Steady growth forecast for US rigid bulk food and drink packaging
This growth trend is expected to be in line with the overall rigid bulk packaging average which is forecast to reach $6.7bn by the end of the period, said US-based analysts The Freedonia Group.
Food and beverage
Gains in the sector will be fuelled by favourable prospects for convenience and prepared foods, which will support demand for both a raft of bulk ingredients used by these producers and for rigid bulk packaging.
A supporting factor will also be an improved outlook for spending on food “eaten or prepared away” in the foodservice and restaurant sectors - which will further boost demand for rigid bulk packaging containers such as drums and pails.
However, factors that will dampen prospects include “slower raw material price increases in paper and metal products and competition from lower-cost flexible packaging alternatives” - such as paper and plastic shipping sacks, as well as flexible intermediate bulk containers, said the Cleveland-based group.
Rigid versus flexible
While most foods packaged in bulk containers are granular or solid products that typically use flexible packaging, liquids such as syrups, extracts, fats and oils, as well as preserves, honey, and juice concentrates are more often packaged in rigid bulk containers.
Perishables such as produce, frozen vegetables, and meat, poultry and seafood are often shipped in rigid bulk containers.
Rigid bulk packaging competes with sacks and other flexible containers in both granular and liquid food packaging. In recent years, competition from flexible intermediate bulk containers (FIBCs) has intensified in bulk liquid applications thanks to the increasing use of liners that enable them to handle liquid contents more effectively, said the report.
Breakdown
The market share pf rigid bulk packaging for food and drink products will remain stable over the period at 19 per cent. For the food and drink sectors, pails will account for $460m of the $1,3bn total, with almost all in plastic containers. Drums will account for $274m – almost the same as the $246m for bulk boxes. Material handling containers are forecast to be work $193m and RIBCs $87m.
Rigid Bulk Packaging is available for $4,900 from The Freedonia Group, Inc.
