USA Flexitank Market Outlook to 2030

USA Flexitank Market Overview

• The USA Flexitank Market was valued at USD 169 million in 2023. The rising demand in industries such as chemicals, pharmaceuticals, and food & beverages, which require the safe transport of non-hazardous liquids, is a key driver for market expansion.

• Major players in this market include Braid Logistics, Bulk Liquid Solutions, Trans Ocean Bulk Logistics, SIA Flexitanks, and Environmental Packaging Technologies (EPT). These companies dominate the market due to their extensive logistics networks and innovative product offerings designed to meet the stringent requirements of bulk liquid transportation.
• In 2022, SIA Flexitanks was included in the Ireland Inc US 250 Index, which recognizes the top Irish businesses operating in the United States. This acknowledgment underscores the company's commitment to quality and customer satisfaction in the U.S. market.
• California remains a dominant state in the Flexitank market due to its robust agricultural and chemical industries. In 2023, the state accounted the largest market share, with an increasing number of companies utilizing flexitanks for the export of wine, olive oil, and chemical products. The states proximity to key export ports and its progressive environmental policies have made it a leader in adopting sustainable flexitank technologies.

USA Flexitank Market Segmentation

The USA Flexitank Market is segmented into different factors like by product type, by application and region.

By Product Type: The market is segmented by product type into single-use and reusable flexitanks. In 2023, single-use flexitanks held a dominant market share, primarily due to their wide acceptance in industries like food & beverages and chemicals, where cross-contamination risks are a concern. Single-use flexitanks provide a cost-effective solution for transporting non-hazardous liquids, and their one-time use helps avoid cleaning costs and contamination risks. However, the shift towards sustainability is pushing manufacturers to innovate with reusable solutions.

By End-user Industry: The market is also segmented by end-user industries, including food & beverages, chemicals, pharmaceuticals, and others. The food & beverages industry dominated the market in 2023, largely due to the increasing demand for bulk transportation of edible oils, wines, and juices. Flexitanks are ideal for this sector due to their ability to maintain liquid quality and hygiene, minimizing the risk of contamination during transportation.

By Region: The market is segmented into four key regions north, south, east, and west. The Western region dominated the market in 2023 due to its extensive export activities and focus on sustainable solutions. The region's proximity to major export ports, coupled with the high demand for bulk liquid transportation in industries such as agriculture and chemicals, has propelled it to the forefront of the market.

USA Flexitank Market Competitive Landscape

• SIA Flexitanks: In March 2022, SIA Flexitanks launched theTrinity Tank, a unique tripod-shaped flexitank designed to enhance the loading of various liquids. This innovation reflects SIA's dedication to meeting the evolving needs of its customers and maintaining a competitive edge in the market.
• ASF Logistics: In November 2023, ASF Logistics announced the expansion of its Flexitanks unit, aimed at promoting this highly efficient and eco-friendly solution for transporting non-hazardous bulk liquid cargo. Known for its exceptional global logistics services, ASF is now bringing its reliable, high standards to the bulk liquids sector through the enhanced Flexitank product line.

USA Flexitank Market Analysis

Growth Drivers

• Cost-Effective Transportation Solution: Flexitanks provide a highly cost-effective alternative to traditional methods like drums and ISO tanks for transporting bulk liquids. A single flexitank can hold up to 24,000 liters, significantly reducing the number of containers required. This translates into savings on freight costs, labor for handling, and storage. Additionally, flexitanks' single-use feature eliminates cleaning and maintenance expenses, making them a preferred choice for medium-sized bulk shipments across industries like food, chemicals, and pharmaceuticals.
• Increase in Global Liquid Trade: This market has been impacted by the increasing volume of liquid trade across the globe. The ability to store and transport large quantities of liquids has become crucial for industries such as agriculture, chemicals, and pharmaceuticals, leading to strong demand for flexitanks that can hold between 16,000 and 24,000 liters per unit. The demand for bulk liquid transportation services is forecast to continue expanding in 2024, supported by economic recovery and the expansion of trade.
• Rising Export of Agricultural Products: The rising export of agricultural products is driving the increased use of flexitanks, which ensure safe and efficient transport of liquids like wine and edible oils. Their cost-saving advantages, combined with the growing demand for bulk transportation of perishable liquids, have led to widespread adoption. Flexitanks offer a reliable solution for maintaining product quality during transit, supporting the continued growth in agricultural exports.

Challenges

• Environmental and Recycling Challenges: Strict U.S. regulations on plastic usage are driving up production costs for flexitank manufacturers as they shift to sustainable materials, leading to higher prices for end-users. Additionally, limited recycling infrastructure for flexitanks in the U.S. exacerbates environmental concerns, as the lack of facilities to process high-grade plastics hinders recycling efforts, potentially slowing market growth.
• Volatile Raw Material Costs: The market faces challenges from fluctuating prices of key raw materials like polyethylene and polypropylene. Supply chain disruptions and geopolitical tensions have caused significant price increases, putting pressure on manufacturers. These rising production costs are passed on to customers, potentially leading to higher prices and slowing market growth as the cost of flexitanks becomes less competitive.

Government Initiatives

• Low Carbon Transportation Incentives: The California Air Resources Board (CARB) has allocated $676 million for the Low Carbon Transportation Program in FY 2022-23, part of California's Climate Investments. This program aims to reduce greenhouse gas emissions and improve public health, focusing on disadvantaged communities. An additional $575 million from the General Fund supports zero-emission vehicle (ZEV) adoption in both light and heavy-duty transportation. This initiative is vital in driving the adoption of cleaner technologies in logistics, including the flexitank industry.
• U.S. Environmental Protection Agency: The U.S. Environmental Protection Agency (EPA) released its Draft National Strategy to Prevent Plastic Pollution in April 2023. The strategy aims to eliminate plastic waste by 2040, focusing on reducing single-use plastics, improving recycling infrastructure, and preventing plastic from entering waterways. Key actions include promoting the use of reusable systems, funding composting initiatives, and enhancing public outreach on proper plastic disposal. This initiative is vital for industries using plastic products, including flexitank manufacturers, pushing them to adopt more sustainable practices.

USA Flexitank Market Future Outlook

The USA Flexitank Market is projected to grow exponentially by 2028, driven by continued growth in export activities and the increasing adoption of flexible liquid storage solutions across various industries. The pharmaceutical sector, in particular, is expected to witness high demand due to stringent handling requirements for liquid chemicals, leading to a robust growth trajectory over the forecast period.

Future Market Trends

• Growth in Agricultural Exports Will Drive Flexitank Demand: Over the next five years, the USAs agricultural exports are set to expand, particularly in products like edible oils and juices. This will drive a greater demand for flexitanks, which are ideal for efficiently transporting large quantities of liquid products. As companies continue to seek cost-effective and environmentally friendly transportation solutions, the adoption of flexitanks is expected to rise, supported by advancements in agricultural trade.
• Increased Adoption of Recyclable and Biodegradable Flexitanks: The use of recyclable and biodegradable flexitanks will become more prevalent by 2028. With rising environmental concerns and stricter regulations, companies are shifting towards eco-friendly packaging materials. This transition is expected to stimulate further innovation in the market, particularly in the development of sustainable solutions that align with global efforts to reduce plastic waste. Flexitank manufacturers offering biodegradable options will likely experience strong growth, driven by industry demand for sustainable logistics solutions.