Press release
Silo Bags Market - Key Growth Factors and Industry Analysis 2016-2026
The need for a cost-efficient solution for storage of grains and animal fodder has led to extensive preference for silo bags among farmers in the U.S. and Canada. The North America silo bags market is expected to witness healthy growth rate owing to small farmers demanding silo bags for short-term and affordable packaging and storage purposes. Silo bags, also known as harvest grain bags are used as an alternative storage system for grains such as wheat, corn, maize, sorghum, etc. in order to fulfil shortage of cattle fodder during dry seasons. The North America silo bags market is expected to create good opportunities for suppliers, distributors and manufacturers operating in the market.Revenue generated from the North America silo bags market is estimated to touch nearly US$ 34 Mn in 2017 and is forecast to reach nearly US$ 51 Mn in 2024, registering a CAGR of 4.8% during the forecast period. In terms of volume, the North America silo bags market is projected to register a CAGR of 4.4% to reach 62,700 units by 2026.
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Factors fuelling the demand for silo bags in the North America region
Rising demand for convenience packaging among new generation farmers has compelled the manufacturers of silo bags to innovate in terms of optimum space requirements, storage efficiency, high performance and flexible plastic sheets. A growing trend among manufacturers and suppliers of silo bags in North America is to leverage the changing demographics of farmer size. Manufacturers are increasingly addressing the demand from small farmers who prefer silo bags over capital intensive silo systems for storage purposes. Farmers with very short-term storage requirements prefer renting or leasing silo bags as silo bags have good reusability and longer product life.
The North America silo bags market is characterised by substantial consolidation among market players. In order to expand their market presence and strengthen order fulfilling capacity, large players are strategically acquiring smaller manufacturers to serve a broader customer base.
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Restraints limiting the growth of the North America silo bags market
Stringent guidelines issued by regulating authorities concerning food and environment have consequential implications on the silo bags market in North America. Stringent FDA regulations regarding the use of harmful chemical substances, and also various regulations for specific thickness, length and breadth for manufacturing of silo bags has led to market preference for alternative environment friendly products.
North America Silo Bags Market Forecast, by Application, 2016–2026
Among all applications of silo bags, grains is predicted to be an attractive segment for investment during the forecast period
By application, the North America silo bags market can be segmented into grains, forages, fertilisers, dried fruits and others. The demand for silo bags is prominently for storage of grains, which is estimated to constitute over 60% of the North America silo bags market.
Grains storage is expected to be a highly attractive packaging type among silo bags manufacturers due to its wide usage by farmers. The Forages segment is likely to maintain its market share with a steady rise in CAGR over the forecast period.
“Increasing production of crops likely to lead to the adoption of silo bags in the North America regional market
The silo bags market, which saw evolution and growth in the Latin America market, is now gaining substantial footprint in the North America market. With boom in crop production across the North America region, farmers in the U.S and Canada will invest in on-farm storage means, such as silo bags, for temporary and affordable storage of forage, grains and other produce. The North America market for silo bags will witness healthy growth of 1.6X owing to convenient packaging solutions demanded by small farmers as an alternative to large silo systems. The market will also witness additional growth prospects due to affordable silo bags being made available through lease and rentals.”
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