Fiber Drum Industry Set for Remarkable 5.7% CAGR, Anticipating US$ 1.80 Billion Valuation by 2033 Amidst Rising Need for Safe Shipping

The fiber drums market is poised for substantial growth, with a projected worth of US$ 1.1 billion in 2023, and an expected CAGR of 5.7% during the forecast period. By 2033, it is anticipated to reach a staggering US$ 1.80 billion. These projections are fueled by the vital role fiber drums play in ensuring safe shipping and durability across various sectors, including food and agro-allied, medicines, and chemicals.

A significant driving force behind this growth is the increasing environmental consciousness among the general public. Consumers are now actively seeking sustainable packaging solutions that minimize the environmental impact. Over the past decade, there has been a remarkable shift in consumer attitudes towards sustainability, and this trend is expected to continue. This heightened demand for eco-friendly packaging is likely to further boost the fiber drums market.

Fiber drums, whether round or square, are favored due to their lightweight yet sturdy construction, ensuring the safety of the products they house. They also offer cost-effectiveness and superior corrosion resistance compared to plastic or steel drums. With the food and agro-allied sector poised to grow 1.6 times, driven by increased transportation of food products, ingredients, and flavorings, the fiber drums market is set for sustained and robust expansion.

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End-use Industry Demand is Swelling

Fiber drums are widely utilized in a wide range of end uses and applications, including medicinal, food and beverage, sanitary chemicals, paints, adhesives, and a variety of other chemicals. Distinct end-use sectors have different needs; for example, the food and beverage segment requires FDA-compliant containers, which round fiber drums can meet.

New manufacturing technologies enable the insertion of internal and external liners, increasing resistance and performance for a wide range of new applications. For less-weight and lower-volume items, square fiber drums are also available.

Both designs and styles are acceptable for packing hazardous solids and are UN-approved. Numerous end customers favor fiber drum barrels over alternatives because of their inexpensive price. During the forecast period, the chemical industry is anticipated to command a sizable fiber drums market share.

Regional Assessment:

Asia-Pacific region has the leading fiber drums market share throughout the projection period due to the presence of an increasing number of manufacturing units and emerging economies in countries such as China, India, Australia, and Indonesia.

These are the countries that export packaging materials as well as fiber drum packaging all over the world. Due to low labor costs and the availability of native raw materials in this region, manufacturers prefer this manufacturing unit for the packaging sector.

Key Takeaways: 

From 2023 to 2033, the metal closure category may expand at a CAGR of 5.7% by closure type in the fiber drums market.
The food and agro-allied industry category might develop at a CAGR of 5.9% from 2023 to 2033, according to the end-user segment.
Between 2023 and 2033, China market might expand at a CAGR of 6.8%, reaching US$ 346.8 Million.
By 2033, Japan fiber drums market may have increased at a CAGR of 5.6%, reaching US$ 96.6 million.
By 2033, the United States market is anticipated to record a CAGR of 4.2% and reach US$ 239.2 Million.
By 2033, Canada market can have grown at a CAGR of 4.9%, reaching US$ 92.6 million.
Germany fiber drums market could have expanded at a CAGR of 4.8% by 2033 and may have amounted to US$ 94.5 Million.

Competitive Landscape:

The presence of local players, followed by international firms, has helped to consolidate the fiber drums market, which has contributed significantly to market growth.

A few significant fiber drum manufacturers include Greif Inc., Abzac Corporate, Great Western Container, Fiberstar Drums, Schutz Container Systems, CL Smith, Industrial Container Services, TPL Plastech, Sonoco Product, Three Rivers Packaging, Enviro-Pak, Mauser Group, Orlando Drum & Container, and others.

The key competitors are utilizing a variety of fresh tactics to control the market, such as expansions, acquisitions, and partnerships, which are boosting the demand for fiber drums on a global scale.

Intercontinental Trade of Industrial Products to Boost Demand for Fiber Drums

Growth in demand for fiber drums is expected to result from expanding intercontinental trade. This is likely to boost the demand for shipping and packaging industry, consequently raising the uptake of fiber drums as packaging solution.

Vendors in the fiber drums market have consistently worked on improvement in product design and value creation for end user. Since, global trade of industrial products has also increased three fold during the past decade, it necessitated industries such as bio-chemical manufacturers, food grade ingredient manufacturers, and pharmaceutical companies etc. to use fiber drums to reduce their carbon footprint.

Demand is also anticipated to be driven by widened use of large, layered fiber drums which ensures increased performance and are also economic in terms of drums made with materials such as metal and plastic. The adequate sealing of these drums with metal makes them an ideal choice for shipping across rough seas. The increasing performance of lightweight bulk containers such as these drums has strengthened the scope of their usage.

"The challenges associated with recyclability of fiber drums is building infrastructure to manage increased recycling and segregation of substrates such as closure lids or polyethylene lining to prevent leakages. Ensuring these steps before recycling the fiber drums would ensure that they never end up in a landfill or dump. This involves strengthening and developing more advanced recycling technologies. One-time investment in recycling is expected to result in a long-term benefit for vendors in the fiber drums market," says an FMI analyst.

Impact of COVID-19 on Fiber Drums Market

The COVID-19 pandemic undoubtedly has led to massive disruptions in the market with shortage of raw material, fractured supply chains. The packaging industry highly depends on related industries for its sales and revenues. Thus, with every other industry taking a hit, the fiber drums market is also seen a decline in sales in Q1-Q2 2020.

Fiber drums manufacturers, will need to adapt with the global pandemic, which is forcing manufacturers to look for contingency plans and understand the vulnerabilities associated with the supply chain. This might result in reducing dependencies on any one country and increasing preference for domestic players for the need of raw materials. In the long run this could also boost local economies, create jobs, and reduce cost of raw materials.

The fiber drums market is largely dependent on demand from end use industries such as chemical Industry, food & agro-allied industry, pharmaceutical industry, building & construction industry and others. In the coming days, as supply chains restore, demand for food & agro allied and pharmaceutical industries will witness a high demand owing to food security issues and increasing number of patients with COVID-19 and otherwise.

These two types of demands are projected to drive the fiber drums market as shipping these on urgent basis will be national priority. Ensuring pharmaceuticals and food reaches the end user in a non-contaminated and intact manner will play a critical role in the deciding the success of this market.

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This release was published on openPR.