The global industrial packaging market has been prophesied to entertain a massive pool of recognized companies operating in the industry. Transparency Market Research (TMR) has foreseen some of the established companies of the market to sustain their growth on the back of their stronghold in regions of interest. A TMR report has mentioned Cascades Inc. and Smurfit Kappa Group Plc. to have led the market apart from other companies such as Sonoco Product Co., International Paper Co., and Greif Inc. Furthermore, the analysts authoring the report have shed light on crucial factors influencing the competition in the market.
TMR has projected the global industrial packaging market to be worth a US$73.2 bn by the close of 2024 while growing at a 4.1% CAGR during the forecast timeframe 2016-2024. In 2016, the market had been worth a US$53.0 bn. In terms of a segmentation by material, plastic could help the market to gain a whole lot of demand due to its higher preference. By region, Asia Pacific has been anticipated to hold onto its leading status in the market while rising at a 5.5% CAGR.
Increasing Usage of High-value Containers Spurs Demand
The demand for industrial packaging has been predicted to see a strong rise owing to the tremendous increase in industrial activities around the globe, especially in developing nations. As a result, the world industrial packaging market could gain an impressive momentum in its growth. The growing employment of high-value containers has been expected to be another factor augmenting the demand in the market. This could be supported with improved utilities offered by these containers and the rise of the industrial sector worldwide.
The demand for plastic industrial packaging has been foreseen to continue to increase due to its easy availability and economical rates. It could maintain its dominance in the world industrial packaging market as consumers show a high preference for plastic because of its better flexibility.
Declining Profit Margins Force Players to Quit Competition
On the negative side, the international industrial packaging market could be hindered in its growth journey as manufacturers step out of it for reasons such as exceedingly low and shrinking profit margins. Nonetheless, the restraint in the market has been envisioned to be diluted due to the customization trend on the part of various products available in the industry. Manufacturers have been customizing their products as per the requirements of end users since years. This could have created a wealth of customized products in the market, giving players ample of space to bank on the opportunities created.
A high volume of industrial activities in Asia Pacific has been envisaged to offer more growth prospects in the international industrial packaging market. North America and Europe could also offer significant opportunities to cash in on with their streamlined transportation and delivery procedures and advanced industrial infrastructure.