The global hazardous goods packaging market is expected to register a market value of US$ 11.32 billion in 2023 and is projected to accumulate a valuation of US$ 19.4 billion by exhibiting a CAGR of 5.5% in the forecast period 2023 to 2033. The hazardous goods packaging market registered a growth of 4.1% CAGR in the historical period 2018 to 2022.
The rising use of plastic containers is expected to drive market growth in the forecast period. Hazardous goods packaging is a key factor in the transportation of hazardous products and materials. The hazardous materials can negatively affect human health and the environment. This kind of packaging is an effective solution to avoid the risk of spillage or harm. This is done in numerous ways by employing industrial bulk containers, pails, drums, and flexi tanks among others. This kind of packaging is considered the primary packaging which is expected to augment growth in the overall market.
For the secondary packaging of hazardous goods, corrugated boxes are widely used. The main purpose of utilizing this packaging is the transportation of hazardous products or materials across states and national borders. In addition, manufacturers are shifting toward the use of recycled plastic in small amounts to cut the use of virgin plastic. Therefore, the hazardous goods packaging industry is anticipated to grow, if environment-friendly options are brought into practice and a majority of plastic waste is recycled during the coming years.
Also, the market for hazardous goods packaging is expected to grow in sync with growth in the healthcare and pharmaceutical industries. The growth in this industry is attributed to the exceptional features of plastics like stiffness, strength, and shock resistance. The growing use of product such as pails, drums, IBCs, and bottles are expected to fuel the demand for plastic-based hazardous material packaging. The plastics are light in weight as compared to other materials like glass and metal which is expected to boost the product demand over the forecast period.
Along with this, the wide use of hazardous goods packaging in securing various chemical products is further propelling market growth. This packaging is employed for enclosing chemical items in order to store, sell distribute and use them. Hazardous packaging safeguards secures, maintains, and offers the advantage of identification of the chemical being stored and transported. Thus, burgeoning demand from the petroleum and chemical industries is proving to be a major driver for market growth.
On the other hand, the market players are adopting a number of strategies like acquisition and product launches to tackle the intense competition. For example, on 15 December 2022, Greif, Inc. bought Lee container corporation Inc which is a leading manufacturer of traditional and high-performance barrier blow moulded containers, focusing on serving growth-oriented customers in the agricultural, oil & lubricant, specialty chemicals, and pet care sectors in North America. This merger is anticipated to contribute to the worldwide portfolio’s diversification, and Lee’s market mix will encourage the company’s transition to less cyclical end-market exposures. Hence, a rise in the production of chemical consumables will further boost the demand for hazardous packaging solutions.
Increasing awareness and the need for convenience in the extremely competitive pharmaceutical packaging market demand brand improvement through the production of innovative and unique packaging material. Additionally, the pharmaceutical packaging industry benefits from growing concerns about the environment and the adoption of new regulatory standards for packaging recycling. These trends will directly fuel the demand for hazardous packaging solutions in the coming years.
North America is expected to dominate the hazardous goods packaging market by accumulating over 44% market share by end of the forecast period. The growing population in the United States is augmenting the demand for oil which is creating a demand for hazardous packaging materials. Furthermore, large-scale petrochemical initiatives have reduced the demand for gasoline, aiding the product demand. The booming petrochemical industry in the United States has inevitably fuelled demand for transportation services to move hazardous oil & gas and chemicals.
The market in Asia Pacific is expected to grow with fastest CAGR of 5.4% during the forecast period. The growth is attributed to rapidly increasing population and urbanization which have a substantial contribution to the expansion of the pharmaceutical, chemical, and automotive sectors. In addition, robust economic growth, rapid urbanization, and the presence of a huge population base are further driving the demand for hazardous goods packaging solutions in this region.
What is Driving Demand for Hazardous Goods Packaging Market?
The key factors which drive the demand for hazardous goods packaging are the growing pharmaceutical and chemical industries. Thus necessities of hazardous goods packaging to store and transport hazardous raw materials of the industries. Apart from these, the rise in import-export activities and safety regulation on the transport of reactive chemicals and other materials also fuel the growth of the hazardous goods packaging industry.
Which Factors are Likely to Augment Growth of Hazardous Goods Packaging Market?
The advancement in technology in reference to hazardous goods packaging and their applications in the various industries to improve safety. Hazardous goods packaging market is experiencing significant growth due to increasing agro, chemical, and pharmaceutical industries.
For instance, BASF Española, S.L producing a total of over 600 products. Chemical manufacturers heavily investing and continuously improving its product portfolio. For instance, Tarragona Chemical Park area there are 33 chemical companies of all sizes and activities. Thus demand of hazardous goods packaging will increase over the forecasting period.
USA and Canada Hazardous Goods Packaging Market Outlook
In North America, the global hazardous goods packaging is anticipated to have exceptional growth over the forecast period. The presence of strong infrastructure, chemical industries and growing oil trade in the U.S. Moreover, the presence of top industry manufacturer in the Canada and U.S are adding to hazardous goods packaging growth in the region.
Further, Key industries such as freight and logistics, pharmaceuticals, and chemical manufacturing have also become key consumers of hazardous goods packaging in recent times.
Europe Demand Outlook for Hazardous Goods Packaging
The Europe hazardous goods packaging market is experiencing significant growth Road transport is the key mode of transport of hazardous goods in Europe. According to the Eurostat database, in 2017, the transport of hazardous goods in the Europe more than 83 billion tonne-kilometres. European countries such as Germany, France, and Poland have highest share of hazardous material road transportation 27.5%, 17.8%, 8.7% respectively.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, collaborations, and partnerships within the companies involved in manufacturing hazardous goods packaging are anticipated to create new avenues for market expansion during the forecast period.
· In 2021, NEFAB Group AB bought Reflex Packaging Group, the world’s leading producer of sustainable thermoformed cushioning, to further bolster their commitment to saving resources in supply chains. Reflex Packaging will continue to operate as separate bodies within the NEFAB Group.
· In September 2021, Mauser Group announced an investment of a significant amount in cutting-edge machinery to increase the production capacity of plastic drums and IBCs at its facility in Gebze, Turkey. The expansion of the site will also support customer growth strategies and offer additional support for the growing export markets in the Middle East and Eastern Europe.
