Type-C Bulk Bags Market

Vendor-managed Inventory Programs Allowing Packaging Flexibility amid Coronavirus Outbreak

The COVID-19 pandemic has disrupted daily lives of people and affected manufacturers’ supply chains to a great extent. Companies in the Middle East & Africa type C-bulk bags market are witnessing plant closures and labor unavailability. New potential outbreaks of coronavirus in India, Pakistan, Canada, and other countries are emerging as challenges for stakeholders. Hence, manufacturers are increasing the availability of on-demand type C-bulk bags and FIBCs (flexible intermediate bulk containers) to meet end user requirements.

Companies in the Middle East & Africa type C-bulk bags market are gaining awareness about vendor managed inventory programs that are inviting and encouraging customers to take advantage of large-scale warehouse facilities to store their packaging materials. These programs are allowing flexibility to clients to enjoy the benefits of obtaining their packaging products as per their needs.

Awareness about Ground Connection Preventing Industrial Accidents

The Middle East & Africa type C-bulk bags market is expected to reach US$ 1 Bn by 2029. However, human error, while using type C-bulk bags can lead to industrial accidents, owing to a broken or missing ground connection. Stakeholders are creating awareness about ground connection and risks associated with potentially damaged bags that help to prevent industrial accidents.

Manufacturers are offering competitive type C-bulk bags and FIBCs to their clients in order to gain an edge over other market players. They are increasing efforts for in-house production processes such as granulating, wire drawing, testing, and packaging, among others.

In-house Control of Production Processes Resulting in Cost Savings

The Middle East & Africa type C-bulk bags market is slated to register a modest CAGR of 5.2% during the forecast period. Manufacturers are increasing focus in FIBC bags and polypropylene (PP) fabrics manufacturing and marketing. They are investing in modernized plants and increasing training for skilled workers. In order to gain a competitive edge over other market players in the potentially fragmented market landscape, companies are teaming up with professionals excellent in designing and selling.

The in-house control of production processes are being associated with cost savings in the Middle East type C-bulk bags market. Manufacturers are boosting their production capabilities in products complying with ISO (International Organization for Standardization) norms. The customizable type C-bulk bags are being preferred by end users.

Continuous Product Innovations Contribute to Sustainability, Enable Regulation Compliance

Continuous product innovation and utilization of advanced manufacturing technologies are contributing to the recognition of Gulf Plastic Industries, which has a comprehensive portfolio in FIBCs and type C-bulk bags. Companies in the Middle East & Africa type C-bulk bags market are leveraging incremental opportunities in the minerals & ores, chemicals, and construction industries, among others. In order to stay competent, manufacturers are conforming to stringent international standards, especially to expand their revenue streams in agriculture and pharmaceuticals industry.

The sustainability aspect is gaining prominence in the Middle East & Africa type C-bulk bags market. They are increasing output capacities in bags that eliminate the need for pallets or secondary packaging. This helps to save on transportation and storage costs.

Preference for UV Resistance, Protection against Dangerous Static Discharges

There is a growing demand for FIBCs that protect against dangerous static discharges through grounding of the bag itself during the filling & discharging processes. The manufacturers in the Middle East & Africa type C-bulk bags market are constructing bags with conductive carbon, silver core, or steal threads woven into fabrics. Such bags are considered to be potentially safe when grounded, as any electrostatic potential that builds up as a result of rapid filling or discharging quickly & safely exits the bag to the ground. This is being achieved via the network of conductive fibers woven into the fabric of the bag.

The manufacturers in the Middle East & Africa type C-bulk bags market are aiming for UV resistance in bags to protect materials from harmful sunrays.

Analysts’ Viewpoint

Besides vendor-managed inventory programs, companies in the Middle East & Africa type C-bulk bags market are focusing on customer demands in food, agriculture, and essential industries such as pharmaceuticals to stay afloat during the coronavirus pandemic. However, type-D FIBC bulk bags are emerging as an alternative to type C-bulk bags. Hence, companies should adopt advanced manufacturing technologies and invest in continuous product innovation to improve the quality & safety of type C-bulk bags. The carbon graphite thread conductor technology is being used by manufacturers to aid in grounding of any static charge produced due to the fast filling of the bag. The ultra-molecular carbon additives are being inserted into the material of bags.

Middle East & Africa Type-C Bulk Bags Market: Overview

• According to Transparency Market Research’s latest report on the Middle East & Africa type-C bulk bags market for the historical period of 2013-2020 and forecast period of 2021-2029, the market is anticipated to be driven by the remarkable expansion and penetration in various end-use industries, along with the increasing innovation in type-C bulk bags by various key players
• The MEA type-C bulk bags market in Middle East & Africa is expected to expand at a CAGR of 5.2% during the forecast period

Extensive Demand from Chemical & Fertilizers Industry Driving Type-C Bulk Bags Market in Middle East & Africa

• In chemical & fertilizers industry, maintaining the integrity and composition of the chemical and agriculture-based product/materials is important. Therefore, the use of type-C bulk bags prevents the contamination of the product as well as ensures human safety to handle the product. 
• When dealing with dangerous or hazardous nature of chemicals, secure storage is very important to keep the operations efficient and safe, and protect the products during transportation
• Type-C bulk bags are designed to handle high-temperature chemical products or corrosive chemical solutions, which, thereby, is a responsible factor to driving the market for type-C bulk bags in the region

Fluctuation in Raw Material Prices and Shortage of Labor Might Hamper Market Growth 

• Type-C bulk bags are generally made of polyethylene and polypropylene as raw materials. The irregular obtainment or procurement of the raw materials according to the different factors such as seasons, weather, etc. may restrict market growth. 
• Manufacturing of type-C bulk bags is not a completely automated process and requires manual procedures, which involves the involvement of labor, while manufacturing the bags. Shortage of labor, along with the shortage or lack of technology can hamper the manufacturing process of type-C bulk bags, which is likely to restrict market growth. 

Rising Pharmaceutical Production to Create Growth Opportunities for Type-C Bulk Bags Market

• The pharmaceutical industry is another major consumer of bulk bags or FIBCs. With growing population and increasing ageing population, growth in the number of patients, rise in the number of non-communicable diseases, more and better access to healthcare facilities to individuals, and rise in ‘middle-class’ population across emerging economies are anticipated to increase the demand for pharmaceuticals across the world.
• In the pharmaceutical industry, chemical raw materials that serve as reactants, reagents, catalysts, and solvents are usually flammable by nature and tend to catch fire when exposed to any flammable or explosive gas in the environment. Hence, type C bulk bags have emerged as a cost economical packaging solution and are thus, seen to have increased penetration in the pharmaceutical industry.

Penetration of FIBC Compared to Other Rigid Packaging Driving Sales of Type-C Bulk Bags

• FIBCs when compared with rigid packaging alternatives not only saves space but also money, i.e, they are cost-effective. They are an extremely safe way to transport and store construction materials. They are also used for transporting large amounts of soil, stone, and other materials. The flexibility of FIBC bags is an added advantage, which accommodates high working loads with ease. As FIBC bags maintain shape, they can be easily customized as per the bag design to fit into the preferred method of transport.

Middle East & Africa Type-C Bulk Bags Market: Key Findings

• TMR observed that, by capacity, small type-C bulk bags is forecast to hold more than 5/7th of the market share by 2029. The targeted segment is expected to offer an incremental opportunity of US$ 200 Mn during the forecast period.
• Based on design, the U-panel segment followed by the cross-corner segment is anticipated to hold more than half portion of the market by the end of 2025. The same segments are expected to expand at a CAGR of 6.9% and 4.7%, respectively. 
• Even though the open-top & flat bottom segment by filling and discharge is expected to have the highest market share, but the spout top & flat bottom has a promising growth opportunity and also is expected to provide an incremental opportunity of US$ 96.5 Mn during the forecast period
• In terms of end user, the chemical & fertilizers segment is estimated to hold more than 1/2th portion of the market share by the end of 2029, and the same segment is expected to expand 1.6 times the current market, along with offering an incremental opportunity of US$ 183.89 Mn.
• GCC countries are expected to account for around 34% of the MEA market value share by 2029 and are expected to witness substantial growth during the forecast period. The same segment has a high penetration of type-C bulk bags and is projected to clock a CAGR of 5.7% during the forecast period.

Middle East & Africa Type-C Bulk Bags Market: Competition Landscape

• TMR observed that the global type-C bulk bags market is extremely competitive for emerging new players considering the highly established existing players operating the market. This competition among key players is carefully studied and understood based on recent developments, strategies to capture the market, and segmental revenue of the companies over the past five years. 
• In the recent study of the type-C bulk bags market, TMR team included profiles of leading players. This includes
  • Olympic Bulk Bags Pty Ltd.
  • LC Packaging International BV
  • Gulf Plastics Industries
  • Jumbo Plastics Industry LLC
  • Plastochem F.Z.C
  • Akma Packaging Industries LLC
  • Anwar Makkah General Trading LLC
  • Starlink Dubai LLC
  • Bramani FIBC S.A.
  • Tufbag
  • Cape Bulk Bags
  • Custom Bulk Bags
  • M.G Bags CC
  • Sunny bag (Pty) Ltd.
  • among others
• TMR segmented the type-C bulk bags market players as Tier 1, Tier 2, and Tier 3 as per their segmental revenue. Among these players, Tufbag, LC Packaging International BV, Custom Bulk bags, and some other major players are identified as Tier 1 players. In 2019, these companies hold an increasing market share of ~10-15%. The Tier 2 players are Gulf Plastic Industries, Jumbo Plastics Industry LLC, Olympic Bulk Bags Pty Ltd, and some other major players. Tier 3 players are Anwar Makkah General Trading LLC, Plastochem F.Z.C, Akma Packaging Industries LLC., Sunny Bag (Pty) Ltd., and other players from across the globe.

COVID-19 to Slowdown Growth Opportunities for Type-C Bulk Bags Market

• The type-C bulk bags market experienced a negative slope in growth during the COVID-19 pandemic period. The MEA type-C bulk bags market is expected to decline in 2021 with a year-on-year growth rate of nearly -0.1% from 1.8% in 2021. The reason behind the declined market growth is ongoing barriers that restricted the expansion and penetration of various end-use industries, such as food, chemicals, and fertilizers, which are large consumers of type-C bulk bags.
• Slowdown in operations in various end-use industries, restriction on working hours, limited resources, disturbed supply chain, and barriers on transportation & shipping across the globe affected various industries in many countries during the COVID-19 pandemic
• According to TMR analysis, the type-C bulk bags market is expected to gain propulsion among end users 2022 onward, owing to the increased demand from food, chemical, construction, pharmaceuticals, and other industries. However, effective planning and decisions by regulatory authorities and key players also forecast to gain motion ahead.