Bulk containers are large-capacity cubic polyethylene containers used for transporting liquids and mixtures intended both for nutritional and non-nutritional purposes. IBC containers can be of the following standard holding capacities: 600 liters, 800 liters and 1,000 liters. IBC containers have international clearance to transport hazardous substances.

IBC containers are used for transporting liquids. They are used in the food and non-food industries. Non-food industries consume 90% of all IBC containers. The share of the food industry accounts for about 10% of all IBC containers.

Table1 Products transported in IBC containers (in percentage)

Source: Abercade Research Company

According to their holding capacity, ICB containers are subdivided into three types: small (600 liters), medium (800 liters) and large (1,000 liters). The dimension-type of IBC containers depends on the size of the pallet on which the container stands, and the holding capacity of the container itself. Pallets are of the following sizes: for 600-l containers – 1,200x800 mm, for 800-l containers – 1,200x1000 mm, and for 1,000-l containers – 1,200x1000 mm. The most widespread are 1,000-l containers. Their share in total consumption constitutes 80%. Containers of the other two capacities constitute the shares of 15% and 5%.

Since IBC containers are new to Russia, their production started relatively recently.

Table 2 Output of IBC containers by holding capacity

Source: Abercade Research Company

The high cost of new containers gave a powerful impetus to their secondary market. There are specialized companies, which buy dirty containers, wash them using special equipment, and sell in the secondary market at a price 40-50% lower than the new ones.

The share of the secondary market as compared to the primary one is rather high. According to experts, it constitutes approximately 80% of the primary market.

Table 3 Rating of supplier countries

Source: Federal Customs Services, Abercade Research Company

The main suppliers of IBC containers to Russia are Turkey, Poland, Poland, Lithuania and Germany. Their share in total imports is from 81.7% to 93.7%. The share of other countries is insignificant.

Table 4 Import structure according to holding capacity of IBC containers

Source: Federal Customs Services; estimates: Abercade Research Company

It is clear from the table that IBC containers with a holding capacity of 1,000 liters are the most popular ones. Their share in total imports constituted 85.3% in 2006 and 87.6% in 2007.

The Russian market of IBC containers is not saturated yet, and its growth in kind constituted 11% in 2006-2007. However, many consumers have realized the advantages of this type of polymer packing. They are used as an alternative to barrels, canisters and tanks. Their usability and durability makes them more attractive.

According to experts, in the nearest future the market will be growing by 5-7% annually mostly thanks to consumers in the non-food industry. The market is likely to be saturated only in some 2 or 3 years.