New York, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Industrial Drums Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06311677/?utm_source=GNW
Key Highlights
Industrial drums allow higher operational efficiency and effectiveness in shipping bulk quantities of commodities, especially in liquid form. Industrial drums also offer cost-effective transport packaging solutions for the shipment of both hazardous and non-hazardous materials, like chemicals, wines, fruit juices, etc.
Industrial drums have been widely used for packaging chemical and fertilizers and petroleum lubricants. According to the Ministry of Chemicals and Fertilizers Annual Report 2021, the production volume of major chemicals in India increased from 9,984 thousand metric tons in the year 2015/16 to 11,589 thousand metric tons in 2018/19 and 11,943 thousand metric tons up to 2020.
Additionally, the packaging industry is increasingly using industrial drums. The packaging producer emphasizes safety, downgauging, pack size optimization, and recycling. A wide range of businesses and enterprises efficiently maintain sustainability initiatives using industrial drums’ capabilities. According to the Industrial Steel Drum Institute (ISDI), steel drums provide safe transport for approximately 50 million tons of material worldwide annually.
However, the slow automation technological adoption among industrial drum manufacturers is expected to hold back the advance orders from various end-user industries. Also, the drum manufacturer struggles to meet the demand variability due to slow supply chain responses.
With the recent outbreak of COVID-19, the market was affected by a lack of resources at production sites. Lockdowns in several countries also impacted the supply chain adversely. However, the market started recovering toward the last two quarters of 2021, with many countries showing improvement with a lesser number of reported cases. Precautionary measures allowed for continuing the operation while minimizing the risk. Countries opened their ports for shipments and cross-border trade, which relieved the drum manufacturing as their sales were set in motion to catch up with the demands.
Key Market Trends
Steel Drums Segment is Expected to Hold Major Market Share
Steel drums are majorly used as a packaging solution for transporting and storing hazardous or dangerous goods. Also, the U.S. Department of Transportation indicates that steel drums are the safest containers (insurance rates for steel drum shipments are the lowest) used for shipping.
The rise in the demand for chemicals and petroleum lubricants from various end-user industries and a significant focus on strengthening the supply chain capabilities is expected to drive the need for industrial steel drums. As of October 2021, India was the world’s second-largest producer of crude steel, with an output of 9.8 MT. Under the Union Budget 2022-23, the government allocated USD 6.2 million to the Ministry of Steel. Hence, the increasing demand for crude steel is expected to shape the demand for the industrial steel drums market.
In October 2021, the Indian government announced guidelines for the approved specialty steel production-linked incentive (PLI) scheme. In FY22, steel demand is expected to increase by 17% to 110 million tonnes, driven by rising construction activities. For Instance, In October 2021, ArcelorMittal and Nippon Steel Corp.(Steel drum manufacturing company) ’s joint venture steel firm in India announced a plan to expand its operations by investing approximately USD 13.34 billion over ten years.
Most companies are significantly innovating and developing new products to cater to the requirement of the market by expanding their manufacturing capabilities. In October 2021, JSW Steel invested USD 19.9 million to build a steel plant in Jammu and Kashmir and boost regional manufacturing. In July 2021, the Union Cabinet approved the production-linked incentive (PLI) scheme. The scheme will attract investment worth approximately USD 5.37 billion and expand specialty steel capacity by 25 million tonnes (MT) to 42 MT in 2027.
The rise in the demand for chemicals and petroleum lubricants from various end-user industries and a significant focus on strengthening the supply chain capabilities is expected to drive the need for industrial steel drums. As of October 2021, India was the world’s second-largest producer of crude steel, with an output of 9.8 MT. Under the Union Budget 2022-23, the government allocated USD 6.2 million to the Ministry of Steel. Hence, the increasing demand for crude steel is expected to shape the demand for the industrial steel drums market.
Asia Pacific is Expected to Witness a Significant Growth Rate
The rapidly evolving industrial and manufacturing sector in the Asia-Pacific region is expected to increase the usage of industrial drums as manufacturers are continuing to expand their manufacturing bases to emerging economies like China, India, and Indonesia. China has shown optimistic growth in the production of fiber drums. In terms of value, it has a strong hold over other countries such as Malaysia and Singapore.
The rising concerns for sophisticated packaging solutions towards products by local as well as renowned players have translated into a better quality of fiber drums. Some of the key factors affecting the fiber drums market are the growing retail sector and the increasing preference for lightweight bulk containers such as recyclable fiber drums. The main advantage of using fiber drums is that they are recyclable. Therefore, the outlook for the fiber drums market is expected to be positive in the Asia Pacific region.
The market for industrial drums in the region is expected to continue to expand as a result of the region’s growing exports of wines and vegetable oil. Asian nations’ oil exporters use industrial drums over other bulk packaging materials. Large-scale palm oil exports from China and India may result in a major increase in the demand for industrial drums in the region.
According to USDA Foreign Agricultural Service, the retail food industry was the most valuable among other segments in the food industry in India. The retail segment accounted for USD 500 billion in 2020, followed by food services at USD 64 billion. Food exports and imports amounted to USD 40 Billion and USD 24 billion, respectively.
Countries in the Asia Pacific, such as China and India, with strong agricultural production rates, are improving their export volume by implementing effective means of storage, transport, and packaging solutions. According to Eurostat and European Commission, in 2021, the EU machinery and transport equipment exports to China amounted to about EUR 116 billion, making it the most exported commodity from the EU to China, followed by Chemicals and related products amounting to EUR 32.89 Billion. In 2021, the European Union imported nearly EUR 264 billion worth of machinery and transport equipment from China.
India is one of the world’s top producers of spices, cashews, pulses, and jute, according to Invest India, a National Investment and Facilitation Agency. The country is also one of the world’s largest producers of fruits and vegetables. The growing agriculture sector of the country is expected to create significant demand for steel drums for the chemical and fertilizer end use of the industrial drums market in the region.
Competitive Landscape
The Industrial Drums Market remains quite fragmented due to the existence of numerous international, regional, and local vendors. With the growing usage of industrial drums in various end-user industries, many companies are entering the competition, making it more intensified. Some of key players of the market include Greif Inc., SCHÜTZ GmbH & Co. KGaA, and Mauser Group BV.
January 2022 - Greif, Inc. declared that it had entered into a definitive agreement to divest its 50% share in the Flexible Packaging joint venture, or "FPS,"to Gulf Refined Packaging (GRP) for a total cash consideration of USD 123 million, subject to certain conditions and post-closing adjustments. Greif expects to use the proceeds for debt repayment.
October 2021 - Schütz GmbH & Co KGaA has signed a purchase agreement for 100 % of the shares in GEM Plastics Limited of Ireland. With the acquisition of the manufacturer of jerrycans and drums, GEM Plastics Limited, Schütz expanded its product portfolio in industrial packaging and further increased its performance for customers in Ireland and the United Kingdom.
September 2021 - Mauser Packaging Solutions made significant investments in state-of-the-art equipment to expand its plastic drum production capabilities at its Gebze, Turkey facility. These investments will also further support the collection and supply of reconditioned packaging in the region. These investments will allow Mauser Packaging Solutions to serve customers better and meet heightened local market demand for new and reconditioned plastic drums.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06311677/?utm_source=GNW
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