PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273620
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273620
According to Stratistics MRC, the Global Agricultural Packaging Market is accounted for $5.2 billion in 2022 and is expected to reach $7.8 billion by 2028 growing at a CAGR of 7% during the forecast period. Farmers and food producers may transport food in the most productive and economical way possible with the help of agricultural packaging. Food waste is decreased throughout post-harvest processing, production, storage, and transportation. It guarantees the short- and long-term stability of the producers and consumers. Since pesticides are highly reactive and dangerous, adequate packaging is required.
According to the World Bank, in 1991, around 38.75% of the total land was dedicated to agriculture production. This, however, was reduced to 36.90% in 2018. In addition, a falling trend in agricultural production has been observed.
Insecticide and fertiliser sales have increased significantly. The population expansion is the primary factor impacting the market for pesticides and fertilisers because of the rising usage of pesticides and fertilisers in the agricultural industry. Pesticides can be found in a range of packaging forms, such as sacks, pouches, bags, and containers. Due to increasing consumer demand for efficient and ecologically friendly packaging as well as strict environmental regulations that support sustainable packaging options, the market for farm packaging will expand.
Concerns about the status of the environment are growing. Packaging waste is a significant factor in the environmental deterioration. Every step of the agricultural process results in the accumulation of waste. To fulfil the demands of the public and the environment, these systems must be significantly improved. Government rules are thus required to encourage and compel the use of more environmentally friendly industrial methods. Every participant in the process is accountable. Produce needs to be thought of during its full life cycle. To combat environmental deterioration, cooperation between the government, businesses, and consumers must be moulded to produce a cycle of production, packaging, and consumption that is really sustainable.
The rapid adoption of agricultural packaging by large firms is a result of the developed world's increased environmental conscience. The global market for agribusiness packaging is growing as a result of organisations utilising it to maintain their audience. Additionally, the increase in insect infestations is what is driving the need for dangerous crop protection substances like pesticides and fertilisers. These agrochemicals need elaborate packaging in order to reduce danger when handling, storing, and shipping them. Consequently, there is a growing demand for agricultural packaging solutions for agrochemicals to increase their shelf life, which is promoting market expansion.
The price volatility of raw materials and the re-use of outmoded and rejected packaging materials are the main factors restraining the growth of the agricultural packaging industry. Petroleum and crude oil are used, for example, in the production of plastics. The sector has considerable challenges in balancing the cost of packaging products as a result of the rising volatility of oil prices. Due to the trapping of hazardous substances inside agrochemical packaging, which is impeding market expansion, the regeneration of packaging waste has been a challenge for the industrial packaging business as a whole.
The Agricultural Packaging Market was similarly impacted by the COVID pandemic's outbreak. The items' supply chain was impacted by the rigorous rules and travel limitations. Furthermore, the demand for agricultural packaging was impacted by the increase in the inflation rate. The increased demand for food and other agricultural goods, however, is expected to cause it to increase throughout the projected timeframe.
The plastic segment is estimated to have a lucrative growth. Plastic is being more widely used in this market, which can be attributed to its lightweight, durable, and affordable production qualities, which are raising demand for this industry. Insecticides and fertilisers are most frequently packaged in plastic, both stiff and flexible. Plastic is anticipated to rule the global market for agricultural packaging since it is strong, lightweight, and economical to produce.
The Pouches & Bags segment is anticipated to witness the fastest CAGR growth during the forecast period, due to their greater functionality and bacterial resistance, pouches and bags play a significant role in the global agricultural packaging market. Use of pouches and bags allows for a number of packaging options for fruits, vegetables, herbs, and potatoes. Pouches and bags offer unique and secure packaging for all types of bio-food and are useful for biodegradable containers in the agricultural packaging sector.
Asia Pacific is projected to hold the largest market share during the forecast period owing to several investments and technological developments happening, including agriculture technologies based on AI. Smart technology in agriculture is being increasingly adopted by developing nations in the Asia-Pacific region. Numerous variables, including as continued technology advancements, declining equipment costs, social media usage, and online publications that help spread knowledge, are driving the adoption of precision farming in the area.
Europe is projected to have the highest CAGR over the forecast period, owing to an increase in the usage of ecologically friendly packaging for agricultural goods. The increase in farm production and the quick expansion of several end-use industries, including seed and pesticides & fertilisers, are expected to raise the size of the Europe agricultural packaging market over the forecast period, driving the industry's expansion.
Some of the key players profiled in the Agricultural Packaging Market include: Anderson Packaging Inc, Tetra Pak, Sonoco Products, Amcor Limited, Mondi Group, Bemis Company, Inc., Smurfit Kappa Group Plc, International Paper Company, Silgan Holdings, Inc., DS Smith Plc, Berry Global, Inc., Atlantic Packaging, Purity Flexpack Limited and Packaging Corporation of America.
In November 2022, Sonoco Further Expands Sonopost® Cornerpost Manufacturing with New Facility in Turkey, Sonopost® provides a sustainable way to protect white goods (e.g., washers, dryers, refrigerators, dishwashers etc.), HVAC systems and heat pumps from manufacturing and/or shipment damage. Sonopost® help reduce EPS/Plastic packaging and aid in reduction of carbon footprint.
In November 2022, Sonoco Announces Agreement to Acquire Westrock's Remaining Interest in Joint Venture: RTS Packaging, The transaction will give Sonoco full ownership of fourteen converting operations, including ten in the United States, two in Mexico, and two in South America and one paper mill in the United States.
In June 2021, Tetra Pak and Stora Enso have teamed together to quadruple Poland's e carton recycling capacity. The two businesses will collaborate to bring circular solutions to market. The investment in a full recycling system is expected to boost recycling in Central and Eastern Europe substantially.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.