The global agriculture packaging market was valued at USD 6,478.3 million in 2022. According to Future Market Insights, this is expected to rise at a Y-o-Y growth rate of 5.4% to reach USD 6,831 million by the end of 2023. The scope for agriculture packaging is further poised to expand, with an expected CAGR of 5.3% from 2023 to 2033. By 2033, a valuation of USD 11,449.1 million is projected.
The demand for agricultural packaging is increasing due to the growing demand for efficiency in supply chains by reducing food waste. The Birmingham Energy Institute says over 90% of food waste in emerging countries occurs during storage and transportation. Hence, increasing awareness with regard to food product loss during harvesting and shipping is expected to drive the demand for cost-effective and sustainable agricultural packaging solutions.
The superior protection offered by agricultural packaging helps in keeping the inside contents free from any contaminants, microorganisms, wetness, and toxins. This is expected to fuel the demand for agriculture packaging solutions in the coming years.
Innovations in the farming process and the growing demand for food due to rising populations are expected to foster growth in the market. In addition, increasing use of fertilizers and pesticides in farming is anticipated to keep the demand for agriculture packaging stable throughout the forecast period. Also, improved shelf life of biologicals and agrochemicals is expected to positively benefit the market growth.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 6,831 million |
| Anticipated Forecast Value (2033) | USD 11,449.1 million |
| Projected Growth Rate (2023 to 2033) | CAGR 5.3% |
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The market for agriculture packaging was worth USD 5,315.8 million in 2018. It accumulated a market value of USD 6,478.3 million in 2022 while growing at a CAGR of 4.8% during the historical period. The consistent increase in the global population is driving the demand for food.
This is fueling the expansion of agricultural industry and, in turn, the agriculture packaging market.
The rising trend of automation is further driving growth in the agricultural industry. This is expected to drive the need for new packaging solutions that are compatible with automated systems.
According to an article published in the Environmental Science and Technology journal, food travels an average of 4,100 miles, until it reaches the end-user. This is expected to fuel the demand for innovative packaging solutions to meet the requirement of farmers, processors, and distributors who sell in the international and national markets.
Agriculture packaging solutions are going through horizontal integration approaches. This is bringing easy packaging solutions, printing capabilities, and additional value-adding solutions to packaging closer to the packaging manufacturers. This will most likely keep the product demand afloat in the coming years.
Innovations in technology, sustainability concerns, and attractive economics are expected to drive the demand for innovative agriculture packaging solutions. Nowadays, there is a massive demand for agricultural packages that are integrated with monitoring instruments.
Advanced packaging styles, like bag-in-box and pouches, are accelerating the usage of flexible packaging in combination with rigid packaging formats. According to the Flexible Packaging Association, flexible packaging is majorly used for food.
This contributes to over 60% of the total food packaging market. Also, the consolidation of e-commerce is expected to make flexible packaging one of the rapidly growing packaging approaches during the forecast period.
Growing Demand for Agro Chemicals to Fuel Market Expansion
A rise in pest attacks is driving the demand for crop protection chemicals, such as fertilizers and pesticides, which are toxic. The packaging of these chemicals requires advanced packaging materials so as to minimize the risk while storing, handling, and transporting these agrochemicals.
This is expected to drive the demand for agricultural packaging solutions for agrochemicals.
Increasing awareness regarding eco-friendly packaging in developed countries is leading to increased adoption of agriculture packaging in various companies. These companies are utilizing paper and jute-based agriculture packaging bags and pouches to retain their customer base. This is helping the market to sustain its market footprint.
The use of bulk bags which are suitable for local and international transportation is further helping in the market expansion. These bags have become an industry standard for more than a hundred years.
These flexible bags are reliable affordable and durable. The agriculture products arrive in the best possible condition by utilizing these bags with minimal damages. Furthermore, the rising use of these bags for farm and warehouses are expected to positively influence market growth.
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High Costs of Raw Materials to Restrict Market Growth
High costs of raw materials and the rising use of outdated and discarded packaging materials are expected to hold back the agriculture packaging market's growth over the forecast period. Rising concerns for the environment and recyclability are estimated to become growth hurdles during the forecast period.
North America driving growth with a significant market share
North America accounted for 22.8% of the revenue share in 2022, in the agriculture packaging market. The region is expected to accumulate a 24.1% market share by end of 2023. The market in this region is projected to grow with a CAGR of 5.2% during the forecast period.
The growth is attributed to the region's growing use of packaging for solid grains and silage, liquid insecticides, and storage of seeds.
The United States alone accounted for 20.8% of global market share in 2022. The region is expected to continue its regional dominance by accumulating a 22.5% market share by end of 2023.
The high adoption of sophisticated packaging technologies and the strong presence of key players are anticipated to drive the wheels of growth in the region. Moreover, rising demand for sustainable packaging solutions is further expected to generate new opportunities for market expansion.
China Driving Growth with Significant CAGR
China is expected to dominate the agriculture packaging market in the Asia Pacific region. The market in this region is anticipated to grow with an impressive CAGR of 6.7% during the forecast period.
China is witnessing investments and technological advancements, like Artificial Intelligence-based technologies in agriculture. The region is rapidly adopting smart technologies across the agriculture sector.
?Increasing adoption of precision farming in the region is fuelled by various factors, such as consistent advancements in technology, reduced equipment price, social media use, and prevalence of online publications that help create awareness. ? These factors are expected to generate growth in the region.
Alibaba, a Chinese e-commerce giant has recently taken its first step into the agriculture sector by utilizing artificial intelligence in agriculture to assist farmers in increasing crop yield and simultaneously reducing the cost of production.
Farmers accessed digitally recorded information on their smartphones provided by Alibaba. This allowed them to monitor whether fruits are ready to be harvested or if there is any chance of pest attack on their standing crops. This adoption is expected to drive growth in the market in the coming years as well.
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Bags/Bins to Dominate the Market with a Sizable Share
Bags/Bins accounted for a revenue share of 42% in 2022 on the basis of product type. This segment is expected to continue its trend of dominance by accumulating a 43.6% market share by end of 2023. The segment is expected to generate a CAGR of 6.2% during the forecast period.
Bags/Bins provide superior safety against transportation losses in a sustainable manner that is helping to drive growth in the segment. Also, rising product launches in solid/dry formulations of agrochemical products by key players are expected to drive segment growth.
Attractive color and high-resolution image graphics are offered with Biaxially-Oriented Polypropylene (BOPP) agriculture bags. Two material layers, woven polypropylene, and a moisture-resistant film make this agriculture bag tough and durable. These bags are ideal for various different applications from animal feed bags to cement.?
The rising adoption of these bags in agricultural practices is expected to drive growth in the segment. Supreme print quality provides a unique advertising and marketing opportunity. ?
Silage Expected to Dominate the Market with a Significant Market Share
Silage accounted for a 44.6% market share in 2022. This segment is estimated to accumulate over 46% market share by end of 2023. It is expected to grow with a CAGR of 6.1% until 2033.
Livestock is the main source of livelihood for the majority of rural population, especially in countries like India and China. Over 75 % of Indian farmers are small and marginal landholders.
They are the backbone of Indian Agriculture contributing more than 7% to the national gross domestic product. With the highest livestock population, the demand for silage is expected to rise significantly.
Long-term preservation of fodder in the form of silage is practiced which is driving the growth of the segment. These are widely used in the pit method in various government /private grain storage warehouses.
Start-ups help in predicting future growth opportunities in any market. New entities have the potential to generate high returns which directly benefits the expansion of any industry.
These start-ups are generally more productive at transforming inputs into outputs with more flexibility and adaptability, ability to adopt volatile market conditions. Some of the start-ups that will propel the expansion of agriculture packaging market are
The agriculture packaging market is extremely competitive and consists of various key industry players. These players are heavily investing in manufacturing agriculture packaging solutions.
The key industry players are: Bemis Company, Inc., Sonoco Products Company, Mondi Group, LC Packaging International BV, Packaging Corporation of America, H.B. Fuller Company, Atlantic Packaging, NNZ Group, Parakh Agro Industries Ltd, International Paper Company, DS Smith Plc, Smurfit Kappa Group Plc, KapStone Paper, and Packaging Corp.
Some recent developments in the market are
Key market players are leveraging on inorganic growth strategies like acquisition, mergers, partnerships, and collaboration in order to enhance their product portfolio. This is expected to fuel the global agriculture packaging market.
In May 2021, a paper-based high-strength packaging was developed for the Irish farm potato company Meade Farm Group, by a partnership between packaging and paper giant Mondi and the Polish biodegradable packaging firm SILBO.
These new bags, which are claimed as compostable and possess a bio-based covering on the inside, are said to replace non-biodegradable plastic bags with paper ones.
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 6,831 million |
| Market Value in 2033 | USD 11,449.1 million |
| Growth Rate | CAGR of 5.3% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Product Type, Material Type, Barrier Type, Application, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Bemis Company, Inc.; Sonoco Products Company; Mondi Group; LC Packaging International BV; Packaging Corporation of America; H.B. Fuller Company; Atlantic Packaging; NNZ Group; Parakh Agro Industries Ltd; International Paper Company; DS Smith Plc; Smurfit Kappa Group Plc; KapStone Paper and Packaging Corp. |
| Customization | Available upon Request |
The market is valued at USD 6,831 million in 2023.
The market is forecast to register a CAGR of 5.3% through 2033.
The global market size is to reach USD 11,449.1 million by 2033.
From 2018 to 2022, the market grew at a CAGR of 4.8%.
Growing demand for agrochemicals to fuel market expansion.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Pouches 5.2. Bags / Bins 5.3. Silo bags 5.4. Clamshells 5.5. Bottle 5.6. Trays 5.7. Bulk Containers 5.8. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 6.1. Plastic 6.2. Rigid 6.3. Flexible 6.4. Paperboard 6.5. Corrugated Board 6.6. Glass 6.7. Jute 6.8. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Barrier Type 7.1. Low-barrier 7.2. Medium-barrier 7.3. High-barrier 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Seeds & Pesticides 8.2. Silage 8.3. Food Grains 8.4. Vegetable & Fruits 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Bemis Company, Inc. 17.2. Sonoco Products Company 17.3. Mondi Group 17.4. LC Packaging International BV 17.5. Packaging Corporation of America 17.6. H.B. Fuller Company 17.7. Atlantic Packaging 17.8. NNZ Group 17.9. Parakh Agro Industries Ltd. 17.10. International Paper Company 17.11. DS Smith Plc 17.12. Smurfit Kappa Group Plc 17.13. KapStone Paper and Packaging Corp 18. Assumptions & Acronyms Used 19. Research Methodology
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Agriculture Packaging Market
