News in brief: The global agriculture packaging market is projected to reach a $11.45 billion valuation by 2033. Increasing demand for supply chain efficiency and reducing food waste, drives this growth.
According to a Future Market Insights (FMI) analysis, the global agriculture packaging market could reach a valuation of $11.45 billion by 2033. The report claims that the industry is expected to maintain a compound annual growth rate (CAGR) of 5.3%.
A Statista report showed that the previous CAGR for the agricultural packaging market was 5% but it has beaten expectations. FMI claims that the market was worth about $6.48 billion in 2022 and will likely close 2023 at $6.83 billion, which is higher than Statista’s projection of $5.02 billion.
Although, Statista does not reveal what agriculture-related products its packaging covered. Meanwhile, FMI mentions that it included seeds and pesticides (inputs) as well as products like silage, food grains, vegetables and fruits. This distinction is important because we found another source that claims that the value of the agricultural packaging market in 2022 was about $24.3 billion. Although, it revealed that it added fertilisers in its market research.
Supply chain efficiency demand and food waste drive agricultural packaging market
Explaining the expected rise of the market’s value, FMI says that there is a growing demand for supply chain efficiency to reduce food waste. Hence, the need for better packaging to reduce post-harvest and shipping losses. It is little wonder that the Nigerian Export Promotion Council (NEPC) just concluded a training for women-led small and medium scale enterprises (SMEs) on packaging and labelling.
Also, the global demand for food keeps growing and more products will require efficient packaging. Farmers need more chemical inputs to increase production as is obtainable now. Thus, it is equally important to store agro chemicals in ways that it is safe for everyone involved and the environment it is stored in.
However, some challenges to the industry’s growth include cost of raw materials and the need to make the packaging recyclable and eco-friendly. North America already owns a bulk of the industry as the report claims and it is expected to increase over the next couple of years.
Giants in the packaging market that also serve agricultural clientele include Mondi Group, Bemis Company, Sonoco Products Company, LC Packaging International BV, H.B. Fuller Company, and more. Many of these companies are acquiring smaller companies who make packaging products that they don’t offer to improve their portfolio.
Agricultural packaging materials can be plastic, paperboard, corrugated board, glass, jute, and others. Manufacturers can turn them into pouches, bags or bins, bottle, clamshells, bulk containers, and more, depending on their purpose.
Innovative packaging materials, products, methods and services will determine the market’s trajectory in the coming years. Technology advancement makes it more likely for new players to find a need to fill.
