The agricultural films market is projected to witness a compound annual growth rate of 5.58% to grow to US$13.561 billion by 2026, from US$9.276 billion in 2019. Agricultural films have been made and produced from various types of materials that have been known for their utmost imperativeness in the farm and agricultural sector, worldwide. These materials are used in the enhancement of crop productivity. The market is expected to surge in the coming year due to the rise in the global demand for high-quality food and agricultural products, rapid urbanization, which has led to a decline in arable land/per capita, worldwide, and other related factors. Per the Food and Agriculture Organization, the world is expected to produce around 60% more food by the year 2050, to feed a population of around 9.3 billion. The growth in the development of the greenhouse is also expected to play a major role in the market growth, in the coming years. Several firms and corporations have been making significant developments in the market, in the past few years. For instance, in October 2021, ExxonMobil, one of the key market players, announced the launch of two novel grades of PE, which is also known as polyethylene, for agricultural and greenhouse applications. The company has named the two models Exceed XP 7021 and Exceed XP 7052. These development and trends are expected to play a major role in the market growth in the coming years.
The rise in the development of greenhouse farms
The demand for agricultural films is expected to surge in the coming years, due to the rise in the development of greenhouse farms, worldwide. With the decline in the arable land/per capita, due to the growing urbanization, agricultural growers and producers have been looking at alternatives and have been adopting the latest technologies. Per the data by the World Bank and FAO, the global arable land/per capita is expected to be around 0.19 hectares by 2050, down from 0.42 hectares in 1960. Also, the changing climatic conditions during traditional and orthodox farming have led to the adoption and growth of greenhouses which is further fueling the market growth. Globally, over 55% of the world’s population is residing in urban areas, while in 1950 this was close to 1/3rd of the world’s population. This trend is expected to continue over the next couple of decades with and by 2050, 68% of the world’s population is projected to be urban. The increase in the greenhouses has led to the growing adoption of agricultural films, with several players making a considerable impact on the demand growth. For instance, Agriplast has been producing and manufacturing plastic films for the Italian horticultural and agricultural industry. The company has also been producing recycled films for greenhouses.
The market for agricultural films had been growing at a significant pace before the pandemic due to the rise in the adoption of innovations in agriculture for improving productivity. However, the COVID-19 pandemic completely changed the market scenario and the demand for agricultural films declined over the short term. The governments around the world implemented trade restrictions which led to supply chain disruptions in the ecosystem of the agricultural film. Furthermore, the consumption of meat slumped which led to a decline in the demand for animal feed as well. This led to reduced demand for agricultural films for silage application. Moreover, the economic slowdown and financial uncertainties among the farmers arose due to pandemics, impacting the market as well. Thus, the projection for the agricultural films market in the COVID-19 scenario is slightly revised downwards.
|Market size value in 2019||US$9.276 billion|
|Market size value in 2025||US$13.030 billion|
|Growth Rate||CAGR of 5.83% from 2019 to 2025|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Ab Rani Plast Oy, BASF SE, RPC bpi group, The Armando Alvarez Group of Companies, Berry Global Inc., Groupe Barbier, Exxon Mobil Corporation, RKW Group, The Dow Chemical Company, Trioplast Industrier AB, Kuraray Europe GmbH, Coveris, PLASTIKA KRITIS, Henan Yinfeng Plastic Co. Ltd., INDEVCO|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Ab Rani Plast Oy
RPC bpi Group
The Armando Alvarez Group of Companies
Berry Global Inc.
Exxon Mobil Corporation
The Dow Chemical Company
Trioplast Industrier AB
Kuraray Europe GmbH
Henan Yinfeng Plastic Co. Ltd.
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