Market Trends of North America Agricultural Chemical Packaging Industry
This section covers the major market trends shaping the North America Agricultural Chemical Packaging Market according to our research experts:
Fertilizers to Hold Major Market Share
- In terms of agrochemicals, such as fertilizers, pesticides, herbicides, and other chemicals, the North American market has reached significant maturity, with the demand maintaining a steady point over the last few years. It is expected to remain the same over the coming years as well.
- North America is one of the most mature markets for fertilizer; it witnessed a slower growth rate in the last few years. According to the IFA, a prominent share of Nitrogen fertilizer application in the United States was held by Ammonia, Urea, and UAN, with a combined percentage share of over 60%.
- Among the crops, Maize and Wheat crops held nearly half of the country's Nitrogen fertilizer demand. Hence, vendors offering Nitrogen fertilizers in the region command a major share of the fertilizer market and drive the demand for packaging solutions.
- In the United States, most ammonia production occurs near large natural gas reserves in Louisiana, Oklahoma, and Texas due to the use of natural gas as a hydrogen feedstock and to fuel the high temperature and pressure needed to produce ammonia. A major share of the ammonia is produced by international companies and used for domestic consumption, with some imports from Trinidad and Tobago and Canada. A very small amount of ammonia produced in the region is exported.
- The region's largest ammonia producers are Nutrien, CF Industries, Moasaic, and Yara. Nitrogen fertilizer production facilities operate daily but have limited storage capacity, so fertilizers must be transported to warehouses and terminals for storage. Modes of transportation used to transport ammonia include refrigerated barge, rail car, pipeline, and tank truck.
- With the region's major share of the global fertilizer sector, the manufacturers' demand for packaging in the United States and Canada is significant. In addition, the region's vendors are witnessing easy and sustainable packaging solutions for fertilizers. For instance, in April 2021, Johnny Appleseed Organic came out with ClimateGard, a no-kill fertilizer for gardens that comes in sustainable cotton bags.
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Plastic to Hold the Largest Market Share
- The countries in the North American region, such as the United States and Canada, are prominent manufacturers of plastic resins worldwide. According to the American Chemistry Council's Plastics Industry Producers Statistics (PIPS) Group, North American resin output increased by 0.7% to 124 billion pounds, up from 123.1 billion pounds in 2020. Polyethylene (PE) accounted for the largest share of production in 2020, followed by polypropylene (PP), polyvinyl chloride (PVC), and polystyrene (PS), according to the American Chemistry Council.
- Polyethylene (PE) is one of the most preferred materials because it has universal application. It is thermoplastic, and therefore an ideal sealing medium, and forms an excellent moisture barrier. The predominant requirement is the preservation of agrochemical formulations, particularly in humid climates.
- Blow-molded containers of high-density polyethylene (HDPE) offer broad flexibility in design and construction, good moisture barrier properties, and poor resistance to hydrocarbon solvents. Also, Biaxially oriented polyester is widely used for packaging solvent and aqueous-based liquid products.
- More than 60 major brands, nonprofits, and government agencies are coming together to create a circular economy for plastics in the United States. Such acts are poised to reduce the usage of single-use plastics for agrochemical products in the region.
- Further, major cities are taking corrective measures to reduce the application of plastic packaging solutions for agricultural chemicals. For instance, in August 2021, Montreal made plans to ban many single-use plastics by March 2023.
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