Intermediate Bulk Container Market to Grow by USD 4.12 Billion (2025-2029), Driven by Construction Demand and AI Redefining the Market Landscape - Technavio

NEW YORK, Jan. 6, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global intermediate bulk container market size is estimated to grow by USD 4.12 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of over 4.8% during the forecast period. High demand for intermediate bulk containers from construction industry is driving market growth, with a trend towards revival in demand for material handling containers However, volatility of raw material prices poses a challenge.Key market players include Berry Inc., Bulk Lift International LLC, BWAY Corp., DS Smith Plc, FlexiTuff Ventures International Ltd., Pak Inc., Greif Inc., Hawman Container Services, Hoover Circular Solutions, HOYER GmbH, Intertape Polymer Group Inc., LC Packaging International BV, Material Logistics Handling Pty. Ltd., Mondi Plc, OBAL CENTRUM s.r.o., Schafer Werke Gmbh, Schutz GmbH and Co. KGaA, SIA Flexitanks, Snyder Industries Inc., SYSPAL Ltd., Thielmann Portinox Spain SA, Mauser Packaging Solutions; Schuetz Container System; Synder Industries System; Hoovers Container Solutions, Inc

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Market Driver

The global economic downturn caused by the Covid-19 pandemic in 2020 and 2021 led to a decrease in demand for chemicals and petrochemicals, affecting industries such as manufacturing and construction. Consequently, the demand for industrial packaging solutions, including material handling containers, declined. However, the revival of global industrial activities in 2022 and the subsequent decrease in crude oil prices in November 2022 have resulted in increased demand for intermediate bulk containers. This trend is further fueled by the growth in the manufacturing of equipment parts, components, and other durable metal products in the heavy machinery and automobile industries. As automated warehouse maintenance becomes more intricate, there is potential for expansion in the global intermediate bulk containers market during the forecast period. Various end-user industries utilize material handling containers for a diverse range of products. Some common types include heavy-duty and rigid containers, attached lid containers, and intermediate bulk containers. 

The Intermediate Bulk Container (IBC) market is experiencing significant growth due to increasing trends in various industries. Chronic diseases and flood control activities have driven demand for IBCs in the chemical and lubricant sectors. Plastic, metal, corrugated, and high-density polyethylene (HDPE) IBCs are popular choices due to their durability, stackability, and tamper resistance. Weather conditions and federal regulations favor the use of eco-friendly materials like metal IBCs made of recyclable materials and sustainability is a key consideration. The geriatric population's growth fuels demand for eco-friendly packaging and reduced carbon footprints. Trade activities in sectors like paints, hazardous materials, and petrochemical industries also contribute to the market's expansion. IBC totes are essential for supply chain logistics, especially in e-commerce and direct-to-consumer distribution. The RIBC segment offers sustainable materials, reusability, and recycling benefits. IBCs are used for bulk liquids and powders, and pallets ensure easy stacking and reusability. Sustainability, recycling, and regulatory compliance are key drivers for the market's future growth. 

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 Market Challenges

• Intermediate bulk containers are essential packaging solutions available in various categories, including rigid, flexible, and folding types. These containers are manufactured using raw materials such as metal (stainless steel), plastics, wood, and corrugated fiberboard. Metal IBCs, particularly stainless steel, are popular choices for petrochemicals and paint products due to their durability. However, steel prices are unstable due to fluctuating raw material costs and excess production, with oil prices also playing a role. Polypropylene, a primary raw material for manufacturing IBCs and liners, relies on crude oil and natural gas as feedstock, causing price volatility when oil prices fluctuate. These price variations increase manufacturing costs and decrease vendors' margins, potentially hindering the growth of the intermediate bulk container market during the forecast period. Steelmakers face challenges from the COVID-19 pandemic, with reduced production levels at some plants, such as Steel Authority of India Ltd., which announced a 50% reduction in production compared to pre-COVID levels.
• The Intermediate Bulk Container (IBC) market faces several challenges in various industries such as direct-to-consumer distribution, chemicals, lubricants, and paint sectors. Federal regulations for transporting hazardous materials, eco-friendly packaging, and reducing carbon footprints are key concerns. Trade activities in petrochemical industries, organic chemicals, and steel markets impact IBC demand. The RIBC segment, particularly made of stainless steel, offers durability, stackability, and tamper resistance. Sustainable materials, reusability, and recycling are essential for the container system's future. Bulk liquids, powders, and stacking require space optimization. Agriculture production and food processing companies use IBCs for handling chemicals and other materials. The freight transportation index and supply chain logistics influence the market's dynamics. Overall, IBC totes serve various industries, from paints and lubricants to chemicals and agriculture, and must address challenges related to sustainability, regulations, and logistics.

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Segment Overview 

This intermediate bulk container market report extensively covers market segmentation by

1. End-user 
• 1.1 Chemical
• 1.2 Pharmaceutical
• 1.3 Food
• 1.4 Others
2. Type 
• 2.1 Plastic
• 2.2 Metal
• 2.3 Corrugated
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America
4. Material

1.1 Chemical- The global chemical industry generated over USD4.73 trillion in sales in 2021, with more than USD768.9 billion in shipments in the US alone. Organic chemicals held a dominant share of over 40%, and Asia accounted for over 65% of worldwide chemical sales, led by China and South Korea. Specialty chemicals, including foaming agents, curing compounds, adhesives, and agrochemicals, are in high demand due to their applications in construction, food, and textile industries. The global specialty chemical segment is projected to reach over USD1004.57 billion by 2025, with around 25% growth contribution from the construction industry. APAC is expected to dominate the global specialty chemical market due to industrialization in China, India, South Korea, and Taiwan. The textile industry in China, the largest contributor to the global textile industry, is driving demand for specialty chemicals such as biocides, flame retardants, and water repellents. The growth of the chemical industry is anticipated to increase the need for efficient storage solutions like intermediate bulk containers (IBCs), making the global IBC market a promising sector for growth during the forecast period.

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Research Analysis

The Intermediate Bulk Container (IBC) market plays a significant role in global trade by facilitating the transportation and storage of various bulk materials such as liquids and powders. IBCs are available in different materials including plastic, metal, corrugated, and high-density polyethylene, each with its unique advantages. IBCs are widely used in industries dealing with chronic diseases, flood control activities, lubricants, paints, hazardous materials, and eco-friendly packaging, among others. Federal regulations have led to the increased adoption of reusable and sustainable IBCs to reduce carbon footprints. IBC totes come in industrial-grade, stackable designs, making them suitable for use with pallet jacks for easy handling and transportation. Bulk liquids and powders can be efficiently transported and stored in IBCs, ensuring safety and reducing wastage.

Market Research Overview

The Intermediate Bulk Container (IBC) market encompasses various types of containers used for transporting and storing bulk liquids and powders. IBCs are essential in various industries, including chronic disease treatment, flood control activities, and e-commerce, due to their ability to hold large volumes efficiently. IBCs come in different materials such as plastic, metal, corrugated, and high-density polyethylene (HDPE), each with unique advantages. Weather conditions, sustainability, and eco-friendliness are crucial factors influencing the market's growth. IBCs are used in sectors like chemicals, lubricants, paints, hazardous materials, and petrochemical industries. Federal regulations and environmental concerns have led to a shift towards eco-friendly materials and recyclable IBC totes. The RIBC segment, which includes metal IBCs, offers durability, stackability, tamper resistance, and sustainability. IBCs are also used in agriculture production, food processing companies, and other industries for stacking and space optimization. The freight transportation index and supply chain logistics significantly impact the market's dynamics.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Chemical
• Pharmaceutical
• Food
• Others
• Type
• Plastic
• Metal
• Corrugated
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America
• Material

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio