India steel drum market is set to gain a valuation of US$ 281.2 million while India IBC market size is estimated to reach US$ 170.5 million in 2023. Over the next ten years, sales of steel drums and IBCs across India are likely to soar at 4.6% and 3.8% CAGRs respectively.

By 2033, India steel drum industry is projected to reach a valuation of US$ 468.7 million. India IBC market value on the other hand is forecast to reach US$ 260.5 million.

India steel drum & IBC sales are expected to witness a steady growth rate with the top 5 companies projected to hold around 40 to 50% of the market by the end of 2023.

The need for material handling solutions that adhere to strict safety standards is growing as more organizations handle and transport hazardous products. This is creating a high demand for steel drums and IBCs across India.

Demand for better product protection and authenticity among the chemical industries is likely to bolster steel drum & IBC sales. The India steel drums and IBC markets are anticipated to expand 1.7x & 1.6x times respectively of the current market value during the forecast period.

India steel drum sales are projected to generate an attractive incremental growth opportunity of US$ 187.9 million. Subsequently, IBC sales in the country are projected to generate an incremental growth opportunity of US$ 90 million.

Transport & logistics companies have been majorly utilizing steel drums & IBC. They employ steel drums & IBCs for shipping various goods & materials overseas.

Key Trends Shaping Growth in the Market:

Robust expansion of industries such as chemicals, petroleum, food & beverages, etc. will elevate steel drum & IBC demand

Growing awareness about the impact of packaging solutions on product life span will encourage the adoption of steel drums and IBCs

Increasing import and export activities across India will fuel steel drum & IBC sales

Integration of novel technologies such as RFID in steel drums and intermediate bulk containers will boost the market

Rising demand for customized bulk packaging solutions will fuel market expansion

IBCs and steel drums are standard bulk-packaging solutions or shipping containers used for transportation of industrial and non-industrial products. These solutions are designed to safely store and transport large quantities of both hazardous and non-hazardous solid, liquid, and semi-liquid products.

Usage of steel drums and IBC allows end users to effectively protect their products during storage and transportation while saving transportation costs.

Bulk packaging solutions such as intermediate bulk containers (IBCs), also known as IBC totes, are gaining wider popularity across India. This is due to their ability to provide an optimal hygienic environment for the packed products, extend their shelf life, and reduce the chances of spillage.

Steel drums and IBCs store materials in less space than several standard packaging solutions. Their pallet-mounted shape makes them ideal for storage and transportation applications. These packaging solutions are known for their hygiene, sturdiness, and ability to handle pressure during transportation through long distances.

Rising usage across various industries for transporting large masses of essential commodities such as chemicals, pharmaceuticals, food & beverages, petroleum, etc. is expected to boost the market.

IBCs are reusable and are thus considered environmentally friendly. IBCs such as flexible intermediate bulk containers (FIBCs) and rigid intermediate bulk containers (RIBCs) are being widely used across chemical and food & beverages sectors.

Rise in cross-country trade due to open trade policies will play a key role in boosting India steel drum & IBC market during the assessment period.

Another key factor that is expected to boost the market is the rising demand for sustainable and eco-friendly packaging solutions.

Leading steel drum & IBC manufacturers are investing in novel technologies and processes that minimize their carbon footprint and reduce waste. They are also introducing new solutions to meet end user demand.

Key Factors Driving the India Steel Drum & IBC Market

Increasing Demand for Industrial Packaging Solutions to Boost the Market

Steel barrels are a practical solution for material storage and transportation because they endure for a long time and have minimal influence on the environment.

Steel drums & IBC are among the industrial packaging items that are more in demand as a result of India’s expanding industrialization. India’s top steel drum & IBC users include the chemical, pharmaceutical, and food processing industries.

Compared to other materials, steel is stronger and more durable. The growth of industries, such as pharmaceutical, food & beverage, and chemical is expected to scale up steel drum & IBC demand.

Steel drums are more resilient to collisions, leaks, and punctures. This makes it a popular option for transporting hazardous materials and hefty solid objects.

Various industries are using packaging solutions such as barrel drums, steel barrels, metal drums, and metal drum containers to transport hazardous & nonhazardous liquids or semi-liquids. Similarly, popularity of flexitanks or flexi tank containers is rising across India.

Growing usage of industrial steel drums for transporting various products will create lucrative opportunities for steel drum & IBC manufacturers.

Rapid Expansion of FMCG Sector in India to Elevate IBC Demand

One of the leading users of IBCs in India is the FMCG sector, especially for the storage and transportation of liquid and powder products. IBCs can aid in enhancing the effectiveness of logistics processes in the FMCG sector.

IBCs, for instance, can be made to fit onto pallets, which makes them simple to transport and stack. As a result, transporting FMCG goods from one place to another takes less time and money.

IBCs are a perfect choice for the FMCG business because they are made to adhere to high safety and hygiene regulations. They can be created from anti-contamination materials and are simple to clean and sterilize in between usage. This helps stop the spread of germs and other contaminants.

Demand for IBCs from the FMCG sector is predicted to boost the market as the FMCG market in India is anticipated to rise at a CAGR of 14.9% to reach US$ 220 billion by 2025.

Rising Usage in Pharma Sector to Create Growth Opportunities for Steel Drums & IBC Manufacturers

Industrial steel barrels are widely used by the pharmaceutical industry. Pharmaceutical products, including both raw materials and finished goods, are stored and transported in these containers.

Several pharmaceutical items include dangerous components that demand unique handling and storage. Such materials are best stored in industrial steel drums because they are made to withstand the corrosive nature of these materials.

Pharmaceutical businesses use industrial steel barrels to assist them to meet regulatory criteria because the pharmaceutical industry is highly regulated. For instance, industrial steel barrels can be used to meet the requirements for airtight storage for some medicinal goods.

Industrial steel barrels offer a barrier against external contamination, which is a necessity for pharmaceutical items that need to be shielded from contamination. The drums are made to be airtight, preventing the entry of impurities such as moisture, dust, and others.

The supply chain for the pharmaceutical business is not complete without industrial steel drums. They contribute to making sure that pharmaceutical items are transported and stored safely and securely, which is essential to ensuring the effectiveness and quality of these medicines. The pharmaceutical business is anticipated to expand, which will benefit the target market’s success.

Category-wise Insights

Which is the Most Commonly Used Material for Manufacturing Steel Drums?

Both Manufacturers and End-users Prefer Steel Drums Made from Carbon Steel

With a safe and secure packaging solution outlook, the carbon steel segment is enjoying astonishing demand in the market. Manufacturers are increasingly using carbon steel for manufacturing steel drums on account of its various benefits.

Carbon steel is a strong and durable material that is often used to store or transport heavy or abrasive products, such as sand, cement, or gravel. The target segment currently holds more than 93% of the market share.

Growing end user preference for steel drums made from carbon steel is another key factor driving growth of the target segment. The same segment is projected to create an incremental opportunity of US$ 179.9 million during the assessment period.

Stainless steel drums demand is also likely to rise at a significant pace across India during the next ten years. This is due to rising adoption of these stainless steel drums across various industries.

Why are Open-Head Steel Drums Rising in Popularity across India?

Attractive Features of Open-head Steel Drums Aiding Popularity

The open-head steel drums segment is estimated to progress at 6.5% CAGR. It is likely to create an incremental opportunity of US$ 41.4 million in the next ten years. This is due to rising popularity of these open top steel drums on account of their various features.

Open-head steel drums, also known as open-top drums, feature a removable lid. They are commonly used for storing and transporting solids and liquids that require easy access and frequent filling or emptying.

Why is Demand for Composite IBCs Rising in India?

Need for Lightweight, Durable, & Hygienic Packaging Fueling Composite IBC Demand

Composite IBCs are a durable, lightweight, stackable, and hygienic solution for transportation and storage. They are versatile as they can be used for a wide range of applications, including the storage and transport of chemicals, food products, and pharmaceuticals.

As per Future Market Insights (FMI), the target segment is anticipated to hold more than 99.5% share in India IBC industry in 2023. Further, it is expected to create an incremental opportunity of US$ 95.1 million during the forecast period.