Flexible Intermediate Bulk Containers Procurement Category Market Research Report from IBISWorld has Been Updated

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Flexible intermediate bulk containers (FIBCs) have a buyer power score of 3.3 out of 5, reflecting a moderate level of buyer bargaining power in the negotiation process, aided by low product specialization, minimal market share concentration, marginal switching costs and a wide availability of substitutes. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Flexible Intermediate Bulk Containers Procurement Category Market Research Report from IBISWorld has Been Updated in its growing collection of procurement category market research reports.

IBISWorld procurement market research
During the three years to 2015, the price of FIBCs has increased due to rising input costs and demand from key downstream markets

Flexible intermediate bulk containers (FIBCs) have a buyer power score of 3.3 out of 5, reflecting a moderate level of buyer bargaining power in the negotiation process. Factors that work in the buyer's favor include the low level of product specialization, low market share concentration, low switching costs and the wide availability of substitutes.

“Manufacturers are generally flexible with their pricing terms because FIBCs are typically homogeneous, with only minor differences in quality and functionality. This uniformity means that suppliers compete on the basis of price, so buyers can use this competition as leverage to obtain favorable prices and contracts,” according to IBISWorld business research analyst Jeffrey Cohen. The top manufacturers are Silgan Holdings Inc., Greif Flexible Holdings and Berry Plastics Corporation. These vendors are all public companies that have been successfully delivering and providing a wide variety of FIBCs to downstream buyers for many years. Further helping buyers in this market is the low level of market share concentration. Because no vendor dominates the market, buyers are able to shop around among many viable vendors for a favorable deal. Additionally, there is a wide availability of substitutes and low switching costs, which positively impact a buyer's purchasing power. A wide availability of substitutes enables buyers to purchase alternative products if suppliers in the FIBC market do not offer the price or functionality that buyers seek. Low switching costs allow buyers to easily switch suppliers and familiarize themselves with their new supplier's processes and personnel if they are dissatisfied with their current supplier.

Prices for FIBCs have grown during the past three years as a result of rising input costs and demand among downstream markets. “The price of synthetic fibers, the product's main input, has increased in recent years, placing upward pressure on FIBC prices. However, the price of synthetic fibers is forecast to rise at a slower rate through 2018, somewhat limiting the rate at which FIBC prices increase during the forecast period,” Cohen says. Because FIBC prices are expected to rise through 2018, buyers are encouraged to lock in contracts sooner rather than later. For more information, visit IBISWorld’s Flexible Intermediate Bulk Containers Procurement Category Market Research Report from IBISWorld has Been Updated procurement category market research report page.

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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of flexible intermediate bulk containers (FIBCs). FIBCs are specialized bags used for storing and transporting dry, flowable products such as sand, fertilizers and granules of plastics. Suppliers of FIBCs are manufacturers and wholesalers. The primary types of buyers of FIBCs are ocean and coastal transportation companies, industrial supplies wholesalers and industrial building construction companies. Intermediate bulk containers are excluded from the scope of this report.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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