Agricultural Films Market Report

The global agricultural film market is witnessing significant growth, with mulch films emerging as the dominant segment. These films are of crucial benefit as they improve soil health, conserve moisture, and enhance crop yield, thus serving as a vital resource for large-scale and smallholder farmers. They are economical and versatile across various climatic conditions. Their benefit of weed suppression without harmful chemicals further sets them apart from other agricultural films. Organic farming opts more for these as they are eco-friendly, and biodegradable options are growing in popularity. According to the Food and Agriculture Organization (FAO), in 2024, plastic films like black mulch and greenhouse covers account for over 8 million tons of annual global usage, underscoring mulch films' widespread adoption and pivotal role in modern agriculture.

The global agricultural films market is predominantly driven by the widespread use of synthetic plastics, with Linear Low-Density Polyethylene (LLDPE) emerging as the leading material. LLDPE exhibits the best tensile strength, puncture resistance, and flexibility, for which the product is often used in agriculture films and greenhouse covers, mulching films, and crop protection, among others. Concerning good UV resistance, long-lasting durability under difficult conditions, and with LLDPE, a farmer can obtain reliable performance during crop-growing seasons as compared to LDPE, HDPE, and biodegradable alternatives that are more costly to handle mechanically. As a result, LLDPE continues to dominate the agricultural film market, offering significant benefits for farmers globally.

The global agricultural film market presents several promising opportunities driven by evolving trends and innovations. The shift towards sustainability is propelling demand for biodegradable Polyethylene (PE) films, especially in regions with strict environmental regulations. As agricultural activity rises in emerging economies like India and China, the need for PE films in greenhouses and mulching intensifies. Advances in multi-layer films are improving UV protection and thermal insulation, boosting crop yields. Additionally, innovations in greenhouse films, including smart technology and urban farming applications, are expanding their usage. There is also significant potential in water-efficient solutions, like mulching and irrigation films, which are critical in regions facing water scarcity. With growing awareness of climate resilience, anti-UV films are becoming essential in protecting crops from harmful radiation.

A significant threat to the global agricultural film market lies in the growing environmental impact of plastic waste. The most widely used polyethylene (PE) and polypropylene (PP) agricultural films raise further concerns about potential environmental degradation. These types of plastics persist in the environment for centuries, and polyethylene mulching films may take nearly 400 years to degrade completely. Agriculture Plastics Environment (APE) reports that, in one year, over 1,000,000 tons are produced as agricultural plastic waste across Europe alone. Failure to dispose of these materials correctly can lead to soil and water pollution through microplastics formed by plastics degrading. These microplastics harm soil health, disrupt microbial activity, and affect water ecosystems, ultimately threatening agricultural productivity and human health.

The global agricultural film market is facing significant challenges coupled with both regulatory and environmental factors. European Union regulations, such as the single-use plastics directive, urge for reduced plastic waste and increased recycling, encouraging the shift towards biodegradable films, which often incur higher costs. Climate change exacerbates these challenges with extreme weather events flooding, droughts, and temperature fluctuations impacting the effectiveness of agricultural films. Heavy rainfall can wash away mulching films, while droughts and rising temperatures strain water resources, reducing the demand for films in certain regions. Moreover, the increased UV radiation and extreme heat can accelerate film degradation, leading to more frequent replacements. These factors, along with rising insurance and adaptation costs, create significant financial pressures on farmers and manufacturers alike.

Major industry players utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In July 2024, BASF introduced Tinuvin NOR 11 AR, a high-performance stabilizer within its VALERAS portfolio, aimed at enhancing the durability and sustainability of agricultural plastics. This innovation supported the trend toward downgauging, offering superior resistance to UV radiation, heat, and aggressive chemicals like sulphur and chlorine. The solution was designed to help film producers meet sustainability goals and improve crop yield outcomes. Furthermore, in February 2024, Berry Global introduced its "Circular Innovation and Training Centre" in Oklahoma. Spanning 12,000 square feet, the centre aimed to drive the development of advanced stretch films that promote sustainability. By focusing on material science, circularity, and performance testing, the centre supported Berry's goal of reducing plastic waste and enhancing the sustainability of flexible packaging solutions.

Kuraray in March 2024, however, announced plans to start a new EVAL™ EVOH resin production plant in Singapore. This will entail investments worth US$ 410 million. The plant is expected to be operational in late 2026. Initial capacity would be about 18,000 tons yearly, with future expansions predicted. This investment fulfils the world's increasing demand, including Europe and the United States, for recyclable food packaging materials. Moreover, in June 2024, Dow launched its REVOLOOP™ Recycled Plastics Resins, marking a key step in advancing circularity. The two new grades one with 100% post-consumer recycled (PCR) content and the other containing up to 85% PCR from household waste were designed for non-food packaging. Dow partnered with RKW Group to create a recyclable collation shrink film, driving new low-carbon, circularity milestones.

The Asia Pacific region is found to be dominant for the global agriculture film market primarily due to the agricultural significance of countries such as China, India, Japan, and Southeast Asia. With over 60% population around the globe, the high food demand due to the developing world has completely changed the scene of agriculture around the globe. According to the OECD-FAO Agricultural Outlook 2024-2033, Asia Southeast and also India-is believed to form a major fraction of consumption worldwide, which can be found to be nearly 31% by 2033. This creates challenges, but also opportunities for the agricultural sector in both of these countries through sustainable means of farming. Agricultural films including greenhouse, mulch, and silage films benefit the cultivation process to raise yields, especially when used for water management purposes as well as against environmental pressures on crops. Thus, Asia-Pacific has been positioned as having significant market influence for growth in terms of the agricultural films market.

North America is emerging as the fastest-growing region for the global agricultural films market, driven by the increasing demand for innovative solutions in agricultural practices. Research cites that in 2024, greenhouse vegetables constitute 39% of fresh produce exports from Canada, with nearly all of it destined for the United States market. This increasing reliance on greenhouse farming creates a need for premium agricultural films such as anti-fog, multi-functional, and UV protective films, which are beneficial in enhancing crop protection, climate control, and water and pest management. Moreover, innovations in film durability and multi-functionality are also fuelling their adoption across North America, especially in regions where difficult climates and water scarcity pose a challenge. This trend reflects the region’s growing commitment to sustainable and high-yield farming solutions.