The flexitank market is estimated to be USD 366 million in 2018 and is projected to reach USD 912 million by 2023, at a CAGR of 20.0%.
The majority of flexitanks are consumed in the food-grade liquids, non-hazardous chemicals, and pharmaceutical liquids applications. Increase in the demand for flexitanks around the globe is primarily driven because of the economic benefits of flexitanks. These include environment-friendly nature, requirement of lesser time and efforts in filling and discharging these tanks, and compatibility with a large number of industrially viable fluids along with reducing risk of cross-contamination of liquids.
These tanks are also less expensive as compared to ISO tanks and drums. It saves around 50.0% on packaging cost and can transport 10.0% more cargo than ISO tanks and 30.0% more cargo than drums. Also, as they are single use bags, so there is no issue of its maintenance cost, whereas ISO tanks and drums require proper cleaning after each shipment. Thus, flexitanks are capturing a competitive edge over other alternatives which is favorable for its market growth.
The food-grade liquids segment dominates the flexitank market and is expected to register the highest CAGR during the forecast period. Growth in the adoption of flexitanks for food-grade liquids transportation is expected to drive the demand for flexitanks. Edible oils and apple juice are largely exported from the APAC region. Orange juice, wine, and juice concentrates are exported in large quantity from North America, South America, and Europe. Compared to these, food-grade liquids and non-hazardous chemicals are traded or exported in less quantity from Europe and North America. This scenario creates the demand for flexitanks from food-grade liquids application segment.
APAC is estimated to account for the largest share of the flexitanks market in 2018, owing to the growing production of edible oils, latex, pharmaceutical liquids across the region. APAC is the largest producer and exporter of palm oil and other edible oils. Also, APAC countries such as Thailand, Malaysia, Indonesia, Myanmar, and Singapore are the largest producer and exporter of latex. Together these countries export more than 75.0% of latex. This scenario across the region is favorable for the growth of the flexitank market during the forecast period.