Hazardous Goods Packaging Market Size, Companies and Industry Analysis

The global hazardous goods packaging market size reached US$ 11.50 billion in 2023 and is projected to hit around US$ 21.38 billion by 2034, expanding at a CAGR of 5.80% during the forecast period from 2024 to 2033. Increasing launch of the new pesticides is rising the demand for the hazardous goods packaging which is expected to drive the growth of the global hazardous goods packaging market over the forecast period.

Market Overview

The market for packaging hazardous materials is essential to guaranteeing the secure handling, storage, and transit of hazardous materials. It includes a broad range of packaging options made to abide by global laws and safeguard the environment and public health. This market provides services to businesses that handle and transport hazardous materials, such as manufacturing, chemicals, medicines, and oil and gas. In other words, the term “hazardous goods packaging” describes the specific materials and containers used for storing and moving hazardous materials. These products might contain hazardous, flammable, corrosive, or explosive materials that could explode or leak during transit, posing serious dangers.

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The packing group of the item affects the appropriate packaging of hazardous materials as well. The United States Federal Aviation Administration defines a packing group as a collection of items arranged according to the level of risk they provide. The materials in the packing group are divided into three categories: items posing high hazard (packing group I), materials providing medium danger (packing group I), and moderate danger (packing group Ill).

Growth Factors

Emerging markets for hazardous goods packaging is expected to drive the growth of the global hazardous goods packaging market over the forecast period.

• Increasing focus on cost reduction and production efficiency can drive the specialty market growth further.
• Increase in adoption of the advanced technology for the production of hazardous goods packaging is estimated to drive the growth of the global hazardous goods packaging market in the near future.
• Increasing regulatory support is estimated to drive the growth of the market over the forecast period.
• Increasing demand for the degradable tamper-evident caps and safe packaging for petrochemicals is estimated to drive the growth of the market over the forecast period.
• The key players operating in the market are focused on adopting the inorganic growth strategies like merger for expansion of market according to trend which is expected to drive the growth of the global hazardous goods packaging market over the forecast period.
• Increasing launch of the new policy like funding by the government to support hazmat packaging and raw material manufacturing is expected to drive the growth of the market over the forecast period.

Market Dynamics

Driver

Increasing Launch of Chemical and Petrochemical Industries

Petrochemicals are essential to raising living standards in developing nations and promoting sustainability in developed ones; they are found in most of the things use on a daily basis. Petrochemicals are used in electric cars, solar panels, wind turbines, batteries, insulation, and even can be made from recycled and renewable feedstock. Technological improvements, increased understanding of the products’ applications, and population growth all have a significant impact on the growing demand for petrochemical products in developing nations like India. Moreover, increasing launch of the new chemical and petrochemical industries has risen the demand for the hazardous goods packaging and is estimated to drive the growth of the hazardous goods packaging market over the forecast period.

The Drums Segment to Hold Lion’s Share in the Market

The drums segment held the dominating share of the global hazardous goods packaging market in 2023. Drums are frequently used for both non-hazardous and hazardous material storage and transportation. In addition, there is an increasing need for drums for the transportation of hazardous materials due to the growth of numerous end-user sectors like chemicals, pharmaceuticals, and others.

Drums, which may hold around 200 liters, are used to store practically every kind of chemical, including medicinal liquids. For the past few years, manufacturers and logistics businesses have also reused the drums after taking significant safety measures as returnable shipment packaging. All of these factors are anticipated to increase demand for the hazardous goods packaging and estimated to drive the growth of the market over the forecast period.

Chemical and Petrochemical Industries to Lead the Market

The chemical & petrochemicals segment witnessed the significant growth in 2023. Enclosing chemical materials for storage, distribution, sale, and use is known as chemical packing. Packaging protects, preserves, and labels the chemical that is being carried and kept. The primary growth driver of the hazmat packaging industry is the increase in demand from the petroleum and chemical sectors. To maintain the fierce competition, major firms are implementing a variety of tactics, including new launches and acquisitions. Specialized tools and containers are needed by the petrochemical industry to guarantee product safety during packing.

How Manufacturing Industries in Asian Countries Support the Hazardous Goods Packaging Market?

Asia Pacific dominated the hazardous goods packaging market with the largest share in 2023. Rapid urbanization and industrial growth in Asia Pacific region has driven the growth of the hazardous goods packaging market in the Asia Pacific region. Mainly because of the extensive manufacturing in nations like China, India, and Vietnam. Furthermore, a major factor in the growth of the chemical, pharmaceutical and automotive industries in the region is the population’s fast urbanization. Furthermore, the Asia-Pacific hazmat packaging market is growing at a substantial rate because to the region’s vast population base, increasing urbanization, and robust economic expansion.

Hazardous Goods Packaging Market in North America to Grow Rapidly

North America is expected to witness the fastest growth over the forecast period due to rapid industrialization as well as increasing launch of the new petrochemical and chemical industries is rising the demand for the hazardous goods packaging which is estimated to drive the growth of the hazardous goods packaging market during the forecast period. Increasing launch of the hazardous goods packaging and expansion of service offering which is estimated to drive the growth of hazardous goods packaging market over the forecast period.

For instance,

• In January 2024, American Labelmark Company Inc., company focused on providing packaging solution revealed the expansion of the packaging business by launch of the range of the UN-certified plastic pails drums, and plastic containers from packaging producer Curtec.

The UN-certified containers launched by the American Labelmark Company Inc. company are developed to securely store, fill and transport a wide range of hazardous powders and solids. The newly launched curtec’s products are intent to ship a solid or powder in a regulated industry, such as speciality chemicals, pharmaceuticals, food products and agriculture.

Europe is estimated to be the second fastest growing region over the forecast period owing to increasing launch of the new hazardous goods packaging material and box which is expected to drive the growth of the hazardous goods packaging market in Europe over the forecast period.

For instance,

• In March 2023, Electrolux Group, home appliance company, revealed the introduction of the paper-based material certified by the Forest Stewardship Council with 70% less ink. The corrugated paper based material is used for shipping AEG small appliances and Electrolux electrical home appliances.

Recent Developments

• In January 2024, Bormioli Pharma, pharmaceutical and medical devices packaging company, signed partnership with Loop Industries, Inc., company providing cleaning technology solution, to manufacture pharmaceutical packaging bottles which are 100% resistant to chemicals and sustainable.