US Rigid Bulk Packaging Market

US Rigid Bulk Packaging Market

US demand to reach $7 billion in 2013





Demand for rigid bulk packaging is projected to increase 2.1 percent per year to $7.0 billion in 2013. Gains will be bolstered by an expansion of manufacturing activity as well as a shift in the product mix toward larger, higher-value containers that offer enhanced performance and cost effectiveness. In addition, demand will be aided by the ongoing need for containers that comply with various regulatory requirements, particularly those involving the transport and handling of hazardous substances and the management of hazardous waste. Demand will be limited by the increasing number of chemical manufacturers that are shifting basic production and related packaging to developing countries with lower labor costs.





RIBCs, material handling containers to lead gains







Rigid intermediate bulk containers (RIBCs) will register the fastest gains, with demand increasing 4.2 percent annually through 2013 as a result of cost and performance advantages vis-à-vis smaller, single-use or shorter life packaging. Material handling containers will also see above-average growth, driven by increased use of returnable and reusable containers in the production of durable and other goods to boost manufacturing efficiency and achieve cost savings. Gains will also be supported by a continuing shift to reusable bulk containers in food and agricultural applications. Drum demand will advance less than one percent annually through 2013 as a result of the maturity of steel and fibre drums and a moderation in raw material pricing. In addition, competition from both rigid and flexible intermediate bulk containers will restrain drum sales. However, drums will continue to be the leading rigid bulk packaging product type based on their relatively low cost, reusability and amenability to shipping hazardous materials. Demand for pails will expand in line with the rigid bulk packaging average, with plastic types continuing to dominate based on their light weight, low cost, and corrosion and impact resistance.





Durable goods market to outpace nondurables





Nondurable goods markets such as chemicals, food, plastics, rubber, fiber, petroleum, lubricants, and agricultural and horticultural products accounted for more than 80 percent of demand in 2008. Chemicals, by far the leading rigid bulk packaging market, will advance at a below-average pace as a result of the maturity of many chemical product segments, the increased presence of imports and the movement of key customers to developing regions. Among the other nondurable goods markets, the fastest gains are expected in agricultural and horticultural products, petroleum and lubricants, and food. The durable goods market will outpace nondurables due to increasing efforts aimed at improving manufacturing efficiency and lowering costs through the use of returnable, reusable material handling containers. Plastic to remain fastest growing packaging material Plastic is the leading rigid bulk packaging material, with steel and paperboard also significant. Through 2013, virtually all material consumption growth will be concentrated in plastic as a result of good prospects for all plastic rigid bulk packaging product segments, particularly heavier containers like RIBCs and material handling crates. Steel consumption will decline while paperboard use will increase marginally.





Study coverage





This new industry study, Rigid Bulk Packaging presents historical demand data (1998, 2003 and 2008) and forecasts for 2013 and 2018 by material, product and market. The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry competitors.

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Outlook 5
Demographic Trends 9
Manufacturing Outlook 12
Packaging Trends 15
Competitive Bulk Packaging 19
Historical Market Trends 21
Pricing Trends 23
Environmental Issues 26
Regulatory Considerations 30
Transport & Handling 30
Other Regulations 33
Foreign Trade 34
International Activity 36

III. MATERIALS 39
General 39
Plastic 42
Steel 47
Paperboard & Wood Panels 50

V. PRODUCTS 54
General 54
Drums 58
Fibre Drums 60
Recycling 64
Markets 65
Producers 68
Steel Drums 69
Liners & Coating Technologies 73
Reconditioning & Recycling 74
Markets 76
Producers 79
Plastic Drums 80
Reconditioning & Recycling 83
Markets 84
Producers 88
Pails 90
Plastic Pails 91
Markets 93
Producers 96
Steel Pails 97
Markets 100
Producers 102
Material Handling Containers 103
Plastic Totes & Crates 107
Steel Material Handling Containers 110
Markets 113
Producers 117
Bulk Boxes 119
Markets 122
Producers 125
Rigid Intermediate Bulk Containers 128
Plastic Body RIBCs 131
Plastic RIBC Producers 134
Metal Body RIBCs 135
Metal RIBC Producers 138
Other RIBCs 139
Producers of Other RIBCs 142
Markets 143

V. MARKETS 148
General 148
Nondurable Goods 151
Chemicals & Pharmaceuticals 153
Chemical & Pharmaceutical Industry Outlook 154
Rigid Bulk Packaging Demand by Type 158
Drums 161
Pails 163
RIBCs & Other 164
Rigid Bulk Packaging Demand by Chemical Type 165
Industrial Chemicals 167
Paints & Coatings 170
Detergents & Cleaners 172
Pharmaceuticals 174
Agricultural Chemicals 177
Other 180
Food & Beverages 183
Food & Beverage Industry Outlook 184
Rigid Bulk Packaging Demand 186
Plastic, Rubber & Fiber 192
Plastic, Rubber & Fiber Outlook 193
Rigid Bulk Packaging Demand 195
Petroleum & Lubricants 197
Petroleum & Lubricant Outlook 198
Rigid Bulk Packaging Demand 199
Agricultural & Horticultural Products 202
Agricultural & Horticultural Industry Outlook 203
Rigid Bulk Packaging Demand 205
Durable Goods 209
Durable Goods Outlook 209
Rigid Bulk Packaging Demand 212
Other Markets 215

VI. INDUSTRY STRUCTURE 218
General 218
Industry Composition 219
Market Share 223
Greif 224
MAUSER 225
BWAY 226
International Paper 226
Menasha 227
Letica 227
Other Leaders 228
Acquisitions & Divestitures 228
Competitive Strategies 232
Manufacturing & Development 235
Marketing & Distribution 237
Cooperative Agreements 241
Company Profiles 243
Akro-Mils, see Myers Industries
American Fiber Drum, see MAUSER
Atorka Group hf 244
Ball Corporation 246
Berenfield Containers Incorporated 247
Berry Plastics Corporation 248
Buckhorn, see Myers Industries
BWAY Corporation 249
Chem-Tainer Industries Incorporated 251
Cleveland Steel Container Corporation 253
Containers America, see General Steel Drum and North
Coast Container
General Steel Drum Corporation 254
Georgia-Pacific, see Koch Industries
Greif Incorporated 255
Hedwin Corporation 260
Hoover Materials Handling Group Incorporated 261
IBC North America Incorporated 263
International Paper Company 264
IPL Incorporated 267
Koch Industries Incorporated 269
Letica Corporation 271
LINPAC Group Limited 272
Longview Fibre Paper and Packaging Incorporated 273
MAUSER AG 275
Menasha Corporation 278
Molded Fiber Glass Companies 281
Myers Container LLC 282
Myers Industries Incorporated 284
NAMPAC, see BWAY
Nashville Wire Products Manufacturing Company 288
Norseman Plastics Holdings, see Menasha
North American Container Corporation 289
North Coast Container Corporation 290
ORBIS, see Menasha
Packaging Corporation of America 291
Plastican Incorporated 293
Promens North America, see Atorka Group
Protexic Brands, see Tegrant
Ropak Packaging, see LINPAC Group
Schoeller Arca Systems Group BV 294
SCHUETZ GmbH & Company KGaA 295
Sharpsville Container Corporation 297
Smurfit-Stone Container Corporation 298
Snyder Industries Incorporated 300
Tegrant Corporation 302
Temple-Inland Incorporated 304
ThermoSafe Brands, see Tegrant
Trilla Steel Drum, see Greif
Weyerhaeuser Company 305
Other Companies Mentioned in Study 307



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 9
2 Population & Households 12
3 Manufacturers’ Shipments 15
4 Packaging Supply & Demand 19
5 Rigid Bulk Packaging Market, 1998-2008 22
6 Rigid Bulk Packaging Prices 26
7 Foreign Trade in Rigid Bulk Packaging 36
SECTION III -- MATERIALS
1 Raw Material Use in Rigid Bulk Packaging 41
2 Plastic Use in Rigid Bulk Packaging by Product 46
3 Steel Use in Rigid Bulk Packaging by Product 49
4 Paperboard & Wood Panel Use in Rigid Bulk Packaging
by Product 53

SECTION IV -- PRODUCTS
1 Rigid Bulk Packaging Demand by Type 57
2 Drum Shipments by Type 60
3 Fibre Drum Shipments 64
4 Fibre Drum Demand by Market 67
5 Steel Drum Shipments by Type 73
6 Steel Drum Demand by Market 78
7 Plastic Drum Shipments 82
8 Plastic Drum Demand by Market 87
9 Pail Shipments by Type 91
10 Plastic Pail Shipments by Type 93
11 Plastic Pail Demand by Market 95
12 Steel Pail Shipments by Type 99
13 Steel Pail Demand by Market 101
14 Material Handling Container Shipments by Type 107
15 Plastic Tote & Crate Shipments by Type 110
16 Steel Material Handling Container Shipments 113
17 Material Handling Container Demand by Market 116
18 Bulk Box Shipments 122
19 Bulk Box Demand by Market 124
20 Rigid Intermediate Bulk Container Shipments by Type 131
21 Plastic Body RIBC Shipments 133
22 Metal Body RIBC Shipments 138
23 Other RIBC Shipments by Type 142
24 Rigid Intermediate Bulk Container Demand by Market 146

SECTION V -- MARKETS
1 Rigid Bulk Packaging Demand by Market 150
2 Nondurable Goods Market for Rigid Bulk Packaging 153
3 Chemical & Pharmaceutical Product Shipments 158
4 Chemical & Pharmaceutical Products Market for
Rigid Bulk Packaging by Type 160
5 Chemical & Pharmaceutical Products Market for
Rigid Bulk Packaging by Chemical 166
6 Industrial Chemical Market for Rigid Bulk Packaging 170
7 Paints & Coatings Market for Rigid Bulk Packaging 172
8 Detergent & Cleaner Market for Rigid Bulk Packaging 174
9 Pharmaceutical Market for Rigid Bulk Packaging 177
10 Agricultural Chemical Market for Rigid Bulk Packaging 180
11 Other Chemical Markets for Rigid Bulk Packaging 183
12 Food & Beverage Shipments 186
13 Food & Beverage Market for Rigid Bulk Packaging 188
14 Plastic, Rubber & Fiber Shipments 195
15 Plastic, Rubber & Fiber Market for Rigid Bulk Packaging 197
16 Petroleum & Lubricant Product Supply & Demand 199
17 Petroleum & Lubricants Market for Rigid Bulk Packaging 202
18 Agricultural & Horticultural Indicators 205
19 Agricultural & Horticultural Market for Rigid
Bulk Packaging 208
20 Durable Goods Shipments 212
21 Durable Goods Market for Rigid Bulk Packaging 215
22 Other Markets for Rigid Bulk Packaging 217

SECTION VI -- INDUSTRY STRUCTURE
1 US Rigid Bulk Packaging Sales by Company, 2008 221
2 Selected Acquisitions & Divestitures 231
3 Selected Cooperative Agreements 242



LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Rigid Bulk Packaging Market, 1998-2008 23

SECTION III -- MATERIALS
1 Raw Material Use in Rigid Bulk Packaging, 1998-2018 42
2 Plastic Use in Rigid Bulk Packaging by Product, 2008 46
3 Steel Use in Rigid Bulk Packaging by Product, 2008 50

SECTION IV -- PRODUCTS
1 Rigid Bulk Packaging Demand by Type, 2008 58
2 Fibre Drum Demand by Market, 2008 68
3 Steel Drum Demand by Market, 2008 79
4 Plastic Drum Demand by Market, 2008 88
5 Plastic Pail Demand by Market, 2008 96
6 Steel Pail Demand by Market, 2008 102
7 Material Handling Container Demand by Market, 2008 117
8 Bulk Box Demand by Market, 2008 125
9 Rigid Intermediate Bulk Container Demand by
Market, 2008 147

SECTION V -- MARKETS
1 Rigid Bulk Packaging Demand by Market, 2008 151
2 Chemical & Pharmaceutical Products Market for
Rigid Bulk Packaging by Type, 2008 161
3 Chemical & Pharmaceutical Products Market for
Rigid Bulk Packaging by Chemical, 2008 166

SECTION VI -- INDUSTRY STRUCTURE
1 US Rigid Bulk Packaging Market Share, 2008 224