The exclusive COVID-19 impact analysis report by Axiom MRC provides a 360 degree analysis of micro and macro-economic factors on the global agricultural film market. In addition, complete analysis of changes on the global agricultural film market expenditure, economic and international policies on supply and demand side. The report also studies the impact of pandemic on global economies, international trade, business investments, GDP and marketing strategies of key players present in the market. During COVID-19 pandemic, global agricultural film market was more or less affected due to supply chain distribution, declining demand for agricultural film from various application like packaging, agriculture which has certainly affected the market growth to major extend. However, post COVID-19 the market has witnessed the rising new growth opportunities and is expected to have emerging demand in upcoming years.
Increasing population across the globe, declining arable land, and growing demand for year-round access to fresh produce have increased the greenhouse-grown fresh produce market, thereby growing the demand for agricultural films to enhance crop productivity. Polyethylene is a widely used material for agricultural films to protect crops and improve crop yield in greenhouses and tunnels. As per the World Greenhouse Vegetable Statistics- 2019, the global greenhouse vegetable area is increased from 489,214 hectares in 2017 to 496,800 hectares in 2019. With the increasing area involved in greenhouse farming and protected farming practices, agricultural films are expected to grow during the forecast period.
As per Statistics Canada, the sales of fruits and vegetables produced through greenhouse is USD 965 million in 2016 and increased to USD 1,367.5 million in 2020. This increase in the demand for greenhouse fruits and vegetables in the country is, in turn, driving investments for greenhouses, which has increased the demand for agricultural films in the country over the past few years, and it is also expected to increase in the coming years.
In developed regions such as North America and Europe, governments discourage the use of plastics. Many regulations are set to restrict the use of plastics. Increasing environmental concerns pose a threat to plastics usage in agricultural films. Thus, the demand for biodegradable films is expected to increase in these regions. Recyclable or biodegradable plastics are being preferred in the market. The market for biodegradable films is expected to grow during the forecast period, as these films reduce the cost of disposal. Biodegradable films conserve resources and decrease pollution. In addition, the use of biodegradable films in agriculture promotes sustainability and reduces soil contamination.
Plastic is used in agriculture owing to its features such as efficiency, safety, and low cost. However, it also contributes to global warming and pollution. Most farmers do not properly dispose the plastic materials. Improper disposal of plastics films clog water channels, entangles equipment, and creates hazards for livestock and wildlife. Plastics release dioxins, heavy metals, and particulate matter on burning, which contribute to air pollution and hamper the photosynthesis of plants. European and the North American governments have banned the use of plastics owing to these concerns, with all governments taking initiatives to promote degradable plastics in agriculture globally.
Plastic film fragments have been shown to release potentially carcinogenic phthalate acid esters (substances added to plastics to enhance their flexibility) into the soil, where they can be absorbed by crops and pose a risk to human health when food is eaten. Plastic film fragments left in fields can also accumulate pesticides and other crop toxins. This is a risk to sheep, goats, and other animals grazing on crop stalks due to their potential to ingest plastic material or chemicals leaching from it. Lastly, the burning of this waste stream in fields could present nuisance problems for residents/businesses that are located downwind from burning locations.
The report provides in-depth analysis of global agricultural film market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. With increasing demand for various agricultural film in various applications has led the increasing demand for market and is expected to witness the growth at a specific CAGR from 2022-2028.
The global agricultural film market comprises of different market segment like type, application and geography.
The type studied in the global agricultural film market are LLDPE, LDPE, Reclaim, EVA, and HDPE. LLDPE is the most widely used type among PE films. These films can be blown or cast similar to LDPE. LLDPE films and sheets offer properties such as higher puncture resistance, high tensile strength, moisture barrier, resistance to sunlight & cracking, and suitable low-temperature properties. LLDPE films are replacing conventional LDPE in many areas due to their low production cost and high product performance. These films also have different applications in the packaging industry. Consequently, LLDPE films are replacing HDPE, as HDPE films are stiffer than LLDPE films, making the latter more suitable. The dominance of LLDPE is attributed to the increased demand because of their advanced properties such as high puncture resistance and tensile strength, along with their low cost as compared to the other types. In addition, the rising demand for LLDPE films from the flexible packaging industry is driving the market.
The global agricultural film market finds its major application in greenhouse film, silage film, and mulch film. The greenhouse is a temporarily, semi-permanently, or even permanently closed structure depending upon the technology used in it. In North America, greenhouses are closed, which are taxable with fully automated ventilation. These can also be non-permanent structures, which can be rolled outback. Greenhouses are also called hoop houses, which are non-taxable. The thickness of agriculture films ranges from 80 ?m to 220 ?m, and it is up to 20 meters wide. The shelf life of greenhouses varies from 6 to 45 months based on the photo stabilizer used. Classic greenhouse film, macro tunnels/ walking tunnels, and low tunnels are the sub-segments of greenhouses. Classic greenhouses films are automated and hence expensive. The structure of these greenhouses is curved, and it is covered with PE film or glass. It has temperature sensors that are automatically controlled. The uniqueness of structure and the controlled atmosphere enable agriculture production to meet all the standards required for exports.
The global agricultural film market is studied for the following region North America, Europe, Asia-Pacific and Rest of the world (RoW). Asia-Pacific has dominated the global agricultural films market. This dominance is attributed to the massive agricultural growth and increased demand for food in key countries such as China and India. Increasing population and rising per capita intake of food exert pressure on the agricultural output. The area under cultivation cannot be increased due to a decrease in arable land. Thus, the practice of controlled agriculture is essential to cater to the demand of the region’s rising population. The demand for agricultural films is growing, especially in Asia-Pacific and the Middle East & Africa. Thus, the markets in these regions are expected to register higher growth in comparison to other regions.
The growth in APAC is mainly attributed to the region’s rising population. In addition, demand is shifting to the Asia-Pacific region due to economic contraction and saturation in the European and North American markets. Agricultural films manufacturers are targeting this region, as it is currently the strongest regional market. China is the leading producer and consumer of agricultural films in the region. India is an agriculture-based economy. Increased cultivation is meeting the rising food demand of the population. Due to the depleting arable land, the need for controlled agriculture has increased. Thus, the demand for agricultural films has grown. In Japan, crops cultivated in greenhouses fulfill the demand for vegetables and flowers.
The competitive landscape analysis of agricultural film market is certainly based range of market players operating in the agriculture market with increasing demand for production of agricultural film. Besides, number of market players offered wide range of products for different application in various geographic locations. The market has major competitive analysis based on new product launches as well as other developments.
The key players studied in market are Achilles Corporation, Sanin, Berry Global, Inc., Coveris Group, RKW Group, BASF SE, Dow, Ab Rani Plast Oy, Armando Alvarez Group, GROUPE BARBIER, Al Pack Ent, ExxonMobil, Novamont, Britton Group, inc, Plastika Kritis S.A., INDEVCO Group, POLIFILM, Plastik V Sdn Bhd, Ginegar Plastic Products Ltd., Kuraray Europe GmbH among others.
August 2018: Berry Global the company acquired laddawn, Inc. Laddawn is a manufacturer of blown polyethylene and films with an e-commerce platform. With this acquisition Berry Global Inc. aims to expand their engineered product segment on web and mobile sales.
July 2019: Berry Global Inc, acquired RPC Group Plc with an aim to become the global leader in plastic and recycled plastic industry.
2019: Berry Global Inc invests in an energy efficiency retrofit program to decrease the carbon emission, this investment is to support their impact 2025 sustainability strategy.
November 2020: BASF SE expanded its plastic additives business in Pontecchio,Italy. It will deliver a wider range of NOR solutions which will help in growing its agriculture industry.
The use of plastic films in agriculture has enormously helped in overcoming main challenges by changing unproductive deserts into agricultural lands. Agricultural films are used to improve productivity of agricultural land with the help of plastic films. Moreover, these films serve numerous functions including greenhouse, silage, and mulching. LDPE, HDPE, EVA/EBA are some polymers that are used in manufacturing these films. The study analyzed the global agricultural films market based on the type, application, and geography. LLDPE, LDPE, reclaim, EVA, and HDPE are the type of agricultural films. The LLDPE held a lion’s share of the market. The market finds application in greenhouse film, silage film, and mulch film. Mulching accounted largest market share. Geographically, the study is comprised of the key countries of North America, Europe, Asia-Pacific, and the Rest of the World.
1) What are the drivers for agricultural film market?
The key driving factors of the market are increasing agricultural output
2) Which is the leading application segment for agricultural film market?
Mulching has accounted the major market share, and is expected to witness the growth at highest pace during the forecast period.
3) Which region is gaining majority of market share during the forecast period (2022-2028)?
Asia Pacific is expected to gain major market share during the forecast period (2022-2028).