. 5.3.5 Other End-user Industries

    4. 5.4 By Country

      1. 5.4.1 Brazil

      2. 5.4.2 Mexico

      3. 5.4.3 Rest of Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 ORBIS Corporation

      2. 6.1.2 ALPLA Group

      3. 6.1.3 Greif Inc.

      4. 6.1.4 Monoflo International

      5. 6.1.5 Rheem Chilena SpA

      6. 6.1.6 Mauser Packaging Solutions

      7. 6.1.7 The Dow Chemical Company

      8. 6.1.8 Schutz Elsa S.A. de C.V.

  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Latin America Rigid Bulk Packaging Industry Segmentation

Rigid bulk packaging is a high-strength packaging solution mainly used in packaging products that are sensitive and perishable. The market for rigid bulk packaging is expected to grow due to the increasing demand from the chemical, pharmaceutical, and food & beverages industries. The demand for reusable bulk packaging is also increasing due to the cost-effectiveness of reusable bulk containers compared to smaller containers.

The Latin America rigid bulk packaging market is segmented by material (plastic, metal, wood, and other materials), by product (industrial bulk containers, drums, pails, bulk boxes, and other bulk containers), and by end-user industry (food, beverage, industrial, pharmaceutical, and chemical, other end-user industries), and by country (Brazil, Mexico and Rest of Latin America). The market sizes and forecasts are provided in terms of value USD for all the above segments.

By Material
Plastic
Metal
Wood
Other Materials
By Product
Industrial Bulk Containers
Drums
Pails
Bulk Boxes
Other Bulk Containers
By End-user Industry
Food
Beverage
Industrial
Pharmaceutical and Chemical
Other End-user Industries
By Country
Brazil
Mexico
Rest of Latin America
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Latin America Rigid Bulk Packaging Market Research Faqs

The Latin America Rigid Bulk Packaging Market size is expected to reach USD 6.54 billion in 2024 and grow at a CAGR of 2.22% to reach USD 7.30 billion by 2029.

In 2024, the Latin America Rigid Bulk Packaging Market size is expected to reach USD 6.54 billion.

ORBIS Corporation, ALPLA Group, Greif Inc., Monoflo International and Rheem Chilena SpA are the major companies operating in the Latin America Rigid Bulk Packaging Market.

In 2023, the Latin America Rigid Bulk Packaging Market size was estimated at USD 6.39 billion. The report covers the Latin America Rigid Bulk Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Rigid Bulk Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Latin America Rigid Bulk Packaging Industry Report

Statistics for the 2024 Latin America Rigid Bulk Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Rigid Bulk Packaging analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Latin America Rigid Bulk Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)