Warehouse Drums and Barrels Market

COVID-19 Impact Analysis

• The COVID-19 pandemic ceased the production of various products in the warehouse drums and barrels industry, which is attributed to the global lockdown. This has hampered the growth of warehouse drums and barrels market in the years and a similar trend is expected to be seen in the first half of 2022.
• The major demand for warehouse drums and barrels was previously noticed from giant developed and developing countries, including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for warehouse drums and barrels.
• Further, the long-term impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Warehouse drums and barrels manufacturers can afford a lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
• Warehouse drums and barrels manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce. 

Top Impacting Factors

Businesses in the chemical industry, such as paints and solvents, are witnessing a rise in demand, which is attributed to the rise in industrialization. This factor is anticipated to boost the demand for warehouse drums and barrels. Further, due to rise in the aging population across the world, the pharmaceutical sector is increasing significantly. This is one of the factors likely to increase demand in the warehouse and barrel market. Further, the warehouse drums and barrels make it easier to handle and transport the liquid and powder cargo, which is one of the driving factors for the demand for demand in the warehouse and barrel market. However, the plastic drums are a cause of great concern as they are contributing to an increase in pollution. This is one of the restraining factors currently hindering the growth of the warehouse drums and barrel market. On the contrary, the ongoing developments in eco-friendly plastic can resolve the issue of pollution due to plastic containers, and it is expected to create lucrative opportunities for the warehouse drums and barrels market growth during the forecast period.

Market Trends

• Many businesses in the warehouse drums and barrels market are adopting collaboration as a growth strategy. For instance, in November 2021, warehouse drums and barrels manufacturer, SCHÜTZ expanded its partnership with Bayern-Fass by acquiring its minority stake. Both companies have been in collaboration for decades in order to recondition industrial packaging. Their new shared goal is to improve the closed loop economy between them and grow in a sustainable manner. 
• Similarly, competitors in the warehouse drums and barrels market adopted acquisition as their key developmental strategy to expand their geographical foothold and upgrade their product technologies. For instance, in November 2019, North America based Tank Holding Corporation, a market leader in polyethylene tanks and containers, acquired Chem-Tainer Industries. Chem-Tainer is a manufacturer of polyethylene tanks and containers for both chemical and water applications and also offers products for other material handling markets. This acquisition will help Tank Holding enhance its product portfolio.
• Moreover, business expansion strategies assist in enhancing the geographic footprint of the company and help in gaining significant market share for warehouse drums and barrels products. For instance, in September 2021, Mauser Packaging Solutions, a provider of packaging solutions and services, significantly investment in installing new production machinery to expand its IBC and plastic drum production capabilities at its Gebze, Turkey facility. This move will further enhance the production capacity to meet rise in demand in warehouse and drums market.

Key Benefits of the Report

• This study presents the analytical depiction of the warehouse drums and barrels industry along with the current trends and future estimations to determine the future investment pockets.
• The report presents information related to key drivers, restraints, and opportunities, along with detailed analysis of the warehouse drums and barrels market share.
• The current market is quantitatively analyzed to highlight the warehouse drums and barrels market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed warehouse drums and barrels market analysis based on competitive intensity and how the competition will take shape in coming years.