IP News Monthly Issue 1


IP News

Global Industrial Packaging Market to Surpass $97.2 Billion by 2025



A new report by Coherent Market Insights predicts that the global industrial packaging market will exhibit impressive growth over the next seven years, seeing the industry’s total worth reach a staggering $97 billion.
The newly published Global Industrial Packaging Market Report values the 2016 market at $56.8 billion while projecting it to rise by a compound annual growth rate (CAGR) of 6.1% to 2025.

The major drivers propelling such global growth include the rapidly developing construction industry, the increasing trend of recyclable packaging materials, increasing consumption of packaged food items, and growing industrialization in emerging economies such as India, China, and Brazil. This is despite the fluctuating prices of the raw materials and unavailability of skilled manpower, which are considered two of the main growth restraining factors affecting the industry.
The new report considers the packaging product categories of drums, pails, tubes, containers, sacks, crates, bulk boxes, IBCs and pallets; materials including plastics, metals, wood, paper and board, fiber and fiberboard; and end-user industries covered include automotive, electronics, construction, food and beverages, chemicals, oil & lubricants, agriculture and horticulture.
Among the materials studied, the plastics market held the dominant position in 2016, valued at $25.5 billion, and is projected to retain this moving forward, reaching an estimated $40.9 billion by 2025. Furthermore, the paper and paperboard sector is also making gains due to the rising demand for eco-friendly and biodegradable packaging material.

The U.S. is the leading market for industrial packaging in North America

In terms of geographic dominance, the Asia Pacific region led the way in 2016, with a value of $23 billion, and is projected to experience a CAGR of 7.4% in terms of revenue up to 2025; China is still the single largest exporter, importer and fastest growing consumer market in the world today. The U.S. is the leading market for industrial packaging in North America, where rapid technological advancements are helping drive market growth. Rising concerns over environmental regulations and health and safety issues are also creating opportunities to develop degradable and eco-friendly packaging products, thereby supporting the overall growth of industrial packaging market in the U.S.
Among end users, the chemical and pharmaceutical industries currently have the largest market share. According to the American Chemistry Council (ACC), due to the availability of cheap ethane and shale gas, the U.S. is experiencing something of a boom in the chemical industry with exports of specific chemicals linked to shale gas set to more than double between 2014 and 2030. According to U.S International Trade Administration, the world pharmaceuticals market will witness a growth rate of 4.9%, growing in value from $1 trillion to $1.3 trillion between 2015 to 2020 – good news for those supplying packaging material to the sector.

BalCon Set for Major Expansion

Balcon image

BalCon Enterprises Inc., dba Helluva Packaging, will be constructing a new processing center and warehouse facility in Elk Point, S.D. BalCon specializes in the production and recycling of FIBC bulk bags, as well as the refurbishment of Gaylord boxes. The new 22,500 square-foot building will allow the company to eventually add up to 22 jobs.
BalCon’s new facility will be the first tenant in the newly established business and industrial park in Elk Point. Kevin Connelly, BalCon vice president commented: “The new facility will be properly insulated, allowing us to repair and refurbish more Gaylord boxes for our customers. We hope to salvage 4 million pounds of corrugated cardboard, saving us and our customers a great deal of money.”

CurTec to Launch New Drums


CurTec has been working closely with one of the largest global pharmaceutical players to develop new 120/150 liter Nestable Drums with a quarter-turn closure, whilst also developing a brand new Square Drum.

CurTec develops, manufactures and distributes high performance packaging for the pharma, specialty chemicals, food ingredients and logistics industries. Employing 130 people and with offices in six countries, it has a history of successfully launching new products around the world.

MAUSER on the Acquisition Trail


National Container Group (NCG), the reconditioning subsidiary of MAUSER Group, has acquired Recycle, Inc. East (RIE) located in South Plainfield, New Jersey. The acquisition will allow NCG to more than double its current capacity for both PCR and drums made from 100% recycled plastic and, as a result, it hopes to improve customer service in the Eastern U.S.

The Interview - Ole Rosgaard - Greif

Ole Rosgaard

Each month we interview a key influencer from the world of industrial and protective packaging - first up is Ole Rosgaard, Senior Vice President and Group President of Greif Inc.


Greif has recently undergone an extensive rebrand, what does your new tagline – “Packaging Success Together” mean for the company and the industry?

Why did we choose Packaging Success Together? Because the world’s most important products have traveled safely around the world in Greif industrial packaging. We make industrial packaging simple and easy. We know relationships matter, and working together means the customer can focus on their next innovation, their customers, and their business growth. Together, over 12,500 talented Greif colleagues around the world are working to deliver an effortless customer experience, to deliver packaging success for Greif’s customers, investors, and the planet.

How have you seen the industrial packaging industry change over the last five years?

We have seen change, yes. Our customers are becoming more focused on sustainability and the circular economy, an important area Greif have been developing for many years. Today our ESG scores are significant in excess of industry average, a testament to years of sustainability focus, supporting our customers in their efforts to drive their sustainability agendas.

What are the biggest issues facing the industry today?

Other than protecting our customers from volatility in raw materials and minimizing price fluctuations, our focus is really on providing the best customer service in the world, focusing our entire organization on providing our customers with a great experience. This of course also includes products in top quality delivered on time.

What is the thinking behind Greif’s “Path to Growth” strategy set by your CEO in June?

Greif puts its vision at the forefront: “In industrial packaging, be the best performing customer service company in the world”. In order to achieve this, Greif has three priorities it must focus on: People & Teams, Customer Service Excellence, and Performance. Greif announced a path to growth which includes strategic growth aligned to value, portfolio optimization, and fiscal discipline.

What news can the industry expect to hear from Grief in the coming year?

Recently, Greif announced plans to expand our footprint in the gulf coast by opening an intermediate bulk container (IBC) manufacturing facility in Houston, Texas. It is scheduled to be operational during the second quarter of 2018. This is an investment in our customers and will strengthen and align our production in a key region for the specialty and bulk chemical and the petroleum and lube industries.

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