The global industrial packaging market, which is split into five key segments (type of packaging, region, product, material and end user), is set to see annual growth of around five per cent, up to the year 2022. This growth will be driven by a number of key factors and players in the market.
The sector includes a wide range of products from numerous UK and global companies, but essentially, it involves any material, bag, box, tank, sack or barrel that suppliers use to pack their products in when they ship them to their clients, whether those clients are businesses or individuals.
It is the expected growth in these end-user businesses that is seen as one of the key drivers for growth in the industrial packaging market. Industries such as food services and chemicals in particular are seeing an increase in their import and export business and all these goods need to be packed before they can be shipped.
Of course, there are some strict regulations surrounding the packing and shipping of products in these sectors and the industry needs to ensure it stays up to date with any relevant legislation and standards and that it can provide the correct packaging solutions if it’s to make the most of this growth opportunity.
Food grade packaging must be manufactured in clean room conditions, often using virgin grade materials, to minimise the risk of contamination. Suppliers should have the relevant qualifications and certification, such as Hazard Analysis and Critical Control Point (HACCP), ISO 22000:2005 which sets out the standards for management of food safety systems and BRC standards.
If you’re supplying packaging that will be used to transport hazardous materials, such as flammable liquids or gases, corrosive chemicals or explosive materials, that packaging needs to adhere to the UN Certification scheme, which ensures that its easily identifiable in the event of a spillage or other accident during transportation.
The continued growth in online sales will also fuel growth in the sector, as more and more suppliers implement and grow their ecommerce strategies. Consumers are used to buying pretty much anything online nowadays, and it all needs to be packed correctly before it can be shipped.
Clients, whether supplying the industrial or consumer sectors, are also looking to use their packaging for more than just keeping goods safe and secure. Increasingly, packaging is seen as a marketing tool, through use of clever external branding, and more firms will look to work with companies who can offer personalised packaging.
Growth is also likely to come from the emerging and growing markets in Asia, China and Japan. In Asia, the consumer market is seeing good growth, which will increase the need for industrial packaging, while in China and Japan, the food services and pharmaceutical sectors are also developing strongly.
The market is also likely to see a number of new players over the coming years, as the predicted growth is so appealing. This will mean that an already highly competitive market becomes even more so over the coming years.