Global Agricultural Films Market - Analysis & Forecast (2016-2021)

Market Overview

The Food and Agriculture Organization (FAO) has predicted the global population to exceed 9 billion by the year 2050 and in order to meet the anticipated food demand, the agricultural production globally will have to increase by over 60%. The organization has also confirmed that the climate change can pose risks and unpredictability to agricultural produce globally, due to factors such as shifts in rainfall patterns, irregularity of weather conditions, and global warming, among others. In order to meet this demand and attain optimum agricultural productivity, it is important to employ the latest technologies in farming operations. This is to ensure that maximum food production per hectare of land and gram of agrochemicals used is achieved, along with protection of the crops by adapting to the climate change and assuring sustainability in the longer run.

For eras now, agronomists and horticulturists have been constantly trying to modify the cropping environment that can favor the crop’s growth and extend the production season. This led to the introduction of the polyethylene polymer in the late 1930s, which is used to manufacture agricultural films. These films help in protecting the crop from external factors such as wind, rain, pests, and insects. In the coming future, these films are expected to be pivotal in agricultural operations with constant support and financial assistance from the government to encourage their usage. 

Although, agricultural films certainly improve the agricultural output, efficiency and meets the growing demand, the rising concerns about these films disposal is a concern giving rise to the usage of biodegradable films and advanced technologies. This has further helped in recycling of these heavily contaminated films which is economically and environmentally feasible.

The agricultural films market is a growing market because of the factors such as ever growing demand for healthy foods, increasing requirement of attaining optimum agriculture productivity, high quality crop demand and decreasing arable land, among others. The growth for this market is being driven by the following factors:

•    Increasing demand of agricultural products
•    Increasing application in greenhouse agriculture
•    Rising awareness for the need of controlled agricultural practices
•    Decreasing arable land

However, there exist certain challenges which are inhibiting the overall growth of the global agricultural films market:

•    Environmental regulations 
•    Increasing concerns about film waste and disposal
•    Stringent governmental regulations

The agricultural films market is expected to reach $9,283.4 million by 2021 growing at a CAGR of 5.1% from 2017 to 2021. In terms of volume the agricultural films market is expected to reach 7,532.1 kilo tons by 2021, registering a CAGR of 8.6% between 2017 and 2021.

The rising demand of agricultural films in greenhouse structures from regions such as Western Europe, Middle East & Africa and Asia-Pacific is one of the key factors supporting the growth. The market has been experiencing a rapid growth since the past few years owing to the increasing high-quality crop requirement and declining arable land across the globe.

There exists several product types from which agricultural films are manufactured. These different types of films are the raw materials which are used with plastics in the manufacturing process of agricultural films. These include linear low density polyethylene (LLDPE), low density polyethylene (LDPE), high density polyethylene (HDPE), Ethyl vinyl acetate (EVA), and reclaim polyethylene (PE), among others.

The competitive landscape for the agricultural films market demonstrates an inclination towards companies adopting strategies such as business expansion & contracts, partnership, collaboration & joint venture, mergers & acquisition, and product launch and development, among others. The major established players in the market are focusing on business expansion and contracts to enter into contracts with major companies. Companies such as ExxonMobil Chemical Company, Bio Bag International, Umaras, Danaflex Nano, Cytec Solvay Group Plastika Kirtis, Imaflex Inc., Trioplast Industrier AB, AB rani plast Oy, Barbier Group, Dow Chemical Company, BASF SE and Berry Global Inc., among others are focused more on business expansion and contracts in order to expand their share in the market.