According to a recent market study, the global market for industrial packaging is predicted to reach $61 billion by 2020, growing at an annual rate of over 3%.
Typically, industrial packaging can be defined as the secondary or tertiary packaging used for packing products required for industrial purposes. Industrial packaging also involves the storage, protection, handling, and transportation of various industrial products within the industry or with other end-use sectors. Industrial packaging is available in multiple shapes and designs and is suitable for numerous applications in end-user industries, such as food and beverage, chemical, construction, and pharmaceuticals. Rise in construction and building activities in emerging economies like India and China, growth of the food and beverages industry to meet the demand of the growing population, and the rapid growth of exports, which requires superior packaging standards for the international market are some of the significant factors that are expected to boost the growth of the industrial packaging industry, globally.
However, the growth of the industrial packaging industry is hampered by certain factors, which include:
- Assessing Sustainability: Today, packaging contributes towards the sustainability of a packaged product and should be planned holistically with that product to enhance overall environmental performance and minimize product wastage, damage, and spoilage. However, at present, there is no packaging solution that is entirely sustainable, and various packaging materials cannot be unambiguously classified as good or bad. All have their advantages and shortcomings depending on the product application, and tradeoffs are necessary to arrive at an optimum position.
- Regulatory Trends and Pressures: Life cycle analysis is an essential process for estimation and comparison of the environmental impact of different products. It is now being recognized that this process should not be performed on the packaging alone but should also be a component of the calculation of the environmental impact of the entire packaged product versus other alternatives.
These factors are compelling firms across the industrial packaging industry to leverage the use of market measurement studies. Market measurement studies help companies accurately measure the market size and provide insights into the marketing activities that should be carried out to gain a stronger foothold across the industry space.
The Business Challenge
- The Client: A leading industrial packaging firm
- Area of Engagement: Market measurement
A leading industrial packaging firm wanted to gain recommendations on consistent and defensible statistics to devise effective marketing programs and decrease the cost of customer acquisition. The client also wanted to gain insights into the potential markets across the industry. With the help of a market measurement study, the client also wanted to gain clarity on the total market size to help them design their marketing activities effectively.
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To help the client gain a clear view of the current and future market size, Infiniti’s market measurement experts carried out extensive interviews and discussions with leading stakeholders across the industrial packaging space. To help the client devise an effective marketing program across business units, the experts also collated information from company presentations, paid industry databases, and industry forums.
Solution Benefits and the Business Impact
The market measurement solution offered by Infiniti helped the client segment the market size by the application in terms of the product and geography and gain better visibility into the competitive landscape, employee size, and turnover. The solution also helped the client identify the potential customers for the company’s products and services and forecast the growth of the industry by using output estimates and essential macroeconomic indicators.
With the incredible rise in industrial activities in emerging economies, the market for industrial packaging has proliferated across the world. This is expected to influence this market over the next few years. Apart from this, the industrial packaging industry is anticipated to benefit significantly in the near future from the rising usage of high-value containers, which is fueled by the rise of industrial prosperity and the enhanced utility that these containers offer.