Octabins Market Report

Due to increasing e-commerce, the octabin market has experienced sharp growth due to its ease of handling logistic services. Thus, the e-commerce market is fuelling the growth of the octabins market. According to the data of the International Trade Administration, China is considered the largest e-commerce market globally, as the world's 50% of e-commerce transactions are carried out in China itself. Also, China has recorded a total of 710 million digital buyers and has achieved the mark of US$ 2.29 trillion in transactions in 2020 and is forecasted to reach by the end of 2024 a target of US$ 3.56 trillion. Furthermore, China has surpassed the United States in the year 2021, being the largest e-commerce market, generating a revenue of US$ 1.5 trillion. The use of octabins in the agricultural market is due to rising demand for grains, crops, fruits, etc. The transportation of such goods needs safety as the risk for spoilage is high. According to the data from the United States Department of Agriculture, the demand for fruits has globally risen, and the global production of apples is expected to reach 700,000 tons, where high exports are expected due to high production and consumption.

The major challenge that is faced by the manufacturers of octabins is the challenge of the available alternatives for octabin. Alternatives such as pallets and drums have been considered by various manufacturers, especially in the chemical industry, where the use of jerry cans is done to transport chemicals. Thus, due to the highly productive alternatives available in the market, the growth of octabins is hampered. Also, the initial cost challenge is a huge obstacle for various manufacturers. The initial cost needed to buy the octabins is relatively high, which acts as a challenge for various small and medium-scale businesses as the budget that can be allocated to specific operations is limited. The next challenge faced by the various manufacturers is regarding the fragility of goods; octabins may not be used for transporting all sorts of goods. The use of octabins is not considered a better option for the transportation of highly sensitive goods, which require some kind of special packaging, which limits the growth of the octabins market.

In January 2022, Smurfit Kappa was one of the major providers of paper-based packaging solutions around the globe, which had completed an investment of over USD 33 million in Brazil to expand the capacity of its plant to cater to the rising demand for innovative and sustainable packaging. The expansion, including the installation of a new corrugator, significantly outspread the plant’s shelf-ready packaging capability for FMCG consumers in a range of sectors, including home appliances, fresh fruit, and pharmaceuticals. In December 2021, Mondi opened a new laboratory in Ceske Budejovice, which was an ISTA-certified laboratory. This was a hub for developing and producing eCommerce packaging and one of its Central European corrugated solutions flagship plants. Various test was performed by the laboratory including ISTA 6 certification which is done by testing packaging.

Due to the growth in the United Kingdom's agricultural industry, the use of octabins is expected to grow in the whole of Europe and especially in the United Kingdom. According to the data of the Department for Environmental Food and Rural Affairs in 2021, the agricultural industry of the United Kingdom was made up of 216 thousand farm holdings. Where the land that was utilized for agricultural purposes was 17.2 million hectares, which is a total of 71% of UK land. Thus, due to the rising production, the use of octabins to transport goods is forecast, which makes the United Kingdom a promising market. Asia Pacific region, especially China, needs to be focused due to the rising number of factories and rising production. According to the ENGLISH.GOV.CN, THE STATE COUNCIL, THE PEOPLE'S REPUBLIC OF CHINA, about 124 million businesses are set up in China, of which 22.58 million were started in 2023, where a growth of 11.4% was recorded. Hence the rising industry boost is forecasted to boost the demand for supply chains and octabins. Also, due to growing industries, the shipment volume of China can be considered a lucrative market.