Rigid Bulk Packaging Demand to Hit $7.2B in US by 2020

A new study by market research firm The Freedonia Group predicts that “a favorable production outlook for chemicals and pharmaceuticals” will fuel growing demand in the United States for rigid bulk packaging through 2020.

The researchers expect domestic demand to grow by 3.3% annually to 2020 to a value of $7.2 billion. The United States is the largest market for rigid bulk packaging, a company press release said.

Pails are expected to have the largest portion of demand because of their reusability, low cost, and high performance, the researchers said. Rigid intermediate bulk containers (RIBCs) are projected to generate the fastest growth during the forecast period, because of the ease of shipping them and the ability to reuse some systems.

Drums will continue to be a major form of packaging in the chemical market and in other industries, the forecast said. Demand for plastic drums is anticipated to increase as a result of their durability and ease of cleaning.

Competition from flexible packaging formats is expected to pick up from now until 2020, “making inroads into markets that have a high concentration of dry or solid products that do not require substantial protection,” the study said.