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0 The demand for agricultural packaging is increasing due to the growing demand for efficiency in supply chains by reducing food waste.
The global agriculture packaging market was valued at US$ 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 US$ 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 US$ 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 concerning 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 keep the inside contents free from contaminants, microorganisms, wetness, and toxins. This will 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 the use of fertilizers and pesticides in farming is anticipated to keep the demand for agriculture packaging stable throughout the forecast period. Also, the improved shelf life of biologicals and agrochemicals is expected to benefit the market growth positively.
Which are Some Prominent Drivers Spearheading the Agriculture Packaging Market?
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. Packaging these chemicals requires advanced packaging materials 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 use 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, 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.
What are the Growth Prospects in North America?
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 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 the global market share in 2022. The region is expected to continue its regional dominance by accumulating a 22.5% market share by 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, the rising demand for sustainable packaging solutions is further expected to generate new opportunities for market expansion.
Market Competition
The agriculture packaging market is highly competitive and comprises 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 leverage inorganic growth strategies like acquisition, mergers, partnerships, and collaboration 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 partnering with packaging and paper giant Mondi and the Polish biodegradable packaging firm SILBO. These new bags claimed as compostable and possess a bio-based covering on the inside, are said to replace non-biodegradable plastic bags with paper ones.
In 2021, Mondi declared the acquisition of Olmuksan, a critical Turkish corrugated packaging manufacturer. Mondi will likely expand its regional presence with this acquisition, fostering operational enhancements and paper integration upside.
In November 2022, LATAM Cargo and Sonoco’s ThermoSafe made a Global Master Lease Agreement on the new Pegasus ULD® temperature-controlled bulk shipping container. This agreement allows pharmaceutical freight forwarders accessibility to Pegasus ULD® containers directly from LATAM Cargo.
In November 2022, Sonoco acquired Westrock’s interest in RTS Packaging. The transaction will empower Sonoco with complete ownership of fourteen converting operations, including ten in the United States, two in Mexico, two in South America, and one paper mill in the United States.
These insights are based on a report on agriculture packaging market by Future Market Insights
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