|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 390 Million||USD 921 Million||6.61%||2022|
Silo Bags Market
The global silo bags market size was worth around USD 390 Million in 2022 and is predicted to grow to around USD 921 Million by 2030 with a compound annual growth rate (CAGR) of roughly 6.61% between 2023 and 2030. The report analyzes the global silo bags market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the silo bags industry.
Silo bags are also known as grain bags or silage bags. They are plastic tubes that are used to store agricultural products such as silage, haylage, and grain. In most cases, silo bags are made of multi-layered, high-density polyethylene (HDPE) plastic owing to their strength, flexibility, and impermeable nature against moisture or air, thus providing overall protection to the stored item. The bags can be filled using a forage harvester or grain cart. Once it is full, a specialized machine is required to seal the silo bags.
This machine ensures that the air content of the bag is removed before sealing thus creating an airtight seal which is helpful in preventing bacterial or mold growth. The sealed products remain free of any kind of damage while being stored and transported. The food and its nutritional value remain intact throughout the process.
Growing demand for food to drive market growth
The global silo bags market is projected to grow owing to the increasing demand for food products across the globe. The world population has already reached over 8 billion and it is expected to cross more than 9.5 billion by 2050 as per United Nations (UN) prediction. Since food is a basic human necessity, the growing rate of population is an indication of the tremendous amount of pressure on the agricultural sector globally. Government agencies along with private companies have started undertaking several initiatives to ensure an adequate supply of food grains to every person irrespective of financial or other backgrounds.
Silo bags are highly effective in ensuring the food content in the bag does not undergo any kind of damage due to external factors and hence they are desirable products in the agricultural sector. Furthermore, farmers are witnessing an extreme shortage of storage facilities and silo bags can act as an excellent source of storage at a relatively lower cost leading to higher consumption.
Environmental concerns to restrict the market growth
One of the key factors that are greatly impacting the global silo bags market growth is the growing environmental concerns over the use of silo bags since they are made of plastic, which are non-biodegradable and take multiple years to completely degrade from the ecosystem. This has led to a large number of consumers switching to other modes of storing food grains which are expected to cause less strain on the environment. While there are growing measures to develop more environmentally friendly silo bags, their durability remains questionable.
Expansion into new markets to present high growth opportunities
The global silo bags industry players can expect higher growth opportunities owing to the rising number of players entering previously untapped markets or emerging economies to produce and sell silo bags. These storage units are less expensive as compared to more traditional forms of food storage. They do not require extensive initial investment. Thus, in countries that are witnessing a sharp decline in the availability of large storage units, these bags can be highly resourceful. Market players need to tap into these segments and market the product for better growth prospects.
Price volatility to challenge market growth
The global silo bags industry faces challenges in terms of the high price volatility of raw materials required to manufacture silo bags. One of the key components used in the production process is a plastic resin which is subject to price fluctuations making it difficult for the manufacturers to maintain consistent pricing and profitability. Additionally, the growing competition from alternative solutions could act as another significant roadblock in the industry.
The global silo bags market is segmented based on capacity of bags, storage, and region.
Based on capacity of bags, the global market segments are up to 2000 mt and above 2000 mt. In 2022, the industry witnessed the highest growth in silo bags with a capacity above 2000 mt since they are most commonly used for large-scale storage of food grains such as grains, rice, corn, and soybeans. These bags have higher commercial applications and hence generate more revenue as companies have bigger budgets as compared to individual or smaller players in the agricultural sector. Using these bags, large amounts of food grain can be stored for a longer duration. Generally, smaller firms of individual farmers tend to use silo bags under the capacity of 2000 mt. According to the United States Department of Agriculture (USDA), Russia produced an estimated 85 million metric tons (MMT) of wheat and 13 MMT of barley in 2020.
Based on storage, the global silo bags market divisions are fertilizer, dry grains, wood chips, forages, dried fruits, rolled/crushed grains, wet grains, and others. The most commonly stored items in silo bags are dry grains such as corn, wheat, rice, soybeans, and barley. These products are further used in the production of food, feed, and industrial raw materials. Under such circumstances, silo bags are highly cost-effective since not only do they allow longer storage of food items but also ensure the nutritional value of the items remains intact. Hence they act as excellent storage solutions for farmers and corporations alike. According to the Food and Agriculture Organization (FAO) of the United Nations, estimates say that approximately 25% of the world's food production is lost or wasted every year due to various factors, such as moisture, pests, and other causes.
|Report Attributes||Report Details|
|Report Name||Silo Bags Market Research Report|
|Market Size in 2022||USD 390 Million|
|Market Forecast in 2030||USD 921 Million|
|Growth Rate||CAGR of 6.61%|
|Number of Pages||195|
|Key Companies Covered||RKW Group, GrainPro, Inc., Silo Bag India Pvt. Ltd., The Context Network, Canadian Tarpaulin Manufacturers Ltd., The Andersons, Inc., Hangzhou Xinguang Plastic Co., Ltd., IPESA Silo Bags, Sigma AgriScience, LLC, KSI Supply, Inc., Flexipol Packaging Limited, Temudjin Flexible Packaging, RKD Rubber Pvt. Ltd., International Plastics Inc., Global-Pak, Inc., Blue Lake Plastics, LLC, PT. Delta Jaya Mas, Grain Bags Canada, RKW North America, Inc., Gaoqing Kuanbao Plastic Products Co., Ltd., Tianjin Yingtong Metal Products Co., Ltd., GreenBag America, Inc., Hangzhou Zon Packaging Machinery Co., Ltd., ESKO s.r.l., and Trucent.|
|Segments Covered||By Capacity of Bags, By Storage, And By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America to witness massive growth rate
The global silo bags market is expected to witness the highest growth rate in North America with the US acting as the dominant nation. The United States is one of the largest producers of agricultural products such as corn, soybeans, and wheat. As the demand for efficient and cost-effective storage solutions is on the rise, the production and consumption of silo bags in the region may also witness a high growth rate. Europe is another significant contributor to the global industry with Germany and the US leading with higher CAGR due to the growing adoption of modern-age farming practices along with the need for flexible storage units. In Asia-Pacific, the growth may be the result of higher agricultural production in Russia, India, and China. Agriculture is the primary occupation in India and these regions collectively export a large number of food products. They are also registering high domestic demand as the population continues to rise.
The global silo bags market is led by players like:
By Capacity of Bags
Silo bags are also known as grain bags or silage bags. They are plastic tubes that are used to store agricultural products such as silage, haylage, and grain.
The global silo bags market is projected to grow owing to the increasing demand for food products across the globe.
According to study, the global silo bags market size was worth around USD 0.39 billion in 2022 and is predicted to grow to around USD 0.921 billion by 2030.
The CAGR value of silo bags market is expected to be around 6.61% during 2023-2030.
The global silo bags market is expected to witness the highest growth rate in North America with the US acting as the dominant nation.
The global silo bags market is led by players like RKW Group, GrainPro, Inc., Silo Bag India Pvt. Ltd., The Context Network, Canadian Tarpaulin Manufacturers Ltd., The Andersons, Inc., Hangzhou Xinguang Plastic Co., Ltd., IPESA Silo Bags, Sigma AgriScience, LLC, KSI Supply, Inc., Flexipol Packaging Limited, Temudjin Flexible Packaging, RKD Rubber Pvt. Ltd., International Plastics Inc., Global-Pak, Inc., Blue Lake Plastics, LLC, PT. Delta Jaya Mas, Grain Bags Canada, RKW North America, Inc., Gaoqing Kuanbao Plastic Products Co., Ltd., Tianjin Yingtong Metal Products Co., Ltd., GreenBag America, Inc., Hangzhou Zon Packaging Machinery Co., Ltd., ESKO s.r.l., and Trucent.