Agriculture Packaging Industry Trends: From Biodegradable Materials to Smart Technologies

Agriculture Packaging Market
Agriculture Packaging Market

The agriculture packaging industry is witnessing significant growth, driven by the need to preserve product quality, extend shelf life, and reduce food waste. Rising global demand for fresh produce, grains, and fertilizers propels innovation in sustainable and biodegradable packaging solutions. Trends include smart packaging with moisture and temperature sensors, lightweight materials for cost efficiency, and reusable packaging options. As environmental concerns grow, the shift toward eco-friendly and recyclable materials is reshaping the industry’s future landscape.

The global agriculture packaging industry, valued at USD 6,478.3 million in 2022, is projected to experience significant growth, reaching USD 6,831 million by the end of 2023, with a year-over-year growth rate of 5.4%. The market is expected to continue its upward trajectory with a compound annual growth rate (CAGR) of 5.3% from 2023 to 2033, ultimately totaling USD 11,449.1 million by 2033. This growth is driven by increasing awareness of food waste, the need for efficient supply chains, and advancements in packaging solutions that protect agricultural products during transportation and storage.

Key Insights on the Agricultural Packaging Market

  1. Market Size in 2023: The agricultural packaging market is valued at US$ 6,831 million in 2023.
  2. Growth Forecast: The market is forecast to register a compound annual growth rate (CAGR) of 5.3% through 2033.
  3. Projected Market Size in 2033: By 2033, the global industry size is projected to reach US$ 11,449.1 million.
  4. Historical Performance: From 2018 to 2022, the market grew at a CAGR of 4.8%.
  5. Prominent Market Drivers: The growing demand for agrochemicals is a significant driver fueling market expansion. This demand is primarily driven by the need for crop protection chemicals due to increasing pest attacks.
  6. Growth Prospects in North America :
  • North America accounted for 22.8% of the revenue share in 2022 and is expected to accumulate a 24.1% market share by the end of 2023.
  • The market in this region is projected to grow at a CAGR of 5.2% during the forecast period.
  1. Impact of Agrochemical Demand : The rise in pest attacks is increasing the demand for fertilizers and pesticides, which are toxic and require advanced packaging materials for safe storage, handling, and transportation. This trend is driving the demand for agricultural packaging solutions tailored to agrochemicals.

These insights provide a comprehensive overview of the agricultural packaging market’s current state, growth trajectory, and key drivers, particularly focusing on the influence of agrochemical demand and regional growth dynamics.

Key Market Drivers:

  1. Supply Chain Efficiency:  With over 90% of food waste in emerging countries occurring during storage and transportation, as highlighted by the Birmingham Energy Institute, there is a growing awareness of the need for efficient and sustainable agricultural packaging solutions to minimize food product loss.
  2. Innovations and Population Growth:  Innovations in farming processes and the growing global population are fostering demand for food and, consequently, for agricultural packaging. The improved shelf life of biologicals and agrochemicals also contributes to market expansion.
  3. Eco-Friendly Packaging:  Increased awareness and adoption of eco-friendly packaging materials, such as paper and jute-based bags and pouches, are helping companies retain their customer base and sustain market growth.
  4. Use of Bulk Bags:  The adoption of bulk bags for local and international transportation is becoming an industry standard due to their reliability, affordability, and durability, ensuring agricultural products arrive in optimal condition with minimal damage.

Apart from this, the surging adoption of agrochemicals will give tailwinds to the sales of agricultural packaging.

Among various products, the bags/bins and pouches segment is forecast to grow at over 5.8% cumulatively over the forecast period, accounting for over 70% of industry share in 2021. Meanwhile, in terms of materials, the plastic agriculture packaging segment will gain traction in the market due to the easy availability of plastics.

Growth prospects for the North America market are likely to remain positive driven by increasing export and production of agriculture packaging products in the U.S. As per FMI, the North American market for agricultural products will expand at 4.4% in 2021.

“ Increasing investment in research and development activities in the packaging industry will boost the market. Besides this, the implementation of strict laws regarding the usage of non-biodegradable packaging for insecticides and pesticides will create a conducive environment for growth,” said an FMI analyst.

Competitive Landscape

Agricultural packaging market manufacturers are focusing on acquisitions, partnerships and new product offerings to expand their market footprint and gain a competitive edge in the market.

For instance, in 2021, Mondi announced the acquisition of Olmuksan, a leading Turkish corrugated packaging producer. With this acquisition, Mondi expands its presence in the region, fostering operational improvements and paper integration upside.

In 2021, Polysack, a global leader for manufacturing flexible packaging film products, collaborated with an Italian packaging manufacturer Flessofab and introduced a series of recyclable, eco-friendly, and stand up pouch packaging for large variety of applications.

Key Companies Profiled              

  • Bemis Company, Inc.
  • Sonoco Products Company
  • Mondi Group
  • LC Packaging International BV
  • Packaging Corporation of America
  • 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.

Access Full Reporthttps://www.futuremarketinsights.com/reports/agriculture-packaging-market

Key Segments Profiled in the Agriculture Packaging Devices Market Industry Survey

Product Type:

  • Pouches
  • Bags/Bins
  • Silo Bags
  • Clamshells
  • Bottle
  • Trays
  • Bulk Containers
  • Others

Material Type:

  • Plastic
  • Rigid
  • Flexible
  • Paperboard
  • Corrugated Board
  • Glass
  • Jute
  • Others

Barrier Type:

  • Low-barrier
  • Medium-barrier
  • High-barrier

Application:

  • Seeds & Pesticides
  • Silage
  • Food Grains
  • Vegetables & Fruits

Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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