Increasing food demand with growing population has put a lot of pressure on agricultural productivity. Limited availability of land coupled with various natural disasters further reduces the total agricultural production. Agricultural films aid in improving crop quality and in increasing overall agricultural productivity. Need to increase agricultural productivity to fulfil daily demand of growing population has led to growth of agricultural film’s market. Agricultural films possess various desirable properties such as durability, transparency, anti-fog, diffusion, thermal effects, degradation etc. Various innovations in agricultural films market such as ultra violet blocking films, florescent, NIR blocking films and ultra-thermic films are expected to drive the market growth in next six years. Increasing population is expected to remain a key factor in growth of agricultural films market during the forecast period. Various government regulations regarding use of plastics and polythene have reduced market growth for agricultural films. Regulations regarding use and recycling of plastic are being followed in regions like Europe, North America and Asia, thus hampering growth of agricultural films market. Biodegradable agricultural films are getting popular in various regions due to their eco friendliness. Agricultural films can be broadly classified on the basis of polymer used as, low density polyethylene, high density polyethylene, linear low density polyethylene, ethylene vinyl acetate, reclaims films etc. agricultural films can also be segmented on the basis of applications as, green house, mulching and silage. Green house and mulching applications hold maximum market share and are expected to retain their position in market. Global agricultural films market can be divided into six regions as North America, South and Central America, Europe, China, Rest of Asia Pacific and Middle East and Africa. China is the largest producer as well as consumer of agricultural films and is expected to retain its position for next six years. Various market participants include BP industries, Trioplast, ExxonMobil, Armando Alvarez, Group Barbier, Ab Rani PlastOy, Britton Group, Novamont, BASF, Kuraray and many others.
Key applications of agricultural films include green house, mulching and silage. Use of agricultural films in mulching emerged as leading application segment which accounted for 44.3% of total market volume in 2013. Mulching was closely followed by green house which is expected to be fastest growing application segment at an estimated CAGR of 6.1% from 2014 to 2020. Green house segment retained its maximum share in revenue which accounted for 42.9% of total revenues. Use of agricultural films for silage is still in nascent stage. Various innovations and use of biodegradable agricultural films are expected to drive the growth of agricultural film market.
Raw Material Insight
Various raw materials used for producing agricultural films include Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Ethyl Vinyl Acetate (EVA)/Ethylene Butyl Acrylate (EBA) and Reclaims. Use of HDPE for making agricultural films is very common. HDPE accounts for 55.3% of total volume of agricultural films produced globally in 2013. Use of LLDPE is expected to increase at CAGR of 6.2% from 2014 to 2020.
China was the largest consumer of agricultural films due to large population of the country. China accounted for 61.66% of total market volume in 2013. Central and South America holds least share in agricultural films market. China is expected to be fastest growing market for agricultural films due continuously increasing population. Market in China is expected to grow at CAGR of 6.2% from 2014 to 2020. Rest of Asia Pacific holds maximum share in total revenue earned by agricultural film market globally.
Global market for Agricultural films is fragmented within many companies including BP industries, Trioplast, ExxonMobil, Armando Alvarez, Group Barbier, Ab Rani PlastOy, Britton Group, Novamont, BASF, Kuraray and many others. BP industries possesses maximum individual market share which accounted for 6.5% of total market share for agricultural films in 2013. Top ten companies held more than 30% of total market share in 2013.