The Mexico market for industrial bulk packaging has been expanding steadily for the last few years. The rise in industrialization and the increased shipment of goods in this country have driven a significant demand for industrial bulk packaging here. Boosted by this, this market was expected to reach US$232.0 mn by 2016.
Going forwards, the improving performance of the manufacturing sector and the rising industrial output are likely to reflect positively on the performance of the industrial bulk packaging market in Mexico over the forthcoming years. With a stable economic condition in the country, the market is anticipated to gain substantially from the rebounded performance of the chemicals sector, which is one of the prominent consumers of bulk industrial containers. Projected to rise at a CAGR of 5.50% between 2016 and 2024, the market is likely to reach a value of US$357 mn by the end of 2024.
The manufacturers of industrial bulk packaging materials are leveraging their in-house research and development capabilities to innovate products that suit specific requirements. Along with this, the players are also emphasizing on the technological advancements of their current offerings to meet the exact requirements of customers. However, this is a difficult marketplace, where customer-specific needs are rarely communicated to product developers, which, to an extent, hampers the market’s growth. Apart from this, the supply chain complexities are also creating manufacturing issues for producers, which is likely to hinder this market in the long run.
Drums, intermediate bulk containers (IBCs), pails, and jerry cans are some of the key products available in the Mexico industrial bulk packaging market. Among these, the demand for drums has been significantly higher than other products and is expected to remain so, rising at a CAGR of 4.90% from 2016 to 2024. Plastic, steel, and fiber/paperboard are the main components of the drum segment. With players shifting towards the sustainable packaging solutions over plastic and steel materials, the fiber/paperboard sub-segment is likely to witness considerable rise over the next few years.
Among others, IBCs are also projected to exhibit a significant rise in their demand in the near future, thanks to the remarkable progress in the chemical industry in Mexico. On the other hand, the demand for pails is expected to grow at a moderate pace over the forthcoming years, driven by their usage in a broad range of mid-sized applications, such as paints and coatings. Similarly, Jerry cans are also anticipated to witness stable growth rate in the years to come.
Chemicals and Petrochemicals to Surface as Leading Application Area of Industrial Bulk Packaging
The chemicals and petrochemicals, food and beverages, and the pharmaceuticals sectors are the prime application areas of industrial bulk packaging across the world. The chemicals and petrochemicals sector have been registering a strong demand for industrial bulk packaging in Mexico, acquiring the top position among the end users. Analysts predict the scenario to remain so over the forthcoming years, increasing at a CAGR of 5.20% from 2016 to 2024.
Containers, such as rigid IBCs and drums, are mostly preferred for the packaging of chemicals and petrochemicals products and are expected continue like this in the near future due to high concentration of these products. The demand for industrial bulk packaging is also anticipated to increase considerably in the pharmaceuticals industry over the next few years.