Agriculture bags are available in a plethora of sizes to choose from and are used for storage, packaging and shipping of materials in bulk. These bags are manufactured with woven polypropylene fabric. The demand for these bags has witnessed a moderate CAGR growth from 2016 to 2020. Increased demand for storage of feed and food stock, food grains and agriproducts has remained the primary reason for the business growth.
Additionally, a wide range of applications in the chemical industry for storage & transportation of fertilizers also played a significant role to foster growth of market during the past years. As per FMI analysis, the agriculture bags sales is anticipated to grow at a notable CAGR of 6.6% over the forecast period i.e. 2021-2031.
These bags are equipped with attributes such as weather resistance, high durability, safety carriage convenience, high tensile strength, thermal resistance, elasticity and mass carriage capacity. They are specifically intended for the storage and transportation of materials.
They are not only environment friendly but also offers superior storage and carrying capacity. They are available in two product types namely FIBC (flexible intermediate bulk container of the bulk bag) and BOPP (biaxially-oriented polypropylene).
Usage of these bags has increased in sectors such as food, agriproduce, chemicals among others as a result of the rapid utilization of these bags in varied applications. They include transportation and storage of food grains, feed, seeds, fertilizers and agriproduce to name a few. Owing to this, many companies have expressed an interest in investing in the growth of this sector.
Manufacturers are shifting their focus toward highly protective and effective solutions for domestic and international sales, which are the key drivers of the sales of these bags. Local and international merchants who require bulk material transportation form a partnership for this purpose. This in turn drives the demand from the transportation sector.
Owing to aforementioned factors, relatively biodegradable, and reusable in nature of these bags, the sales is poised to experience healthy growth during the forecast period of 2021-2031.
The global agricultural bag sales has been slightly impacted by the COVID-19 outbreak. Although, other non-essential industries suffered heavy losses, agriculture and the industries depending on this essential industry thrived throughout the pandemic situation.
Majority of the regional governments tried to maintain the situations based lockdowns, keeping in mind that food supply does not get hampered. Owing to this fact, the agriculture as well as the transportation industry continued its operations, despite significant challenges throughout multiple regions.
Additionally, a succession of international meetings has raised hopes that governments will be spurred into action to address the need to balance our ever-increasing food demands with the environmental cost that such production might impose. Governments will also continue to pour record amounts of public money into economies emerging from the global epidemic, many of which are seeking a "green recovery." This in turn would be beneficial for agricultural sector as well, and turn drive agricultural bags demand as well.
It is a well-known fact that the Asia Pacific region is the largest producer of agricultural produce. However, due to the larger population in countries such as India and China, most of the product is procured by government bodies for local needs. This leaves the advanced countries in the world with superior farming techniques and higher per-capita production to capture the top spot in agricultural exports.
This makes countries such as the US occupy top spots in agricultural products exports. These bags come in handy not only for domestic storage and transportation but also in international shipping of agricultural produce, feed and fertilizers.
Over the years, US has remained the top exporter of agricultural produce, which produces enough farm produce and food grain to satisfy not only its citizens but also enough to export to other countries as well. This is the key factor making the US one of the key markets for agricultural bags manufacturers, as these bags are used to store and transport agricultural produce within the country, as well as for exporting it to other countries.
In comparison to the US, it is agreeable that India and China cumulatively account for nearly 36% of the world’s population and even these countries require agricultural bags for storage and transportation of materials. This includes storage & transportation of not only agricultural products and accessories including food grains, fertilizers and feed at different levels of the supply chain.
Besides, the fertilizer industry is on the boom in developing countries such as India and China, with an ever-increasing requirement of food from the same piece of land. This requires heavy amount of fertilizers to be used, in turn requiring agricultural bags to transport them throughout the supply chain. This would in turn, give an impetus to sales growth.
This makes the Asia Pacific region, the most important region for agricultural bags manufacturers, and it is anticipated to exert its dominance during the forecast period 2021-2031.
Despite its many advantages, the agriculture bags market faces significant obstacles. Changing consumer preference towards sealed, small-sized containers is poised to create a challenge for manufacturers of bulk bags. Additionally, government regulations and rules governing product packaging and push towards sustainable packaging are poised to hinder sales of polypropylene bags which takes nearly 20-30 years to degrade.
Key players operating in this industry are
Competition is moderately fragmented, with key players focusing their efforts towards launching innovative packaging and storage bags, with a focus on sustainability. Additionally, companies are looking to improve the efficiency of their bags to improve their strength, recyclability and reusability and in turn, make them environment friendly as well. Such initiatives keep the business competitive and rooted for continuous improvements in the future.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
Explore Similar Insights
Agriculture Bags Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
