Showing posts with label Agricultural Films Industry. Show all posts
Showing posts with label Agricultural Films Industry. Show all posts

Agricultural Films Industry Forecast: US$ 12.3 Bn in 2021 to US$ 25.1 Bn by 2031

 


The global agricultural films market was valued at US$ 12.3 billion in 2021 and is projected to grow at a CAGR of 7.4% from 2022 to 2031. This steady growth is driven by rising demand for high-yield farming practices and protective crop solutions. By the end of 2031, the market is expected to reach approximately US$ 25.1 billion, reflecting increased adoption of agricultural films such as mulching, greenhouse, and silage films across the globe.

Increase in demand for agricultural films in farming applications has augmented the agricultural films market. Agricultural films help preserve nutrients present in the soil by maintaining the moisture content. They also help minimize the adverse effect of weeds on the soil. Agricultural films ensure higher yield along with the utilization of the harvest. Hence, they are used in modern farming in order to enhance output. Companies operating in the agricultural films market are focusing on developing low-cost agricultural films such as nano-greenhouse films.

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Agricultural films are used to provide a desirable climate, enhance soil nutrients, and maintain the value of nutrients. Usage of mulching, greenhouses, and silage bags increases the agriculture production rate by 20% to 35%. Countries across the globe are shifting their focus on expansion of the agriculture output. This is anticipated to propel the agricultural films market during the forecast period. Every manufacturing process that produces agricultural film products needs to assess the benefits of bio-degradable plastic films. Thus, bio-degradable plastic caters to the production demands of the agricultural industry.

Market Segmentation

The agricultural films market can be segmented based on several factors:

By Product Type:

  • Linear Low-Density Polyethylene (LLDPE): Dominates the market due to its flexibility, high tensile strength, puncture resistance, and cost-effectiveness. It is widely used in greenhouse and low tunnel films.
  • Low-Density Polyethylene (LDPE): Offers translucency or opacity and is used in mulching, greenhouses, silage, and irrigation tapes, particularly in harsh climates with limited water.  
  • High-Density Polyethylene (HDPE): Known for its high barrier properties and lesser transparency.  
  • Ethylene-Vinyl Acetate/Ethylene Butyl Acrylate (EVA/EBA): Increasing demand, particularly from the dairy industry for silage films.
  • Reclaims: Growing segment due to cost-effectiveness and sustainability benefits.
  • Others: Including various specialized films.  

By Application:

  • Greenhouse: The largest application segment, driven by the increasing utilization of greenhouses for controlled agriculture to enhance yields and protect crops from adverse conditions. This includes classic greenhouses and low tunnels.  
  • Mulching: Widely used for suppressing weed growth, retaining soil moisture, regulating soil temperature, and improving crop health.  
  • Silage: Essential for livestock or fodder production, preserving the nutritional value of animal feed through silage stretch wrap and bags.
  • Geomembrane: Used in various agricultural applications, including water management.
  • Others: Including macro/walking tunnels and other specialized applications.  

By Region:

  • Asia Pacific: The largest and fastest-growing market, holding a significant share (e.g., 53.81% in 2023). This is attributed to large-scale agricultural activities in countries like China and India, high food demand due to a dense population, and increasing adoption of modern farming techniques and greenhouse technology.
  • Europe: The second-largest market, with significant activity in horticulture and floriculture, particularly in countries like the Netherlands, Spain, and Italy. There is a growing focus on organic farming, driving demand for classic greenhouse films.  
  • North America: A significant market, with the U.S. projected to see substantial growth driven by demand for plasticulture applications.  
  • Latin America and Middle East & Africa: Developing markets with increasing potential due to improving infrastructure and rising demand for organic food.

Regional Analysis

Asia Pacific currently dominates the agricultural films market due to its vast agricultural land, large population driving food demand, and increasing adoption of advanced farming methodologies. Countries like China and India are key consumers. Europe is a significant market with a focus on horticulture and floriculture, and a growing trend towards sustainable farming practices. North America is also a substantial market, driven by advancements in agricultural technology. The Latin America and Middle East & Africa regions represent emerging markets with increasing growth potential.  

Market Drivers and Challenges

Market Drivers:

  • Increasing Demand for Agricultural Output: A growing global population necessitates higher food production, driving the adoption of technologies like agricultural films to enhance crop yields.  
  • Advancements in Agricultural Film Technologies: Innovations leading to films with improved strength, flexibility, UV resistance, thermal properties, and biodegradability are fueling market growth.  
  • Rising Adoption of Controlled Agriculture Practices: The increasing use of greenhouses and other protected farming methods to optimize growing conditions drives the demand for specialized agricultural films.  
  • Government Initiatives for Sustainable Food Production: Many governments are promoting sustainable agricultural practices and providing subsidies for adopting modern farming technologies, including agricultural films.  
  • Climate Change: Adverse weather conditions due to climate change necessitate the use of agricultural films to protect crops and ensure stable agricultural production.  
  • Growing Need for Efficient Water Management: Mulch films and other agricultural films help in conserving soil moisture, which is crucial in regions facing water scarcity.  
  • Increasing Demand for Horticulture and Floriculture: The rising global interest in ornamental plants and high-value horticultural products drives the use of protective plastic films.

Market Challenges:

  • Environmental Concerns Related to Plastic Waste: The disposal of non-biodegradable plastic films poses environmental challenges and is leading to stricter regulations on plastic usage.
  • High Initial Investment Costs: The cost of installing agricultural plastic films, particularly for greenhouses, can be a barrier for some farmers.
  • Volatility in Raw Material Prices: Fluctuations in the price of crude oil, the primary raw material for many agricultural films, can impact the cost of production.  
  • Harmful Effects Pertaining to the Use of Plastic Films: Concerns exist regarding the potential negative impacts of plastic residues on soil health.  
  • Availability of Low-Cost Alternatives: In some regions, farmers may opt for cheaper, albeit less effective, traditional farming methods.

Market Trends

  • Increasing Adoption of Biodegradable Films: Driven by environmental concerns and regulations, there is a growing demand for biodegradable and compostable agricultural films as sustainable alternatives to conventional plastics.  
  • Development of Advanced and Specialized Films: Innovations are leading to the development of multi-layer films with enhanced properties such as UV protection, anti-fogging, thermal regulation, and specific light transmission characteristics tailored to different crops and climates.  
  • Growing Popularity of Nano Greenhouses: The use of nanomaterial-coated films in greenhouses is gaining traction due to their ability to improve crop-growing conditions and minimize environmental impact.
  • Precision Agriculture Integration: Agricultural films are increasingly being used in conjunction with precision farming techniques to optimize resource use and enhance crop management.  
  • Focus on Recyclable Films: Efforts are being made to promote the recycling of agricultural films to reduce plastic waste and move towards a more circular economy.  

Future Outlook

The future of the agricultural films market looks promising, with continued growth expected due to the increasing global food demand, advancements in film technology, and a growing emphasis on sustainable farming practices. The development and adoption of biodegradable films, along with innovations in high-performance and specialized films, will shape the market landscape. The integration of agricultural films with precision agriculture techniques and the increasing focus on resource efficiency will further drive market growth.  

Key Market Study Points

  • Analysis of market drivers, restraints, and opportunities.
  • Detailed segmentation of the market by product type, application, and region.  
  • Comprehensive regional analysis, including market size and growth trends in key geographies.  
  • Competitive landscape analysis, including key players and their strategies.
  • Impact of technological advancements and sustainability trends on the market.
  • Future outlook and growth projections for the agricultural films market.

Competitive Landscape

The agricultural films market is moderately competitive, with a mix of global and regional players. Key players are focusing on product innovation, sustainability, and strategic collaborations to strengthen their market position. Some of the prominent players in the agricultural films market include:  

  • BASF SE
  • Berry Global Inc.
  • Exxon Mobil Corporation
  • DowDuPont
  • Ab Rani Plast Oy
  • RPC Group PLC.
  • NOVAMONT S.P.A.
  • RKW Group
  • AGRIPOLYANE
  • Trioplast Industrier AB
  • POLIFILM GROUP

These companies are actively involved in developing new products, expanding their geographical presence, and adopting sustainable manufacturing practices.  

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Recent Developments

  • March 2025: RKW Group launched Hytilux® greenhouse films, designed to meet the specific light and temperature requirements of various open-field vegetables and fruits, aiming to optimize greenhouse conditions and reduce energy consumption.  
  • January 2022: Coveris launched Unterland R, a silage bale wrapping film made with 30% recycled content, highlighting the growing focus on sustainability.  
  • January 2021: Rani Group introduced RaniWrap Ecol, an agricultural bale wrap containing 30% recycled raw materials.  
  • June 2022: Exxon Mobil Corporation introduced metallocene linear low-density polyethylene (mLLDPE) high-performance flexible films for agricultural applications, emphasizing improved stiffness, toughness, and processing ease.  

These recent developments underscore the industry's commitment to innovation and sustainability, addressing the evolving needs of the agricultural sector.  

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