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 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.
Agriculture Packaging Demand Analysis
The market for agriculture packaging was worth US$ 5,315.8 million in 2018. It accumulated a market value of US$ 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.
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. 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.
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 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.
What is the Growth Outlook in China?
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.
These insights are based on a report Agriculture Packaging Market by Future Market Insights.