Growing demand for rigid bulk packaging. Photo: Continental Packaging

Demand for rigid bulk packaging is forecast to grow 2.1% annually to USD7 billion in 2013, according to a new study by The Freedonia Group Inc.

Gains are expected to be bolstered by an improvement in real manufacturing activity and a shift in the product mix toward larger, higher-value containers that offer enhanced performance and cost effectiveness.

Rigid intermediate bulk containers are predicted to record the fastest growth, with demand increasing 4.2% annually through to 2013 due to cost and performance advantages of smaller, single-use packaging.

The outlook for materials handling containers is positive, with the report forecasting above-average growth driven by the increased use of returnable and reusable containers to boost manufacturing efficiency and achieve cost savings.

Drums are expected to continue being the leading rigid bulk packaging product type because of their relatively low cost, reusability and amenability to shipping hazardous materials. However, the study says demand for drums will grow less than 1% annually due to the maturity of steel and fibre drums and a moderation in raw material pricing.

Competition from rigid and flexible intermediate bulk containers are expected to restrain drum sales.

In 2008, non-durable goods markets like chemicals, food, plastics, rubber, fibre, petroleum, lubricants, and agricultural and horticultural products accounted for over 80% of rigid bulk packaging demand.

Chemicals, the leading rigid bulk packaging market, is predicted to advance at a below-average pace because of the maturity of many chemical product segments, increased imports and the movement of key customers to developing regions.

The Rigid Bulk Packaging Study is available for USD4,700 from The Freedonia Group Inc. Visit www.freedoniagroup.com for information.