Flexible packaging has gained significant momentum since past couple of years on the back of rising need for cost efficient, light, re-usable and customizable, such as flexitanks. Demand for flexitanks across various industries, due to their convenience and eco-friendly features is expected to increase, especially when it comes to storage along with transportation. In addition, flexitanks offer higher payloads compared to other solutions. For instance, SIA flexitanks, as compared to IBCs, bottles, and drums, offer a 15%, 50%, and 44% more payload respectively, making them a suitable solution for transportation.
Rising Shipping Costs to Favour Global Flexitanks Market Growth
Trade volume has been on the rise since past years worldwide. According to World Trade Organization, in 2019, global trade, including commercial services and merchandise, was estimated at around US$25 trillion with manufactured goods accounting for 70% in that year. However, with increasing trade volumes, the shipping costs have also risen significantly, calling for cost efficient packaging options to balance out the cost factor. E-commerce companies have also been reporting increased shipping costs. For instance, Amazon reported a 46% rise in its shipping costs in 2019, reaching 10-billion-dollar figure in the third quarter. Moreover, according to Council of Supply Chain Management Professionals, in 2018 businesses in the United States spent over US$ 1.6 trillion on mere logistics, an 11.4% rise compared to the previous year. Considering these aspects, companies are looking for cheaper and cost-effective packaging and transportation solutions, which is likely to fuel demand for flexitanks.
Flexitanks’ Sustainable Feature to Influence their Demand in the Food Industry
Food wastage, especially during transportation is on the rise. U.S. Department of Agriculture stated that around 33% of food worldwide goes into waste, representing a volume of 1.3 billion tons each year. Inappropriate transportation of food from harvest to commercialization stage is critical factor accounting to food loss. According to Food and Agriculture Organization, 14% of food is lost in transit worldwide. This is mainly due to container deterioration, development of unwanted biotic material, rodents, and insects. Against this backdrop, food manufacturing companies are focusing on investing in sustainable storage and transportation solutions such as flexitanks, which is expected to spur its demand in the food industry.
Oil and Chemical Spills in International Waters Call for Use of High-Capacity and Less Weight Solutions Such as Flexitanks
Moderate growth in the seaborne transportation and maritime trade has translated into increasing chemical and oil spills in international waters. For instance, according to NOAA (U.S. National Oceanic and Atmospheric Administration) and ITOPF (International Tanker Owners Pollution Federation Limited), 63 oil spills we recorded in 2010, which increased to 137 spills in 2018 every month. Inefficient storage during transit was the main problem for majority of these oil spills. Typically, containers manufactured using alloys and metals are heavy, superseding the vessel weight. This imbalance results in rupture and damage to ships causing massive losses. This concern has resulted in use of less weight, high-capacity solutions, in turn paving new growth opportunity for flexitanks.
North America to Showcase High Growth Potential Followed by its Asian Counterparts
North America region is expected to provide high growth opportunities for manufacturers of flexitanks on account of growing flexible packaging demand. For instance, in the US, flexible packaging sales were around US$32 Bn in 2018, which increased by US$1.6 Bn to reach US$33.6 Bn in 2019, according to FPA (Flexible Packaging Association). Based on these facts, scope of growth of flexitanks is likely to increase, making North America a favourable market. Moreover, presence of various industries in this region due to favourable government policies is another aspect which is likely to favour growth of flexitanks in the coming years.
Likewise, emerging economies in the Asia Pacific, especially India and China, have shown higher inclination towards use of sustainable packaging solutions such as flexitanks. For instance, exports of agri products from India have played a major role in growth of flexitanks market in Asia Pacific. For instance, according to IBEF, India exported dairy products amounting to USD 183 million and pulses worth US$ 261.47 million during the April 2020 – February 2021 timeline. Potential for growth certainly lies in emerging economies and manufacturers of flexitanks can leverage this factor to gain high ground in APAC.
Few of the key players in the global flexitanks market include Bulk Liquid Solutions, Braid Logistics, SIA Flexitanks, Environmental Packaging Technologies, and Trans Ocean Bulk Logistics.
Key Elements Included In The Study: Global Flexitanks Market
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