Metal Barrels Market

Market Overview

Metal Barrels Market Size is Anticipated to Touch a CAGR of 4.7% During the Forecast Period (2023-2031).

A metal barrel refers to a round vessel or cask, which is of greater length than breadth, bulges in the middle, made of staves bound with hoops, and has flat ends or heads sometimes applied to a similar cylindrical container made of steel and iron. It is used for the process of enclosing or protecting products by using materials such as aluminum and steel for its distribution, storage, and sale. It is designed and manufactured to transport lubricant oil, transformer oil, hazardous non-hazardous chemicals, and pulp. Since these barrels are made up of metals, they can withstand extreme temperatures without affecting the strength of the basic structure or its water tightness.

Market Dynamics

Metal barrels are extensively used in the food and beverages, pharmaceutical and healthcare, chemicals, and oil and lubricant industries. Among all the metals, steel is considered one of the most reliable and durable metals for the manufacturing of barrels due to its outstanding performance in extreme temperatures, pressure, and humidity. These barrels allow the storage of liquids, semi-solids, as well as powders. The metal barrels made from steel have fire-resistant properties and are a feasible option for storing and transporting chemicals, lubricants, flammable and combustible materials.

The steel barrels are highly preferred in the industries due to their high mechanical strength and multiple times usage. The recycling and reconditioning of the barrels help in reducing the expenses incurred during storage and shipping. The surging demand for steel barrels for their lightweight and insulation properties will boost the market growth. The support from governments across the globe for the use of steel drives the market growth as it is eco-friendly in nature. Furthermore, the growth of various industries in developing regions and the surging demand for steel in those industries drive market growth. The below figure shows the consumption of steel in countries across various industries, which indicates the growth of steel in the metal barrels market.

Regional Analysis

India, China, and Japan to Spearhead Asia-Pacific's Metal Barrels Market

Asia-Pacific holds the largest share in the metal barrels market. The presence of robust pharmaceuticals, food and beverages, automobile, manufacturing, and chemical industries in India and China have significantly surged the demand for steel and metal barrels. As per the World Steel Association, the main steel-producing countries included China with 928.3 mt, India with 106.5 mt, and Japan with 104.3 mt. China and Japan are leading exporters of steel, with 68.8 mt and 35.8 mt of steel exports. Furthermore, there has been a rise in the automotive industry due to rapid urbanization and industrialization. In India, the automotive industry is projected to reach USD 251.4 to 282.8 billion by 2026, according to the Indian Brand Equity Foundation (IBEF).

The manufacturers are shifting their focus in this region due to the abundance of raw materials and cheaper manufacturing processes. The below figure shows the regional share of stainless steel production for the year 2018, which indicates the growth of steel used for making metal barrels.

According to the graph, China alone had the largest share of 52.6% in stainless steel production, followed by the rest of the Asia-Pacific with a 16.2% share due to the availability of low-cost manufacturing facilities.

Europe to Have a Strong Hold in the Metal Barrels Market

Europe is anticipated to be the second-largest region to hold a maximum share in the metal barrels market. The region’s growing steel sector is expected to enhance the growth of the metal barrels. As per the European Steel Association (EUROFER), the sector produces on average USD 190.98 billion of finished steel per year. The sector also produces on average 177 million tonnes of finished steel per year, which is the second largest after China and accounts for 11% of global output. It also has about 500 production sites in the EU, which is spread out across 22 EU Member States and is projected to further expand in the coming years.

Segmental Analysis

Expansion of Refinery Capacities in India to Drive the Segment Growth

The oil and lubricant industry segment holds the largest market share during the forecast period. The expansion of refinery capacities and increased demand for high performing engines boost the market growth. In addition to this, fuel and economy norms and lower crude oil prices have surged the demand for metal barrels across the oil and gas industries.  As per the Indian Brand Equity Foundation (IBEF), in India, the oil and gas industry is expected to attract investment worth USD 25 billion by 2022. Moreover, it is anticipated to be one of the largest contributors to non-OECD petroleum consumption growth globally.

As of May 1, 2020, India's oil refining capacity stood at 249.9 million metric tons (MMT), making it the second-largest refiner in Asia. Furthermore, the country's petroleum products' consumption grew by 4.5% to 213.69 MMT during the year 2020 from 213.22 MMT in 2019. Additionally, the growth of the automotive industry will also have a positive impact on the growth of the oil and lubricant industry and the metal barrels market.

Growing Chemical Industry to Promote the Segment Growth

The chemicals and solvent are expected to be the second-largest segment to hold the maximum share in this market due to the extensive use of metal barrels for storing chemicals or liquids. The increasing demands for these barrels to transport various chemicals from one place to another boost the market growth. The burgeoning chemical industry and increasing production capacity accelerate the market growth. As per the report shared by the International Institute for Sustainable Development (IISD), the production capacity of the chemical industry doubled between the year 2000 to 2017 and the global sales accounted for 5.68 trillion in 2017, if pharmaceuticals are included in it, which makes this industry the world’s second-largest manufacturing industry. The report also stated that the growth is anticipated to be highest in Asia with China, accounting for around 50% of the total global sales by the year 2030.