19-Jun-17 Global demand for Flexible Intermediate Bulk Container (FIBC) will register CAGR of 6.3% by 2021, as per ReportsnReports.com. According to the flexible intermediate bulk container industry report, the increased production and trade of horticulture products and chemicals have boosted the need for bulk packaging and hence, the demand for FIBCs. FIBCs are used in chemical, fertilizers, and food sectors. Significant growth in sectors such as food and horticulture, which are posting above average CAGRs, has led to a considerable increase in the demand for FIBCs. The growing need to reduce the overall weight of the bulk packaging and transporting materials is a major factor driving the demand for packaging sacks in the construction, chemical, and fertilizer sectors.
Commenting on the flexible intermediate bulk container market report, an analyst says the growing environmental concern about the usage of synthetic plastic, which is mostly derived from petroleum feedstock, has encouraged the industry to develop eco-friendly plastics for consumers. Companies such as Braskem and The Dow Chemical Company have been investing heavily in developing technologies to produce bio-based polymers through biomass. We expect that bio-based polymer will be produced more than 2.5 times than its volume in 2015. Its volume was around 6.6 million tons in 2015, which is expected to grow to more than 16.7 million tons by 2020. Globally, polypropylene and polyethylene are the widely used plastics for the production of FIBCs. Increased demand for bio-based products has shifted the focus of manufacturers from synthetic to bio-based polypropylene for the production of FIBCs. Further, the report states that fluctuations in the price of raw materials are another major challenge faced by vendors in the global FIBC market. Crude oil and natural gas are the major sources of naphtha and ethylene, which are the basic materials used to manufacture polypropylene. The polypropylene market and manufacturers have been facing challenges in areas such as fluctuation in the demand and supply of raw materials and volatility in prices.
The flexible intermediate bulk container market study conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.
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