Among various end-use industries that use bulk bags, the chemical industry will emerge as dominant. According to a study by Future Market Insights (FMI), within Europe, the market is expected to surpass US$ 1.6 Bn by 2021. The expansion of the chemical industry will bolster growth opportunities for the market in Europe.

Besides this, implementation of ambitious trade policies aimed at improving export of industrial goods is expected to bode well for the market. In an increasingly uncertain trade environment, free trade agreements such as CETA and EU-Japan Economic Partnership Agreement contribute to increased trade activity and foster economic growth. These policies will continue favoring the expansion of the market.

Increasing adoption of flexible packaging in bulk chemicals and materials transportation, including petrochemicals, basic inorganics, polymers, specialty chemicals, consumer chemicals, and others is majorly driving the demand for bulk bags in European countries. In addition to this, convenience and affordable pricing of bulk bags with abundant availability of plastic raw materials are driving sales in the market.

As per FMI, 1&2 loops bags will emerge as top-selling product categories. &2 loops bags are the most attractive among end-use industries as these provide optimal efficiency, cost-effective, easy-to-handle elements for agriculture, fertilizers, and other applications. The segment is estimated to hold around 28% market value share by 2021.

Key Takeaways from Bulk Bags Market

• Increasing focus on improving trade will favour bulk bags sales in Europe, enabling the market to rise at a steady 3.4% CAGR between 2020 and 2030
• Negatives sales likely in the U.K. amid COVID-19, however, recovery of the market is expected 2022 onwards
• 2021 and 2022 to remain uneventful years as Germany and France might continue registering declining sales, demand is expected to increase 2022 onwards
• Despite decelerating sales, Benelux is expected to register a positive growth at little below 1% in 2021

“Due to the increasing need for flexible transportation packaging formats, especially in the chemical & fertilizer industries, for shipping of bulk materials, the demand for bulk bags is expected to rise considerably in Europe” says FMI analyst.

Reusable Bulk Bags to Shape Europe Bulk Container Industry

Bulk bags used in transportation of bulk material. These bags allow flexible packaging and can be reused in a closed loop scheme. A closed loop scheme is a practise in which bulk bags are washed and prepared to be reused for application for which they were initially designed. In a closed loop scheme, bulk bag manufacturers, customers, and end operators collaborate to reuse bulk bags. To carefully reuse them, inside dirt needs to be eradicated.

Most common designs of bulk bags have a long shelf life of almost five years. Some bulk bags such as those that comprise special chemical coats, may in reality have comparatively shorter shelf life due to the gradual chemical breakdown of the coating. There is growing acceptance of reusable bulk bags, as they offer efficient and economical solution. Meanwhile bulk bags are lightweight and offer easily compressible storage options much like or even superior to cardboard boxes and other flat paper products. The high strength and sturdy design make bulk bags a better option than conveying thousands of tones in crushed cardboard boxes.

Rise in Raw Material Prices Likely to Hamper Market Growth

Flexible Intermediate Bulk Containers (FIBCs) or bulk bags are generally made from raw materials such as polyethylene and polypropylene. It is expected that petroleum-based raw materials account for roughly 60-70% of the total production cost of bulk bags. Fluctuation in raw materials prices is a major restraint in maintaining economical prices of bulk bags for export point of view. The result of increasing crude oil rates is also likely to be reflected, further overstressing the pricing load on operating companies.

Impact of COVID-19 on Bulk Bags Market

With the increase in challenging situation during COVID-19 pandemic, the gains in bulk bags had decline considerably. Therefore, the Y-o-Y growth rate in the year 2020 end has been reduced by nearly 1% in contrast to that of 2019. Moderate negative influence on the demand for bulk bags packaging among agriculture and food industries is witnessed, due to troubles in the down supply chains.  

Contrary to this, increase in business of pharmaceutical and some specialty chemical products among various countries has been observed in the last quarter of 2020. Producers are stressing on the sterile bulk bags packaging for ensuring safe transportation of drugs and medicine products which is projected to uplift the sales of bulk bags in the European market.

Who is winning?

Grief, Inc., Berry Global Group, Inc., Intertape Polymer Group, Conitex Sonoco, LC Packaging International BV, Bag Corp, Sackmaker J&HM Dickson Ltd., Emmbi Industries Ltd., RDA Bulk Packaging Ltd. Conrop, s.r.o., MANICARDI srl, Sokuflex Behälter GmbH, Bulk Containers Europe BV, DIV Trades d.o.o., TiszaTextil Plastic Processing and Sales LTD., PLASTCHIM-T AD, Pera Plastic Czech s.r.o., Romtextil SA, EUROFLEX FIBC LIMITED, and BLOCKX GROUP are the prominent players in the Europe bulk bags market. The Tier 3 players in the market hold 70-80% in the Europe bulk bags market. In conclusion, key players contribute almost 20-30% of the Europe demand.

For More Details, Ask Analyst @ https://www.futuremarketinsights.com/ask-question/rep-gb-13034

Bulk Bags Market by Category

Product Type

• 1&2 loops bags
• Four loop big bag
• Form stable big bag – Q-bag
• Anti-static big bag – Antistatic Bag
• Big bag with valve Cross Corner Bag
• UN Big bag – Food Bag

End Use

• Building & Construction
• Chemicals & Fertilizers
• Food Products & Agriculture
• Pharmaceuticals
• Mining

Country

• Germany
• Spain
• Italy
• France
• U.K.
• Benelux
• Nordic
• Russia
• Poland
• Rest of Europe

The post Europe Bulk Bags Market to Hold a High Potential for Growth by 2020-2030 appeared first on Market Research Blog.