Agricultural Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Agricultural Packaging Market is segmented by Material Type (Plastic, Metal, Paper and Paperboard, Composite Materials), Application Type (Pesticides, Fertilizers, Seed​), Product Type (Bags & Sacks (Plastic & Paper)​, Bulk Containers (Drums & IBC)​, Pouches​, Containers (Metal & Plastic)​​), and Geography.

Market Snapshot

CAGR
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 5.5 %

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Market Overview

The Agricultural Packaging Market is expected to reach a CAGR of 5.5% during the forecast period (2021 - 2026). The demand for agricultural packaging increases due to the increasing demand for improving supply chains by reducing food wastage. According to the UK's Birmingham Energy Institute, more than 90% of the food wastage in developing countries occurs during storage and transportation. Hence the growing awareness regarding the loss of food products during harvesting and shipping drives the demand for cost-effective and sustainable agricultural packaging solutions.

  • During the COVID pandemic, many governments announced a surplus for the agricultural sector to strengthen the storage and supply chain of the sector that also includes packaging. For instance, Indian Government has announced INR 1 lakh crore special package surplus for agricultural infrastructure. All these will boost the market growth post-pandemic.
  • The increasing pest attacks drive the demand for various crop protection chemicals such as pesticides and fertilizers and are toxic. Hence, they need advanced packaging to reduce the risk while handling, storing, and transporting these agrochemicals, which escalates the demand for agricultural packaging solutions for agrochemicals to increase their shelf life.
  • According to an article published in the journal of Environmental Science and Technology, food travels an average of 4,200 miles. This creates demand for innovative packaging solutions to cater to farmers' requirements, processors distributors who sell in the global and national markets. Moreover, agricultural packaging solutions are experiencing the horizontal integration approaches that bring printing capabilities, easy packaging solutions, and additional value-adding solutions to packaging closer to the packaging solution providers.
  • Furthermore, technological innovation, sustainability trepidations, and attractive economics drive the demand for innovative packaging solutions. Nowadays, there is a growing demand for agricultural packages equipped with monitoring equipment, which can be used to track the quality of any product and adjust the temperature.
  • Also, the advanced packaging styles, such as pouches and bag-in-box, raise the usage of flexible packaging in combination with rigid packaging formats. According to the Flexible Packaging Association, flexible packaging is mainly used for food, contributing to more than 60% of the total market. Additionally, globally, the e-commerce sector's consolidation is anticipated to make flexible packaging one of the quickly growing packaging approaches over the forecast period.​

Scope of the Report

Agricultural packaging plays a significant role. It helps farmers and manufacturers deliver food in the best possible way and avoid wastage of food during post-harvest treatment procedures, production process, storage, and transportation. Moreover, it ensures short and long-term stability between the farmers and the consumers.

The scope of the study is currently focused on key countries in regions, such as North America, Europe, Asia-Pacific, and Rest of the World. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the market that support the market estimations and growth rates over the forecast period. 

The study further analyzes the overall impact of COVID-19 on the demand-side market dynamics and the ecosystem in the near and short-term basis. The recent changes in trade scenario are also analyzed in the study.

The volume data is available for the material type segment only. 

By Material Type
Plastic
Metal
Paper and Paperboard
Composite Materials
Other Materials
By Application Type
Pesticides ​
Fertilizers ​
Seed
Other Types​
By Product Type
Bags & Sacks (Plastic & Paper)
Bulk Containers (Drums & IBC)​
Pouches​
Containers (Metal & Plastic)​
Other Products (Boxes, Caps & Lids, etc.)​
Geography
North America
United States
Canada
Europe
France
Germany
United Kingdom
The Netherlands
Rest of Europe
Asia Pacific
China
India
Indonesia
Rest of Asia Pacific
Rest of the World

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Key Market Trends

Plastic Packaging to Hold a Significant Market Share

  • Plastic packaging is influencing market growth due to the rising demand for flexible packaging as consumers prefer these solutions. For instance, according to the Flexible Packaging Association, more than 60% of North American consumers are ready to pay for functional packaging benefits, such as product protection, supply chain efficacy, and shipping friendly, among others.​
  • Polyethylene is the cheapest packaging film. The polyethylene materials that are being used for barrier film include HDPE, LDPE, and LLDPE. Polyethylene is easy to process and is combined with gas/aroma barriers, such as PA and EVOH, for their use in various applications.​ The essential grade of material among these is the linear low-density polyethylene (LLDPE). It is a high-clarity film that is widely used for food packaging.
  • Moreover, plastics are used in either rigid or flexible form as the packaging material for fertilizers and pesticides. The factors such as lightweight, durable, and economical to manufacture are the reasons behind the growing adoption of plastic in the market.
  • Plastics also drives innovation in packaging design. For instance, modified atmosphere packaging helps preserve food freshness by capturing a reduced-oxygen air mixture in a plastic package. This technique can benefit farmers, processors, and distributors that sell in global and national markets and extend the product’s shelf life by slowing the growth of bacteria.
  • Furthermore, players in the market are investing in implementing new technologies for preventing post-harvest loss. For instance, Dupont offers h20ex, a plastic film cover for food containers with a high water vapor transmission rate that reduces mold and product weight loss.
plastic packaging in India.png

Asia-Pacific to Witness Highest Growth

  • Asia-Pacific is experiencing many investments and technological advancements, such as AI-based technologies in agriculture. The emerging countries of the APAC region are rapidly adopting smart technologies across the agriculture space.​The adoption of precision farming in the region is fueled by various factors, like continuous advancements in technology, a reduced price of equipment, social media use, and online publications that help create awareness.​
  • Chinese e-commerce giant Alibaba recently got into the farming sector by deploying artificial intelligence in agriculture to assist farmers in increasing crop yield, simultaneously reducing costs. In their smartphones, Alibaba’s digitally-recorded information was accessed by farmers, enabling them to monitor whether fruits are ready to be harvested or any pest attack on their standing crops.
  • The region is also witnessing higher adoption of sustainable packaging solutions for agricultural products, creating opportunities for global brands to invest in the region further.The rise in the farm yield along with accelerated growth witnessed in a plethora of end-use industries such as seed and pesticides & fertilizers is expected to boost Asia Pacific agricultural packaging market size during the forecast period.
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Competitive Landscape

The Agricultural Packaging Market is moderately fragmented. Players in the market are innovating their design, technology, and applications to achieve sustainable competitive advantage. Moreover, they are adopting competitive strategies such as partnerships, mergers, and acquisitions.

  • June 2020 - Amcor plc partnered with Espoma Organic, a lawn and garden brand, to innovate sustainable packaging and launch a new bio-based polymer package. The polyethylene (PE) film contains 25 percent bio-based material derived from sugar cane in this case.
  • June 2020 - Mondi, a global packaging and paper group, has completed the implementation of a new state of the art paper sack converting machine at its Nyíregyháza site in Hungary. The machine can allow the plant to open a new line of paper sacks for food packaging and can help to produce more than 130 million sacks annually.

Recent Developments

  • January 2021 - KM Packaging launched a new range of compostable products. The C-Range of bio-plastic packaging materials will include shrink wrap, stretch wrap, adhesive tape, nets and bags. These bio-plastic products were developed in partnership with Treetop Biopak who specialise in providing innovative compostable packaging solutions.
  • October 2020 - Smurfit Kappa, a provider of paper-based packaging solutions, has extended its range of sustainable and biodegradable products for the agricultural sector with the launch of BanaBag. It addresses the need of quality assurance needed for bagging during the complete growth cycle of the banana plant. It protects the fruit from disease and insects, whilst also reducing the overheating that can result from using other materials like plastic.
  • April 2020 - A Spanish technological center for plastics, Andaltec, launched the ‘BioNanocel’ R&D Project, aimed at developing bio-based active plastic packaging manufactured with cellulose obtained from vegetal biomass. This initiative aspires to produce sustainable plastic material for the food industry, with enhanced properties. It will re-use vegetal biomass waste derived from the agricultural activity, which is usually squandered.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY​

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis​

      1. 4.2.1 Bargaining Power of Suppliers​

      2. 4.2.2 Bargaining Power of Consumers​

      3. 4.2.3 Threat of New Entrants​

      4. 4.2.4 Threat of Substitute Products ​

      5. 4.2.5 Intensity of Competitive Rivalry​

    3. 4.3 Assessment of COVID-19 on the Agricultural Packaging

    4. 4.4 Current Demand for Produce and Retail-based Packaging​

    5. 4.5 Industry Stakeholder Analysis – Material Suppliers, Packaging Manufacturers, Distributors, End Users, etc. ​

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand from the Agro-chemical Segment

      2. 5.1.2 Material-based Innovations to Enhance Shelf Life of Products and Ongoing Theme of Sustainability in Packaging​

    2. 5.2 Market Challenges

      1. 5.2.1 Regulatory & Price-related Challenges

      2. 5.2.2 Diminishing Profit Margins Remains a Concern for Smaller Manufacturers

    3. 5.3 Market Opportunities

      1. 5.3.1 Material Innovations in Bulk Packaging Focused on the Use of PP and Bulk Bags

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Material Type

      1. 6.1.1 Plastic

      2. 6.1.2 Metal

      3. 6.1.3 Paper and Paperboard

      4. 6.1.4 Composite Materials

      5. 6.1.5 Other Materials

    2. 6.2 By Application Type

      1. 6.2.1 Pesticides ​

      2. 6.2.2 Fertilizers ​

      3. 6.2.3 Seed

      4. 6.2.4 Other Types​

    3. 6.3 By Product Type

      1. 6.3.1 Bags & Sacks (Plastic & Paper)

      2. 6.3.2 Bulk Containers (Drums & IBC)​

      3. 6.3.3 Pouches​

      4. 6.3.4 Containers (Metal & Plastic)​

      5. 6.3.5 Other Products (Boxes, Caps & Lids, etc.)​

    4. 6.4 Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 France

        2. 6.4.2.2 Germany

        3. 6.4.2.3 United Kingdom

        4. 6.4.2.4 The Netherlands

        5. 6.4.2.5 Rest of Europe

      3. 6.4.3 Asia Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 India

        3. 6.4.3.3 Indonesia

        4. 6.4.3.4 Rest of Asia Pacific

      4. 6.4.4 Rest of the World

  7. 7. COMPETITIVE INTELLIGENCE

    1. 7.1 Company Profiles*

      1. 7.1.1 LC Packaging International BV

      2. 7.1.2 Grief Inc.

      3. 7.1.3 Mondi Group

      4. 7.1.4 NNZ Group​

      5. 7.1.5 Sonoco Products Company​

      6. 7.1.6 BAG Corporation

      7. 7.1.7 Proampac LLC

      8. 7.1.8 Flexpack FIBC

      9. 7.1.9 Amcor plc

      10. 7.1.10 Anderson Packaging Inc.

      11. 7.1.11 Flex – Pack

      12. 7.1.12 Western Packaging

  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OUTLOOK

**Subject to Availability

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Frequently Asked Questions

The Agricultural Packaging Market market is studied from 2018 - 2026.

The Agricultural Packaging Market is growing at a CAGR of 5.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Amcor plc , DuPont de Nemours, Inc.,, Sonoco Products Company, Mondi Group, LC Packaging are the major companies operating in Agricultural Packaging Market .

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