Southeast Asia Steel Drum Industry to Surpass USD 954 Million by 2035 as Manufacturers Push for Safety, Sustainability, and Innovation

The Southeast Asia steel drum industry is on the cusp of significant transformation. Valued at USD 485.0 million in 2025, the market is projected to nearly double to USD 954.0 million by 2035, achieving a compound annual growth rate (CAGR) of 7.0%. With robust demand coming from sectors like chemicals, petroleum, lubricants, and food-grade products, steel drums are increasingly viewed as an essential backbone of industrial packaging and logistics.

Steel Drums: Trusted, Durable, and Sustainable

Steel drums are not new to Southeast Asia’s industrial economy, but their role has grown dramatically in recent years. They are valued for their durability, safety, and recyclability, qualities that make them indispensable in transporting both hazardous and non-hazardous materials.

The market is being shaped by accelerating cross-border trade, rising environmental concerns, and stricter regulatory frameworks. These factors are pushing both long-established leaders and emerging players to rethink their strategies. Investments are flowing into automation, coating technologies, and reconditioning services that extend drum life while supporting sustainability.

"Steel drums are no longer just packaging—they are part of global supply chain integrity," said a senior executive from Greif Inc., one of the largest global packaging providers.

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Key Market Segments Driving Growth

Capacity: The Rise of the 55-Gallon Standard

The 55-gallon steel drum segment holds 63.4% of the market in 2025 and is expected to remain dominant through 2035. Its leadership stems from universal acceptance in international logistics, compatibility with handling equipment, and compliance with UN safety standards.

Manufacturers like Mauser Packaging Solutions and Schütz GmbH & Co. KGaA continue to optimize production for the 55-gallon format, ensuring consistent supply and cost-efficiency. By 2035, this size could account for close to 90% of the market, cementing its role as the industry’s workhorse.

Material: Carbon Steel at the Core

With a 71.2% share in 2025, carbon steel dominates the material segment due to its strength, affordability, and adaptability. Carbon steel drums are widely used in the chemical and petroleum industries, where reliability is critical.

Emerging manufacturers such as PT Karya Sarana Drumindo and Pelangi Indah Canindo are exploring cost-effective coatings and linings to enhance corrosion resistance, giving carbon steel even greater longevity. While stainless steel is gaining traction in pharma and specialty chemicals, carbon steel will remain the backbone of production in Southeast Asia.

Head Type: Tight Head Drums Take the Lead

The tight head segment, with 58.6% share in 2025, has become the preferred option for liquids and volatile substances. Its robust sealing properties and compliance with international safety certifications make it especially important for exporters.

Companies like Balmer Lawrie & Co. Limited and Nippon Steel Drum Co. Ltd. are incorporating advanced welding techniques and innovative gasket materials, enhancing product integrity and user trust.

Industrial and Regional Drivers

1. Industrialization and Infrastructure Boom: Countries such as Vietnam, Indonesia, Malaysia, and Thailand are rapidly industrializing. Government programs like Vietnam’s 2025 Industrial Development Strategy, which aims for annual petrochemical growth of 10% until 2040, directly boost drum demand.
2. Chemical and Petroleum Expansion: Malaysia’s chemical sector alone is forecast to grow by more than 30% over the next seven years, creating significant opportunities for steel drum suppliers.
3. Sustainability Focus: With environmental concerns mounting, steel drums are winning over businesses for their reusability and recyclability. Companies like EcoDrum Sdn Bhd and Jurong Barrels & Drums Industries Pte Ltd are capitalizing by offering drum reconditioning and refurbishment services.
4. E-Commerce and Logistics Growth: The rise of e-commerce is amplifying demand for robust packaging solutions that ensure product integrity during transport. Steel drums’ durability makes them increasingly relevant in this space.

Established Leaders and New Entrants

The industry features a blend of global heavyweights and agile local players:

• Global Leaders: Companies such as Greif Inc., Mauser Packaging Solutions, and Schütz GmbH & Co. KGaA are leading innovation, expanding portfolios to include stainless steel drums, self-closing lids, and recycled-material solutions.
• Regional Manufacturers: Firms like PT Rhem Indonesia, Tbk., Malayan Metal Works, and Saeng Thai Metal Drum Co., Ltd. are focusing on local production efficiency and expanding capacity to meet domestic and export demand.
• Emerging Innovators: Businesses such as Pyramid Technoplast Ltd. and Indonesia Raya Makmur PT. are investing in eco-friendly solutions, while startups like Global Barrels Industries Pte Ltd are targeting niche markets with specialized coatings and custom designs.

This competitive mix ensures customers benefit from both scale-driven reliability and flexibility in customization.

Recent Developments: Technology and Sustainability

• Mauser Packaging Solutions (June 2024): Introduced a new range of stainless steel drums tailored to chemical and pharmaceutical industries.
• Schütz Container Systems (March 2024): Launched steel drums with self-closing lids, enhancing safety for hazardous material transport.
• Enviro-Pak (January 2024): Rolled out steel drums made entirely from recycled materials, a major leap toward circular economy goals.

These innovations show how companies—both established and emerging—are investing in technology, materials, and sustainability practices to future-proof the industry.

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Historical vs. Forecast Growth

Between 2020 and 2025, the industry grew at 4.6% CAGR, supported by manufacturing expansion and regulatory compliance. From 2025 to 2035, growth accelerates to 7.0% CAGR, driven by industrialization, sustainability, and rising global trade.

In financial terms, the market will add USD 439.2 million in value by 2035, representing a 2X expansion compared to its 2025 base.

Looking Ahead: Opportunities and Challenges

Opportunities

• Growth in construction and chemical sectors across Southeast Asia
• Rising pharmaceutical demand, particularly in Thailand and Indonesia
• Government-led industrialization and export growth strategies

Challenges

• Competition from plastic drums and IBCs
• Volatility in raw material prices
• Evolving sustainability regulations that may demand even lower environmental footprints

Despite these challenges, steel drums remain one of the most resilient, versatile, and future-ready packaging solutions.

Final Word

As the Southeast Asia steel drum industry marches toward 2035, the focus will be on balancing tradition with innovation. Established leaders like Greif Inc., Mauser Packaging Solutions, and Schütz GmbH & Co. KGaA will continue to drive technology upgrades and global compliance. At the same time, local manufacturers such as PT Rhem Indonesia and EcoDrum Sdn Bhd will push the boundaries of sustainability and customization.

Together, they are ensuring that steel drums remain a symbol of safe, reliable, and sustainable packaging—vital for fueling Southeast Asia’s industrial growth story.

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