The global steel drum market is projected to witness linear growth between 2023 and 2033 at a CAGR of 5.6%, reaching US$ 20.8 billion by the year 2033.
The steel drum is a safe and secure rigid packaging solution made from carbon steel or stainless steel. The steel container drums hold prominent features like being cost-effective, easy to handle, safe & secure for shipping, resistant to fire, reusable, recyclable, and many more, which augment the demand for steel drum.
Safe and secure packaging is used in various end-use industries, which creates an astonishing demand for steel drums. On the back of all these factors, the global steel drum market seems attractive and growing.
A Few new advances that have taken place in the market include the usage of food safe steel drums which are reusable and reliable. In June 2022, SCHÜTZ Container Systems expanded its reconditioning capacity in North America for the IBCs and drums.
The key reason for the swift growth of steel container drums market is that it protects the stored material against harmful UV rays, moisture and dust. Furthermore, properties such as durability, high sustainability, eco-friendliness and excellent strength make small steel drum a preferred choice in the packaging industry.
According To FMI’s Analysis, Steel Drum’s Sales Had Witnessed 2.6 % CAGR between 2016 and 2022
The steel drum with lid witnessed lucrative market growth due to its demand in various industries like chemicals, petroleum & lubricants, paints, inks, & dyes, and others. The market growth for steel drum manufacturing process seems to remain sizable in the forecast period considering the benefits provided by it for storing and shipping hazardous & non-hazardous materials.
Furthermore, the key benefits such as recyclability, ease of handling & transport, and protection against spilling make the steel barrel market attractive among other rigid packaging solutions. Also, the rising concern for the safety of products and sustainability raises the popularity of steel drum among the end-users.
Considering all the benefits of a cost-effective steel drum, the market growth is estimated to uplift in the future period and witness at a prominent growth rate of 5.6% during 2023 to 2033.
What’s with Sophisticated Containers?
Sophisticated Containers to be asked for regarding transportation of Liquids
The production performance of the steel drum manufacturing market and industrial sector is one of the significant factors augmenting the sales of steel drum. The low manufacturing cost in developing economies such as India and China has led the steel drum manufacturers in India and other countries to move their production facilities and expand their market in South & East Asia.
Since there is a significant correlation between the industrial output and demand for industrial packaging, demand for enhanced industrial packaging is evident, with stabilized manufacturing sector output.
Though the demand for steel drums is likely to be concentrated in East Asia & South Asia, a considerable contribution to the global demand is also anticipated from the other clusters such as Europe and The Middle East and Africa. North America and Latin America markets are likely to post perpetual demand for steel drums over the forecast period.
What Are the Factors Restraining the Global Steel Drum Market?
Availability of Cost-Effective Counterparts to hamper the Market
The available intermediate bulk containers (IBCs) are hindering the steel drum market growth. Comparing steel drums and IBCs, the latter ones are cost-effective in terms of storage and transportation. Looking through the shape, the round shape of steel pan drum results in unutilized space, whereas IBCs result in maximum space utilization.
Moving towards the usability feature, steel drums have low usability as compared to IBCs. Furthermore, handling of IBCs is easy than steel container drums as they are attached to the pallets from the bottom. IBCs have the capability to drain completely while in steel drums it is not possible as the residue is left at the bottom.
Another important factor that limits the market growth of food safe steel drum is corrosion resistance power. The steel drums are not capable of resisting corrosion, which increases the chances of contamination. On the back of all these factors, end-use industries may slowly switch to IBCs, which may also result in 75% of cost-saving. Overall, the benefits provided by IBCs are acting as restraint to the steel drum market.
Country-Wise Insights
The United States Production Capacity of Steel Drums to Lag Behind Asia Pacific Countries
According to FMI’s analysis, the United States generates a significant portion of the demand for steel drum. The reason for the high market growth is the presence of leading key players supplying steel drum for sale in the United States.
Key players such as Greif Inc., Mauser Packaging Solutions, Time Technoplast Ltd. and others have a strong presence along with strong production capacity in the United States. Furthermore, rising production of crude oil leading towards exports in the United States is the factor that leads to bolstering the demand for protective packaging solution that includes metal oil drum.
Competitive Landscape
· The steel drum manufacturers are focusing on safety rendered by steel drum to cater to the market demand and survive the competition. Also, the manufacturers are trying to address the sustainability trend by developing environment-friendly steel drum. These manufacturers also provide reconditioning services, which lead to low packaging scrap.
· The key manufacturers are trying to enhance customer service by using RFID technology on steel drum to track & trace the steel drum.
