Increasing demand for storage during harvest season coupled with growing consumer spending are the key growth drivers of the North America silo bags market over the forecast period
The need for a cost-efficient solution for storage of grains and animal fodder has led to extensive preference for silo bags among farmers in the U.S. and Canada. The North America silo bags market is expected to witness healthy growth rate owing to small farmers demanding silo bags for short-term and affordable packaging and storage purposes. Silo bags, also known as harvest grain bags are used as an alternative storage system for grains such as wheat, corn, maize, sorghum, etc. in order to fulfil shortage of cattle fodder during dry seasons. The North America silo bags market is expected to create good opportunities for suppliers, distributors and manufacturers operating in the market.
Revenue generated from the North America silo bags market is estimated to touch nearly US$ 34 Mn in 2017 and is forecast to reach nearly US$ 51 Mn in 2024, registering a CAGR of 4.8% during the forecast period. In terms of volume, the North America silo bags market is projected to register a CAGR of 4.4% to reach 62,700 units by 2026.
Factors fuelling the demand for silo bags in the North America region
Rising demand for convenience packaging among new generation farmers has compelled the manufacturers of silo bags to innovate in terms of optimum space requirements, storage efficiency, high performance and flexible plastic sheets. A growing trend among manufacturers and suppliers of silo bags in North America is to leverage the changing demographics of farmer size. Manufacturers are increasingly addressing the demand from small farmers who prefer silo bags over capital intensive silo systems for storage purposes. Farmers with very short-term storage requirements prefer renting or leasing silo bags as silo bags have good reusability and longer product life.
The North America silo bags market is characterised by substantial consolidation among market players. In order to expand their market presence and strengthen order fulfilling capacity, large players are strategically acquiring smaller manufacturers to serve a broader customer base.
Restraints limiting the growth of the North America silo bags market
Stringent guidelines issued by regulating authorities concerning food and environment have consequential implications on the silo bags market in North America. Stringent FDA regulations regarding the use of harmful chemical substances, and also various regulations for specific thickness, length and breadth for manufacturing of silo bags has led to market preference for alternative environment friendly products.
North America Silo Bags Market Forecast, by Application, 2016–2026
Among all applications of silo bags, grains is predicted to be an attractive segment for investment during the forecast period
By application, the North America silo bags market can be segmented into grains, forages, fertilisers, dried fruits and others. The demand for silo bags is prominently for storage of grains, which is estimated to constitute over 60% of the North America silo bags market.
Grains storage is expected to be a highly attractive packaging type among silo bags manufacturers due to its wide usage by farmers. The Forages segment is likely to maintain its market share with a steady rise in CAGR over the forecast period.
“Increasing production of crops likely to lead to the adoption of silo bags in the North America regional market
The silo bags market, which saw evolution and growth in the Latin America market, is now gaining substantial footprint in the North America market. With boom in crop production across the North America region, farmers in the U.S and Canada will invest in on-farm storage means, such as silo bags, for temporary and affordable storage of forage, grains and other produce. The North America market for silo bags will witness healthy growth of 1.6X owing to convenient packaging solutions demanded by small farmers as an alternative to large silo systems. The market will also witness additional growth prospects due to affordable silo bags being made available through lease and rentals.”
--- Analyst (Packaging), Future Market Insights
In a new report titled “Silo Bags Market: North America Industry Analysis and Opportunity Assessment, 2016–2026,” Future Market Insights offers detailed insights and in-depth research on the North America silo bags market over a 10-year forecast period 2016 – 2026. The report covers the important factors driving the growth of the North America silo bags market, untapped opportunities for manufacturers, trends and developments shaping the dynamics of the North America silo bags market and other insights across various key segments. The report identifies the drivers and restraints affecting the growth of the North America silo bags market. Changing trends are also analysed and incorporated in the report to equip clients with exhaustive information about the market resulting in better decision making. Macroeconomic factors and forecast factors that directly and indirectly affect the growth of the North America silo bags market are also incorporated in the report.
This report provides historical data of 2015 along with a comprehensive forecast from 2016 to 2026 in terms of revenue (US$ Mn) and volume (‘000 Units). The report also highlights macroeconomic indicators along with an outlook on consumption patterns in the North America silo bags market. It includes drivers and restraints of the North America silo bags market and their impact on each country in the North America region during the forecast period. The report also comprises a detailed study of current issues with end users and opportunities for silo bags manufacturers. It also includes detailed pricing analysis by material type and value chain analysis.
By Length Type
By Material Type
In order to provide readers with a comprehensive view of the North America silo bags market, we have included detailed competitiveness analysis of company players with unique selling propositions. The dashboard towards the end of the report provides detailed comparison of silo bags manufacturers on parameters such as operating margins, unique selling propositions, collective market share, and geographic concentration. The study encompasses market attractiveness analysis of key market segments by length type, material type, application and country.
Market numbers have been estimated based on average consumption and weighted average pricing of silo bags by material type and the revenue is derived through country pricing trends. Market size and forecast for each segment has been provided in the context of the North America region and the country markets. The North America silo bags market has been analysed based on expected demand. Prices considered for the calculation of revenue are average country prices obtained through primary quotes from numerous silo bags manufacturers, suppliers, and distributors. All key end users have been considered and potential applications have been estimated on the basis of secondary sources and feedback from primary respondents. Country-wise demand patterns have been considered while estimating the market for various end users of silo bags in North America. Company level market share has been derived on the basis of revenues reported by key manufacturers. The market has been forecasted based on constant currency rates. A number of primary and secondary sources have been consulted during the course of our research on the North America silo bags market. Secondary sources include Factiva, World Bank, Packaging Digest, and Hoover’s, and company annual reports and publications. In our compilation of the report on the North America silo bags market, the forecast is conducted in terms of CAGR, while other important criteria such as year-on-year growth and absolute dollar opportunity have also been incorporated presenting the reader with crystal clear insights and future opportunities likely to emerge in the North America silo bags market.