Agricultural Films Market

Agricultural Films Market Growth Outlook (2022 to 2032)

The global agricultural films market is estimated at US$ 10.7 billion in 2022 and is projected to move ahead at a CAGR of 5.7% to reach US$ 18.8 billion by the end of 2032.

Sales of agricultural films accounted for 5.9% share of the global films market at the end of 2021. The growing need to enhance crop production and the introduction of greener ag films will result in higher sales opportunities for market players.

Report Attributes	Details
Market Size in 2021	US$ 10.2 Billion
Films Industry Market Size	US$ 181 Billion
Market Values in 2022	US$ 10.7 Billion
Forecasted Market Value (2032F)	US$ 18.8 Billion
Global Market Growth Rate (2022-2032)	5.7% CAGR
North America Market Share (2022)	~12.1%
East Asia Market Growth Rate (2022-2032)	~6.3% CAGR
United States Market Growth Rate (2022-2032)	~4.1% CAGR
Market Share of Top 5 Companies	~37.8%
Key Companies Profiled	BASF SE Berry Global Inc. CI Takiron Exxon Mobil Corporation Dow Inc. RPC Group PLC RKW Group Trioplast Industries AB Achilles Corporation Ab Rani Plast Oy.

Chronicle Analysis of Agricultural Film Consumption and Market Growth Patterns

Agriculture films are also known as plasticulture or agricultural plastic and are projecting high investment opportunities. Manufacturers are investing in R&D to develop innovative and eco-friendly solutions to cater to the varied needs of customers. Rising investments by governments are supplementing product sales growth. Recycling and the development of used products make these attractive to customers.

• Factors Determining Short-Term Growth: Initiatives by market players and the effectiveness of ag films will drive their demand over the period of 2022-2025.
• Aspects Influencing Medium-Term Growth: Asia Pacific is anticipated to witness high demand on the back of a growing population and rising per capita intake, coupled with favorable government initiatives.
• Measures Driving Long-Term Growth: Development of green or 100% bio-degradable films will see a high adoption rate in organic farming, thereby aiding market growth.

From 2017 to 2021, the global ag films market registered a CAGR of 3.5%, and according to this latest study by Fact.MR, a market research and competitive intelligence provider, the industry is projected to expand at 5.7% CAGR between 2022 and 2032.

Market share analysis of agricultural films based on application and region. Under the application segment, silo bag manufacturing leads with 36.4% market share in 2022.

Which Facets are Shaping Agricultural Films Market Progress?

“Proliferating Agriculture Sector Supplementing Industry Growth”

The proliferating agriculture sector across the world is attracting high investments and expenditure, which directly increases sales in the market.

• For instance, in 2021, China imported a total of 28.35 million metric tons (MMT) of corn, which was 152% more compared to 2020.

Hence, the growing demand requires high productivity and it not only increases production capacity but also enables farmers to have extended growing seasons, conserve water, and limited or zero pesticide requirements.

“Use of Biodegradable & Recycled Material Will Enhance Market Outlook”

With rising concerns about environmental pollution, several governments have framed their policies to shift towards eco-friendly solutions. This will lead to an increase in demand for bio-degradable and recyclable products used for several applications.

By looking into the global scenario and the rapid adoption of environment-friendly products, manufacturers should focus on finding eco-friendly solutions for the market. More than 75% of raw materials used in manufacturing are not eco-friendly; however, they can be recycled after use.

Manufacturers have adopted several recycling techniques and are setting up separate plants for recycling purposes, which not only reduces raw material costs but also increases profit margins from the films produced.

A majority of manufacturers are involved in some sort of recycling and manufacturing fresh products from recycled materials, which has become a global trend.

“High Production & Installation Cost and Raw Material Challenges”

The production and use of non-biodegradable films are still being practiced across underdeveloped and developing economies. Further, the high development and production cost of biodegradable films is a major challenge as compared to other types. High cost is estimated to always be a challenge for the manufacturers of biodegradable films to maintain their cost of production and the price that they offer.

Moreover, the installation cost of greenhouse films is high as compared to other alternatives. The high cost of installation of greenhouse agricultural plastic films is one of the foremost factors restraining the growth of the industry.

In addition, growing awareness about arable land pollution is set to cascade the effect of the overall consumption of these films on a macro scale. Furthermore, organic farming is gaining traction; however, the use of agriculture films is limited as they contain polymers or biodegradable plastics, which are estimated to enter the food chain and cause an adverse impact.

To overcome such challenges, manufacturers should focus on the adoption of raw materials made of cellulose and other eco-friendly materials, which will eliminate the micro-plastic challenges. Further, the use of agricultural waste will contribute to a greener future.

Country-wise Insights

How is the Matured U.S. Market Expected to Fare?

The U.S. is the highest exporter of agricultural products in the world. The U.S. witnessed high agricultural product exports, in which, soybeans and corn held the highest shares and has led to growing sales in the country.

The country’s agriculture, food, and related industries contributed over US$ 1.55 trillion to the U.S. GDP in 2020, a 5% share. This has resulted in the high adoption of ag films in the U.S in the past few years.

The United States market is currently estimated at US$ 1.07 billion and is expected to expand at a CAGR of 4.1% through 2032.

Why Does China Remain a Preferred Investment Country for Agricultural Film Manufacturers?

China's population is around 1.4 billion, and with this rising population, the demand for food is also increasing in parallel. The per capita intake of food in China is nearly 3,347 Kcalorie. Both increasing population and rising per capita intake have put high pressure on the need for more agricultural output.

The available area under cultivation is insufficient to meet the food requirements and it cannot be increased due to a continuous decrease in arable land. Such factors have promoted the practice of controlled agriculture to meet the demand of the booming population. This has led to the high adoption of ag films across China to increase production capacity.

Furthermore, China has become a major producer and consumer in the market. This, in turn, has resulted in a rise in cultivation to meet the increasing food demand of the population. Hence, the industry has high demand across China and will continue to witness high sales opportunities over the coming years.

The China market for ag films currently stands at a valuation of US$ 4.17 billion.

Category-wise Insights

Why are We Seeing Higher Demand for Agricultural Mulching Films?

Agricultural mulch films have high demand due to their features - they limit weed growth, modify soil temperature, prevent moisture loss, and improve crop yield and precocity as well. These mulch films are mainly used to grow food and vegetable crops over extensive areas.

In the U.S., around 57. 15 million kilograms of mulch cover crops or soil. China is considered to be the leading country in the use of plastic mulch in agriculture, covering around 10% of its farmland.

Furthermore, the introduction of biodegradable mulch has reshaped the growth trajectory of the segment. Its use eliminates the requirement for pesticides and herbicides. The use of mulch films helps conserve water, easy & clean harvesting, and also extends the growing season for some crops.

The segment has increased steadily in the recent past, reaching a market valuation of US$ 5.17 billion in 2022.

Should Market Players Focus on LLDPE Films?

LLDPE is witnessing high demand and has a vast application area as compared to other types of PE films. LLDPE films have numerous properties, including high tensile strength, higher puncture resistance, resistance to sunlight & cracking, moisture barrier, and suitable low-temperature properties, among others. LLDPE films are gaining traction and replacing LDPE in wide application areas as LLDPE offers high product performance and low production cost.

LLDPE films are also a reliable alternative to HDPE. Comparing both films, HDPE is stiffer as compared to LLDPE films, making LLDPE a more suitable substitute.

The growth of the LLDPE segment is attributed to its reliable and advanced properties such as tensile strength and high puncture resistance, coupled with low cost of production as compared to other types.

Key Manufacturers and Their Marketing Strategies

Prominent manufacturers operating in the market are BASF SE, Berry Global Inc., CI Takiron, Exxon Mobil Corporation, Dow Inc., RPC Group PLC, RKW Group, Trioplast Industries AB, Achilles Corporation, and Ab Rani Plast Oy.

Leading market players are focused on producing sustainable and biodegradable solutions to curve the demand graph. Product launches with capacity expansion are key strategies being adopted by industry players. They also rely on innovation and advanced technology to produce customer-oriented solutions to increase their sales opportunities.

• In January 2022, ExxonMobil and SABIC, in a joint venture, established a manufacturing facility in San Patricio County, Texas. This facility produces materials used for agricultural films, packaging, construction materials, and automotive coolants, among others. Both companies have invested US$ 10 billion in the development of the facility.
• In January 2022, Coveris launched Unterland R, a stretch film for silage bale wrapping. Unterland R provides improved sustainability properties that effectively respond to the rising demand for eco-friendly baling solutions for the agriculture sector.
• In January 2021, Rani Plast introduced bale wrap films using 30% raw material, which is derived from recycled agricultural bale wrap.

Fact.MR has provided detailed information about the price points of key manufacturers of agricultural films positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Industry Research

• By Film :

  • Geomembrane
  • Agricultural Silage Films
  • Agricultural Mulching Films
  • Greenhouse Plastic/Covering Films

• By Material :

  • Ethylene Butyl Acrylate
  • Ethylene-Vinyl Acetate
  • Low-Density Polyethylene
  • LLDPE
  • LLPE
  • HDPE
  • Polypropylene
  • Polyamide
  • EVA
  • Ethylene Vinyl-Alcohol Copolymer Resins
  • PVC
  • Others

• By Application :

  • Bale Wrapping & Ensiling
  • Silo Bag Manufacturing
  • Tunnel Covers
  • Bunker Ensiling
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA