Agricultural Films Market Share & Trends Analysis, By Film (Geomembrane, Agricultural Silage Films, Others), By Material (Ethylene Butyl Acrylate Agricultural Films, Ethylene-Vinyl Acetate Agricultural Films, Others), By Application & By Region Forecast, 2021-2031

Agricultural Films Market Outlook

The global agricultural films market is set to exceed a valuation of US$ 10 Bn in 2021, with price growth of greenhouse films playing a significant role in market growth.

In terms of value, demand for agricultural films used for manufacturing silo bags is anticipated to increase at 6% CAGR to reach sales of US$ 6.5 Bn by 2031.

Agricultural Films Sales Analysis from 2016 to 2020 Vs Demand Outlook for 2021 to 2031

According to Fact.MR - a market research and competitive intelligence provider, historically, from 2016 to 2020, use of agricultural films increased at around 3.5% CAGR, wherein, countries such as China, India, Japan, and the U.S. held a significant share in the global market. 

Upsurge in utilization and requirement of agricultural films in seasonal crop production is the reason for overall agricultural films business growth. Growth continues to propel by the development of bio-degradable and environmentally friendly products in the agricultural industry, along with steadily growing demand for healthy food.

Leading agricultural film manufacturers are focusing on testing in-depth new technologies, thereby targeting the launch eco-friendly products, to capitalize on the burgeoning demand. Additionally, growing utilization of agriculture film laying machines has enabled effortless and effective laying down of films on a large scale, which, in turn, increases consumption. 

On a global scale, import dependency for agricultural products has increased in the past few years, which can be attributed to rising shrinkage of arable land and unfavourable climatic conditions across several parts of the globe. The European Union has witnessed the highest import since 2016. Despite a widespread agricultural network, China is also somehow dependent on agricultural imports with the country becoming the biggest importer.  

• It has been observed that, over 48% of agricultural films utilized for crop production is plastic mulch.

• Versatile properties of plastic mulch such as weed growth limiter, soil temperature controller, and crop yield enhancer are driving sales.
• China accounted for a major chunk of the agricultural films business, and is anticipated to witness a steady CAGR of 7.6% through FY2031.
• Considering growing adoption of various types of agricultural films, especially mulch and greenhouse films for crop production with shift in business dynamics, the global agricultural films market is forecast to expand at a healthy CAGR of 5.7% over the next 10 years.

What are the Key Opportunities on Offer for Agricultural Film Manufacturers?

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

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

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

Majority of manufacturer are involved in some sort of recycling, and manufacturing fresh products from recycled materials has become a global trend.

Fact.MR analyses that agricultural film producer margins will double by recycling used plastic. The recycled plastic market is projected to reach over US$ 65 Bn by 2025, which will drive demand for recycled agricultural films.

What are the Roadblocks that Agricultural Film Producers Face?

Development and production of biodegradable agricultural films are still rising, as the production cost is significantly higher than other film types. As such, it is always going to be a challenge for manufacturers of bio-degradable films to maintain the cost of production and price they offer.

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

Moreover, growing awareness towards arable land pollution to limit agricultural film utilization is set cascade the effect of overall consumption of these films on a macro scale. The notable adverse impacts of plastic mulch on soil such as decrease soil porosity, changing nature of microbial communities, etc., are likely to continue to pose a daunting challenge to agricultural film suppliers. 

Analysing the aforementioned facts, it can be concluded that bio-degradable films are the future owing to growing concerns regarding environmental pollution. This will create a challenge for manufacturers to shift towards eco-friendly pathways.

Which Region Offers the Largest Opportunity for Sales of Agricultural Films?

East Asia is the most prominent region for agricultural film suppliers with an absolute dollar opportunity of close to US$ 4.5 Bn.

China is leading in East Asia as well as the global market, and is expected to witness double-digit growth during 2021-2031. With the fast-paced growth of its economy and growing dependence on agriculture, Chinese consumers’ inclination towards agricultural films has grown multi-fold in the recent past. 

South Asia Oceania and Europe accounted for approx. 1/3 of the market value, and are expected to progress at CAGRs of 6.2% and 3.9%, respectively.

The Middle East & Africa is still in a developmental state. Looking into the widespread agricultural statistics, especially in Africa and growing economic activities in the Middle East, the region is considered as one of the emerging markets. The Middle East & Africa market is anticipated to rise at a moderate pace and reach US$ 705 Mn by 2031.

Country-wise Analysis

Why the Mature Agricultural Films Industry in the U.S. Still Growing at Over 3% Annually?

The market in the U.S. grew 3.1% from 2016-2020, and is expected to reach US$ 1.5 Bn by 2031. The country is the highest exporter of agricultural products across the globe.

The U.S. witnessed over US$ 137 Bn agricultural product exports, in which, soybeans and corn hold the highest share worth of US$ 26 Bn and US$ 9.2 Bn, respectively, which leads to growing utilization of agricultural films in the country.

In 2020, the U.S. accounted for over 10% of the global market share and over 82% of the North American market share. The country’s agriculture, food, and related industries contributed over US$ 1 trillion to the U.S. GDP in 2019.

Over 47% of agricultural films used for crop production in the U.S. are mulch films, and approx. 32% of agricultural films used for agricultural purposes are greenhouse films.

Owing to extensive spending in the agricultural sector, the country holds a top position in the global market in terms of consumption and production.

How Has Demand for Agricultural Films Been Shaping Up across Established & Emerging Markets?

India: The country is rich in terms of agricultural production due to favourable climatic conditions. Over 19% of the country’s GDP is contributed by the agricultural sector.

Although the country is one of the emerging markets for agricultural films, it is lagging in terms of manufacturer presence.

Italy: The country is a prominent consumer of agricultural films across Europe. It has the highest rice cultivation across the region.

Mulch films have gained traction in terms of consumption in Italy since the past half-decade. The country consumes around 60,000 tons of mulch film per year, thereby strengthening the market for agricultural films in the EU.

Spain: Spain is one of the fastest-growing country in Europe in terms of crop production, and the country is less dependent of agricultural imports as compared to other nations in the EU.

In terms of agricultural film consumption, the country consumed over 110 KT in 2020, which is expected to reach 144 KT by 2031 owing to rising crop production.

Why are Suppliers of Agricultural Films Eyeing China?

In 2020, China accounted for over 80% share of the East Asian market and over 36% of the global market for agricultural films. Silo bag manufacturing is anticipated to witness the fastest growth in the country during the forecast period.

China is listed on top of the charts of agricultural production in the world. The country witnessed over 25% of the world’s gross value of agricultural production.

In 2020, China consumed over 1,780 KT of agricultural films, and this is expected to rise at a CAGR of 7% and reach 3,692 KT by 2031. Owing to fast-growing consumption, the country continues to be a demand epicentre for agricultural films. 

Category-wise Insights

How is Growing Adoption of Mulch Films Expected to Drive Demand for Agricultural Films?

The whole world is struggling with climate change, and the agricultural sector has been the hardest hit, as climate change creates lasting challenges for farmers across the globe. By looking into the growing challenges for crop production due to climatic conditions and other restraints, several companies across the globe have started manufacturing agricultural films.

Over the recent past, it has been seen that utilization of mulch films in East Asia, South Asia Oceania, and Europe for crop production has shown positive results in terms of productivity. Mulch films not only help in getting a better yield but also reduce the need for pesticides and herbicides, which makes the crop more organic.

In 2020, over 2,124 KT of mulch films were placed in the global market, out of which, East Asia accounted for the highest share followed by South Asia Oceania and Europe.

Which Agricultural Film Material Generates Most Revenue?

Globally the LDPE market reached over US$ 35 Bn in 2020, and the requirement for LDPE is likely to increase at a CAGR of 3.2% through 2031. LDPE is the highest utilized material for manufacturing agricultural films.

Nowadays, agricultural films have become an integral part of crop production in several regions across the globe due to unfavourable weather conditions. 

Owing to its properties such as low tensile strength, moisture resistant, high-temperature resistance, etc., it is more convenient for agricultural film manufacturing. Over 51.4% of agricultural films manufactured across the globe witnessed the utilization of LLDPE in 2020. This utilization is expected to increase at a CAGR of 5.9% over the forecast period and reach over 4,096 KT by 2031.

A vast majority of plastic mulch is based on LLDPE, and the material is mostly chosen because of its economic use. In 2020, demand for LLDPE captured over 15.2% of the market share in terms of value, to reach consumption of 653 KT.

Apart from LDPE and LLDPE material, Ethylene butyl acrylate, ethylene-vinyl acetate, polypropylene, PVC, and polyamide account for over 27% of the market share.

Which Application Holds Lucrative Avenues for Agricultural Film Manufacturers?

Manufacturing of silo bags is leading to high demand for agricultural films, owing to fast-growing uses such as storage of grains, storage of food products, and reducing post-harvest losses. Silo bag manufacturing applications capture over 35% of the total agricultural films consumed across the globe. 

In terms of value, agricultural film use for silo bag manufacturing is set to reach US$ 3.7 Bn by 2021-end. Bale wrapping & ensiling applications have gained traction and are expected to be valued at close to US$ 5.2 Bn by 2031.

How Has COVID-19 Skyrocketed Sales of Agricultural Films?

The global market has been appalled by the COVID-19 crisis and left no industry unscarred. The agricultural films industry was also affected by the pandemic and lost nearly 15% of revenue in 2020.

COVID-19 is expected to have a short-term negative impact on the agricultural films business, owing to economic uncertainty. China was worst affected by COVID-19, but at the same time, the country witnessed fast market recovery and GDP growth.

With hike in demand and rising crop cultivation from the 3rd quarter of 2020, sales for agricultural films started increasing at a high pace. Although, the frequency of distribution faces challenges due to supply chain disruptions across the globe.

Recovery of the market has been seen from the beginning of 2021, which is expected to top US$ 10 Bn in 2021.

Competitive Landscape

Majority of companies discussed in the report have focused on product launches and expanding their manufacturing units in developing regions. Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.

Some of the key developments are :

• On 3rd January 2020, BASF SE announced the acquisition of Solvay's polyamide business segment. With this acquisition, BASF got an opportunity to expand its business by operating eight production sites in different countries across the globe, including China, India, South Korea, North America, Europe, Mexico, and Brazil.
• Lucro Plastecycle, a recycling company in India, and Dow Inc., signed a memorandum of understanding on 10th February 2021 to launch and develop polyethene film solutions by recycling used plastic products.
• On 12th January 2021, Ab Rani Plast Oy introduced a product named "RaniWrap Ecol“ in Europe, and its trial also delivered excellent results, as it is considered a more sustainable product and will reduced carbon footprint. 
• On 4th March 2021, Berry Global announced an investment of US$ 30 Mn to increase the production capacity of hand stretch films and ultra-high-performance machines. 

Similarly, other recent developments related to companies manufacturing agricultural films have been tracked by the team at Fact.MR, which are available in the full report.

Key Segments Covered in Agricultural Films Industry Research

• By Film :

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

• By Material :

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

• By Application :

  • Agricultural Films for Bale Wrapping & Ensiling
  • Agricultural Films for Silo Bags Manufacturing
  • Agricultural Films for Tunnel Covers
  • Agricultural Films for Bunker Ensiling
  • Others