Chemicals Segment Driving Fiber Drums Market Growth
North America is expected to have high potential growth.
The global fiber drums market is estimated to grow at a compound annual growth rate (CAGR) of 7.1% during the forecast period of 2018-2027, according to a recent report from Future Market Insights (FMI). Regionally, the Asia-Pacific Excluding Japan fiber drums market is expected to remain in the leading position during the forecast period.
Fiber drums are used for storing and shipping products including adhesives, dye and colorants, and various hazardous chemicals. Fiber drums can be a cost-effective alternative to more expensive plastic and steel drums or barrels and offer eco-friendliness due to their recyclability. The sturdy drums can hold a great deal of weight in either liquid or solid form.
The report suggests that the chemical segment is expected to play a key role in the growth of the fiber drums market during the forecast period. The drums are expected to have substantial growth in many emerging countries, thanks to the rise in demand of fiber drums in the retail sector.
Manufacturers are adopting fiber drums as they reduce manufacturing costs and increase efficiencies. North America is expected to have high potential growth, considering that most of the manufacturing sector has been captured by the chemical segment in fiber drums. The growth in intercontinental trade of fertilizers and chemicals is anticipated to boost the growth of the global fiber drums market, according to the report. China is expected to be at the forefront, spearheading the growth of the Asian fiber drums market during the forecast period. The fiber drums market has reportedly witnessed rapid growth in the past couple of decades due to a steady rise in the end-use industry. However, fluctuation in plywood or Kraft paper prices may affect the fiber drums market globally.
The growing retail sector and increasing use of high-capacity drums are some of the key drivers for the growth of the global fiber drums market. Budding demand in end-use applications such as chemical, food and agro-allied industries is also escalating the market. Fiber drums are required to meet certain high-quality international shipping standards. Hence, both hazardous and non-hazardous materials can be transported in them.
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