Flexitank Market Overview
The flexitank market size is forecast to reach US$1.2 billion by 2027 after growing at a CAGR of 12.3% during the forecast period 2022-2027. Flexitanks or flexible tank containers are the best way to transport non-hazardous liquid cargo like chemicals and food items in bulk. Flexitank acts as an alternative to a tank container. It is a flexible, temporary, or permanent bulk liquid container storage solution that stores the product safely until it is discharged. Flexitank is defined as a hermetically sealed, collapsible, and flexible bladder which is fitted into a standard container. Flexitanks commonly used by the industry can hold up to a maximum of 24,000 liters of liquid cargo. It is made of numerous layers of polyethylene or polyvinyl chloride and a woven polypropylene outer covering. The increase in wine exports acts as a driver for the flexitank market.
The Covid-19 pandemic has fundamentally changed the way of life. Its effects have been felt across every industry. The transport and logistics industry has also not been spared. The continuation of logistics services help guarantee the provision of food, medical and pharmaceutical supplies, and all essential items. But border closures, import-export bans, etc. severely crippled supply chains. International organizations such as World Health Organization (WHO), World Trade Organization (WTO), and World Customs Organization (WCO) issued recommendations and directives for countries, regarding health measures, trade, and customs, respectively, to try to contain the health, social and economic impact of the pandemic. The WHO advises against travel or trade restrictions because those measures are very costly in social and economic terms. Restrictions on international travel implemented in the wake of the pandemic contributed to disrupting freight transport, business travel and the supply of services which proved to be detrimental to the economy as its effects are still being felt in the form of supply chain disruptions.
Flexitank Market Segment Analysis – By Tank Type
The multi-layer segment held the largest share in the flexitank market up to 65% in 2021. Flexible tank container liners are layers that line the container so that the product inside does not touch the container itself. Multi-layer flexitanks are generally made up of an outer layer of woven polypropylene and 4-5 layers of polyethylene. The main advantage of the multilayer flexitanks is that each layer is very thin and flexible, making it very easy when the unloading is done to roll the empty flexitank to not waste any liquid. The multiple layers also protect the cargo from getting contaminated. The flexitank’s oxygen and moisture barrier properties are vital for the transportation of food-grade liquids. Therefore, the multi-layer segment is set to dominate the market.
Flexitank Market Segment Analysis – By Application
The food segment held the largest share in the flexitank market up to 30% in 2021. Flexitanks are ideal for the safe storage and transport of food-grade liquids, such as milk, juices, wines, syrups, edible oils, etc. Flexitanks provide a more cost-effective and reliable alternative for the transport of food liquids via sea, rail, and land. The flexitank consists of several layers each containing pumps and valves that play a vital role in sealing off air as well as water, thereby making them both airproof and waterproof. This makes sure that the product inside the flexitanks remains intact and uncontaminated. This property makes flexitanks completely safe and secure for the transportation of edible oils. Health-conscious consumers are buying olive oil compared to other edible oils due to its numerous benefits. According to the latest data from the International Olive Council (IOC), global olive oil production reached 3,010,000 tons in 2020/21. Spain and Greece and the largest olive oil-producing countries. Olive oil production in the European Union is expected to reach 1.98 million tons in 2021/22, according to preliminary estimates from the European Commission. The final production and trade figures from the European Union for 2020/21 confirm a growing trend. According to the latest EU estimates, the international olive oil trade will not stop growing until at least 2030. As the demand for olive oil grows, the use of flexitanks for transportation will also increase as flexitanks are cheaper than other methods of transportation. Therefore, the food segment is set to dominate the flexitank market during the forecast period.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=510208
Report Price: $ 5900 (Single User License)
Flexitank Market Segment Analysis – By Geography
The Asia-Pacific region held the largest share in the flexitank market in 2021 up to 45% owing to the food processing industry and agriculture in the region. Palm oil forms the largest cargo group within the vegetable oil sector. Indonesia and Malaysia account for 85% of global production. According to the Solvent Extractors’ Association of India (SEA), imports of edible oils rose 63% to 16.98 lakh tons during September 2021, a monthly record, due to all-time high shipments of palm oil. The total import of vegetable oils, comprising both edible and non-edible oils, increased 66% during September 2021 to 17,62,338 tons compared to 10,61,944 tons in September 2020, according to the SEA. As the pandemic raged, the global demand for juices increased as people began consuming juices to boost their immunity. Apple juice concentrate is one of China’s primary juice exports and international sales have risen sharply. According to customs statistics, the export volume of apple juice concentrate during the first half of 2020 reached 245,000 tons with a total value of $254 million, corresponding to YoY increases of 140.1% and 98.7%, respectively. Therefore, with the growing trade of fruit juices, edible oils, and other liquid foods, this region is expected to dominate the flexitank market.
Flexitank Market Drivers
Increasing Wine Trade
Though wine production was low in 2020 and 2021 partially due to the pandemic, the wine trade was booming in 2021. According to the International Organization of Vine and Wine (OIV), the international wine trade, measured in value, in the first semester of 2021 increased by an impressive 21% from 2020. The big driver is trade in sparkling wine that was up 26% from 2020 and up 12% compared to 2019. The top five exporters, in value, are France, Italy, Spain, Chile, and Australia. Flexitanks are the ideal transport option for bulk wine transportation. After transportation, the wine can be bottled at the destination. On average, flexitanks hold around 24,000 liters equal to 30,000 bottles. According to the Journal of Commerce, the trend of shipping wine in flexitanks, food-grade flexible bladders inserted into 20- or 40-foot dry intermodal containers, rather than in bottles, began due to wine importers moving their products in bulk quantities due to an increase in ocean freight rates. According to the Wine and Spirits Shippers Association, in 2020, one of the key factors for the increase in flexitanks was the 25% tariffs levied on various European wines in the US. It is economical to ship wine in bulk instead. Therefore, the increasing wine trade drives the flexitank market.
Advantages Over Traditional Transportation Containers
Flexitank is currently the most efficient, flexible, and economical alternative to transporting non-hazardous liquids. It is a disposable and recyclable flexible tank container that provides a safe and sustainable solution for transporting liquids. In addition, the Flexitank allows reducing enough associated costs, compared to other systems such as ISO containers, cisterns, barrels, etc. One of the problems with using a regular tank is cleaning it after transportation. Sometimes something gets left behind in the tank and cross contaminates the liquid inside resulting in lost profit. But flexitanks eliminate this, as most are single-use and can be discarded after. Flexitanks are recyclable making them eco-friendly. Flexitanks have about 30% more volume than standard ISO tanks and most bulk liquid carriers. This allows for the transport of more liquid in one go and thus reduces logistics costs. Flexitanks are easy to load and unload on account of the pumps and valves which translates to fewer labor requirements and reduced payroll costs. Thus, the advantages of flexitanks over traditional transportation containers drive the flexitank market.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=510208
Flexitank Market Challenges
Fluctuating Raw Material Prices
The COVID-19 pandemic has shaken up the plastic production chain. Polyolefins are widely used for manufacturing a range of products. The production of polyolefins has been significantly hit. As most chemical plants worldwide were shut in the beginning months of 2020, there was a shortage of polyolefins which drove up the prices of polyvinyl chloride (PVC), polypropylene, and polyethylene, the three most consumed polyolefins. In the US, PVC prices have climbed 45.5 cents/lb ($1,003/mt) since June 202o. The hurricanes later in 2020 made matters worse as many factories were destroyed. Hurricane Ida’s landfall in Louisiana prompted five US PVC plants representing 41% of North American PVC capacity to shut down. Such problems have resulted in price hikes. As polyvinyl chloride, polypropylene and polyethylene are used to make flexitanks, such challenges can impact the flexitank market.
Flexitank Industry Outlook
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Flexitank top 10 companies include:
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=510208
A. Smart Packaging Market- Forecast (2022-2027)
B. Packaging Adhesives Market- Forecast (2022-2027)
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to email@example.com to discuss more about our consulting services.