Bulk container packaging to see robust growth

Bulk container packaging is used to store and transport beverages, oils & fat, non-hazardous chemicals, pharmaceuticals and food products in large quantities. Flexitanks, flexible intermediate bulk containers (FIBC) and bulk container liners are primarily used for bulk container packaging globally. Flexitanks are multi-layered bulk liquid containers with an outer covering of polypropylene and inner layers of polyethylene. In terms of capacity, these containers range from 14,000 to 24,000 liters. Product segments include flexitanks, flexible intermediate bulk containers (FIBC) and bulk container liners. In terms of revenue, FIBC was the largest segment in the global bulk container packaging market in 2013. Flexitanks held a smaller share of the global bulk container packaging market; however, the segment is expected to expand at the highest growth rate in the next few years. In terms of revenue, the bulk container liners segment accounted for over 35% of the market share in 2013, as per Research and Markets. FIBCs are industrial containers manufactured from woven polyethylene or polypropylene. These are designed to transport dry and flowable products. FIBCs are classified in terms of electrostatic properties such as anti-static and conductive. Bulk container liners are available in blown film and woven fabric forms. These are primarily used in the transportation of dry free-flowing materials or chemicals. Increase in exports of vegetable oil from Southeast Asia and wine from Europe is expected to boost the bulk container packaging market. Vegetable oil exporters prefer flexitanks over other bulk packaging products such as drums, barrels and tank containers, due to low cost and higher operational efficiency. Usage of flexitanks lowers glass and bottling costs, import duties and overall transportation cost for wine exporters. Hence, wine exporters prefer flexitanks for bulk wine transport. Furthermore, high operational and cost efficiency of flexitanks as compared to barrels and intermediate bulk containers (IBC) is anticipated to drive the market. However, volatility in prices of raw materials is likely to hamper the growth of the bulk container packaging market. Polyethylene and polypropylene are the major raw materials used in the manufacture of flexitanks, FIBC and bulk container lining. These raw materials are petrochemical derivatives, and hence, are subject to crude oil price volatility. Increase in commodity trade in BRICS countries is projected to provide immense opportunities for players in the bulk container packaging market.