Agricultural Packaging Market

The Agricultural Packaging Market is valued at USD 4.6 Bn in 2026 and is projected to reach USD 6.6 Bn, growing at a CAGR of 5% by 2033.

Market Analysis in Brief

Rapid progression of the agriculture industry, and a dramatic spike in the global agricultural commerce expansion are together driving the growth of the agricultural packaging market. With the ever-expanding worldwide population, followed by the escalating demand for food, there has been a considerable rise in the number of import and export activities that use agricultural packaging goods to move harvest cargoes across various geographies. The swelling volumes of agrochemical and biological products are also accelerating developments in the agricultural packaging industry. To reduce exposure to hazardous pesticides and fertilizers, a considerably high number of farmers are using flexible packaging items like bag-in-boxes, and pouches to store agrochemicals, which marks a significant trend in this space.

Key Report Findings

• The global agricultural packaging market size is likely to reach past USD 6.6 Bn by the end of 2033
• The proliferating worldwide population, and resultant rise in demand for food will drive the market ahead
• Agricultural packaging application remains the maximum in the biologicals segment
• Material innovations trend the agricultural packaging industry
• China remains the global influencer

Growth Drivers

Ballooning Global Population

By 2050, the population of the globe is projected to increase to 10 billion. Population growth raises the demand for food. Global cereal production was predicted to rise by 13% by 2027, according to the Organization for Economic Co-operation and Development (OECD), and the Food and Agriculture Organization (FAO) publication - The Agricultural Outlook. To support the growing population, crop production, farming endeavours, and trade volumes will need to rise.

Data from the World Bank show that there were approximately 7.8 billion people in 2020 globally, a decrease from 6.1 billion recorded earlier in 2000. The UN estimates global population to reach nearly 9.7 billion by 2050-end, pointing to even higher demand for food.

The need for crops used as feed, fuel, fibre, and feedstocks has increased in addition to the rise in global food consumption. Agriculture packaging has also made storage and transit easier, which is helpful given the growing urban population. More than 56% of the people, according to the World Bank, reside in urban areas. The demand for processed food, and junk food rises as a result.

Unwavering Uptake of Pesticides, and Fertilizers

Over the past few years, the market for fertilizers and insecticides has expanded substantially. The primary factor influencing the market for pesticides and fertilizers is the increased demand for crops due to population growth.

Around 190 million tonnes of inorganic fertilizers were used in 2018, and the United Nations Environmental Program predicts that number would rise to 197 million tonnes by 2024. The organic market generated more than US$150 Bn in the year 2018. Additionally, almost 4.1 million tonnes of insecticides were utilised in 2016. demonstrating the extensive usage of fertilizers and pesticides in the agricultural sector. Pesticides are packaged in a variety of ways, including sacks, pouches, bags, and containers.

Furthermore, plastic packaging is influencing market growth due to increased demand for flexible packaging, which consumers prefer. For example, the Flexible Packaging Association reports that more than 60% of North American consumers are willing to pay for functional packaging benefits such as product protection, supply chain efficiency, and shipping friendliness.

Polyethylene is the most affordable agricultural film used for packaging. HDPE, LDPE, and LLDPE are polyethylene materials used for barrier film. Polyethylene is a simple material that is combined with gas/aroma barriers such as polyamide, and EVOH for use in a variety of applications. The elementary-grade material is linear low-density polyethylene (LLDPE). It is a clear film that is commonly used in food packaging.

Growth Challenges

Severing Arable Land Depletion

With a rise in the population of cities, agricultural land is clearly declining. In 2020, 4.358 billion people will reside in urban areas, according to the World Bank. Furthermore, the fertility of the ground has greatly decreased because of the increased crop output and excessive fertilizer and pesticide use. As a result, the proportion of land used for agriculture has decreased through time internationally.

The World Bank estimates that in 1991, agriculture accounted for around 38.75% of the land, which dropped to 36.90% by the end of 2018. A declining tendency in agricultural productivity has also been noted. The Organization for Economic Co-operation and Development (OECD) reports that the government has cut back on agricultural funding during the previous few years. 20.81% of gross agricultural receipts in 2009 went to OECD nations. In the year 2020, this decreased to 18.07%. 

Overview of Key Segments

Preference for Plastics Prevails

The market is divided into plastic, metal, paper and paperboard, and composite materials based on the kind of material. During the anticipated period, the plastics category will hold the biggest market share. Because they are robust, lightweight, and inexpensive to produce, plastics are becoming more and more popular in this industry, which is boosting demand for this niche.

Biologicals Represent the Dominating Segment

Based on application, the market is segmented as chemical pesticides, chemical fertilizers, and biologicals. The biologicals segment is estimated to witness the highest CAGR during the forecast period.  can be clearly attributed to the surging demand for efficient and cost-effective agricultural packaging solutions.

Growth Opportunities Across Regions

Asia Pacific Spearheads with Hefty Investments

Heavy investments, and technological developments are taking place rapidly in Asia Pacific, including the use of AI in agriculture. The developing nations of the Asia Pacific area in all facets of agriculture are quickly embracing smart technologies. Several factors, including ongoing technological improvements, falling equipment costs, increased use of social media, and online publications that spread knowledge, are driving the adoption of precision farming in the area.

The Chinese e-Commerce behemoth Alibaba recently entered the farming industry by using  Artificial Intelligence in agriculture to help farmers increase crop productivity while lowering costs. Farmers have access to Alibaba's digitally recorded data through their smartphones, allowing them to keep track of pest attacks on their standing crops or whether fruits were ripe for harvest.

Furthermore, the region is seeing an increase in the usage of eco-friendly packaging materials and formats for agricultural products, which is allowing foreign companies to extend their investments there. The increase in farm yield, and the quick expansion seen in various end-use sectors like seeds, pesticides, and fertilizers are expected to boost the size of the Asia Pacific agricultural packaging market over the forecast period.

Several market participants are augmenting investments in the Asia Pacific area to increase their manufacturing capabilities. For instance, Amcor announced the opening of its advanced manufacturing facility in Huizhou, China, in January 2023. The 590,000 square foot facility, the largest flexible packaging plant in China based on manufacturing capacity, is the result of an investment of almost US$$100 Mn and will help Amcor meet the region's expanding demand better.

Global Agricultural Packaging Market: Competitive Landscape

A few of the Agricultural Packaging Market players include:

• Amcor plc
• Mondi Group
• Berry Global Inc.
• Sonoco Products Company
• Greif, Inc.
• Sealed Air Corporation
• Smurfit Kappa Group
• DS Smith Plc
• ProAmpac LLC
• Pactiv Evergreen Inc.
• NNZ Group
• LC Packaging International BV
• International Paper Company
• Coveris Holdings S.A.
• UFlex Ltd.

Global Agricultural Packaging Market is Segmented as Below:

By Material
• Plastic
• Metal
• Paper & paperboards
• Composite materials
• Others

By Product
• Pouches & bags
• Drums
• Bottles & cans
• Others

By Application
• Chemical pesticides
• Chemical fertilizers
• Biologicals

By Barrier Strength
• Low
• Medium
• High
By Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa