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US demand for lawn, garden, agricultural packaging to grow to US$1.7 bln in 2013 |
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Demand for lawn, garden and agricultural packaging in the US is forecast to grow 1.8% pa through 2013 to US$1.7 billion, decelerating from the sharp increases of the 2003-2008 period as raw material prices moderate as per a report by Freedonia. 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 acceleration in consumer lawn and garden spending and a rebound in residential construction after the declines of the 2003-2008 periods.
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% pa. 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% pa 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.
Demand for bulk packaging will increase less than 1% pa through 2013 to more than US$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.
The agricultural market will remain the largest market for lawn, garden and agricultural packaging, accounting for nearly 50% 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, convenience oriented packaging. This emphasis has led to the use of such features as high quality 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.
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