Agricultural Film Market | Trends and Growth Forecast to 2026

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The wide use of agricultural films for greenhouses is a key growth driver of agricultural films market, says Transparency Market Research (TMR) in one of its research reports. In terms of numbers, application-wise, greenhouse and mulching jointly accounted for 75% of revenue of overall agricultural films market in 2017. In the coming years, however, revenue share of greenhouse is expected to expand, adds the report. 

In agricultural practices, use of mulching, greenhouse, and silage bags enables production to increase from 20 -35%. Such notable rise in crop production due to balance of climate and soil concentration attained by agricultural films accounts for their uptick in demand. 

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Population explosion in several parts of the world has necessitated increased agricultural output. Year-on-year use of arable land for agricultural crop has affected nutrient content of soil of the same. To address this, innovative agricultural techniques are increasingly used complementing conventional agricultural techniques for increased yield. 

Agricultural films play a role here. Agricultural films used on arable land reduces soil erosion as well as prevents soil erosion. On the other hand, agricultural films used on produce and fodder prevents spoilage by preventing microbial action. Besides this, agricultural films for soil helps raise temperature of the soil, thereby aiding plant growth. 

Collectively, these benefits of agricultural films aid increased food production with minimal escalation of expenditure. This fuels growth of agricultural films market. 

By product, agricultural films are of few types. Of them, linear low-density polyethylene (LLDPE) witness maximum demand. LLDPE agricultural films possess higher tensile strength and puncture resistance than other products. In 2017, LLDPE product segment held more than 60% share of the global agricultural films market.  

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Complementing Traditional Agriculture with Newer Techniques underscores demand in India 

The global agricultural films market comprises five key regions, namely North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among them, Asia Pacific is expected to display stellar growth in the agricultural films market. 

In the region, exploding population in India and China is necessitating uptake of modern agricultural practices to increase crop yield. High dependency of agriculture on seasonal rains in several parts of the country necessitates techniques to best utilize seasonal rains. This includes use of agricultural films to prevent runoff of rain water. 

Subsidies and Discounts spur demand to ramp up Exports 

Expansion of variety of agricultural produce also requires controlled environment for desired crop yield. Increasing production of exotic varieties of fruits and vegetables in India, which are native to Western countries requires optimum nutrient and water concentration on the soil. This requires use of agricultural films. 

Discounts and subsidies offered by the government to encourage use of modern agricultural practices is leading to increasing uptake of the same in India. Such modern agricultural practices are now commonly employed among horticulturists who are engaged in producing exotic varieties of export-quality flowers. 

Meanwhile, North America and Europe are mature markets for agricultural films due to their long use in agriculture. However, newer trends of rooftop farming in urban areas is leading to resurface in demand of agricultural films. Urban areas require optimum concentration of soil and ambient temperature, which are naturally not available for crop production. 

Regions of Latin America and the Middle East and Africa are likely to display continued sluggish demand for agricultural films over the forecast period. Low farming activities and vast expanse of infertile land in these regions are reasons for low intensity of agricultural practices. Thus, lackluster demand for agricultural films. 

The review presented here is based on the findings of the TMR report, titled “Agricultural Films Market (Product - Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Ethylene Vinyl Acetate/Ethylene Butyl Acrylate (EVA/EBA), Reclaims, Other Films; Application - Greenhouse, Mulching, Silage) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2026.” 

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The global agricultural films market is segmented as follows:

Global Agricultural Films Market, by Product 

• Low Density Polyethylene (LDPE)
• Linear Low Density Polyethylene (LLDPE)
• High Density Polyethylene (HDPE)
• Ethylene Vinyl Acetate/Ethylene Butyl Acrylate (EVA/EBA)
• Reclaims
• Other Films (including PVC and EVOH) 

Global Agricultural Films Market, by Application 

• Greenhouse
• Mulching
• Silage 

Global Agricultural films Market, by Region 

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Europe
  • Germany
  • Spain
  • U.K.
  • France
  • Italy
  • Russia & CIS
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa 

Companies in the Agricultural Film market have increasingly shifted gears with wide application of digital technology across the continuum, from raw material sourcing to manufacturing to generation of final output, to warehousing to final distribution operations. Among the various affects, the market is witnessing new growth economics due to thinning of line between specialty and commodity businesses that are associated with the larger ecosystem. At the same time, new growth parameters are being vigorously being debated as industry stakeholders put greater emphasis on the circular economy processes.

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