US demand to reach $1.7 billion in 2013 Demand for lawn, garden and agricultural packaging in the US is forecast to grow 1.8 percent per year through 2013 to $1.7 billion, decelerating from the sharp increases of the 2003-2008 period as raw material prices moderate. Gains will be bolstered by continuing need for packaging that can provide a means of differentiating products that 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, dispensing closures and other value-added products. Demand will also benefit from an acceleration in consumer lawn and garden spending and a rebound in residential construction after the declines of the 2003-2008 period.
Stand-up pouches to be fastest growing product 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. Gains will be driven by healthy advances for plastic types due to cost advantages relative to paper. Bags and sacks are widely used for lawn, garden and agricultural consumables because of their relatively low cost, lower material consumption than rigid containers, and adequate durability and protection. Plastic container demand is projected to increase 1.9 percent annually through 2013, bolstered by performance advantages such as design flexibility, light weight, water and chemical resistance, and suitability for a variety of closures. Their chemical resistance makes them especially amenable to packaging liquid chemicals such as pesticides, although these containers are used in limited amounts for other items such as seeds and fertilizers.
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IBCs to pace bulk segment Demand for bulk packaging will increase less than one percent per year through 2013 to more than $240 million due to falling shipment volumes of fertilizers and meager advances in pesticide volumes. However, 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. IBCs also have larger capacities than drums, bags, sacks and bottles, allowing them to make further inroads in the agricultural and professional markets, where bulk quantities of consumables are most used.
Consumer market to offer best growth opportunities The agricultural market will remain the largest market for lawn, garden and agricultural packaging, accounting for nearly 50 percent of demand in 2013. Below-average gains in the agricultural market will stem from market maturity and a constant size of cropland planted. The consumer market will offer the best opportunities due to an emphasis on aesthetically appealing, convenienceoriented packaging. This emphasis has led to the use of such features as highquality graphics, plastic film laminations and easy-to-use dispensing closures. In the professional market, packaging demand will benefit from an increase in the number of landscaping and lawn care firms as a result of a recovery in the residential housing market.
Study coverage The new Freedonia industry study, Lawn, Garden & Agricultural Packaging, is available for $4600. It presents historical demand data (1998, 2003 and 2008) plus forecasts for 2013 and 2018 by market, application and product. The study also assesses key market environment factors, evaluates company market share and profiles 38 competitors in the US industry.
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