The global FIBC market was valued at USD 4,265 million in 2021. It is estimated to reach an expected value of USD 6,935 million by 2030 at a CAGR of 5.1% during the forecast period (2022 - 2030).
Bulk bags, jumbo bags, and giant bags are other names for flexible intermediate bulk containers or FIBCs. These can support 500 kg to 2,000 kg of weight and are made of flexible woven material, usually polypropylene (PP). FIBCs (Flexible Intermediate Bulk Containers) are woven PP Fabric and referred to as Big Bags, Jumbo Bags, Bulk Bags, Super Sacks Bags, Tote Bags, etc. The FIBC industry is anticipated to expand steadily as manufacturers roll out lighter containers. Another important factor influencing the demand for FIBC is the growth of the food and pharmaceutical industries and the expanding need to reduce the overall weight of bulk packaging. FIBCs are expected to be utilized by businesses to transport grains, rice, and liquid chemicals for biological goods.
The rapid growth of emerging economies is one of the critical factors responsible for the increase in international trade. Moreover, a rise in imports and exports between various countries, which require superior packaging standards in the international market, is expected to drive market growth during the forecast period. FIBC offer enhanced product protection and are often used as export and import packaging. In addition, FIBC packaging is gaining popularity as export and import packaging material, owing to its lightweight and ease of customization, thereby driving the growth of the global market.
FIBC is one of the major industries in the world in which healthcare packaging represents one of the significant shares. Pharmaceutical packaging has rapidly become a vital part of the drug delivery system and a significant element. Healthcare packaging protects products from material damage, biological contamination, and all unfavorable external influences that can destroy healthcare products' properties. The aging population, inclining prevalence of chronic diseases, and changing lifestyles are factors expected to bolster the demand for healthcare-related products and services. They will further stimulate the growth of FIBC healthcare packaging all across the globe. In addition, high investments in the healthcare industry are stimulating demand for FIBC in the healthcare industry. Increasing incidences of chronic diseases in developing countries like Asia Pacific Middle East are expected to compel the demand and, subsequently, growth of the FIBC market.
Food packaging products and materials contain additives, such as colorants and chemicals. Prolonged contact with food and packaging materials can result in the transmission of these additives into the food product. Raw materials such as plastic packaging must meet the standards of the US Department of Agriculture (USDA) and National Sanitation Foundation (NSF), especially in the food & beverage and pharmaceutical industries. Food packaging materials are subject to the EU's Plastics Regulation (EU) No. 10/2011, which addresses the use of all packaging materials intended to come in contact with food. Thus, enforcing stringent regulations on industrial packaging for food contact applications and pharmaceutical products is expected to impact the FIBC market growth during the forecast period negatively.
Significant development of the e-commerce platform has fuelled the demand for high-quality packaging for supply chains. By 2022, it is predicted that the e-commerce retailing industry will make up over 12% of all retail in Western Europe and over 19% of all retail in the United States. By 2022, the retail sector in China is anticipated to generate a 29% revenue share. These elements, taken together, are anticipated to present e-commerce retailers with growth potential. Demographic shifts, a rise in broadband and other internet service consumption in China and other Asian countries, and the development of delivery infrastructure are all expected to substantially impact the e-commerce business's revenue growth in the near future.
E-commerce retailers are thriving to gain maximum revenue share by reducing the overall cost of product delivery. As a result, these stakeholders choose efficient substitutes for conventional packaging materials and position themselves as supporters of environmental sustainability initiatives. Products delivered by e-commerce websites and online retail businesses require 50% more FIBC packaging than traditional retail channels. This is attributed to an increased need for product protection during transit and single-product shipments. Furthermore, many companies have shifted their preference toward using lighter-weight packaging materials to curb the overall shipping cost of products. Thus, increased demand for more light and sustainable packaging materials is anticipated to scale the revenue opportunity for the overall FIBC market during the forecast period.
The global FIBC market is segmented by product, end-user, and region.
Based on product, the global market is segmented into type A, type B, type C, and type D. The type A segment accounted for the largest market share and is estimated to grow at a CAGR of 5.5% during the forecast period. Plain-woven polypropylene and other non-conductive textiles are used to make Type A FIBCs. Since products travel across or brush against the bulk bag's interior surface when loaded or unloaded, type A FIBCs do not offer any static protection. These can be used to carry non-flammable goods securely, and for maximum security, there shouldn't be any flammable gases or solvents near a type A FIBC.
The type B segment is the second largest. Since Type B FIBCs are likewise made of plain-woven polypropylene textiles or other non-conductive materials, they resemble Type A FIBCs in many ways. Similar to type A FIBCs, type B bags lack a static electricity dissipation system. The main distinction between type A and type B FIBCs is that type B FIBCs use materials with low breakdown voltage to avoid incidents involving highly explosive and hazardous propagating brush discharges. Although type B FIBCs can prevent propagating brush discharges, they are not considered anti-static FIBCs as they do not dispel an electrostatic charge.
Based on end-use, the global market is segmented into food, chemical, pharmaceuticals, textiles, oil & gas, construction, and other end-uses. The food segment accounted for the largest market share and is estimated to grow at a CAGR of 5.9% during the forecast period. Changes in lifestyles and busier schedules of the working-class population have driven the market for reliable FIBCs for the food sector. Packed food includes various products such as meat, poultry & seafood, confectionery, prepared meals, dairy products, baby food, and pet food. Customers' demand for and preferences for fast food, snacks, prepared meals, and other food types determine how much food is consumed. Food products have formed the most extensive area of application for FIBCs, owing to their convenience of transporting and portability.
The chemical segment is the second largest. FIBCs are used for chemical goods transportation, including industrial and household chemicals. When the chemicals are to be shipped in bulk, FIBCs are preferred as a packaging material or container. FIBC is light in weight, providing convenience for transporting chemical products from one place to the other. In the chemical industry, rigid plastic products such as plastic pallets and small drums are widely used to pack the products, and for bulk packing of these packaged containers, FIBCs provide the solution as they are easy to use.
By region, the market is segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.
Asia Pacific accounted for the largest market share and is estimated to grow at a CAGR of 5.9% during the forecast period. Increasing investments from the e-commerce industry are expected to drive the demand for FIBC. Changing consumer preferences toward reusable packaging owing to increasing awareness about environmental protection and waste reduction are expected to increase the demand for FIBC. India is one of the leading automobile manufacturers and has a significant presence in the auto ancillary industry. A high population coupled with increasing consumer reliance on packaged and ready-to-eat food is expected to impact FIBC demand growth positively.
Furthermore, India is emerging as a hub for pharmaceutical and healthcare products because of high public and private investments in the manufacturing sector, encouraging manufacturing activities in the country and thus benefiting the global market. The automotive industry has made a remarkable contribution to the economy of South Korea. The country manufactured around 3.95 million automobiles in 2019, with an export value of USD 40.5 billion. Investments to support vital domestic industries are anticipated to fuel the growth of the FIBC market in the country.
Europe is the second largest region. It is estimated to reach an expected value of USD 1700 million by 2030 at a CAGR of 4.8%. The governments have been focusing on regional FDI investments, especially to attract US firms. In 2020, the country experienced a dip of 39% in FDI cash flows post the COVID-19 outbreak. Therefore, the country has temporarily reduced the threshold for review for non-EU/EEA investments from a 25% threshold or more to 10% for a few listed companies. This is expected to attract more FDI investments across all sectors in the country, benefitting the FIBC market. The UK government has continuously focused on collaborations between universities and small and large-scale pharmaceutical players for R&D investments. This is expected to benefit the pharmaceutical industry in the country, in turn benefiting the FIBC market. Post-BREXIT, the UK government has been keen on establishing free-trade agreements with countries such as the US, China, and other Asian countries. The government has been planning new trade agreements to strengthen the digital and electronics industry trade, especially with the US and Australia. The strong focus by the government to boost trade in the country is expected to create new avenues for FIBC players in the region.
North America is the third largest region. The e-commerce penetration has been considerably growing in North America for the past few years due to the increased internet penetration and various e-commerce-based services. In 2020, over 76% of the North American population purchased products through online services, which is likely to cross the 87% mark by 2024. Online distribution involves extensive logistics and supply chain activities; wherein many FIBCs are used to facilitate product distribution. This is expected to benefit the overall global market. The adoption of third-party logistics services in the region has been growing rapidly since 2014, owing to the various tangible benefits to manufacturers, including the scalability and flexibility of the services in terms of labor, space, and time coupled with maximum network capacity facilitating flexible distribution. Although the e-commerce sector is in its early stage, it is expected to progress at a healthy CAGR over the forecast period. This growth of e-commerce is expected to fuel a large number of B2B businesses in the country, which boosts the demand for FIBC.
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