US Rigid Bulk Packaging Market

• Publication date: February 2013
• Report size: 330 pages

US demand to reach $6.9 billion in 2017 Demand for rigid bulk packaging is expected to reach $6.9 billion in 2017. Growth will accelerate from the performance of the recession-impacted 2007- 2012 period, and will reflect rebounds in manufacturing output and construction activity. Gains will also be driven by expanded use of larger, higher-value containers that offer enhanced performance and are more cost-effective than sm...

US demand to reach $6.9 billion in 2017

Demand for rigid bulk packaging is expected to reach $6.9 billion in 2017.

Growth will accelerate from the performance of the recession-impacted 2007- 2012 period, and will reflect rebounds in manufacturing output and construction activity. Gains will also be driven by expanded use of larger, higher-value containers that offer enhanced performance and are more cost-effective than smaller types with shorter service lives.

RIBCs to be fastest growing bulk packaging product

RIBCs will be the fastest growing rigid bulk packaging product type through 2017, benefiting from a rebound in chemical production as well as cost and performance advantages over smaller, single-use, or shorter-lived packaging.

Although RIBCs have a higher initial cost than other rigid bulk containers, these products offer increased storage space efficiency and longer service lives, allowing large-scale customers to realize significant long-term cost savings.

Moderating growth to some degree will be competition from flexible intermediate bulk containers (FIBCs), which are substantially less expensive than RIBCs (although not as long-lasting) and capable of accommodating liquids if used in conjunction with a liner.

Material handling containers will also experience above average gains through 2017, aided by a rebound in durable goods production following declines during the 2007-2012 period. In addition, demand will be supported by increased emphasis on sustainability, which will lead to heightened usage of returnable and reusable containers in the production of durable goods as well as in the food and agriculture industries.

Healthy prospects for plastic drums will be based on advantages of lighter weight and lower cost than steel drums, along with continuing material enhancements, corrosion and impact resistance, and compatibility with most substances other than solvents and other chemicals that can degrade polyethylene. Despite the maturity of steel and fibre drums, drum demand will benefit from an upswing in manufacturing, especially in the chemical industry. Drums will remain a mainstay of the industry as a result of their relatively low cost, reusability, effectiveness in the safe transport of hazardous materials, and appeal to users not seeking to transition to IBCs.

Nondurable goods markets key to overall demand gains

Nondurable goods markets comprised over 80 percent of demand in 2012. Among these markets, chemicals and pharmaceuticals, and plastic, rubber, and fiber will experience the fastest gains through 2017. Advances will be driven by heightened manufacturing activity, especially in significant end markets for chemicals, plastic, rubber, and fiber products, such as motor vehicles and construction products. Increased requirements for these basic materials will result in greater demand for packaging used with bulk quantities.

Opportunities in the food and beverage market will benefit from consumer trends such as growing interest in convenient food preparation, which will support demand for a range of bulk ingredients employed in the manufacturing of such foods. The continued economic expansion will stimulate growth in consumer spending, including spending for food eaten or prepared away from home, boosting demand for drums and pails to ship food manufactured and/or distributed to foodservice venues.

Study coverage

This upcoming Freedonia industry study, Rigid Bulk Packaging, is available for $5100. It presents historical demand data for 2002, 2007 and 2012 plus forecasts for 2017 and 2022 by material, product, and market. The study also considers key market environment factors, evaluates company market share, and profiles over 30 industry competitors.

Packaging Industry in the United States

TABLE OF CONTENTS

INTRODUCTION x

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Outlook 5
Demographic Trends 8
Manufacturing Outlook 12
Packaging Industry Overview 15
Paper 18
Plastic 18
Metal 19
Glass & Wood 20
Competitive Bulk Packaging 21
Historical Market Trends 22
Pricing Trends 26
Environmental Issues 30
Regulatory Considerations 34
Transport & Handling 34
Other Regulations 37
Foreign Trade 38
International Activity 40

III. MATERIALS 42

General 42
Plastic 46
Steel 51
Paperboard & Wood Panels 55

IV. PRODUCTS 59

General 59
Drums 63
Steel Drums 66
Liners & Coating Technologies 69
Reconditioning & Recycling 71
Markets 73
Producers 76
Fibre Drums 77
Recycling 80
Markets 81
Producers 84
Plastic Drums 85
Reconditioning & Recycling 87
Markets 89
Producers 93
Pails 94
Plastic Pails 96
Markets 99
Producers 102
Steel Pails 103
Markets 106
Producers 108
Material Handling Containers 109
Plastic Material Handling Containers 113
Totes 114
Crates 116
Steel Material Handling Containers 118
Markets 120
Producers 124
Bulk Boxes 127
Markets 130
Producers 132
Rigid Intermediate Bulk Containers 134
Plastic Body RIBCs 138
Plastic RIBC Producers 141
Metal Body RIBCs 143
Metal RIBC Producers 145
Other RIBCs 146
Producers of Other RIBCs 149
Markets 150

V. MARKETS 154

General 154
Nondurable Goods 157
Chemicals & Pharmaceuticals 159
Chemical & Pharmaceutical Industry Outlook 160
Rigid Bulk Packaging Demand by Type 163
Drums 166
Pails 168
RIBCs & Other 169
Rigid Bulk Packaging Demand by Chemical Type 170
Industrial Chemicals 172
Pharmaceuticals 175
Paints & Coatings 178
Detergents & Cleaners 181
Agricultural Chemicals 183
Other Chemicals 186
Food & Beverages 189
Food & Beverage Industry Outlook 190
Rigid Bulk Packaging Demand 192
Pails 194
Bulk Boxes 195
Drums 196
Material Handling Containers 197
RIBCs 197
Plastic, Rubber, & Fiber 198
Plastic, Rubber, & Fiber Outlook 198
Rigid Bulk Packaging Demand 200
Petroleum & Lubricants 203
Petroleum & Lubricant Outlook 203
Rigid Bulk Packaging Demand 205
Agricultural & Horticultural Products 208
Agricultural & Horticultural Industry Outlook 209
Rigid Bulk Packaging Demand 213
Durable Goods 216
Durable Goods Outlook 217
Rigid Bulk Packaging Demand 218
Other Markets 221

VI. INDUSTRY STRUCTURE 225

General 225
Industry Composition 226
Market Share 229
Acquisitions & Divestitures 235
Competitive Strategies 240
Manufacturing & Development 242
Marketing 244
Distribution 248
Cooperative Agreements 249
Company Profiles 250
Akro-Mils, see Myers Industries
AWP Industries, see Nashville Wire Products
Manufacturing
Berenfield Containers Incorporated 252
Berry Plastics Corporation 254
Bonar Plastics, see Snyder Industries
Buckhorn, see Myers Industries
Burbank Barrel and Drum, see MAUSER
BWAY Corporation 256
Chem-Tainer Industries Incorporated 259
Cleveland Steel Container Corporation 261
Colorado Container, see Packaging of America
CorrChoice, see Greif
Field Packaging Group, see Packaging of America
General Steel Drum, see Myers Container
Georgia-Pacific, see Koch Industries
Greif Incorporated 264
Hedwin Corporation 269
Hoover Materials Handling Group Incorporated 271
IBC North America Incorporated 273
Infinity Packaging, see Cleveland Steel Container
International Paper Company 275
IPL Incorporated 278
Koch Industries Incorporated 280
Letica Corporation 282
LINPAC Group Limited 283
Longview Fibre Paper and Packaging Incorporated 284
Macro Plastics Incorporated 285
MAUSER AG 287
Menasha Corporation 292
Mid South Packaging, see Rock-Tenn
Molded Fiber Glass Companies 295
Myers Container LLC 297
Myers Industries Incorporated 298
Nashville Wire Products Manufacturing Company 302
North American Container Corporation 304
North Coast Container Corporation 305
Norton Packaging Incorporated 306
ORBIS, see Menasha
Packaging Corporation of America 307
Packaging Materials, see Packaging of America
Pipeline Packaging, see Cleveland Steel Container
Plastic Enterprises, see IPL
Protexic, see Sonoco Products
Rock-Tenn Company 310
Schoeller Allibert Limited 312
SCHÜTZ GmbH & Company KGaA 314
Sharpsville Container Corporation 317
Smurfit-Stone Container, see Rock-Tenn
Snyder Industries Incorporated 318
Sonoco Products Company 323
Tegrant, see Sonoco Products
Temple-Inland, see International Paper
ThermoSafe, see Sonoco Products
Varicon Solutions, see MAUSER
Additional Companies in the Rigid Bulk Packaging Industry 326



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population & Households 12
3 Manufacturers’ Shipments 15
4 Packaging Supply & Demand 17
5 Rigid Bulk Packaging Market, 2002-2012 25
6 Rigid Bulk Packaging Prices 30
7 Foreign Trade in Rigid Bulk Packaging 40

SECTION III -- MATERIALS

1 Raw Material Use in Rigid Bulk Packaging 45
2 Plastic Use in Rigid Bulk Packaging by Product 50
3 Steel Use in Rigid Bulk Packaging by Product 54
4 Paperboard & Wood Panel Use in Rigid Bulk Packaging by Product 58

SECTION IV -- PRODUCTS

1 Rigid Bulk Packaging Demand by Type 62
2 Drum Shipments by Type 65
3 Steel Drum Shipments by Type 69
4 Steel Drum Demand by Market 75
5 Fibre Drum Shipments 80
6 Fibre Drum Demand by Market 83
7 Plastic Drum Shipments 87
8 Plastic Drum Demand by Market 92
9 Pail Shipments by Type 95
10 Plastic Pail Shipments by Type 98
11 Plastic Pail Demand by Market 101
12 Steel Pail Shipments by Type 105
13 Steel Pail Demand by Market 107
14 Material Handling Container Shipments by Type 113
15 Plastic Tote Shipments 116
16 Plastic Crate Shipments 117
17 Steel Material Handling Container Shipments 120
18 Material Handling Container Demand by Market 123
19 Bulk Box Shipments 129
20 Bulk Box Demand by Market 131
21 Rigid Intermediate Bulk Container Shipments by Type 138
22 Plastic Body RIBC Shipments 140
23 Metal Body RIBC Shipments 145
24 Other RIBC Shipments by Type 149
25 Rigid Intermediate Bulk Container Demand by Market 152

SECTION V -- MARKETS

1 Rigid Bulk Packaging Demand by Market 156
2 Nondurable Goods Market for Rigid Bulk Packaging 159
3 Chemical & Pharmaceutical Product Shipments 163
4 Chemical & Pharmaceutical Product Market for Rigid Bulk Packaging by Type 165
5 Chemical & Pharmaceutical Product Market for Rigid Bulk Packaging by Chemical 171
6 Industrial Chemical Market for Rigid Bulk Packaging 175
7 Pharmaceutical Market for Rigid Bulk Packaging 178
8 Paints & Coatings Market for Rigid Bulk Packaging 180
9 Detergent & Cleaner Market for Rigid Bulk Packaging 183
10 Agricultural Chemical Market for Rigid Bulk Packaging 186
11 Other Chemical Markets for Rigid Bulk Packaging 189
12 Food & Beverage Shipments 192
13 Food & Beverage Market for Rigid Bulk Packaging 194
14 Plastic, Rubber, & Fiber Shipments 200
15 Plastic, Rubber, & Fiber Market for Rigid Bulk Packaging 202
16 Petroleum & Lubricant Product Supply & Demand 205
17 Petroleum & Lubricant Market for Rigid Bulk Packaging 208
18 Agricultural & Horticultural Indicators 212
19 Agricultural & Horticultural Market for Rigid Bulk Packaging 216
20 Durable Goods Shipments 218
21 Durable Goods Market for Rigid Bulk Packaging 221
22 Other Markets for Rigid Bulk Packaging 224

SECTION VI -- INDUSTRY STRUCTURE

1 US Rigid Bulk Packaging Sales by Company, 2012 228
2 Selected Acquisitions & Divestitures 238
3 Selected Cooperative Agreements 250



LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Rigid Bulk Packaging Market, 2002-2012 26

SECTION III -- MATERIALS

1 Raw Material Use in Rigid Bulk Packaging, 2002-2022 46
2 Plastic Use in Rigid Bulk Packaging by Product, 2012 51
3 Steel Use in Rigid Bulk Packaging by Product, 2012 55

SECTION IV -- PRODUCTS

1 Rigid Bulk Packaging Demand by Type, 2012 63
2 Steel Drum Demand by Market, 2012 76
3 Fibre Drum Demand by Market, 2012 84
4 Plastic Drum Demand by Market, 2012 93
5 Plastic Pail Demand by Market, 2012 102
6 Steel Pail Demand by Market, 2012 108
7 Material Handling Container Demand by Market, 2012 124
8 Bulk Box Demand by Market, 2012 132
9 Rigid Intermediate Bulk Container Demand by Market, 2012 153

SECTION V -- MARKETS

1 Rigid Bulk Packaging Demand by Market, 2012 157
2 Chemical & Pharmaceutical Product Market for Rigid Bulk Packaging by Type, 2012 166
3 Chemical & Pharmaceutical Product Market for Rigid Bulk Packaging by Chemical, 2012 172

SECTION VI -- INDUSTRY STRUCTURE

1 US Rigid Bulk Packaging Market Share, 2012 231

Packaging in United States

Chile Port Of San Antonio Container Throughput, Teu

• $ 250
• Industry data
• February 2013

Yearly, From 2000 To 2017
By Business Monitor International
Source: Port Authority

• Industries : Packaging
• Countries : United States, Chile

Egypt Port Of Alexandria Container Throughput, Teu, % Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 2005 To 2017
By Business Monitor International
Source: BMI Calculation

• Industries : Packaging
• Countries : United States, Egypt

Chile Port Of San Antonio Container Throughput, Teu, % Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 2001 To 2017
By Business Monitor International
Source: BMI calculation

• Industries : Packaging
• Countries : United States, Chile