The exclusive COVID-19 impact analysis report by Axiom MRC provides a 360 degree analysis of micro and macro-economic factors on the Europe 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 Europe economies, international trade, business investments, GDP and marketing strategies of key players present in the market. During COVID-19 pandemic, Europe 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.
The market for agricultural films is matured in Western and Central Europe. In most Western & Central European countries, growth in the demand for agricultural films has been declining in line with the respective GDPs. Countries such as Germany, Italy, France, the U.K., and Spain are witnessing a significant slowdown in terms of film consumption. The European Association of Plastic Recycling and Recovery Organization (EPRO) have been set up to address the issue of plastic disposal and its recycling. EPRO has been entrusted with organizing and promoting the recycling and recovery of plastics throughout Europe. Hence, the demand for agricultural films that can be recycled is increasing. Europe has a few of the largest agricultural films market players such as RKW SE (Germany), Novamont S.p.A. (Italy), British Polyethylene Industries Plc. (U.K.), Armando Alvarez (Spain), Barbier Group (France), and BASF SE (Germany).
Chemical pesticides or weedicides may cause metabolic syndrome, malnutrition, atherosclerosis, inflammation, anxiety, loss of memory, weakness, cancer or kidney failure. Increasing health concerns and government restrictions have restrained the use of chemical pesticides. Government ban on chemicals has impelled farmers to use agriculture films to get rid of insects, rodents, and birds. For instance, on 20th May 2020 Pesticide Area Network (PAN) has approved the Indian government proposal to ban 27 pesticides including 2,4-D, acephate, atrazine, and benfuracarb, butachlor, citing its harmful effects on human health and the environment. Also, in August 2018, the U.S. Ninth Circuit Court of Appeals has ordered the Environmental Protection Agency (EPA) to ban chlorpyrifos. Thus, strict government actions to minimize the use of pesticides for increasing crop productivity further aid the growth of agricultural films market.
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.
Although agricultural films are gaining huge popularity in increasing the agricultural output but degradability of agricultural films possess major challenge. Polyethylene do not decompose and remain on landfill for years. Government regulations on the production and sale of polyethylene further hamper the growth of polyethylene-based agriculture films. For instance, in February 2019, European Parliament members voted as 571-53 in favor of the ban of single-use polyethylene. Furthermore, high cost of installation and short lifespan of greenhouse films also hampers the growth of agricultural films market. Decline in agricultural landmass due to rapid urbanization also impact the market growth. According to China’s Ministry of Natural Resources country’s arable land declined by 60,900 hectares and fell to 134.86 million hectares in 2017, lowering the demand for agricultural films.
The report provides in-depth analysis of Europe 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 Europe 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. Linear low-density polyethylene is preferred over LDPE. LLDPE has more resistance to chemical and tensile strength which is better for crop production. LLDPE is a substantially linear polymer (polyethylene), with significant numbers of short branches, commonly made by copolymerization of ethylene with longer-chain of olefins. Low thickness of LLDPE films allow sunlight to reach crops which in turn boosts the growth of plant. Properties such as flexibility, good moisture barrier, and resistance to ultraviolet radiations also accelerates the use of linear low-density polyethylene in agricultural films.
The global agricultural film market finds its major application in greenhouse film, silage film, and mulch film. Greenhouse film help fruits, and vegetables to ripen faster which in turn allows farmer to harvest several crops in a year. United Nations Food and Agriculture Organization (FAO) estimated that the demand for food will grow by 60% by 2050. Limited agricultural landmass coupled with huge demand for food has augmented the use of greenhouse films. Greenhouse films maintain uniform temperature which increases the efficiency of crops. In addition of protecting crops from wind, rain and frost, greenhouse film also reduces water consumption by lowering evaporation rate.
Outbreak of coronavirus proved to a major challenge for agricultural films market. Lack of manpower has led many manufacturing companies to stop their production which further results in their downfall. According to the World Trade Organization global trade will fall by between 13% and 32% in 2020 as the COVID 19 pandemic disrupts normal economic activity and life around the world. Due to the disruption of supply chain, farmers are facing problems in exporting their fruits or vegetables. Huge losses to farmers decreased the use of agricultural films.
Geographically, the Europe agricultural film market is studied across the countries of Spain, Italy, France, Germany, UK, and Rest of Europe. Italy is the fastest growing country in Europe agricultural film market. 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.
Moreover, 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.
The competitive landscape analysis of Europe 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.
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
10th February 2021: to launch and develop polyethene film solutions by recycling used plastic products.
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.
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.
The use of agricultural films as a means to safeguard crops from pests has been explored for the past few years. Agricultural films are basically low-weight LDPE or PE plastic films. Mulches, silage bags are just varied forms of a basic agricultural film. Agricultural films are being used increasingly in a bid to preserve and nurture plant health by preventing water loss, UV stabilization to cool soil and prevent insect attack, etc. The most important agricultural applications of plastic films are a greenhouse, walk-in tunnel and low tunnel covers, and mulching. The study analyzed the Europe 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 Europe agricultural film market is studied across the countries of Spain, Italy, France, Germany, UK, and Rest of Europe. Italy is the fastest growing country in Europe agricultural film market.
1) What are the drivers for Europe agricultural film market?
The key driving factors of the market are increasing agricultural output
2) Which is the leading application segment for Europe 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 country is gaining majority of Europe agriculture film market share during the forecast period (2022-2028)?
UK is expected to gain major market share during the forecast period (2022-2028).