Published On : May 27, 2016
Post the economic slowdown in 2008, the demand from the global warehouse drums and barrels market has been surging positively. Warehouse drums and barrels find application across diverse industries such as food, petrochemicals, and chemicals and petroleum. Of these, the chemicals and petroleum industry exhibits sizeable demand for drums and barrels. This rapidly expanding industry has its own set of transportation and packaging requirements. Since chemicals are more sensitive to external conditions such as moisture, pressure, and temperature, efficient packaging solutions are considered indispensable for the industry. Warehouse drums and barrels offer exceptional insulating effects, owing to which they are considered ideal for packaging and transporting chemicals.
Rising Demand for Biodegradable Plastic for Packaging to Boost Market
The rising adoption of biodegradable rigid plastic for efficient packaging is an important trend spurring demand from the global warehouse drums and barrels market. In comparison to conventional plastic, biodegradable plastics are easily decomposed by microorganisms. This in turn reduces the adverse effect biodegradable plastics have on the environment. Furthermore, with the implementation of stringent regulations worldwide, aimed at curbing the carbon footprint, vendors are expected to rapidly switch to using warehouse drums and barrels made from biodegradable materials in order to avoid hefty penalties.
A wide range of materials such as plastic, fiber, steel, or a combination of all these are used to make warehouse drums and barrels. Additionally, their availability in diverse shapes, sizes, and thickness makes them suitable for use in a myriad of industrial packaging purposes.
Steel Emerges as Widely Used Material for Manufacturing Warehouse Drums and Barrels
Based on product type, the steel drum segment held the dominant share in the market in 2015 in terms of revenue. However, the segment is likely to slowly lose its dominance in the market owing to the easy availability and low price of plastic drums and barrels. Nevertheless, the steel variants of warehouse drums and barrels will continue to be preferred for transportation and handling during adverse conditions.
Asia Pacific Dominates Global Warehouse Drums and Barrels Market
Regionally, the global market for warehouse drums and barrels can be segmented into Asia Pacific, North America, Europe, and Rest of the World. Among these regions, Asia Pacific dominated the global warehouse drums and barrels market in 2015. However, the declining demand from industries in North America will reduce the sales prospects of the Asia Pacific market in the near future. This will negatively impact the sales exhibited by the Asia Pacific warehouse drums and barrels market. Nevertheless, the market will gain from the mergers and acquisition activities witnessed in the region.
Market Features Presence of Several Multinational as well as Regional Players
The global warehouse drums and barrels market features the presence of multinational enterprises such as Schutz and Greif. Vendors operating in the market compete on the basis of product features such as lightweight, space, and heat, oil, and chemical resistance. The presence of a large number of regional players offering bulk packaging solutions at lower prices has further intensified the competition in the warehouse drums and barrels market. Some of the prominent vendors operating in the global warehouse drums and barrels market include Industrial Container Services, Om Packaging, Berenfield Containers, Jakacki Bag & Barrel, Remcon Plastics, and others.