Industrial Packaging Market is Estimated to Witness High Growth Owing to Increasing Demand for Sustainable Packaging Solutions

The Industrial Packaging Market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.Industrial packaging includes containers and protective packaging materials used for transporting, storing, and protecting industrial goods. Key products include crates, bulk containers, IBCs, fiber/plastic drums, and corrugated boxes. Industrial packaging provides protection from damage and prevents leakage & wastage during shipping, handling, and storage.

Market Dynamics:

The industrial packaging market is driven by the increasing demand for sustainable packaging solutions from key end-use industries such as food & beverages, chemicals, pharmaceuticals, and automotive. Manufacturers are focusing on developing bio-based and recyclable packaging solutions to reduce environmental footprint. Furthermore, growing international trade activities have increased the demand for efficient industrial packaging that prevent cargo damage and product wastage during long-distance transportation.

Industrial Packaging Market Drivers:

Growth in the Manufacturing Industry Boosts Demand for Industrial Packaging

The manufacturing sector has experienced steady growth worldwide over the past few years due to rising demand for consumer packaged goods, medical devices, and automotive components. As the production of goods rises across industries, so does the need for secure and effective packaging solutions to store, transport, and distribute manufactured products. Industrial packaging serves a critical role in protecting products from damage during shipping and warehousing. Its ability to minimize waste and optimize transportation fills a necessary requirement for manufacturers dealing with high output volumes.

Stricter Regulations Drive Innovation in Environmentally-Friendly Packaging Materials

Stringent government norms and regulations related to reducing waste and promoting sustainability have compelled packaging manufacturers to explore new eco-friendly materials. Biodegradable plastics, recyclable cardboard, reusable metal containers are gaining widespread adoption as they allow companies to meet compliance standards. Environmental packaging assists businesses in achieving corporate social responsibility goals while satisfying customer demands for sustainability. The industrial packaging industry is actively innovating to deliver solutions using recycled content that cause less harm to the planet.

Industrial Packaging Market Restrain

Rising Raw Material Costs Pose Challenge to Cost-Efficiency

The prices of various commodities and resources that serve as key inputs for production such as paper, plastic, wood, and metal have escalated significantly over the past year due to high inflation and supply chain issues. As raw material prices remain elevated, packaging manufacturers face margin pressures to absorb these additional costs without substantially increasing product costs for clients. High volatility in commodities introduces unpredictability in budgeting and profitability planning. The constraints pertaining to raw material procurement threaten the affordability and cost-optimization attributes of industrial packaging solutions.