Case Studies: Successful Strategies in the Chemical Drums Market |...

Case Studies: Successful Strategies in the Chemical Drums Market

Posté 2024-11-04 05:23:19

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The chemical drums market encompasses products such as polyethylene drums, steel drums, and fiber drums used for packaging and transporting chemicals and associated industrial liquids. Chemical drums are advantageous over alternate packaging solutions as they provide protective, secure, and reusable containment for hazardous and non-hazardous liquids and powders. They are corrosion-resistant, durable, and often compliant with international transportation regulations for dangerous goods.

The global chemical drums market is estimated to be valued at US$ 21.44 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the chemical drums market are Greif, Inc., Mauser Group, SCHÜTZ GmbH & Co. KGaA, Time Technoplast Ltd., Hoover Ferguson Group, Balmer Lawrie & Co. Ltd., Sicagen India Ltd., Industrial Container Services, LLC, Fibrestar Drums Limited, Snyder Industries, Inc., Sonoco Products Company, Great Western Containers Inc., Myers Container LLC, Myers Industries, Inc., and Eagle Manufacturing Company.

The growing demand from end-use industries such as chemicals, oil and lubricants, food and beverages, and pharmaceuticals is fueling the growth of the global chemical drums market. Furthermore, strict regulations regarding the usage of plastic are expected to propel the demand for sustainable fiber drums.

The market is witnessing high demand from Asia Pacific due to rapid industrialization in China and India. Growth in international trade in chemicals globally is also contributing to the expansion of the chemical drums market.

Market key trends

One of the key trends gaining traction in the chemical drums market is the rising adoption of fiber drums. Fiber drums are increasingly becoming a preferred alternative to conventional steel and plastic drums due to their sustainability and recyclable properties. They are manufactured using recyclable materials like paper and have a longer shelf life as compared to plastic drums. This reduces environmental impacts and supports the drive towards the circular economy. Moreover, stringent regulations restricting the use of plastic for packaging are further driving their demand. Fiber drums are also lightweight and provide insulation to reduce thermal bridging in comparison to metal drums.

Porter's Analysis

Threat of new entrants: The chemical drums market requires high capital investment for setting up production facilities along with certification and quality standards. This makes it difficult for new players to enter the market.

Bargaining power of buyers: Buyers have moderate bargaining power in the chemical drums market as there are numerous established players offering a variety of product types. However, customized requirements increase buyer power.

Bargaining power of suppliers: The availability of raw materials like plastic and steel provides suppliers with moderate bargaining power over manufacturers. However, established drums makers sign long term supply agreements to maintain steady supply.

Threat of new substitutes: Metal and fiber/composite drums are substitutes but plastic drums are preferred for their corrosion resistance and cost effectiveness. New substitutes need to match performance at lower costs.

Competitive rivalry: The market is moderately concentrated with top players competing on product quality, price, certifications and sustainability. Small local players compete based on customized and niche solutions.

Geographical concentration: North America currently accounts for the largest share in the chemical drums market, driven by stringent regulations. Asia Pacific is expected to be the fastest growing market due to expansion of end user industries.

Fastest growing region: Asia Pacific is poised to emerge as the fastest growing regional market for chemical drums during the forecast period. This can be attributed to rapid industrialization, growing chemical industry, and favorable government policies promoting domestic manufacturing in countries such as China and India.

Geographical Regions:

North America currently accounts for the largest share of the global chemical drums market, primarily led by the United States. Strict regulations regarding the safe transportation and storage of chemicals are driving the demand for robust and sustainable packaging solutions in the region.

Asia Pacific is anticipated to witness the highest growth in the chemical drums market over the next few years. Rapid industrialization and infrastructure development activities coupled with a growing chemicals industry are fueling the need for quality drums in countries such as China, India, Indonesia, and Taiwan. The region’s low-cost manufacturing environment also attracts foreign investments and joint ventures between global and domestic drums companies.