Agricultural Packaging Market - Industry Analysis, Market - Forecast(2024 - 2030)

Agricultural Packaging Market Overview

Agricultural Packaging market size is forecast to reach US$13 billion by 2030, after growing at a CAGR of 6.1% during 2024-2030. Agricultural packaging encompasses a wide array of materials and designs specifically tailored to meet the unique needs of farmers and distributors. In the agricultural sector, packaging plays a crucial role in preserving the quality and extending the shelf life of products and also in reducing food waste, improving supply chain efficiency and minimizing environmental impact. Growing need for food security, growing demand for packaging materials that impart a higher protection and increasing focus on reducing food wastage are expected to drive the market during the forecast period.

A major trend in the market is the consumer demand for sustainability. As consumers become aware of the negative effect of plastic on the environment, they look for sustainable packaging. In November 2023, Austrian packaging company Coveris announced the launch of new sustainable stretch films, referred to as Unterland R and Unterland Crystal, for silage bale wrapping. Another trend in the market is smart packaging. Smart packaging incorporates technology to extend shelf life, monitor freshness and provide consumers with information about the product’s journey from farm to fork. Innovations such as time-temperature indicators, freshness sensors and QR codes enable better tracking and management of products, reducing waste and enhancing food safety.

Report Coverage

The report "Agricultural Packaging Market Report – Forecast (2024-2030)" by IndustryARC covers an in-depth analysis of the following segments of the Agricultural Packaging market.

• By Material: Plastic, Metal, Paper & Paperboard, Composites, Wood, Jute and Others
• By Barrier Strength: Low, Medium and High
• By Type: Pouches & Bags, Drums, Bottles & Cans, Pallet Boxes, Trays & Crates, Bulk Containers, Others
• By Application: Seeds, Pesticides & Fertilizers, Silage, Food Grains, Vegetables & Fruits, Flower Crops, Commercial Crops and Others
• By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Denmark, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia and New Zealand, Thailand, Indonesia, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa) 

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Key Takeaways

Pouches and Bags are the Leading Segment

Pouches and bags are the largest type in the agricultural packaging market due to their versatility, cost-effectiveness and ease of use. These packaging formats are widely preferred for storing and transporting various agricultural products like seeds, fertilizers, pesticides and agricultural produce. Pouches and bags offer excellent protection against moisture, contamination and physical damage. This ensures product integrity throughout the supply chain. Their lightweight nature also reduces transportation costs making them an economical choice for both manufacturers and farmers. Moreover, the increasing focus on sustainable packaging has led to the development of eco-friendly pouches and bags, further driving their popularity in the agricultural sector. In Brazil, Yara signed an agreement with a supplier to jointly develop a new type of big bag, in H2 2023. These new bags will be made from 100% recycled PET and therefore have a substantially reduced impact on the environment, almost halving greenhouse gas emissions compared with the conventional bags, while maintaining the same technical properties. This project aims to replace around 2000 tons of virgin plastic and reduce greenhouse gas emissions by about 4000 tpy.

Pesticides and Fertilizers are the largest segment by Application

Pesticides and Fertilizers is the largest segment in the Agricultural Packaging market due to their critical role in enhancing crop yield and protecting crops from pests and diseases. The growing global population has led to increased food demand driving the need for effective agricultural inputs like pesticides and fertilizers. An article published by the Proceedings of the International Academy of Ecology and Environmental Sciences (IAEES) iterates the importance of pesticides. According to the article, restraining the use of pesticide during the production of fruits, vegetable, and cereals may lead to losses of 78%, 54% and 32%, respectively, in the yield. Whereas, using pesticides reduced the loss of around 35% of the total production. Pesticides and fertilizers require specialized packaging to ensure their stability, safety and efficacy during transportation and storage. Additionally, stringent regulations on the safe handling and environmental impact of agrochemicals mandate the use of high-quality packaging materials.

APAC Dominates the market

The Agricultural Packaging market is dominated by the Asia Pacific region with a market primarily due to the agrarian economy in the region. Major countries such as China, India, Vietnam, Thailand, Indonesia and Malaysia are top agricultural producers. According to Invest India, India’s agriculture technology to attain $24.1 billion by 2025. China is the largest producer and exporter of apples. According to FAOSTAT data, China accounted for 47% of the total apple production. According to a recently report from the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products, in 2022, China exported 823,000 MT or US$1.04 billion worth of fresh apples. As these countries export their agricultural products, there is a growing demand for agricultural packaging. 

Growing Need for Food Security

The world population reached 8 billion people on 15 November, 2022, according to data provided by the United Nations (UN). The UN also estimates that the world population will reach 9 billion by 2037. The increasing population creates a huge demand for food. There is a need to not only increase production to meet the demand but also to ensure food security of an increasing population. To ensure food security, one must ensure that the food lost post-harvest and during transportation is minimized. Here packaging plays an important role in ensuring this.

Increasing focus on reducing food wastage

The increasing focus on reducing food wastage is a key driver for the agricultural packaging market. According to the UNEP Food Waste Index Report 2024, one-fifth of food produced for human consumption is lost or wasted globally. With a significant portion of global food production lost due to spoilage and inefficient supply chains, there is growing awareness of the need for better packaging solutions to minimize waste. Agricultural packaging that preserves the freshness and quality of produce from farm to table plays a crucial role in addressing this issue. Innovations in packaging materials and technologies, such as modified atmosphere packaging and vacuum sealing, are helping extend the shelf life of perishable goods, reducing waste and improving food availability. This trend aligns with global efforts to enhance sustainability and food security, driving demand for effective agricultural packaging            

Key Market Players

Global Agricultural Packaging top 10 companies include:

1. Sonoco Products Company
2. Greif.
3. B. Fuller Company
4.  NNZ Group
5.  ProAmpac
6. LC
7. Novolex
8. Anderson Packaging Inc.
9. Mondi Group
10. Pactiv LLC

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