North America Agricultural Packaging Market Size, Share & Trends Analysis Report By Material (Plastics, Paper & Paperboard, Molded Pulp), By Application (Horticulture, Poultry, Mushroom), By Country, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The North America agricultural packaging market size was valued at USD 406.4 million in 2023 and is expected to grow at a CAGR of 5.0% from 2024 to 2030. Growing consumption of poultry products and rising horticulture sector across the North America is accelerating the demand for agricultural packaging in the North America.

North America agricultural packaging market experienced a significant boost in recent years, primarily attributed to the growing consumption of poultry products in the region. According to the U.S. Department of Agriculture (USDA), in 2022, the total per capita poultry consumption increased by 18.39% from 2015 to 2023 in the country. This increase in consumption of poultry is due to perceived health benefits of poultry products and eggs as an economical protein source compared to other protein food options. This surge in demand for poultry has propelled the need for efficient and reliable packaging solutions. Poultry products, such as eggs and meat, are sensitive to environmental conditions, which drive the requirement for packaging that provides the required protection from the external contaminants and environment. This is expected to contribute to the growth of North America agricultural packaging market. The increase in total per capita poultry consumption of the U.S. from 2015 to 2023 has been represented in the below-mentioned bar graph obtained from USDA.

According to the USDA, U.S. poultry products have secured dominant positions in both the global and domestic meat commodity markets, propelled by competitive production structures, advanced poultry genetics, abundant domestic feed resources, and a robust appeal to consumers. As per USDA, from 2013 to 2022, broiler chickens were responsible for nearly all U.S. chicken meat, maintained an average share of 67.0% in total poultry sector sales. Chicken eggs, primarily intended for human consumption, accounted for an average of 22.0%, while turkeys accounted for 11.0% of the overall poultry sales during this period. This outlook is expected to increase the need for packaging solutions that ensure the freshness, safety, and shelf life of these products. Therefore, this landscape has driven the demand for agricultural packaging products such as egg trays, flat trays, containers, and others.

The rise in e-commerce and online retail channels has further fueled the demand for efficient poultry packaging products in the region. Consumers are increasingly turning to online platforms for their grocery shopping, and this shift has prompted packaging manufacturers to develop solutions that can withstand the challenges of transportation and storage while maintaining product integrity.

According to the National Agricultural Statistics Service (NASS), in 2022, the total production of the 26 vegetable and melon crops in the U.S. amounted to 658 million cwt. Besides, in 2022, the three largest crops, in terms of total production, were tomatoes, sweet corn, and onions, collectively representing 53% of the total vegetable production, as per reported by NASS. The value of utilized production for vegetable crops reached USD 16.5 billion in 2022, indicating a substantial 27% increase from the previous year. This outlook is expected to create the demand for packaging solutions that are capable of preventing fresh produce from bruising and spoilage during transit and handling. This is anticipated to drive the demand for agricultural packaging products such as punnets, trays, tills, and containers over the forecast period.

Market Concentration & Characteristics

Prominent North America agricultural packaging companies operating in market include Amcor plc, FormTight, Inc., DS Smith, Mondi, Atlantic Packaging, FLAIR Flexible Packaging Corporation, PPC Flexible Packaging LLC, Flexpack, Transcontinental Inc., Tekni-Plex, Inc., Sealed Air, Sonoco Products Company, Huhtamaki Oyj, CLONDALKIN GROUP, ProAmpac, Genpak, Sambrailo Packaging, and WINPAK LTD.

Companies are striving to launch recyclable and sustainable agricultural packaging products to differentiate themselves from competitors, appealing to environmentally conscious consumers and positioning themselves as industry leaders in sustainability. For instance, in November 2023, Huhtamaki North America launched a new line of sustainable molded fiber-based cartons for use by egg producers in the U.S. These cartons are produced using 100% recycled material and serve as an alternative to conventionally used polystyrene foam in the egg market. The new product line is part of Huhtamaki's commitment to sustainable packaging and its goal of making all its packaging recyclable and compostable by 2030.

In April 2023, Amcor plc and Tyson Foods, Inc. collaborated to introduce a sustainable packaging solution made from Amcor's AmPrima recycled ready-forming and non-forming flexible film. This innovative packaging offers up to a 70% reduction in carbon footprint over conventional packaging and is expected to be used for Tyson Foods' Jimmy Dean egg bites and frittatas. The package is designed to be recycled in-store or curbside, where available, thereby reducing the amount of plastic waste. Additionally, it provides a 42% reduction in water consumption.

Material Insights

On the basis of material, the North America agricultural packaging market has been segmented into plastics, paper & paperboard, and molded pulp. Plastics is anticipated to dominate the overall market with a market share of over 64.0% in 2023. Plastic is an important raw material in the manufacturing of agricultural packaging products such as trays, clamshells, tills, heat-sealing bags, stand-up pouches, and others. Polyethylene (PE), polypropylene (PP), polyethylene terephthalate (PET), and polystyrene (PS) are major plastics used in the manufacturing of agricultural packaging products. These plastic-based agricultural packaging products offer various benefits such as durability, flexibility, and cost-effectiveness.

Furthermore, paper & paperboard material segment is expected to grow at a fastest CAGR of 5.8% over the forecast period. Agricultural packaging made from paper and paperboard offers various advantages. It provides adequate protection for a wide range of agricultural products including fruits and vegetables. The packaging can be customized to meet specific requirements, offering options such as different weights, thicknesses, and barrier coatings to protect against moisture, air, and light. In addition, paper-based packaging is cost-effective and easily accessible, making it an attractive choice for both small-scale and large-scale agricultural operations.

Application Insights

Based on the application, the North America agricultural packaging market is segmented into horticulture packaging, poultry packaging, and mushroom packaging. Poultry packaging application segment dominated market and accounted for largest revenue share of over 49.0% in 2023 and is expected to grow at a fastest CAGR of 5.2% over the forecast period. This positive outlook can be attributed to an increasing consumption of poultry products, such as eggs and meat of chickens, turkeys, quails, ducks, and geese.

In horticulture packaging, products such as trays, punnets, heat-seal bags, and seedling flat trays are used to preserve the quality and freshness of perishable products, including fruits, vegetables, flowers, and ornamental plants, throughout the supply chain. Moreover, Mushroom packaging is designed to pack edible mushrooms. Punnets, tills, and containers are different mushroom packaging products. These products play a crucial role in preserving the freshness of delicate mushrooms, extending their shelf life, and protecting them from damage.

Country Insights

U.S. Agriculture Packaging Market Trends

U.S. dominated the market and accounted for the largest revenue share of over 48.0% in 2023. The agricultural packaging market in North America is highly influenced by the growing poultry sector. Rising production and consumption of poultry products such as eggs and meat of chicken and turkey is expected to accelerate the demand for agricultural packaging products such as egg trays, shrink films, clamshells, trays, and over-wrapped trays.          

Advanced packaging materials and techniques that enhance product shelf life, reduce environmental impact, and improve the overall efficiency of packaging solutions are likely to be key drivers for the agricultural packaging market in the U.S. For instance, in September 2021, Wegmans Food Markets introduced sustainable packaging for its store brand eggs. All Wegmans brand eggs now come in a paper pulp carton that is completely recyclable, biodegradable, and compostable. The new cartons are made of 100% post-consumer recycled newsprint and paper products. The company estimates that it will eliminate 625,000 pounds of foam from its stores annually.

Canada Agricultural Packaging Market Trends

According to the Agriculture and Agri-Food Canada (AAFC), in 2022, Canada exported over 5.4 million kilograms of processed eggs worth USD 23 million and over 24.2 million shell eggs worth over USD 3.6 million. In addition, in 2022, Canada exported over 38.8 million hatching eggs of different species, worth over USD 77.4 million, to 20 countries. U.S. was the largest market for Canada’s egg export, accounting for 69% of its value, while other primary countries included Russia, Brazil, and Chile. This export outlook is anticipated to trigger the demand for agricultural packaging products, particularly egg trays, during the forecast period.

Mexico Agricultural Packaging Market Trends

The agricultural packaging market in the Mexico is expected to witness significant growth, owing to the high per capita egg consumption rate. According to the United States Department of Agriculture (USDA), in 2021, per capita egg consumption in Mexico reached 21.4 kg, witnessing an increase of 1.52% over the 2020.

Key North America Agriculture Packaging Company Insights

The market is fragmented with the presence of a significant number of companies. Major players operating in the North America agricultural packaging market are undertaking different strategies such as product launches, mergers, joint ventures, acquisitions, and geographical expansion.

• In January 2024, StePac, a fresh produce packaging manufacturer, launched a sustainable packaging solution that prolongs the shelf life of exotic mushrooms. This latest advancement in its packaging formats is specifically designed to maintain the freshness of whole and sliced white mushrooms, as well as other exotic varieties, such as oyster, shiitake, lion's mane, and portabella.

• In June 2023, TekniPlex announced plans to start a new egg carton facility in Van Wert, Ohio. The expansion project is expected to create over 100 jobs and will be a 200,000-square-foot specialty molded fiber solutions facility. The new facility is expected to combine the company’s specialty fiber capabilities with state-of-the-art technology platforms, to produce a variety of products, including egg cartons. The facility is expected to begin operations in early 2024.

North America Agricultural Packaging Market Report Scope

North America Agricultural Packaging Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the North America agricultural packaging market report on the basis of material, application, and country:

• Material Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Plastics

  • Paper & Paperboard

  • Molded Pulp

• Application Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Horticulture Packaging

    • Trays, Clamshell Tray (Punnets)

    • Heat Seal Bags

    • Seedling Flat Trays

  • Poultry Packaging

    • Egg Trays

    • Clamshells

    • Trays

    • Others

  • Mushroom Packaging

    • Clamshell Tray (Punnets)

    • Mushroom Tiles

    • Containers

• Country Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • U.S.

  • Canada

  • Mexico