Increasing need for storage and packaging facilities globally have boosted the adoption of solo bags. For instance, one of the leading warehouse service provider in India – the National Collateral Management Services Limited (NCML) – has inaugurated its public silo complex of 36,000 tonnes for storing maize at Purnia in Bihar, recently in 2018. These silos are designed in line with global best practices, the silo complex is equipped with facilities like dryer and chiller for safe and efficient preservation of maize. These initiations of companies mainly from key players are boosting adoption of silo bags for storage and assisting in the improving knowledge of farmers about the benefits of using it. This factor is boosting growth of the global silo bags market.
As per the report by Transparency Market Research (TMR), the global market for silo bags is likely to witness strong growth with a 6.5% CAGR over the forecast period of 2017 to 2026. The market is also likely to reach the value of US$ 693.2 mn by the end of 2026.
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Here are the factors influencing growth substantially over the forecast period.
The primary aim of using silo bags is to provide protection to the yields and crops with increase in their shelf life. These bags are equipped with monitoring equipment which can be used to trail quality of any product as well as adjust the temperature. These features are likely to increase the demand for silo bags in the near future. Additionally, silo bags are UV protection proof, which can be another factor to drive growth substantially over the forecast period.
Packaging is an important aspect in attracting customers towards product. Along with protection and attractiveness, packaging are used for protection and bulk material shipping. In addition, as the cultivable land has decreased substantially, the demand for silo bags is gradually increasing. Silo bags are also being used to protect grains from any kinds of external damage.
Furthermore, flexibility of silo bags makes them ideal for shipping bulk materials as the material ensures the protection and storage facility. Storing grains for a long time with help of silo bags is also allowing producers to plan logistics in an efficient way. Long storage capacity is also helping farmers and private and public storage sectors to sell and market the grains at a proper time, thereby earning highest profits. These factors are boosting adoption of the silo bags in agricultural sectors which is likely to drive growth of the market.
Despite of the growth prospects, steel silos are expected to hinder the growth of silo bags owing to their capacity of keeping grains more safe than normal silo bags. Also, silo bags offer limited unitary capacity and this can adversely affect the demand for them. Silo bags offer the comfort of supple storage at an appropriate location, but in terms of permanent storage, they lack behind. The aforementioned factors are restraining growth of the global market for silo bags.
The key players in the global market for silo bags are RKW Group, IPESA, GEM Silage Products, Canadian Tarpaulin Manufacturers LTD BagMan LLC, Hangzhou Xinguang Plastic Co., Ltd, Grain Bags Canada, Temudjin Flex-Pack BV, Brain Chamber Polysacks PVT.Ltd, Sigma AG (Sigma Stretch Film), and GrainPro Philippines, Inc. These key players are focusing on establishing themselves in the region where agricultural sector is witnessing a strong growth.