Industrial drums are cost-effective, reusable, recyclable, and have larger storage capacity with high chemical and stress crack resistance. The leading players in the market are collaborating with local players to expand their product portfolio and gain a competitive edge. Companies around the world are actively working to reduce their logistics cost and deliver products at a competitive price, which is further surging the demand for industrial drums for their stacking ability. Increasing environmental awareness has compelled the manufactures to adopt new packaging standards, further driving the growth.
The industrial drums market’s most prominent driver is the rapidly expanding manufacturing sector as they extensively use industrial drums for packaging. Companies are focusing on delivering high-quality products with safe packaging. Moreover, the Hazard Analysis Critical Control Point (HACCP) works to prevent food fraud and microbiological, chemical, or physical contamination during transportation. Thus, the manufacturers prefer industrial drums for packaging in accordance with the HACCP. Recently, Schütz GmbH & Co. KGaA developed Schütz F1 industrial drum, which is in accordance with HACCP and FSSC 22000.
Globally, several infrastructure projects are being initiated for the integration of transportation systems at the regional level. Governments of Malaysia, Vietnam, Thailand, and Indonesia are heavily investing in the construction of airports, high-speed railways, and ports to increase their economic growth.
Industrial drums are highly durable and reliable and are extensively used for transporting raw materials. In 2018, the government of Thailand announced to invest over USD 45 billion for the next five years to boost the construction activities in the country. In the U.S., the government is organizing several programs such as Infrastructure for Rebuilding America Program (INFRA) to increase the construction activities in the country, further driving the market growth.
The plastic drum segment held the largest market share in 2019 and is expected to dominate the market during the forecast period. Plastic drums are rust-resistant and are easily available at lower costs. As per the statistics presented by the Plastic Drum Institute, over 500 million pounds of polyethylene are sold annually in North America. Shifting consumer preference towards sustainability has compelled the manufacturers to adopt sustainable packaging solutions. In the U.S., over 18 million plastic drums were sold in 2017. Apart from this, plastic drums are recyclable, reusable, and provide ease of printing, further surging their demand across the industrial sector.
The chemical and pharmaceutical segment is projected to witness significant growth during the forecast period. Globally, it is paramount for the industries to manage hazardous materials, considering environmental protection and safety. Thus, the rapid expansion of chemical and pharmaceutical industries across the globe is subsequently driving the demand for industrial drums. In 2018, Europe was the largest exporter of chemical products, with an export value of about USD 408 billion, up from USD 398 billion in 2017. Steel drums are extensively used for the transportation and storage of flammable and combustible liquids as they are versatile, eco-friendly, cost-efficient, and prevent leaks and spills.
The COVID-19 outbreak has severely affected economic activities across the globe. The demand for drums is expected to be volatile due to the halt in production activities and disruption in the supply chain, which is directly impacting the global trade activities. China is the leading producer of raw materials used for manufacturing industrial drums, and the outbreak is negatively impacting the production of industrial drums, further hampering the market growth.
Asia-Pacific leads the industrial drums market and will continue the same during the forecast period. The region is witnessing an increase in global exports of oil, palm oil, wine, and other liquid products, which is subsequently driving the demand for industrial drums across the region. In 2019, Asia accounted for almost 10% of the world’s oil production, and the region is home to leading oil-producing countries such as China, Indonesia, and India. Companies involved in intra-regional trade and exports are extensively using industrial drums for packaging for its impeccable properties.
In China, the government is channelizing efforts to increase capital investment in oil production by 20%; currently, the country produces nearly 4 million barrels of oil per day. The Netherlands, India, and China are the leading producers of palm oil across the region. In 2017, Indonesia’s total export value of palm oil reached USD 18.2 billion. Industrial drums have emerged as a cost-effective solution for transportation and packaging of liquid materials, further driving the demand for industrial drums.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|