The North American silo bags market is estimated to be valued at about USD 47.2 million in the current year 2023. As per the North America silo bags market analysis by FMI, it is projected to follow a CAGR of 5% until 2033. This analysis report further predicts the North America silo bags market value to reach up to USD 76.9 million by the end of 2033.
Silo bags were commonly used as a temporary on-farm storage facility and have emerged as an alternative for large-size warehouses over the past few years. Silo bags provide a temporary storage solution for several agricultural produce at the farm location making them desirable for extensive supply chains. The rising demand of customers for convenience packaging and storage applications is driving the North America silo bags market.
The great demand for small silos, particularly 60m to 75m size silo bags drives the bulk silo bags market in North America. The study conducted by Future Market Insights estimates that the 60-meter and 75-meter lengths of silo bags cumulatively accounted for around 90% of the market share in 2022. Further, as per the market analysis report, these segments are projected to expand at a CAGR of 4.7% and 5.1% respectively through 2033.
The United States is expected to dominate the silo bags market in North America by its high share in the agricultural produce market. Additionally, during the past 20 years, the United States grain storage capacity has risen dramatically positively impacting the demand for silo bags.
The United States Food & Drug Administration estimates that the nation's grain storage capacity needs to be increased further after the advent of precision farming. Over the projection period, the demand for silo bags could grow substantially as a result of the rise in stockpiles of maize crops.
Besides food grains, animal feed and fertilizers are also required to be stored on the farm for their later use during the dry seasons. Investing in permanent storage facilities for animal feed, fertilizers, or other inferior goods often requires high capital expenditure. Hence, silage storage bags are now increasingly adopted by farmers in North America opening up new markets of silage bags for sale.
| Attributes | Details |
|---|---|
| North America Silo Bags Market Size 2022 | USD 42.8 million |
| North America Silo Bags Market Size 2023 | USD 47.2 million |
| Market Size 2033 | USD 76.9 million |
| Market Value CAGR (2023 to 2033) | 5% |
North American silo bags constituted around 21% to 24% of the global silo bags market worth, which was around USD 36.5 million in 2018. In comparison to the forecasted CAGR, the North American silo bags market registered an average annual growth rate of 4.1% in the period between 2018 and 2022.
The demand for silo bags was negatively impacted to some extent during the years 2020 and 2021 as a result of the pandemic. Though the agriculture industry was least disrupted, however, the market growth was dampened because of the delays in the supply of agricultural produce. Reduced manpower in the manufacturing units also resulted in disruptions in the supply of silo bags in the North America region in 2020.
The silo bags market experienced a heightened growth rate in 2021 as the restriction and regulations were reduced in several parts of the region. The great focus on agriculture and associated industries in the following years rendered the silo bag manufacturers with better market opportunities.
The new generation of farmers expects features such as flexibility, low cost, high performance, and less space requirement instrumenting a new trend. It also has resulted in frequent innovation in packaging and creativity in the final shape of silo bags. Better material and design give farmers the ability to store the yield until a convenient time when the final delivery of grains is reached.
Various machines are now used to fill grains quickly in silo bags such as the rotor bagger machine due to technology up-gradation. The introduction of such modern machines for working well with silo bags is anticipated to favor the market key trends and opportunities.
Other baggers that are commonly used for convenient packaging are farm bagger hoppers and augers, grinder hoppers, and trucks with tunnels or truck baggers. The growing adoption of these bagger systems in North America is expected to drive the silo bags market growth during the forecast period.
The demand for silo bags in the United States is way higher than in Canada owing to the presence of a huge commercial agricultural base. The United States is estimated to offer an excellent incremental opportunity of USD 24.9 million to silo bag manufacturers in forthcoming years. As per the USA Department of Agriculture (USDA), agriculture and related industries cumulatively contributed to a 5.2% share of the USA GDP.
The significant growth of the organic agriculture industry in the United States is anticipated to strengthen the silo bags industry in the country. So most of the silo bag manufacturers in the country are spending on the development of eco-friendly or bio-degradable materials for the purpose. Furthermore, the recent federal regulations regarding curbing the use of polymer materials might play a crucial role in this endeavor of market players.
| Regional Markets | The United States Market |
|---|---|
| Market Share in 2022 | 83.7% |
| CAGR (2023 to 2033) | 4.9% |
| Regional Markets | Canada Market |
|---|---|
| Market Share in 2022 | 16.3% |
| CAGR (2023 to 2033) | 5.4% |
Back in the year 2022, the net worth of the total silo bags sold in Canada was around USD 7 million. FMI estimates that Canada’s silo bags market might advance at a compound annual growth rate of 5.4% during the period 2023 to 2033.
According to the data published by the Government of Canada, the production of grains and oilseeds totaled 90,444 thousand tons in 2021. Further, the agricultural produce in the country was forecasted to witness an upward trend in the following years. This promising growth in the cultivation of grains is anticipated to generate huge market growth opportunities for silo bags in the country.
Among the different materials used for manufacturing silo bags, polyethylene or PE is the most preferred segment for the end users. It is also estimated to gain escalated demand through 2033 with the growing preference of farmers, and compatibility for a wide range of applications. Furthermore, the manufacturers are also enhancing their PE silo bag product offering as it is easy to recycle and sustainable compared to other alternatives.
The PE material segment is projected to offer an excellent incremental opportunity of USD 9.4 million over the next ten years. Meanwhile, the polypropylene material segment is anticipated to maintain a high growth rate with its growing adoption in some new application segments.
| Category | Material Type |
|---|---|
| Top Segment | Polyethylene (PE) Silo Bags |
| Market Share in Percentage | 92.8% |
| Category | Application |
|---|---|
| Top Segment | Grain Storage |
| Market Share in Percentage | 66.7% |
Based on application, the grain storage segment generates the most demand for silo bags and is projected to remain dominant through 2033. The demand for silo bags for the grains segment is projected to expand at a CAGR of 4.9% over the forecast period 2023 to 2033.
The forage products storage segment is anticipated to progress at a high rate during the forecasted period. Silo bags are also efficient and convenient for storing fertilizers and dried fruits, however, the contribution share of these segments is limited until now.
Many regional players in North America offer these silage storage bags for various applications, making the overall market competitive. So, these businesses now targeting only a single application or product-based sector that offers advantageous legislation is a discernible trend across the market. This enables the industries to save expenses while still hiring experts in the field at each pivotal stage of their firms.
Leading silo bag manufacturers are focusing on making investments to increase their geographical footprint and manufacturing capabilities to enhance their overseas market share. For instance,
Some key players are also focusing on providing sustainable alternatives to the end users in compliance with environmental protection laws. For instance, in August 2021, RKW Group launched Polydress FarmGuard, a seven-layer silage barrier film for manufacturing silo bags 39 meters wide.
Silo bag manufacturers in North America are increasingly getting engaged in developing strategies like targeted marketing to improve their brand recognition. So new industries entering the market can adopt online promotion to get headway in such an evolving market scenario.
By cutting trade taxes and levies, developing nations are implementing measures to entice international investors to the agro-industrial sectors and create more employment. So, the expansion of North American silo bags businesses’ beyond the territorial boundaries could be a significant opportunity for them in the coming days.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value and ‘000 Units for Volume |
| Key Countries Covered | The United States and Canada |
| Key Segments Covered | By Length Type, By Capacity, By Material Type, By Application, By Country |
| Key Companies Profiled | IPESA - Rio Chico S.A.; GEM Silage Products; RKW Hyplast NV.; BagMan LLC; Canadian Tarpaulin Manufacturers Ltd.; Grain Bags Canada; Blue Lake Plastics, LLC; Grain Pro, Inc.; KSI Supply, Inc.; Temudjin Flex-Pack B.V. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is valued at USD 47.2 million in 2023.
BagMan LLC, Grain Pro, Inc., and KSI Supply, Inc. are the key market players.
Polyethylene is projected to experience escalated demand from 2023 to 2033.
Eco-friendly materials adoption curbing polymer use is the key trend.
The market is estimated to reach USD 76.9 million by 2033.
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North America Silo Bags Market
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