Agricultural Films Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (LLDPE, LDPE, HDPE, Reclaim, EVA and Others), By Application (Mulch Film, Greenhouse Film and Silage Film), By Region and Competition 2018-2028

Market Overview

Global Agricultural Films Market has valued at USD 11.75 Billion in 2022 and is anticipated to project impressive growth in the forecast period with a CAGR of 6.34% through 2028. Agricultural films are fundamental components in modern farming practices, aimed at enhancing crop growth and protection. Typically composed of polyethylene or other plastic polymers, these specialized plastic materials serve various purposes in agriculture. They can be applied onto the soil surface, directly onto plants, or utilized as covers for structures like greenhouses. Their utilization offers a multitude of advantages, including weed suppression, moisture retention, temperature regulation, and prevention of soil erosion. Moreover, they create a favorable microclimate that fosters optimal conditions for plant growth, safeguarding crops against adverse weather conditions and pests. Furthermore, they play a crucial role in reducing water and fertilizer requirements, thus contributing to sustainable agricultural practices that optimize productivity and yield quality while minimizing environmental impact.

Key Market Drivers

Rising Population & Resulting Increased Demand for Food

The global population is on the rise, and with it comes an escalating demand for food production. This puts immense pressure on agricultural resources, which in turn is expected to stimulate the global demand for agricultural films. These films, primarily used in crop production, play a crucial role in improving yield quality and quantity. They achieve this by controlling soil temperature, reducing weed growth, conserving water, and providing protection against harmful UV rays. As the population continues to burgeon and the available land for agriculture shrinks, the need to maximize yield from every acre becomes increasingly critical.

Agricultural films offer a valuable solution by allowing farmers to cultivate more with less. They enable efficient resource utilization and contribute to the sustainable growth of agricultural practices. The push for increased agricultural productivity, coupled with the growing trend towards sustainable farming practices, positions agricultural films for substantial growth in the coming years. Moreover, advancements in biodegradable agricultural films further enhance their appeal and align with global initiatives for environmental sustainability. These films not only provide the desired benefits in crop production but also contribute to reducing plastic waste and minimizing the environmental impact of agriculture. Consequently, the twin forces of a rising population and the resultant increased demand for food are poised to significantly escalate the use of agricultural films across the globe. Their versatility, effectiveness, and alignment with sustainability goals make them an indispensable tool in modern agriculture.

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Advancements in Farming Techniques & Technology

The burgeoning advancements in farming techniques and technology are set to dramatically heighten the global demand for agricultural films. Innovative farming practices, such as precision farming and vertical farming, leverage cutting-edge technology to optimize crop yield and quality. These techniques often entail the use of agricultural films, a trend which is driving their demand upwards. Agricultural films offer myriad benefits - they improve soil temperature, control weed growth, protect against UV rays, and reduce the risk of crop diseases. They are also vital in water conservation, a critical issue in several regions across the globe. Furthermore, technological advancements are enhancing the efficiency and environmental sustainability of these films. Biodegradable agricultural films, for instance, are steadily gaining popularity due to their low environmental impact. As farmers worldwide continue to adopt these advanced farming techniques and technologies, the agricultural films market is expected to witness robust growth. This trend represents not just an evolution in agricultural practices, but also signals a step towards more sustainable and efficient farming.

Increasing Government Support & Initiatives for Sustainable Farming

The global demand for agricultural films is anticipated to rise, largely driven by increasing governmental support and initiatives promoting sustainable farming. Governments worldwide are recognizing the importance of sustainable agricultural practices in addressing food security and climate change concerns. As a result, they're implementing policies and providing financial incentives to encourage the adoption of advanced farming techniques, including the use of agricultural films. These films, typically used in mulching, greenhouse, and silage applications, can significantly enhance crop productivity while minimizing environmental impact. They help retain moisture, reduce soil compaction and erosion, control weed growth, and provide a conducive environment for crop growth. By increasing crop yield and reducing the need for harmful pesticides and water consumption, they play a crucial role in sustainable agriculture. Moreover, initiatives to educate farmers about the benefits of these films are also contributing to their increased demand. As governments continue to push for sustainable farming practices, the agricultural film market is expected to witness substantial growth globally.

Increased Demand for Biodegradable Films

The global agricultural films market is projected to experience substantial growth, primarily driven by the escalating demand for biodegradable films. As environmental concerns rise, there is an increasing emphasis on sustainable solutions in agriculture. Biodegradable films, made from organic materials such as starch, polylactic acid, and polyhydroxyalkanoates, fit this call perfectly. These films have the capacity to break down naturally in the environment, contributing to less waste and reduced carbon emissions, a stark contrast to their traditional, non-biodegradable counterparts. In addition to the environmental advantages, biodegradable films offer numerous agricultural benefits such as soil temperature control, weed control, and enhanced crop growth. As such, they are becoming an integral part of modern, sustainable agricultural practices. The growing adoption by farmers, coupled with supportive government policies promoting green agriculture, is expected to fuel the demand for these films globally. With the agricultural sector seeking ways to maximize output while minimizing environmental impact, the increased demand for biodegradable films is set to significantly boost the global agricultural films market.

Key Market Challenges

Environmental Concerns by Non-Biodegradable Plastic Films

The escalating environmental concerns associated with non-biodegradable plastic films are anticipated to dampen the overall demand for agricultural films globally. These films, while beneficial for enhancing crop yield and soil productivity, are posing significant harm to the environment due to their non-biodegradable nature. They persist in the environment for hundreds of years, contributing to soil and water pollution, landscape degradation, and harm to wildlife. This has prompted regulatory bodies worldwide to impose stringent regulations on the use of non-biodegradable films in agriculture, forcing farmers and agribusinesses to seek eco-friendly alternatives. Many are turning to biodegradable films that decompose naturally over time, leaving no trace of harmful residues. Furthermore, the growing public awareness and outcry against the environmental damage caused by non-biodegradable plastics are pushing companies to invest in research and development of sustainable agricultural films. Thus, the global demand for traditional agricultural films is expected to decline, paving the way for the rise of eco-friendly alternatives in the market.

Low Market Penetration Due to High Initial Cost

The high initial cost of agricultural films is a significant hurdle to their market penetration, particularly in developing regions where farming budgets may be constrained. While agricultural films can provide numerous long-term benefits, such as improved yield and resource efficiency, the upfront investment needed is often substantial. This cost barrier becomes particularly pronounced in markets where the awareness and understanding of these benefits are low. The price sensitivity of farmers combined with a lack of information creates a challenging environment for the adoption of agricultural films. In such circumstances, growers may opt for traditional farming techniques that, while less efficient, require lesser initial investments. This scenario contributes to a lower global demand for agricultural films. Although the market holds immense potential, especially considering the ever-increasing need for efficient farming methods in the face of a growing population, the high initial cost is a significant deterrent. For the market to grow, it is essential to address this obstacle through strategies such as cost-effective production, financial assistance, and extensive awareness campaigns highlighting the long-term gains of using agricultural films. Unless these measures are undertaken, high initial costs could continue to dampen the global demand for agricultural films.

Key Market Trends

Rising Use of Greenhouse & Tunnel Farming Practices

The rising adoption of greenhouse and tunnel farming practices is anticipated to significantly drive the global demand for agricultural films. These farming techniques create controlled environments that optimize crop growth by regulating factors like sunlight, temperature, and humidity, thus enhancing yield. Agricultural films play an integral role in these setups, acting as protective layers that further manage environmental conditions, shielding crops from damaging weather patterns, pests, and diseases. As climate change continues to impact traditional farming practices, more farmers are likely to switch to greenhouse and tunnel farming. This shift necessitates the use of substantial agricultural film, thus increasing its global demand. Additionally, the need for efficient food production to cater to the growing global population further amplifies this trend. Agricultural films enable year-round cultivation, reducing dependency on seasonal changes and ensuring consistent food supply. Positioning these films as pivotal elements in sustainable and efficient agriculture, their global demand is expected to surge in tandem with the rise of advanced farming practices.

Adoption of Precision Agriculture & Data-Driven Farming

The global rise in the adoption of precision agriculture and data-driven farming techniques is expected to significantly increase the demand for agricultural films. Precision agriculture, an approach that uses data-based tools to optimize farming practices, often involves the use of agricultural films for enhancing crop yield and quality. These films, made of flexible, durable materials such as polyethylene and ethylene-vinyl acetate, are used in a variety of applications including mulching, silage, and greenhouse covering. As farmers worldwide progressively turn to data-driven techniques, the use of these films for micro-climate modification, soil temperature control, weed control, and nutrient conservation becomes vital. Moreover, the films contribute to water conservation, which is increasingly important in light of climate change-related water scarcity issues. Simultaneously, agricultural films facilitate efficient use of fertilizers and pesticides, aligning with the sustainability goals of precision farming. Hence, as precision agriculture expands globally, the market for agricultural films is anticipated to witness substantial growth, meeting the demand for more technologically advanced and sustainable farming practices.

Segmental Insights

Type Insights

Based on the Type, LLDPE (linear low-density polyethylene) is poised to dominate the total revenue share in the foreseeable future. This versatile form of polyethylene finds extensive use in agriculture films due to its exceptional mechanical properties. With remarkable puncture resistance and flexibility, LLDPE proves to be an ideal choice for various agricultural applications, including mulch films, silage bags, greenhouse coverings, and other agricultural uses that demand strength and durability.

Farmers and agricultural professionals universally recognize the reliability and performance of LLDPE. Its ability to withstand harsh weather conditions, resist tearing, and provide long-lasting protection to crops has made it a preferred choice. Moreover, the exceptional durability of LLDPE ensures that it can withstand the rigors of daily agricultural operations, making it an invaluable asset for farmers seeking optimal productivity and efficiency. The popularity of LLDPE in the market is a testament to its outstanding attributes and benefits. It has become an indispensable material for modern agriculture, enabling farmers to enhance crop quality and yield while reducing wastage and minimizing environmental impact. As the agricultural industry continues to evolve and embrace technological advancements, LLDPE remains at the forefront, delivering unmatched performance and contributing significantly to the success of farmers and agricultural professionals worldwide.

Application Insights

Based on the Application, the market for mulch plastic film is projected to witness significant growth at the highest compound annual growth rate (CAGR) over the forecast period. Mulch film, a specially designed material made from biodegradable polymers, is used to cover the soil and finds wide application in crops that are planted using saplings. Its primary objective is to safeguard crops by effectively inhibiting weed growth, thereby promoting the unhindered development of plants and maximizing yield potential. By creating a protective layer, the mulch film acts as a barrier, reducing water evaporation from the soil, conserving moisture, and improving water use efficiency. This not only contributes to sustainable farming practices but also ensures optimal plant growth.

In addition to its water conservation benefits, mulch plastic film provides insulation, protecting the roots from extreme temperatures and minimizing heat stress on plants. This is particularly beneficial in regions with fluctuating climates, ensuring the longevity and productivity of crops throughout the growing season. The installation of this film can be accomplished either manually or by employing suitable machinery, ensuring ease and convenience for farmers. Its durability and long-lasting effects offer extended benefits for crop production and soil health, making it a valuable investment for sustainable agriculture practices. With its innovative design and multiple advantages, mulch plastic film is becoming an increasingly popular choice for farmers looking to optimize their crop yield, conserve resources, and improve overall soil health.

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Regional Insights

The Asia Pacific Agricultural Films market is projected to gain a significant market share in the coming years. The regional market growth is expected to be driven by supportive government programs that focus on research and development of protected agricultural techniques, aimed at improving crop cultivation and yield. According to industry predictions, China is set to witness the fastest expansion globally in the near future, owing to its vast arable land, advancements in agricultural technology, and the adoption of efficient horticultural practices to maximize crop output.

Furthermore, the North American region has also held a substantial share in the agricultural films market, primarily due to the implementation of stringent environmental regulations governing film production and disposal. This has led to increased consumer attention towards biodegradable materials, resulting in a shift towards sustainable and eco-friendly solutions. As consumers become more conscious of the environmental impact, the regional market is expected to witness a growing demand for biodegradable agricultural films.  The Asia Pacific and North American regions are poised for significant growth in the agricultural films market, driven by various factors such as government support, technological advancements, and changing consumer preferences towards sustainable practices.

Recent Developments

• January 2022: BASF has expanded the production capacity of its biodegradable film product, Ecovio, at its Ludwigshafen site in Germany.
• May 2021: Reyenvas, a subsidiary of Armando Alvarez Group, has introduced Reyfilm Bio BIO, a biodegradable mulching film designed to naturally decompose on the ground, reducing removal costs through microbial assimilation.
• January 2021: Ab Rani Plast has unveiled Ecol, a sustainable film suitable for agricultural use, with a specific focus on European markets, for the entire agricultural season.

Key Market Players

• AB Rani Plast Oy
• BASF SE
• Berry Global Inc.
• Plastika Kritis SA
• Novamont SpA
• ExxonMobil Chemical
• Armando Alvarez Group
• Group Barbier Inc.
• The RKW Group
• INDVECO Group

In this report, the Global Agricultural Films Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Agricultural Films Market, By Type:

o   LLDPE

o   LDPE

o   HDPE

o   Reclaim

o   EVA

o   Others

• Agricultural Films Market, By Application:

o   Mulch Film

o   Greenhouse Film

o   Silage Film

• Agricultural Films Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Agricultural Films Market.

Available Customizations:

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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