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INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS CLICK TO VIEW

Table of Contents 2

List of Tables & Charts 3

Study Overview 4

Sample Text, Table & Chart 5

Sample Profile, Table & Forecast 6

Order Form 7

About Freedonia, Custom Research, Related Studies, photo: Rocco Fischetti Landscaping & Garden Center, Inc. photo: Rocco Fischetti Landscaping & Garden Center, Corporate Use License 8

Lawn, Garden & Agricultural Packaging

US Industry Study with Forecasts for 2013 & 2018

Study #2555 | September 2009 | $4600 | 224 pages

The Freedonia Group 767 Beta Drive www.freedoniagroup.com Cleveland, OH • 44143-2326 • USA Toll Free US Tel: 800.927.5900 or +1 440.684.9600 Fax: +1 440.646.0484 E-mail: [email protected] Study #2555 September 2009 Lawn, Garden & $4600 224 Pages Agricultural Packaging US Industry Study with Forecasts for 2013 & 2018

APPLICATIONS Pouches...... 128 Table of Contents Other...... 132 General...... 65 Labels...... 133 Fertilizer...... 68 Executive Summary ...... 135 Fertilizer Outlook...... 68 Caps & Closures...... 136 Packaging Demand...... 71 Market EnvironmenT Metal ...... 138 & Sacks...... 72 General...... 4 All Other...... 140 Bulk Packaging...... 73 Macroeconomic Outlook...... 5 Containers...... 74 Demographic Trends...... 10 Pouches...... 74 INDUSTRY STRUCTURE Consumer Income & Spending Trends 13 Other...... 75 General...... 143 Housing Outlook...... 15 Pesticides...... 75 Market Share...... 146 Nonresidential Building Stock Trends. 19 Pesticide Outlook...... 76 Acquisitions & Divestitures...... 151 Packaging Industry Overview...... 21 Packaging Demand...... 79 Competitive Strategies...... 155 Consumables Industry Overview...... 25 Plastic Containers...... 80 Cooperative Agreements...... 157 Pricing Trends...... 28 Bulk Packaging...... 80 Manufacturing...... 159 Environmental & Regulatory Issues.... 30 Pouches...... 81 Marketing & Distribution...... 162 Recycling Issues...... 35 Bags, Sacks & Other...... 82

Seed...... 84 Company Profiles MARKETS Seed Outlook...... 84 American Packaging...... 165 General...... 38 Packaging Demand...... 87 B.A.G. Corporation...... 166 Agricultural Products...... 41 Bags & Sacks...... 88 Bemis Company...... 168 Agriculture Outlook...... 42 Pouches...... 89 Berry ...... 170 Packaging Demand...... 44 Bulk Packaging...... 89 BWAY Corporation...... 171 Bags & Sacks...... 45 Other...... 90 CCL Industries...... 172 Plastic Containers...... 46 Growing Media...... 91 Chem-Tainer Industries...... 174 Bulk Packaging...... 47 Growing Media Outlook...... 91 Consolidated ...... 175 Other...... 48 Packaging Demand...... 93 Exopack Holding...... 176 Consumer Products...... 48 Mulch...... 95 Graham Packaging...... 178 Consumer Gardening & Mulch Outlook...... 96 Graphic Packaging...... 179 Consumables Outlook...... 49 Packaging Demand...... 99 Greif Incorporated...... 181 Packaging Demand...... 52 Other...... 101 Hedwin Corporation...... 185 Bags & Sacks...... 54 Hood Companies...... 187 Plastic Containers...... 55 PACKAGING PRODUCTS Hoover Materials Handling...... 188 Pouches...... 56 General...... 103 Illinois Tool Works...... 190 Other...... 57 Bags & Sacks...... 106 International ...... 191 Professional Products...... 57 Plastic...... 108 Intertape ...... 193 Lawn Care Industry Outlook...... 57 Paper...... 112 Koch Industries...... 194 Packaging Demand...... 60 Plastic Containers...... 114 Langston Companies...... 196 Bags & Sacks...... 61 Bulk Packaging...... 117 Liquid Container...... 197 Plastic Containers...... 62 Drums...... 119 MAUSER AG...... 198 Bulk Packaging...... 62 Intermediate Bulk Containers...... 122 Other...... 63 Other...... 125 (continued on next page)

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Table of Contents MARKETS Cht Lawn, Garden & Agricultural Packaging Demand 1 Lawn, Garden & Agricultural Company Profiles by Type, 2008...... 106 Packaging Demand by Market.... 40 2 & Sack Demand in Lawn, (continued from previous page) Cht Lawn, Garden & Agricultural Garden & Agricultural Packaging Demand Packaging...... 108 MeadWestvaco Corporation...... 201 by Market, 2008...... 41 3 & Sack Demand Nordenia International...... 203 2 Agricultural Indicators...... 44 in Lawn, Garden & North State Flexibles...... 204 3 Agricultural Consumables Agricultural Packaging...... 111 NOVAPAK Corporation...... 205 Packaging Demand...... 45 4 & Sack Demand Plastipak Holdings...... 206 4 Consumer Gardening Indicators.... 52 in Lawn, Garden & Pretium Packaging...... 207 5 Consumer Lawn & Garden Agricultural Packaging...... 114 Printpack Incorporated...... 208 Consumables Packaging 5 Demand Rexam plc...... 209 Demand...... 54 in Lawn, Garden & Ring Companies...... 211 6 Lawn Care Industry Indicators..... 60 Agricultural Packaging...... 117 SCHUETZ GmbH...... 212 7 Professional Lawn & Garden 6 Bulk Packaging Demand Silgan Holdings...... 214 Consumables Packaging in Lawn, Garden & Snyder Industries...... 215 Demand...... 61 Agricultural Packaging...... 119 Sonoco Products...... 216 7 Demand in Lawn, Garden TriMas Corporation...... 218 APPLICATIONS & Agricultural Packaging...... 122 Trinity Packaging...... 219 8 IBC Demand in Lawn, Garden Weyerhaeuser Company...... 220 1 Lawn, Garden & Agricultural & Agricultural Packaging...... 125 Other Companies Mentioned Packaging Demand 9 Other Bulk Lawn, Garden in Study...... 222 by Application...... 67 Cht Lawn, Garden & Agricultural & Agricultural Packaging Packaging Demand Demand...... 128 by Application, 2008...... 68 10 Pouch Demand in Lawn, Garden List of Tables/Charts 2 Fertilizer Supply & Demand...... 71 & Agricultural Packaging...... 132 3 Fertilizer Packaging Demand...... 72 11 Other Lawn, Garden & Agricultural Executive Summary 4 Pesticide Supply & Demand...... 78 Packaging Demand...... 133 1 Summary Table...... 3 5 Pesticide Packaging Demand...... 79 6 Seed Supply & Demand...... 87 INDUSTRY STRUCTURE 7 Seed Packaging Demand...... 88 Market EnvironmenT 1 US Lawn, Garden & Agricultural 8 Growing Media Supply & Demand 93 Packaging Sales 1 Macroeconomic Indicators...... 10 9 Growing Media Packaging Demand 95 by Company, 2008...... 145 2 Population & Households...... 13 10 Packaged Mulch Demand...... 99 Cht US Lawn, Garden & Agricultural 3 Personal Consumption 11 Mulch Packaging Demand...... 101 Packaging Market Share, 2008.148 Expenditures...... 15 12 Other Lawn, Garden & Agricultural 2 Selected Acquisitions 4 Housing Stock by Type...... 18 Consumables Packaging & Divestitures...... 153 5 Nonresidential Building Stock...... 21 Demand...... 102 3 Selected Cooperative 6 Packaging Supply & Demand...... 25 Agreements...... 159 7 Consumables Supply & Demand.... 27 PACKAGING PRODUCTS 8 Lawn, Garden & Agricultural 1 Lawn, Garden & Agricultural Packaging Prices...... 30 Packaging Demand by Type...... 105

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Demand will be aided by consumer preference for convenient, user-friendly packaging, which will stimulate sales of reclosable pouches, dispensing closures and other value-added products.

US demand to reach Bags & Sacks US Lawn, Garden & Agricultural $1.7 billion in 2013 51% Demand for lawn, garden and agricul- Packaging Demand, 2008 tural packaging is forecast to increase ($1.6 billion) 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 the continuing need for packaging that can provide a means of Plastic Containers differentiating products which are 22% primarily commodity in nature. Moreover, demand will be aided by consumer preference for convenient, user-friendly Bulk Packaging packaging, a factor that will stimulate 15% sales of reclosable pouches, dispensing closures and other value-added prod- Pouches 6% ucts. Additionally, demand will benefit Other Types 6% from an acceleration in consumer lawn and garden spending and a rebound in the residential construction market after relative to paper. Bags and sacks are IBCs to offer best pros- the declines of the 2003-2008 period. widely used for lawn, garden and agricultural consumables because of pects in bulk packaging Pouches to be fastest their lower cost and lower material Demand for bulk packaging will increase growing product consumption than rigid containers, and less than one percent per year through good durability and protection. Plastic 2013 to $242 million due to falling Pouches, especially stand-up types, will container demand is projected to in- shipment volumes of fertilizers and post the fastest gains among all lawn, crease 1.9 percent annually through meager advances in pesticide volumes. garden and agricultural packaging due to 2013 to just over $380 million, bolstered Intermediate bulk containers (IBCs) will their superior visual appeal, reclosability by performance advantages such as offer the best prospects of all bulk and barrier properties. Demand for design flexibility, light weight, and packaging types as a result of long-term pouches will come largely at the ex- chemical resistance, and suitability for a cost, reusability and performance pense of smaller paper and plastic bags. variety of closures. Their chemical advantages. IBCs also have larger Bags and sacks will continue to be the resistance makes them especially capacities than drums, bags, sacks and leading product type through 2013, with amenable to packaging liquid chemicals , allowing them to make further demand advancing 1.5 percent per such as pesticides, although these inroads in the agricultural and profes- annum to just over $880 million. Gains containers are also used in limited sional markets, where bulk quantities of will be driven by healthy advances for amounts for other items such as seeds consumables are primarily used. plastic types due to cost advantages and fertilizers. Copyright 2009 The Freedonia Group, Inc.

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Sample Text, TABLE V-3 Table & Chart PLASTIC BAG & SACK DEMAND IN LAWN, GARDEN & AGRICULTURAL PACKAGING (million dollars) Item 1998 2003 2008 2013 2018

Bag & Sack Demand 586 637 817 881 986 % plastic 45.7 48.7 54.2 57.3 60.5

markets Plastic Bag & Sack Demand 268 310 443 505 597 By Application: Bulk Packaging -- Bulk packaging demand in the agricultural Growing Media 66 84 133 164 208 market will remain flat through 2013 at $176 million, a sharp contrast Fertilizer 74 80 119 120 130 to the pace of the 2003-2008 period, when elevated raw materials prices Seed 66 sa75 mple95 109 128 combined with robust growthsa min volumeple for agricultural pesticides Mulch 50 57 79 93 109 worked to boost value growth. Bulk packaging demand will be sup - Other 12 table14 17 19 22 ported by the widespread preferencetext for bulk packaging for farm-ori By- Market: ented consumables, which are generally purchased in large quantities inConsumer 106 124 192 222 266 order to accommodate farms of considerable acreage. Gains for IBCs Agriculture 107 118 151 164 184 will stem from supplantation of smaller-capacity drums, bags, sacks andProfessional 55 68 100 119 147 bottles due to performance benefits, greater reusability, ease of filling and dispensing, and improved safety and efficiency. Further growth $/unit 0.33 0.35 0.50 0.51 0.56 for rigid IBCs (RIBCs) will be hindered by significantly higher initialPlastic Bags & Sacks (mil units) 812 886 885 990 1065 costs and higher maintenance costs, especially with returnable models. In order to encourage adoption of the RIBC format, many firms offer leasing or rental programs that enable customers to utilize the containers without the considerable capital investment associated with purchasing. Many RIBC producers also provide a variety of container management services, including collection, cleaning, reconditioning and disposal. Demand for flexible IBCs (FIBCs), also known as bulk bags, will be sup- ported by their relatively low cost and versatility. FIBCs will also benefit from several key advantages compared to shipping sacks. For example, FIBCs are easier to handle and can be more efficiently transported and stored than larger numbers of individual bags and sacks.

Plastic drums will continue to supplant their fibre and steel counter- parts based on continuing material improvements and the ability to con- tain a wide array of materials, except for solvent-based liquids and other CHART VI-1 substances that are incompatible with . Moreover, plastic drums are lighter weight than steel drums and can be stored outside with US LAWN, GARDEN & AGRICULTURAL rusting, which is a major benefit in the agricultural market because of the PACKAGING MARKET SHARE, 2008 prevalence of outdoor storage. Overall value gains for plastic, steel and ($1.6 billion)

Copyright 2009 The Freedonia Group, Inc. 47 5.3% G reif

5.0% B em is M ar ket O th er s sample L ead er s 77.8 % 22.2 % chart 4.4% Exo p ack

4.4% G rap h ic Pkg *

3.1% H o o d Pkg

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Sample Profile, TABLE IV-3 Table & Forecast FERTILIZER PACKAGING DEMAND (million dollars)

Item 1998 2003 2008 2013 2018

Fertilizer Shipments 12725 11630 24480 18000 18000 % packaged 25.3 26.3 26.9 28.6 28.8

Packaged Fertilizer Shipments 3215 3060 6575 5150 5190 $ pkg/$ fertilizer 0.12 0.14 0.08 0.11 0.11

Fertilizer Packaging Demand 401 sa424 m552ple 559 596 Bags & Sacks 269 276 343 340 350 Bulk Packaging 61 table58 90 83 90 Plastic Containers 44 50 71 81 91 COMPANY PROFILES Pouches 7 20 29 38 48 Other 20 20 19 17 17 Hoover Materials Handling Group Incorporated 2135 Highway Six South % fertilizer 38.4 36.4 34.5 32.0 29.7 Houston, TX 77077 Lawn, Garden & Ag Pkg Demand 1044 1164 1600 1745 2010 281-870-8402 http://www.hooveribcs.com

Annual Sales: $30 million (verified by company, 9/09) Employment: 350 (verified by company, 9/09)

Key Products: rigid intermediatesam bulkple containers

Hoover Materials Handlingprofile Group is a privately held manufacturer of rigid intermediate bulk containers (RIBCs) for liquid and dry prod- ucts in the food, petrochemical and chemical industries. The Company also is engaged in container leasing, tracking, recycling and disposal “Bag and sack demand in fertilizer applica- services. Hoover Materials Handling Group is owned by Court Square tions will fall slightly to $340 million in Capital Partners (New York, New York). 2013, with declining fertilizer production contributing to losses. In addition, gains The Company is active in the US lawn, garden and agricultural packaging industry through the production of stainless steel, carbon will be limited by a moderation in raw ma- steel, galvanized steel and polyethylene RIBCs. These products can be terials pricing after the sharp increases of used to contain a number of solids and liquids, including agricultural the 2003-2008 period. Competition from and other chemicals. pouches, particularly stand-up types, will Stainless steel RIBCs from Hoover Materials Handling Group are also limit opportunities for smaller-sized available under such brand names as LIQUITOTE, CARGO VALVE fertilizer bags and sacks. Moreover, ...” LIQUITOTE and LIQUISYSTEM. LIQUITOTE RIBCs, which are --Section IV, pg. 72 made with capacities ranging from 300 to 550 gallons, are marketed as alternatives to 55-gallon drums. Among other features, these refillable RIBCs are constructed with one-piece sloping bottoms engineered to provide almost complete drainage. CARGO VALVE LIQUITOTE

188 Copyright 2009 The Freedonia Group, Inc.

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The Freedonia Group, Inc. 767 Beta Drive • Cleveland, OH • 44143-2326 • USA • Web site: www.freedoniagroup.com Tel US: 800.927.5900 or +1 440.684.9600 • Fax: +1 440.646.0484 • e-mail: [email protected]

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Other Studies About The Freedonia Group

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Lawn & Garden Consumables US demand for packaged lawn and garden con- sumables will grow 4.5% yearly through 2012, as baby boomers enter their peak gardening years. Best prospects include value-added products such as fast-acting and easy-to-use fertilizer, rubber and colored mulches and premium growing media. This study analyzes the $7.5 billion US lawn and garden consumables industry, with forecasts for 2012 and 2017 by product, market, application, end user and region. It also details market share and profiles major players #2337...... 05/2008...... $4600 Click here for complete title list Click here to visit freedoniagroup.com

Page 8 The Freedonia Group, Inc. 767 Beta Drive • Cleveland, OH • 44143-2326 • USA • Web site: www.freedoniagroup.com Tel US: 800.927.5900 or +1 440.684.9600 • Fax: +1 440.646.0484 • e-mail: [email protected]