Rigid Bulk Packaging Market Size, Trends | USD 13.98 Bn by 2033

Market Overview

The rigid bulk packaging market size was valued at USD 8.89 billion in 2023 and is expected to reach USD 13.98 billion by 2033. The market is forecasted to grow at a CAGR of 4.63% from 2024 to 2033. The sustained growth in the rigid bulk packaging market is a result of rising demand in the food and beverage and pharmaceutical industries across the globe.

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Key Takeaways

• By region, Asia-Pacific takes up the largest share of the market due to rapid economic growth among its emerging economies.
• The industry’s growth is a result of rapid industrialization and urbanization in emerging economies.
• Environmental regulations and a push towards flexible packaging are some of the challenges facing the rigid bulk packaging industry.
• By material type, plastics dominate the rigid bulk packaging market.
• By product type, intermediate bulk containers (IBCs) make up the largest share of the space.
• By application, the food and beverage industry has the highest demand for rigid bulk packaging.

Rigid bulk packaging refers to high-strength packaging containers that are mainly used to transport perishable, delicate, and volatile products. This type of packaging ensures the safe transportation of sensitive products. Heavy-duty materials such as high-strength plastics, metals, and wood are generally used to manufacture rigid bulk packaging.

Rigid bulk packaging is commonly used in the food and beverage, pharmaceutical, and industrial chemical transportation industries. These industries utilize rigid bulk packaging for the safe and efficient transportation of pharmaceutical drugs, perishables, and volatile chemicals. This type of packaging prevents leaks and contamination of products. The global push towards reusable forms of packaging is driving demand for bulk containers. These also have the added advantage of being highly cost-effective compared to smaller containers.

The industry has seen growth due to the rapid pace of industrialization and urbanization occurring in several countries in the Asia-Pacific region which has caused the demand for various products to rise rapidly. A rise in global import and export volumes coming from the region is driving growth in the market. The global packaging market size is estimated to grow from USD 1.20 trillion in 2022 to reach an estimated USD 1.58 trillion by 2032, growing at a 3.16% CAGR between 2023 and 2032.

Recent government regulations limiting the use of plastics and other raw materials used in rigid bulk packaging are challenging growth in the sector. The increasing popularity of flexible packaging that takes up less storage space and environmental concerns are also a restraint in the market.

Rigid Bulk Packaging Market Trends

• Rapid growth in industrialization on a global scale is driving demand for rigid bulk packaging solutions for safe and effective transportation and storage of a variety of goods.
• Changing global supply chain dynamics are driving demand for stiff bulk packaging owing to the need for logistical optimization in the bulk transportation of products. The scalability of bulk packaging improves its cost-effectiveness.
• The recyclable and reusable nature of some forms of rigid bulk packaging (e.g. wood, metal, and some plastics) is in tandem with the rising demand for sustainable packaging.
• Rigid bulk packaging is ideal for meeting retail and e-commerce demand where durability and product protection are paramount. 
  Advancements in material science are introducing new stiff bulk packaging material options to the market with improved strength, durability, and sustainability.

Rapid Urbanization and Industrialization to Support the Markets Growth

Rapid urbanization has caused the demand for food and beverages, pharmaceutical, and manufacturing sectors to skyrocket, particularly in the emerging economies of Asia-Pacific. High demand in these sectors can be attributed to increasing disposable income and significant government investment in energy, industrial, healthcare, and transport infrastructure across the region. The growing oil and gas imports into the region have also spiked demand for rigid bulk packaging. Surging investment in healthcare infrastructure has also grown demand for durable, hygienic, and lightweight variations of rigid bulk packaging.

All these factors have significantly boosted the rigid bulk packaging market as there is now a high demand for reusable bulk containers to optimize cost-effectiveness in regional supply chains and ensure secure bulk transportation of goods. The region is also poised for sustained growth during the forecast period, making it likely that this demand will be maintained.

Environmental Regulations and a Shift to Flexible Packaging to Create a Major Challenge

Strict environmental regulations are being widely adopted by several countries to reduce the impact of hard-to-recycle materials like certain plastics. Some countries have outright banned single-use plastics while others require mandatory plastic offsetting schemes for businesses. Some materials used in rigid bulk packaging have been declared hazardous in some countries while others impose limits on their recyclability. In some regions, the need for adequate recycling infrastructure and trash management systems poses challenges to the growth of the rigid bulk packaging industry.  
The growing cost of renting and owning storage space has given way to the rising popularity of flexible packaging which offers greater versatility compared to their rigid bulk counterparts. Some businesses also choose to switch to flexible packaging options to bring down transportation costs.

Tailoring Rigid Bulk Packaging to Specific Industry Needs to Create Opportunities

Rigid bulk packaging manufacturers introduce tailored solutions to meet industry requirements by offering a variety of designs and capacities. Diversifying into manufacturing recycled plastic products, jars, and clamshells help businesses grow, especially in the fast-growing markets of the Asia-Pacific region. Businesses opt to adopt advanced packaging techniques to cater to the growing demand for produce and healthcare packaging solutions in the region.

Segmental Insights

Material Insights

The plastic segment held the largest share of the rigid bulk packaging market in 2023. The plastics segment includes bioplastics, polyethylene, polyethylene terephthalate, polystyrene, and others. The versatility, durability, and lightweight but rigid nature of plastic packaging allow businesses to meet a variety of packaging needs across industries. Manufacturing plastic for packaging is also a lot cheaper compared to other materials leading to its widespread adoption in the industry. Due to an increasing demand for sustainable and eco-friendly rigid packaging solutions, metal, wood, and glass alternatives are gaining popularity in the rigid bulk packaging sector.

The metal segment is the fastest-growing material type in the rigid bulk packaging market due to a global shift towards more eco-friendly packaging alternatives. Metal is also more recyclable than materials like plastic. Rigid metal packaging provides an airtight, temperature-controlled, and light-resistant environment for products, helping extend their shelf life. This is particularly useful for the food, beverages, and cosmetic industries. Wood rigid bulk packaging is gaining traction in the space thanks to a shift in consumer behavior and demand for sustainable packaging solutions, including wooden and plywood packaging. Wood is a natural and renewable resource. When wood is harvested and used for packaging, the carbon remains locked away from the atmosphere, reducing net CO2 emissions.

Product Type Insights

The intermediate bulk containers (IBC) segment led the rigid bulk packaging market. Intermediate bulk containers are the gold standard in rigid bulk packaging owing to their cost-effectiveness. They are especially useful for transporting liquids in bulk that can then be portioned out into smaller containers for end users. Businesses can save on costs by shipping out larger containers, compared to several smaller ones. IBCs are also durable and reusable, making them ideal for transporting hazardous materials due to features such as double valves. The incorporation of such features makes filling and draining them a lot simpler. The universal design of IBCs makes them stackable and easy to handle.

The bulk boxes is the fastest-growing product type in the rigid packaging space due to their durability and customization which contributes to brand recognition. Rigid bulk boxes offer an added layer of security against moisture and other environmental hazards. Pails are also gaining traction in the rigid bulk packaging space. Pails are widely utilized as shipping and transportation containers due to the expansion of manufacturing sectors in growing economies.

Application Insights

The market is divided into food, beverage, pharmaceutical and chemicals, industrial, and others. The food and beverages dominated the market in 2023. The food and beverage industry has grown dramatically in the past decade, especially in the Asia-Pacific region due to a large consumer base and rising disposable income which has shifted consumer tastes and preferences. The increasing demand for staple foods, carbonated soft drinks, caffeinated drinks, snacks, and baked goods is driving demand for proper transportation and storage solutions in the rigid bulk packaging space.

The pharmaceutical segment of the market is the fastest growing segment in the market. The overall rising demand for pharmaceutical products across the globe, is observed to supplement the market. The increasing investment in healthcare and the prevalence of chronic diseases are driving demand for the transportation of goods.

Regional Insights

Asia Pacific had the largest share in the rigid bulk packaging market. The region is home to several of the largest emerging economies in the world with a high demand for manufacturing & construction. A high disposable income and a young demographic’s changing lifestyles have spurred demand for a variety of goods through the rise of e-commerce, leading to growing trade.

The Chinese government has implemented stricter environmental regulations to promote recycling and sustainable packaging solutions. This has led to increased demand for high-quality, durable, and reusable rigid bulk packaging.

The Make in India initiative aims to transform India into a global manufacturing hub. This has led to increased investments in manufacturing infrastructure, which in turn drives the demand for rigid bulk packaging to support various industries.

North America is the fastest growing region in the space, with an expected CAGR of XX% during the forecast period. The region is home to robust manufacturing industries and important market players in the chemicals, pharmaceuticals, food and beverages, and automotive sectors. The United States is the world's third-largest exporter and second-largest importer of goods. This is leading to high growth in the rigid bulk packaging space. Companies in the region are increasingly adopting smart packaging solutions that incorporate IoT, sensors, and RFID technology to improve supply chain efficiency and product tracking.

Rigid Bulk Packaging Market Companies

• Core Plastech International Inc.
• Greif Inc.
• BWAY Corporation
• SCHÜTZ GmbH & Co. KGaA
• Snyder Industries
• Berry Global Inc.
• Rehrig Pacific Company
• Schoeller Allibert
• Hoover Ferguson Group, Inc.
• Packaging Corporation of America
• Amcor PLC
• Mondi Group PLC
• Nefab Packaging AB
• Taihua Group
• Cleveland Steel Container

Recent Development

• In May 2024, Amcor PLC announced the opening of its Amcor Innovation Center Europe (AICE) in Ghent, Belgium. The center aims to innovate in new material technologies to make packaging more sustainable and performant.
• In March 2024, Mondi Group PLC announced a merger with DS Smith PLC, one of the largest U.K.-based paperboard and packaging companies. The merger involves combining production assets in Europe, North America, and South Africa.
• In October 2022, Amcor PLC launched a two-step, lightweight technology that eliminates more than 50% of the material and weight in the finish of their bottle, reducing both manufacturing costs and carbon emissions.

Market Segments

By material

• Plastic
• Metal
• Wood
• Others

By Product Type

• Pails
• Drums
• Intermediate Bulk Containers
• Boxes
• Others

By Application

• Food and Beverages
• Pharmaceutical and Chemical
• Industrial
• Others

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa