Lawn, Garden and Agricultural Packaging to Exceed $1.7 Billion in 2013

Demand for lawn, garden and agricultural packaging is forecast to increase 1.8 percent per year through 2013 to over $1.7 billion, decelerating from the sharp increases of the 2003-2008 period as raw material prices moderate.  Gains will be bolstered by the continuing need for packaging that can provide a means of differentiating products which are primarily commodity in nature.  Moreover, demand will be aided by consumer preference for convenient, user-friendly packaging, a factor that will stimulate sales of reclosable pouches and other value-added products.  These and other trends, including market share and product segementation, are presented in Lawn, Garden & Agricultural Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Pouches, especially stand-up types, will post the fastest gains among all lawn, garden and agricultural packaging due to their superior visual appeal, reclosability and barrier properties.  Demand for pouches will come largely at the expense of smaller paper and plastic bags.  Bags and sacks will continue to be the leading product type through 2013, with demand advancing 1.5 percent per annum to just over $880 million.  Gains will be driven by healthy advances for plastic types due to cost advantages relative to paper.  Plastic container demand is projected to increase 1.9 percent annually through 2013 to just over $380 million.

Demand for bulk packaging will increase less than one percent per year through 2013 to $242 million due to falling shipment volumes of fertilizers and meager advances in pesticide volumes.  Intermediate bulk containers (IBCs) will offer the best prospects of all bulk packaging types as a result of long-term cost, reusability and performance advantages. 

Agriculture will remain the largest market for lawn, garden and agricultural packaging, accounting for 49 percent of demand in 2013 despite below-average gains stemming from market maturity and the unchanging acreage of cropland planted.  The consumer market will offer the best opportunities due to an emphasis on aesthetically appealing, convenience-oriented packaging. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.