Global Silo Bags Market - 2023-2030

Global Silo Bags Market - 2023-2030

Global Silo Bags Market reached US$ 520.4 million in 2022 and is expected to reach US$ 870.2 million by 2030, growing with a CAGR of 6.6% during the forecast period 2023-2030.

The global silo bags market is experiencing robust growth with several key factors. One major driver is the world's expanding population, with projections indicating an increase of nearly 2 billion people in the next three decades. The population surge translates into higher food demand and increased agricultural production. As a result, efficient grain storage solutions like silo bags are in high demand to preserve and manage the abundant harvests necessary to feed the growing population.

Furthermore, shifting cereal utilization and trade patterns further emphasize the importance of silo bags in ensuring safe and efficient grain storage. The factors collectively contribute to the expanding global silo bags market, making it a pivotal component of modern agriculture and food security.

The growing cereal market in Asia-Pacific is a significant driver of the market for silo bags. As the demand for cereals continues to rise in this region, efficient grain storage solutions like silo bags become essential for preserving the increasing harvests. Asia-Pacific is home to a large and rapidly growing population, which fuels higher food consumption and, consequently, greater cereal production..

Dynamics

Global Cereal Production Surge

The globally silo bag market is experiencing growth, as evidenced by the 2023/24 global cereal production forecast by ""Food and Agriculture Organization"". Global cereal production is projected to increase by 0.9 percent year-on-year and have reached 2,815 million tonnes, on par with the record outturn of 2021. Notably, maize production is expected to reach a record high of 1,215 million tonnes due to improved crops in Brazil and Ukraine, offsetting production cuts in U.S. and the European Union.

The growth in cereal production reflects an ongoing need for efficient grain storage solutions, including silo bags, to preserve and manage these abundant harvests. As cereal utilization and trade patterns evolve, silo bags play a crucial role in ensuring the safe and efficient storage of grains, contributing to the expansion of the silo bag market on a global scale.

Rising Global Population Fuels Growth in the Silo Bags Market

The global silo bags market is on a growth trajectory, driven by growing globally population. Population projections by United Nations indicate a significant increase, with the world's population expected to surge by nearly 2 billion people over the next 30 years. The population growth shows the higher food demand and increased agricultural production.

To meet this growing demand, efficient grain storage solutions like silo bags are essential. Silo bags offer airtight and waterproof storage, protecting grains from spoilage and pests, ensuring food security and reducing post-harvest losses. As agricultural production scales up to feed the expanding population, the demand for silo bags as a reliable storage solution continues to rise.

Short Lifespan and Cost Implications

The relatively low lifespan of silo bags, typically ranging from one to five years, can significantly impact the silo bags market. The limited durability means that farmers and agricultural businesses must incur recurring expenses to replace aging or damaged bags. The cost of regularly purchasing new silo bags can be a deterrent, especially for smaller operations with budget constraints.

Furthermore, the need for frequent replacements introduces logistical challenges and interruptions in grain storage and supply chains. To address this limitation, manufacturers are continually working on improving the longevity of silo bags. However, until longer-lasting solutions become widespread, the short lifespan remains a notable constraint in the adoption and cost-effectiveness of silo bags for grain storage.

Segment Analysis

The global silo bags market is segmented based on material, capacity, layers, end-user and region.

3-Layer Silo Bags: Efficient Grain Storage and Preservation Innovations

The 3 Layer segment holds about half of the global market share, due to its effectiveness in preserving grains and providing cost-efficient storage solutions. Silo bags are made of three layers of polyethylene, with the external layer reflecting sunlight and the internal layer blocking it. The bags are typically 60 meters long, 3 meters in diameter and can store upto 200 tons of grains.

Storing grains in silo bags offers several advantages. The bags are waterproof when properly sealed, maintaining a high degree of tightness that prevents the interaction of atmospheric oxygen and carbon dioxide with stored grains. The storage method reduces capital investments compared to building steel bins and simplifies harvest logistics, especially in areas with limited access to permanent storage facilities. Silo bags also facilitate on-farm grain segregation and help maintain the moisture content, creating an air-tight or hermetic environment for grain preservation.

The bags, such as 250 microns thickness provides shield for grains effectively. The white outer layer reflects solar radiation, while the black inner layer blocks sunlight, preventing moisture damage. Silo bags excel in storing large grain volumes with speed and efficiency. The bags become waterproof and maintain gas-tightness when tightly sealed, preserving grain quality.

Moreover, they offer cost-effective, flexible storage and require no fumigation for up to 18 months. Organizational advantages include reduced capital investment, ideal buffer storage, simplified logistics and easy specialty grain segregation. Silo bags also maintain moisture content and adapt to a wide range of temperatures. Rishi FIBC, a top silo bag manufacturer, ensures quality and reliability, making them the preferred choice for users seeking high-quality grain storage solutions.

Geographical Penetration

Asia-Pacific Leads the Silo Bags Market: Meeting Global Grain Storage Demand

Asia-Pacific holds a dominant position in the silo bags market. As per United Nations Population Fund, with 60% of the world's population residing in this region, including populous nations like China and India, the demand for efficient grain storage solutions is substantial. The region's diverse agricultural landscape, ranging from large-scale farming in China and India to smaller economies in the Pacific, necessitates versatile storage options like silo bags.

Changing demographics, urbanization and a shift in dietary habits drive the demand for grain storage as food production increases to feed growing urban populations. Moreover, Asia-Pacific's role as a major agricultural exporter further underscores the importance of silo bags in preserving the quality of exported crops. The factors collectively establish the region's prominence in the global silo bags market.

China, as the world's largest silo bags producer, has been strategically exporting silo bags and clinker to neighboring countries, contributing to the growth of the silo bags market in Asia-Pacific. The Chinese government's emphasis on promoting green and sustainable development has also led to the adoption of eco-friendly silo bags technologies and practices.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a multifaceted impact on the silo bags market. The disruptions caused by the pandemic, including supply chain interruptions, labor shortages and changes in agricultural practices, have affected food production systems and crop management. The immediate impacts of the pandemic, such as disruptions in critical input availability and labor shortages, influenced crop management decisions, including planting area and crop yields.

The disruptions in the agricultural supply chain have had cascading effects on the entire food system, including grain storage. Farmers and agricultural businesses faced challenges in managing their grain stocks due to logistical constraints and uncertainties. Silo bags, as a grain storage solution, became even more critical in ensuring food security during the pandemic.

Russia-Ukraine War Impact Analysis

The conflict between Russia and Ukraine made a significant impact on the silo bags market, primarily due to its effect on grain exports. Ukraine, one of the major grain producers in the world is facing disruptions in its grain export routes, particularly via the Black Sea. The conflict also lead to uncertainty and interruptions in the shipment of grains, including wheat, corn and barley. Ukraine's role as a major grain producer and exporter is crucial for global food security. It accounts for a significant portion of the world's wheat, corn and barley markets.

The disruptions in Ukraine's grain exports is leading to serious consequences for global food security which is in turn, is leading to potential shortages and price fluctuations in the grain market. The conflict has also affected the logistics and infrastructure related to grain exports, which can impact the storage and transportation of grains. In such uncertain times, the need for efficient grain storage solutions, like silo bags, becomes even more pronounced to ensure the preservation and management of grain stocks.

By Material
• Low-density Polyethylene (LDPE)
• Linear Low-density Polyethylene (LLDPE)
• Others

By Capacity
• Less than 100 Tons
• 100 to 200 Tons
• 201 to 250 Tons
• Above 250 Tons

By Layers
• 3 Layer
• 5 Layer
• 7 Layer

By End-User
• Cereals
• Pulses
• Legumes
• Oil seed
• Cotton seed
• Fertilizers
• Other

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments

Competitive Landscape

The major global players in the market include Ag Flex, IG Industrial Plastics, LLC, GreenPro Ventures, Rishi FIBC SOLUTIONS PVT. LTD., Poly-Ag Corp., Up North Plastics, Inc., RKW Group, Flex Pack, GEM Silage Products and Pacifil Brasil.

Why Purchase the Report?
• To visualize the global silo bags market segmentation based on material, capacity, layers, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of silo bags market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global silo bags market report would provide approximately 69 tables, 72 figures and 210 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies