US Lawn, Garden & Agricultural Packaging Market

US Lawn, Garden & Agricultural Packaging Market

US demand to reach $1.7 billion in 2013
Demand for lawn, garden and agricultural packaging in the US is forecast to grow 1.8 percent per year through 2013 to $1.7 billion, decelerating from the sharp increases of the 2003-2008 period as raw material prices moderate. Gains will be bolstered by continuing need for packaging that can provide a means of differentiating products that are primarily commodity in nature. Moreover, demand will be aided by consumer preference for convenient, user-friendly packaging, a factor that will stimulate sales of reclosable pouches, dispensing closures and other value-added products. Demand will also benefit from an acceleration in consumer lawn and garden spending and a rebound in residential construction after the declines of the 2003-2008 period.

Stand-up pouches to be fastest growing product
Pouches, especially stand-up types, will post the fastest gains among all lawn, garden and agricultural packaging due to their superior visual appeal, reclosability and barrier properties. Demand for pouches will come largely at the expense of smaller paper and plastic bags. Bags and sacks will continue to be the leading product type through 2013, with demand advancing 1.5 percent per annum. Gains will be driven by healthy advances for plastic types due to cost advantages relative to paper. Bags and sacks are widely used for lawn, garden and agricultural consumables because of their relatively low cost, lower material consumption than rigid containers, and adequate durability and protection. Plastic container demand is projected to increase 1.9 percent annually through 2013, bolstered by performance advantages such as design flexibility, light weight, water and chemical resistance, and suitability for a variety of closures. Their chemical resistance makes them especially amenable to packaging liquid chemicals such as pesticides, although these containers are used in limited amounts for other items such as seeds and fertilizers.

IBCs to pace bulk segment
Demand for bulk packaging will increase less than one percent per year through 2013 to more than $240 million due to falling shipment volumes of fertilizers and meager advances in pesticide volumes. However, intermediate bulk containers (IBCs) will offer the best prospects of all bulk packaging types as a result of long-term cost, reusability and performance advantages. IBCs also have larger capacities than drums, bags, sacks and bottles, allowing them to make further inroads in the agricultural and professional markets, where bulk quantities of consumables are most used.

Consumer market to offer best growth opportunities
The agricultural market will remain the largest market for lawn, garden and agricultural packaging, accounting for nearly 50 percent of demand in 2013. Below-average gains in the agricultural market will stem from market maturity and a constant size of cropland planted. The consumer market will offer the best opportunities due to an emphasis on aesthetically appealing, convenienceoriented packaging. This emphasis has led to the use of such features as highquality graphics, plastic film laminations and easy-to-use dispensing closures. In the professional market, packaging demand will benefit from an increase in the number of landscaping and lawn care firms as a result of a recovery in the residential housing market.

Study coverage
The new industry study, Lawn, Garden & Agricultural Packaging, presents historical demand data (1998, 2003 and 2008) plus forecasts for 2013 and 2018 by market, application and product. The study also assesses key market environment factors, evaluates company market share and profiles 38 competitors in the US industry.

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Outlook 5
Demographic Trends 10
Consumer Income & Spending Trends 13
Housing Outlook 15
Nonresidential Building Stock Trends 19
Packaging Industry Overview 21
Consumables Industry Overview 25
Pricing Trends 28
Environmental & Regulatory Issues 30
Recycling Issues 35

III. MARKETS 38

General 38
Agricultural Products 41
Agriculture Outlook 42
Packaging Demand 44
Bags & Sacks 45
Plastic Containers 46
Bulk Packaging 47
Other 48
Consumer Products 48
Consumer Gardening & Consumables Outlook 49
Packaging Demand 52
Bags & Sacks 54
Plastic Containers 55
Pouches 56
Other 57
Professional Products 57
Lawn Care Industry Outlook 57
Packaging Demand 60
Bags & Sacks 61
Plastic Containers 62
Bulk Packaging 62
Other 63

IV. APPLICATIONS 65

General 65
Fertilizer 68
Fertilizer Outlook 68
Packaging Demand 71
Bags & Sacks 72
Bulk Packaging 73
Plastic Containers 74
Pouches 74
Other 75
Pesticides 75
Pesticide Outlook 76
Packaging Demand 79
Plastic Containers 80
Bulk Packaging 80
Pouches 81
Bags, Sacks & Other 82
Seed 84
Seed Outlook 84
Packaging Demand 87
Bags & Sacks 88
Pouches 89
Bulk Packaging 89
Other 90
Growing Media 91
Growing Media Outlook 91
Packaging Demand 93
Mulch 95
Mulch Outlook 96
Packaging Demand 99
Other 101

V. PACKAGING PRODUCTS 103

General 103
Bags & Sacks 106
Plastic 108
Paper 112
Plastic Containers 114
Bulk Packaging 117
Drums 119
Intermediate Bulk Containers 122
Other 125
Pouches 128
Other 132
Labels 133
Paperboard Boxes 135
Caps & Closures 136
Metal Containers 138
All Other 140

VI. INDUSTRY STRUCTURE 143

General 143
Market Share 146
Greif 148
Bemis 149
Exopack 150
Graphic Packaging 150
Hood Packaging 151
Acquisitions & Divestitures 151
Competitive Strategies 155
Cooperative Agreements 157
Manufacturing 159
Marketing & Distribution 162
Company Profiles 164
Airopak, see NOVAPAK
American Fiber Drum, see MAUSER
American Flange & Manufacturing, see Greif
American Packaging Corporation 165
B.A.G. Corporation 166
Bemis Company Incorporated 168
Berry Plastics Corporation 170
BWAY Corporation 171
CCL Industries Incorporated 172
Chem-Tainer Industries Incorporated 174
Consolidated Container Company LLC 175
Curwood, see Bemis
Exopack Holding Corporation 176
Georgia-Pacific, see Koch Industries
Graham Packaging Holdings Company 178
Graphic Packaging Holding Company 179
Greif Incorporated 181
Hedwin Corporation 185
Hood Companies 187
Hoover Materials Handling Group Incorporated 188
Illinois Tool Works Incorporated 190
International Paper Company 191
Intertape Polymer Group Incorporated 193
Koch Industries Incorporated 194
Langston Companies Incorporated 196
Liquid Container LP 197
MAUSER AG 198
MeadWestvaco Corporation 201
Milprint, see Bemis
NAMPAC, see BWAY
Nordenia International AG 203
North State Flexibles LLC 204
NOVAPAK Corporation 205
O-I Plastics, see Rexam
Plastipak Holdings Incorporated 206
Pretium Packaging LLC 207
Printpack Incorporated 208
Rexam plc 209
Rieke, see TriMas
Ring Companies 211
SCHUETZ GmbH & Company KGaA 212
Silgan Holdings Incorporated 214
Snyder Industries Incorporated 215
Sonoco Products Company 216
SpaceKraft, see International Paper
Tri-Sure Closures North America, see Greif
Trilla Steel Drum, see Greif
TriMas Corporation 218
Trinity Packaging Corporation 219
Valeron Strength Films, see Illinois Tool Works
Weyerhaeuser Company 220
Zip-Pak, see Illinois Tool Works
Other Companies Mentioned in Study 222

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 10
2 Population & Households 13
3 Personal Consumption Expenditures 15
4 Housing Stock by Type 18
5 Nonresidential Building Stock 21
6 Packaging Supply & Demand 25
7 Consumables Supply & Demand 27
8 Lawn, Garden & Agricultural Packaging Prices 30

SECTION III – MARKETS

1 Lawn, Garden & Agricultural Packaging Demand by Market 40
2 Agricultural Indicators 44
3 Agricultural Consumables Packaging Demand 45
4 Consumer Gardening Indicators 52
5 Consumer Lawn & Garden Consumables Packaging Demand 54
6 Lawn Care Industry Indicators 60
7 Professional Lawn & Garden Consumables Packaging Demand 61

SECTION IV – APPLICATIONS

1 Lawn, Garden & Agricultural Packaging Demand by Application 67
2 Fertilizer Supply & Demand 71
3 Fertilizer Packaging Demand 72
4 Pesticide Supply & Demand 78
5 Pesticide Packaging Demand 79
6 Seed Supply & Demand 87
7 Seed Packaging Demand 88
8 Growing Media Supply & Demand 93
9 Growing Media Packaging Demand 95
10 Packaged Mulch Demand 99
11 Mulch Packaging Demand 101
12 Other Lawn, Garden & Agricultural Consumables Packaging Demand 102

SECTION V -- PACKAGING PRODUCTS

1 Lawn, Garden & Agricultural Packaging Demand by Type 105
2 Bag & Sack Demand in Lawn, Garden & Agricultural Packaging 108
3 Plastic Bag & Sack Demand in Lawn, Garden & Agricultural Packaging 111
4 Paper Bag & Sack Demand in Lawn, Garden & Agricultural Packaging 114
5 Plastic Container Demand in Lawn, Garden & Agricultural Packaging 117
6 Bulk Packaging Demand in Lawn, Garden & Agricultural Packaging 119
7 Drum Demand in Lawn, Garden & Agricultural Packaging 122
8 IBC Demand in Lawn, Garden & Agricultural Packaging 125
9 Other Bulk Lawn, Garden & Agricultural Packaging Demand 128
10 Pouch Demand in Lawn, Garden & Agricultural Packaging 132
11 Other Lawn, Garden & Agricultural Packaging Demand 133

SECTION VI -- INDUSTRY STRUCTURE

1 US Lawn, Garden & Agricultural Packaging Sales by Company, 2008 145
2 Selected Acquisitions & Divestitures 153
3 Selected Cooperative Agreements 159

LIST OF CHARTS

SECTION III – MARKETS

1 Lawn, Garden & Agricultural Packaging Demand by Market, 2008 41

SECTION IV -- APPLICATIONS

1 Lawn, Garden & Agricultural Packaging Demand by Application, 2008 68

SECTION V -- PACKAGING PRODUCTS

1 Lawn, Garden & Agricultural Packaging Demand by Type, 2008 106

SECTION VI -- INDUSTRY STRUCTURE

1 US Lawn, Garden & Agricultural Packaging Market Share, 2008 148