The Global Chemical Drums Market is growing rapidly driven by sustainable packaging solutions

The chemical drums market involves manufacturing and sales of drums made from plastics and metals that are used for storage and transportation of chemicals and hazardous substances. Drumliners, drum pumps, and other accessories are commonly used with chemical drums. Chemical drums made from high-density polyethylene (HDPE) or polyethelyne terephthalate (PET) provide corrosion resistance and are widely preferred for general-purpose chemicals. Steel drums are suitable for flammable and toxic chemicals due to their strength and resilience. The growing chemical industry and stringent safety norms regarding packaging and handling of chemicals are driving the demand for chemical drums.

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.

Sustainable packaging solutions that enable safe transportation and storage of chemicals are fueling market growth. Chemical companies are increasingly adopting recyclable and reusable drums to reduce plastic waste.

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 chemical industry output in Asia Pacific and Latin America due to developing economies is driving the demand for chemical drums in these regions. Chemical companies are expanding their manufacturing plants which is increasing the procurement of chemical drums.

Stringent safety and environmental regulations stipulate the use of UN-approved packaging for chemical transport and storage. This is fueling the replacement demand for chemical drums. Manufacturers offer a variety of drums certified by regulatory bodies like DOT and IMDG to meet compliance.

Market key trends

Sustainable packaging is a major trend in the chemical drums market. Manufacturers offer recyclable drums made from recycled plastics and refurbish steel drums multiple times. Lightweight drums made of high-performance plastics reduce packaging costs and carbon footprint. Drum pumps and liners that minimize chemical exposure during transfer are gaining popularity. New drums are integrally designed for easy cleaning and disposal at the end of product life. These trends are enabling a circular economy approach in chemical drum supply chain.

Porter’s Analysis

Threat of new entrants: The chemical drums market requires large initial investments for production lines and facilities. There are also extensive regulatory procedures to comply with environmental safety norms that discourage new firms.

Bargaining power of buyers: Buyers have moderate bargaining power as the chemical drums market is fragmented with many manufacturers. However, large buyers can negotiate lower prices due to bulk orders.

Bargaining power of suppliers: Plastic resin and steel sheet suppliers have moderate power due to the availability of substitute raw materials. However, suppliers of specialized chemicals for drum coatings have some power.

Threat of new substitutes: New substitutes like returnable bulk containers and tank trucks pose a threat, but drums still offer advantages in safe and affordable transportation of smaller chemical loads.

Competitive rivalry: The market is highly competitive with the presence of many small and large manufacturers globally. Players compete based on product quality, price, and supply chain efficiency.

Geographical Regions

North America accounts for the largest share in the chemical drums market in terms of value due to extensive agriculture, pharmaceutical, and petrochemical industries. The adoption of sealed plastic drums for chemical storage and transport complies with stringent safety norms.

The Asia Pacific region is expected to be the fastest growing market for chemical drums during the forecast period owing to the rapidly expanding chemical production in China, India, Southeast Asia, and other developing economies. The demand is driven by growing domestic manufacturing industries and chemicals trade within the region.