Agriculture Packaging Market Set to Reach USD 12.7 Billion by 2035 as Global Demand for Sustainable Solutions Accelerates

The agriculture packaging industry is on the cusp of a transformative decade. According to the latest market outlook, the sector is valued at USD 7.6 billion in 2025 and is expected to climb to USD 12.7 billion by 2035, registering a compound annual growth rate (CAGR) of 5.3%. This steady expansion is underpinned by rising global food demand, the need to protect crops and inputs during transport, and a wave of innovation in sustainable packaging solutions.

The Drivers Behind Growth

Agricultural producers, processors, and distributors face a common challenge: how to deliver fresh, safe, and market-ready products while minimizing waste. Packaging plays a critical role in this ecosystem. From protecting seeds and fertilizers to ensuring fresh produce reaches markets intact, durable and innovative packaging solutions are no longer optional—they are essential.

Key factors driving this growth include:

• Sustainability pressures: Governments and consumers alike are demanding alternatives to single-use plastics, accelerating the shift toward recyclable and biodegradable materials.
• Freshness and shelf life: Innovations in barrier technologies are ensuring that products retain quality during long-distance transportation.
• Brand differentiation: Customized, printed, and traceable packaging is emerging as a powerful marketing tool for agricultural producers.

Together, these forces are creating fertile ground for both established manufacturers and new entrants looking to expand their footprint.

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Market Leaders and New Entrants

The agriculture packaging market is characterized by intense competition, with global players and nimble start-ups driving innovation. Established names such as Bemis Company, Sonoco Products Company, Mondi Group, International Paper, DS Smith, and Smurfit Kappa Group are doubling down on eco-friendly innovations.

For instance, Mondi recently partnered with Poland’s SILBO to develop compostable paper-based bags for Ireland’s Meade Farm Group, replacing traditional plastic potato packaging. Similarly, Sonoco expanded its reach by acquiring Westrock’s stake in RTS Packaging, gaining full control of 14 operations across the Americas.

At the same time, start-ups like Ecovative, which leverages mycelium-based biodegradable materials, and Good Start Packaging, known for plant-fiber packaging solutions, are redefining what sustainable agriculture packaging can look like. Their adaptability and focus on next-generation materials make them formidable players in this evolving space.

Segment Insights

Pouches – The Leading Product Type

Pouches are expected to capture 47.6% of market revenue by 2025, making them the single largest product segment. Their lightweight design, resealability, and cost efficiency make them particularly attractive to both producers and distributors. For farmers managing inputs like seeds and fertilizers, pouches are easy to transport and store while also providing ample branding space.

Plastic Materials – Still Dominant, But Changing

Plastics will continue to dominate, contributing 54.2% of total revenue in 2025. Their durability, versatility, and compatibility with barrier technologies keep them indispensable. However, with sustainability in focus, the market is shifting toward recyclable and advanced plastics designed to reduce environmental impact.

Low Barrier Packaging – Cost Efficiency First

For bulk commodities and short-term storage, low-barrier solutions account for 38.9% of revenue in 2025. These options strike a balance between protection and affordability, particularly appealing to high-volume producers in emerging economies.

Application Spotlight – Silage Packaging

Silage packaging is projected to hold a 44.6% share in 2025, rising further by 2035. With livestock farming central to rural livelihoods in countries like India and China, demand for effective silage storage solutions is growing rapidly. Bags, bins, and films designed for silage preservation are helping farmers secure year-round fodder, thereby stabilizing incomes.

Regional Growth Hotspots

North America: With a projected 24.1% share by 2035, North America remains a hub for sophisticated packaging technologies. The U.S. alone accounts for 20.8% of the global share in 2025, thanks to advanced agrochemical packaging and strong investments in sustainability.

China: The Asia-Pacific powerhouse is forecast to grow at an impressive 6.7% CAGR, driven by precision farming, AI integration, and government-backed agricultural modernization. Initiatives like Alibaba’s AI-powered farm monitoring solutions are pushing demand for smarter, more adaptable packaging.

India: Set to expand at 7.6% CAGR, India’s agriculture packaging demand is fueled by its growing food exports and a strong push toward eco-friendly packaging formats. With millions of smallholder farmers depending on reliable storage and distribution systems, the country represents a critical growth frontier.

Europe: Germany remains a key hub, with a 6.1% market share in 2025, largely due to its emphasis on paper-based and biodegradable solutions. European manufacturers are at the forefront of sustainable packaging adoption, spurred by strict regulations and high consumer awareness.

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Opportunities and Challenges

Opportunities abound in areas such as smart packaging integration, biodegradable material development, and automation-compatible solutions. With the rise of e-commerce in food distribution, demand for lightweight, durable, and customizable packaging will only accelerate.

However, challenges remain. High raw material costs and the need to replace outdated, non-recyclable solutions could limit some players. Furthermore, balancing performance with environmental concerns remains an ongoing industry test.

A Future Built on Innovation and Collaboration

The agriculture packaging market is not just about protecting goods; it is about shaping the future of food security and sustainability. Manufacturers that embrace eco-friendly practices, integrate smart technologies, and form strategic collaborations will be best positioned to thrive.

As Sonoco, Mondi, Smurfit Kappa, and others continue to set global benchmarks, start-ups like Ecovative and Good Start Packaging are injecting fresh ideas into the sector. Together, these players are creating a dynamic marketplace that balances tradition with transformation.

With global agricultural output rising and the pressure for sustainable practices mounting, the next decade will see agriculture packaging evolve from a functional necessity into a cornerstone of modern agribusiness.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. 

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