Plastic Drum Industry Analysis in Vietnam

Vietnam Plastic Drum Industry Outlook from 2023 to 2033

Sales of plastic drums in Vietnam are estimated to be US$ 39.9 million in 2023 and are anticipated to reach US$ 59.7 million by 2033. Sales of plastic drums in Vietnam are projected to expand at a CAGR of 4.2% from 2023 to 2033. In Vietnam, the revenue generated by plastic drums in 2022 was US$ 38.1 million and is anticipated to exhibit a y-o-y growth of 4.8% in 2023.

Paints, industrial coatings, and chemicals are set to hold around 39% share in terms of value by 2033. It is driven by exceptional chemical compatibility with both hazardous and non-hazardous liquids that grants versatility and reliability, catering to a wide range of industrial applications.

High-density polyethylene (HDPE) drums are anticipated to capture about 2/3rd of the share by 2023 and are expected to expand at a CAGR of 3.9% over the forecast period. Plastic drums with a capacity of above 210 liters are estimated to create an excessive financial potential of US$ 13.6 million between 2022 and 2033.

Attributes	Key Insights
Vietnam Plastic Drum Business Size (2022A)	US$ 38.1 million
Vietnam Plastic Drum Business Estimated Revenue (2023E)	US$ 39.9 million
Vietnam Plastic Drum Business Projected Revenue (2033F)	US$ 59.7 million
Value-based CAGR (2023 to 2033)	4.2%

In Vietnam, plastic drums are projected to experience lucrative growth from 2023 to 2033. The space is expected to foster an incremental potential of US$ 21.6 million, and the revenue is anticipated to expand 1.5 times its current value.

The plastic drum business in Vietnam is projected to display significant growth as the country has coastal areas that face the pressing need for innovative housing solutions. The concept of floating houses has gained traction as a viable housing alternative due to narrow land and limited environmental concerns.

Incorporating fluorinated or inert material coatings into the design of plastic drums can create an expansion opportunity for the manufacturers of plastic drums. These coatings act as a protective layer, preventing direct contact between contained chemicals and drum surfaces. This innovation has the potential to reduce the risk of contamination prominently, ensuring the integrity of reactive and sensitive materials during storage and transportation.

Coated plastic drums can be used in sectors with stringent quality and safety standards, such as pharmaceuticals, food, and chemicals. These are set to offer a safe and reliable packaging solution for safeguarding their products. Manufacturers can differentiate themselves by addressing the critical need for preventing contamination by application of material coatings and providing the appropriate solution that will build customer trust.

2018 to 2022 Vietnam Plastic Drum Industry Analysis Vs. 2023 to 2033 Forecast

Vietnam recorded a CAGR of 2.4% during the historical period, with a revenue of US$ 38.1 million in 2022 from US$ 34.7 million in 2018. The evolution of sectors, which has increased the quality of packaging at economical rates, has resulted in a high demand for plastic drums. The growth of the pharmaceutical and chemical sectors in the past several years has contributed to the increased demand for plastic drums.

Historical CAGR (2018 to 2022)	2.4%
Historical Value (2022)	US$ 38.1 million

Plastic drums fulfill the requirements for chemical and pharmaceutical packaging solutions due to their lightweight, reliability, durability, and cost-efficiency. These are suitable for liquid packaging, and they do not react to the chemicals kept inside them.

Increased demand from the food and beverage business will further fuel the demand for plastic drums, as these are reusable, safe, and convenient options for shipping and storage. The rising adoption of recycled and biodegradable plastic will open up expansion opportunities for plastic drum manufacturers.

Plastic drums are inexpensive when compared to metal drums, which is a prominent factor contributing to their increased adoption. They have gained a high share due to their widespread applications in both the commercial and residential sectors.

Increased use of high-capacity drums in the retail sector is another key booster for the growth of the plastic drum business in Vietnam. Plastic drums would help meet high-quality international shipping standards. Hence, they can be used for the transportation of both hazardous and non-hazardous materials.

Semi-annual Sales Analysis Update

The table presents the expected CAGR for the Vietnam plastic drum space over several semi-annual periods spanning from 2022 to 2033. In the first half (H1) of the decade from 2022 to 2032, the field is expected to surge at a CAGR of 3.3%, followed by a slightly higher growth rate of 4.0% in the second half (H2) of the same decade.  

Moving into the subsequent period, from H1 2023 to H2 2033, the CAGR is projected to decrease slightly to 3.5% in the first half and relatively less at 2.9% in the second half.

Particular	Value CAGR
H1	3.3% (2022 to 2032)
H2	4.0% (2022 to 2032)
H1	3.5% (2023 to 33)
H2	2.9% (2023 to 33)

Trends, Opportunities, and Challenges in Vietnam Plastic Drum Space

Attributes	Key Factors
Latest Trends	Growing Need for Plastic Drums: Several sectors, including chemicals, food and beverage, pharmaceuticals, and agriculture, have been driving up the demand for plastic drums in Vietnam. This is because they are more affordable than alternatives such as steel or fiber drums and have the qualities of being lightweight and durable. Regulatory Changes: Stricter environmental restrictions have been implemented by the government, which can have an impact on the plastic drum space. Laws pertaining to waste management, recycling, and single-use plastics can impact plastic drum designs and production. Sustainability: As in several other countries of the world, Vietnam is placing an increasing focus on sustainable materials and methods. This has raised interest in environmentally friendly and recyclable materials for the manufacturing of plastic drums.
Upcoming Opportunities	Demand from Chemical and Pharmaceutical Sectors: Plastic drums are heavily used by the chemical and pharmaceutical sectors. There will probably be a greater need for premium plastic barrels to transport and store their goods as these sectors expand in Vietnam.
Challenges	Environmental Issues and Regulations: The plastic drum business can face difficulties as a result of growing environmental consciousness and stringent environmental laws. More restrictions on the manufacturing and disposal of plastic items can result from worries about pollution and plastic waste. Competition from Alternative Materials: Steel, fiber, and composite drums are a handful of the alternatives that plastic drums must contend with. Certain sectors or applications can choose these materials above others due to attributes such as chemical compatibility, sustainability, or durability.

Sub-region-wise Insights

In the below table of the growth potential of plastic drums in Vietnam, CAGRs of the top two sub-regions are provided. Out of the two, Central Vietnam is set to lead the field by exhibiting a CAGR of 4.7% from 2023 to 2033. Southern Vietnam is expected to witness sales at a CAGR of 4.0%.

Sub region	Value (CAGR)
Southern Vietnam	4.0%
Central Vietnam	4.7%

Demand in Southern Vietnam Surges from the Manufacturing Sector

A significant industrial and economic center of the nation is found in Southern Vietnam, namely in Ho Chi Minh City and the areas that surround it. Several sectors are present in this area, such as chemicals, food and drink, medicines, agriculture, and more. For a variety of packaging and storage applications, these sectors are key users of plastic drums.

Southern Vietnam is renowned for having a strong manufacturing sector, which includes the creation of consumer products. A variety of goods, such as detergents, toiletries, and culinary components, are packaged in plastic drums.

The area has good access to international ports, which makes import and export operations easier. For companies that use plastic barrels as packaging materials for both export and domestic use, this is crucial. Similar to other regions of Vietnam, Southern Vietnam is bound by regional and national policies that oversee the manufacturing, utilization, and elimination of plastic items.

Availability of Raw Material in Central Vietnam to Fuel Demand

The plastic drum space in Central Vietnam is very competitive. Businesses in this area can encounter competition from both national and foreign firms. Companies in the plastic drum sector rely heavily on the accessibility of transportation infrastructure, the availability of raw materials, and the close proximity to suppliers and consumers.

Vietnam, particularly Central Vietnam, has seen a rising importance of environmental stewardship and sustainability. This can have an impact on the plastic drum production process and material selection, in addition to recycling and disposal issues. To increase productivity and product quality, producers of plastic drums can decide to engage in cutting-edge production methods, including injection and blow molding techniques.

Category-wise Insights

The table below highlights the demand for plastic drums in Vietnam by capacity and material type. Under material type, the PET segment will likely remain dominant in the assessment period at a CAGR of 4.8%. The below 210 liters segment is set to showcase a significant CAGR of 6.0% through 2033 in the field of plastic drums in Vietnam.

Segment	Value CAGR
Below 210 Liters (Capacity)	6.0%
PET (Material)	4.8%

PET Material to Lead the Plastic Drum Business in Vietnam by 2033

PET material is set to be utilized to make plastic drums, especially the smaller ones in Vietnam. Water, drinks, detergents, and chemicals are examples of non-hazardous liquids that are often packaged and stored in PET drums.

Compared to drums constructed of steel or high-density polyethylene (HDPE), PET drums are significantly lighter. This can result in less expensive shipping and simpler handling.

PET is a recyclable material that can be used to make new containers, such as plastic drums when it is recycled (rPET). This is in favor of measures pertaining to the circular economy and sustainability. PET is translucent, making it simple to see what is inside the drum. For quality assurance and product identification, this can be crucial.

One of the polymers that is recycled worldwide is PET. The market for recycled PET (rPET) is well established, and recycled PET is needed in several sectors, including packaging. Using PET for packaging applications requires strict adherence to food safety regulations and standards, particularly in sectors such as food and beverage. PET drums are anticipated to exhibit a CAGR of 4.8% and expand 1.6 times its current value in the forecast period.

Plastic Drums with Below 210 Liters Capacity to Show High Demand

Several sectors, including but not limited to chemicals, food and beverage, pharmaceutical, agricultural, and personal care items, employ small-sized plastic drums. Small plastic drums can be used for a wide range of goods, including powders, liquids, and granular materials.

They are generally lighter than their bigger counterparts, which can contribute to cost savings in transportation and ease of handling. The ability to stack several smaller plastic barrels can help conserve storage space.

Small plastic barrels would have to adhere to certain regulations, depending on the purpose and sector, particularly if they are used for sensitive or hazardous material storage or transportation. For small-sized drums, manufacturers frequently provide customization choices, such as handles, bungs, closures, and labels.

Competitive Landscape

Manufacturers operating in the Vietnam plastic drum business are investing in research and development of new and innovative designs, materials, and features. They are also focusing on enhancing the durability, performance, and functionality of the drums.

Key players are prioritizing the quality of the plastic drums, ensuring they meet the industry standards and regulatory framework. They are implementing rigorous testing procedures and quality control measures throughout the manufacturing process.

Leading players are further developing plastic drums with the help of recyclable materials and implanting eco-friendly manufacturing processes. They are offering recycling and reconditioning services for used plastic drums, which is contributing to low environmental impact and a circular economy.

For instance,

• In 2023, South Korea's advanced materials manufacturer SKC announced that it had chosen to locate a manufacturing plant for biodegradable plastics in Hai Phong, located in Northern Vietnam.
• Nhat Tien Manufacturing & Trading Co., the top producer of industrial drums and industrial packaging, announced a notable rise in net sales for the first quarter of 2023.

Scope of the Report

Attribute	Details
Estimated Vietnam Plastic Drum Business Size, 2023	US$ 39.9 million
Projected Vietnam Plastic Drum Business Value, 2033	US$ 59.7 million
Value-based CAGR	4.2%
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in US$ million and Volume in units
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Material, Capacity, Head Type, End-use, Sub-region
Key Country Covered	Northern Vietnam, Southern Vietnam, Central Vietnam
Key Companies Profiled	NHAT TIEN MANUFACTURING & TRADING CO; ZONEPACK VIETNAM INDUSTRIAL COMPANY LIMITED; TP PLASTICS; VIETTIEN PLASTIC COMPANY LIMITED; EXEL PLASTECH; THIEN PHONG TRADE PROMOTION COMPANY LIMITED; THANH PHUC PLASTIC; MISUMI VIETNAM CO., LTD; HIEP THANH PLASTIC PRODUCTION AND TRADING JOINT STOCK COMPANY

Vietnam Plastic Drums Segmentation by Category

By Material:

• HDPE
• PET

By Capacity:

• Up to 210 L
• Above 210 L

By Head Type:

• Open Head
• Closed Head

By End-use:

• Oleochemical
• Food and Beverage
• Flavors and Fragrance
• Paints, Industrial Coatings, Chemicals
• Petroleum and Lubricants
• Pharmaceuticals
• Agrochemicals
• Others

By Sub-region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Frequently Asked Questions

At what rate will the Vietnam plastic drums business grow by 2033?

The Vietnam plastic drum business is set to rise at a CAGR of 4.2% by 2033.

What was the worth of the Vietnam plastic drum space in 2022?

The worth of the Vietnam plastic drum space in 2022 was US$ 38.1 million.

In 2033, what will the size of the Vietnam plastic drum business be?

In 2033, the business is anticipated to reach US$ 59.7 million.

What is the key driver for Vietnam's plastic drum space?

The ability of plastic drums to offer resistance to UV rays is a key driver.

Who are the leading players operating in the business?

Key players operating are Nhat Tien Manufacturing & Trading Co. and Exel Plastech Limited Company.