Reusable containers to drive rigid packaging demand, says report

The report, by the Freedonia Group, provides US processors with an insight into the forecasted demand rigid bulk packaging, enabling them to plan ahead. Rigid packaging usage is increasing as companies convert to reusable packaging in a bid to reduce the waste materials sent to landfill sites. Rigid intermediate bulk containers (RIBCs), which are suitable for more volatile substances, will experience the fasted growth due to their cost and performance advantages over those designed to be smaller, and those with a shorter-life. Annual growth is expected to grow by an average of 6.0 per cent, rising from $660m in 2006 to $885m in 2011, according to the analyst group. An increase in return and reuse behavior, is expected to drive the growth of material handling containers by 4.8 per cent a year, rising from $880m to $1115m in 2011. Nondurable goods markets for bulk packaging, including food, chemicals and agricultural products represented about 80 per cent of demand in 2006, according to Freedonia. Drums, known for their low cost, reusability and good safety profile will experience slower growth partly due to maturity of their existence on the market. They will remain a mainstay of rigid bulk packaging, growing from $1605m in 2006 to $1745m in 2011, at about 1.7 per cent each year, according to the report. Overall, rigid bulk packaging demand in the US has seen considerable growth in the past five years. In 2001 total demand was $4.1bn, growing at a yearly average of 6.5 per cent to $5.5bn in 2006.