The global agricultural films market is growing at a significant CAGR of around 6.4% during the forecast period (2020-2026). The major factors that are primarily driving the growth of the market include the growing demand for food security. According to the researchers at the University of Bonn, the global food production could fall by over 20% by 2050, and at the same time, the global population is projected to reach 9.8 billion in 2050. Along with this, the current cycle of climate fluctuations that the planet is undergoing will pose a negative impact on natural ecosystems and will have environmental stresses on agricultural productivity. Therefore, the agricultural films offer a desirable climate to the crops, in order to enhance the soil nutrients and maintain the value of appropriate nutrients. 

In addition, the increasing use of biodegradable agricultural films and nano greenhouses are expected to offer growth opportunity to the agricultural films market during the forecast period. Biodegradable plastic mulches provide an effective environment to produce crops as compared to conventional polyethylene mulch. Biodegradable plastic mulches also enhance the microbial activity of the soil and increases the containment of fungal taxa. These benefits of biodegradable agricultural films will lead to the growth of the agricultural films market in the near future. However, the high cost of installation and adverse impact of plastics on environment will affect the market growth during the forecast period.

Segmental Outlook  

The agricultural films market is classified on the basis of material and application. Based on material, the market is segmented into low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), ethylene-vinyl acetate (EVA), high-density polyethylene (HDPE), and others. Based on application, the market is segregated into greenhouse, silage, mulching, and others. 

Global Agricultural Films Market Share by Application, 2019 (%)

Global agricultural films market is driven by rising application in mulching

The mulching application is estimated to project a considerable CAGR in the agricultural films market during the forecast period. The mulching of soil that is under cultivation is becoming a common practice in the agricultural sector. The production of specialty crops with agricultural plastic mulch films due to its several benefits associated with agronomics. In addition, the increasing trend for biodegradable mulch films is offering growth opportunity to the mulching films market. The use of biodegradable mulch films enables to increase crop quality by inhibiting weed growth and maintaining soil temperature. These benefits of biodegradable agricultural films will lead to the growth of the agricultural films market in the near future.

Regional Outlook 

The global agricultural films market is classified on the basis of geography, which includes North America, Europe, Asia-Pacific, and Rest of the World. North America and Europe are expected to project a considerable growth in the global agricultural films market during the forecast period. In Europe, the major countries that contributes in the regional market growth includes Germany, UK, Spain, Italy, and France. Similarly, the US contributes a major share in the North American agricultural film market. Agriculture is considered as one of the major industries of the US and is the net exporter of food. Corn and soybean are among the major farm products in the US, as per American Farm Bureau. 

Global Agricultural Films Market Growth, by Region 2020-2026

Asia-Pacific contributes significantly in the global agricultural films market

Asia-Pacific holds a significant share, in terms of revenue, in the global agricultural films market. The growth of the region is backed by factors such as comparatively large production of agricultural goods in major economies of the region such as China, India, and others. The region has well-known agriculture research facilities for the development of effective and productive crops. The factors that lead to the growth of the market in the country include various supportive initiatives undertaken by the Chinese government to cater to the needs and feed its population. Moreover, several initiatives by the key players as well as government concerning the growth of the country are also attributed to the growth of the market. In India, agriculture employed more than 50% of the Indian population and contributes approximately 17-18% to the nation's GDP as of 2018. Such initiatives are offering growth to the agricultural films market in Asia-Pacific.

Market Players Outlook

The key players in the agricultural films market are contributing significantly by providing advanced technology-based products and through expanding their geographical presence across the globe. The key players operating in the global agricultural films market include Ab Rani Plast Oy, Armando Alvarez Group, BASF SE, Berry Global Inc., Coveris Management GmbH, POLIFILM GmbH, and RKW Group. These market players adopt various strategies such as product launch, partnerships, collaborations, merger, and acquisitions to sustain a strong position in the market. For instance, in July 2019, Berry Global Inc. announced the acquisition of RPC Global PLC for plastic and recycled packaging solutions. Through this acquisition, the company is planning to become the leading global supplier of valued-added protective solutions and one of the world’s largest plastic packaging companies.

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global agricultural films market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.