Tuesday 12 February 2019

Lubricant Packaging Market – Demand for Pails to Remain High

The global market for GCC lubricant packaging is experiencing an intense competition among its well established players. Players in the market are using novel manufacturing technology to make the market more competitive. Players in the market are spending heavy amount behind research and development activities to manufacture efficient market product, thus expanding the product portfolio. Apart from these, players are focusing on product advancements and product innovation which is likely to help them to expand their customer base and product differentiation. Some of the major players in the global GCC lubricant packaging market are Saudi Can Manufacturing Company Ltd, Mold Tek Packaging Ltd, First Press Plastic Moulders Ltd., Neelkamal Plastics Factory LLC., and Duplas Al Sharq.

According to a recent study by Transparency Market Research, the global GCC lubricant packaging market is predicted to expand at a robust CAGR of 3.30% during the assessed period 2016 – 2024. The market which was worth at US$162.7 mn in 2016 is likely to be valued at US$210.4 mn by the end of the assessed period. The market on the basis of end user is classified into chemicals, machine industry, oil and gas, power generation, metal working, automotive, and other manufacturing. Of these, the automotive sector holds the majority of the share owing to significant rise in the automotive sector. Booming automotive industry sector to provide lucrative growth opportunity in the market. On the other hand, chemical industry will exhibit a decent rise in the coming years. On the basis of region, Asia Pacific is anticipated to held the majority share and is predicted to dominate in the future owing to presence of major player and increase in economic conditions of the nations in the region.

Stringent Environmental Rules and Regulation to Hamper Market Growth

One of the major reasons that is helping the market to move in the forward direction is the several initiatives undertaken by the government to promote non-oil industries. Government of several countries are spending hefty amount behind non-oil industries to help it become one of the potential source of income. This is likely to help the population rely less oil industries which experiences recurrent volatility in the crude oil prices. However, on the other hand it has been noticed that the strict environmental rules and regulation imposed by various governing bodies are predicted to deter market growth.


Booming Automotive Sector to Boosts Market Growth

Rise in disposable income and rapid urbanization have significantly change people’s lifestyle. This has made them prefer premium and luxurious product resulting in increase in demand for vehicles. Rapid advancement in technology and extensive research and development activities to meet the ongoing demand for vehicles are indirectly helping the market. Rise in demand for vehicles results in high demand for lubrications. Consumption of lubricant in semi-liquid, liquid, or solid form is linked with the automobile industry. Surge in demand for packaging products such as intermediate bulk containers which store lubricant including process oil, grease, gear oil, and engine oil which are used in daily operation of automobiles is likely to foster market growth.

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