Global agricultural film market to grow to US$9.66 bln in 2019

The introduction of agricultural films has had a remarkable impact on the overall productivity and performance of the farming sector. Used as a protective coating over greenhouses, over soil, or wrapped around fodder, the market for agricultural films has grown over the years. Based on studies conducted by Transparency Market Research, the global agricultural film market for stands to grow from a revenue of US$5.87 bln in 2012 to US$9.66 bln in 2019, presenting a CAGR of 7.6% from 2013 to 2019. By volume, the agricultural film market is anticipated to grow from 4,410.3 kilo tons in 2012, at a CAGR of 5.7% from 2013-2019. The agricultural film market is chiefly fuelled by the global rise in demand for food. This factor is supported by the decrease in cultivable land and urgent need to increase agricultural productivity. The use of agricultural films helps in achieving the aforementioned demands by providing the soil with necessary nutrients, managing soil erosion and soil compaction, aiding seed germination, increasing the temperature of soil, protecting crops against harmful UV rays, and reducing the growth of weeds. Using agricultural films ensures a higher degree of cost efficiency compared to traditional farming methods, and with the rising standards of farming, it becomes imperative to use techniques that can keep up with them. The introduction and commercialization of biobased agricultural films and biodegradable polyethylene films have brought with it immense scope for growth of the global agricultural film market. However, disposal of waste is a huge challenge for the agricultural film market owing to its adverse effects on the environment. On the basis of product, the agricultural film market is segmented into LLDPE (linear low density polyethylene), LDPE (low density polyethylene), EVA (ethyl vinyl acetate)/EBA (ethylene butyl acrylate), HDPE (high density polyethylene), reclaims, and others such as ethylene vinyl alcohol and poly vinyl chloride. Among these, LDPE was the largest product segment, accounting for 55% of the total market in 2012. By 2019, the global consumption of these agricultural films is estimated to be 1,470.8 kilo tons and the worldwide value is likely to be US$2,059 million. LLDPE is forecast to be the fastest growing product segment by 2019, registering a 5.9% CAGR between 2013 and 2019. Together, LLDPE and LDPE held 78% of the overall demand in 2012. The popularity of reclaimed agricultural films is likely to rise in the coming years thanks to strict regulations regarding the use of plastics and its consumption is poised to reach 315,000 tons by 2019. Restricted by its rigid features, HDPE agricultural films will continue to witness slow growth in the coming years. This category held just over 7% share of the overall market in 2012. Agricultural films find use in three main applications: mulching, greenhouse, and silage. Greenhouse is a leading application of agricultural film. It is estimated to be worth US$4,145 million and reach a consumption of 2,768 kilo tons by 2019. In countries especially in Asia Pacific, greenhouse agricultural films are in demand owing to rising need for fruits and vegetables. Greenhouse as well as mulching together held over 85% of the total market in 2012. Consumption-wise, the silage and mulching applications are estimated to register a CAGR of 5.4% and 5.7% respectively. Revenue-wise, silage films are projected to present a 7.9% growth rate from 2013 to 2019. While the agricultural film market has been performing considerably well over the last few years, there is still no clear leader that stands out. With the top five players holding 23% of the overall market, this fragmented sector has numerous small and large participants vying for the top spot. Some of the notable vendors in the agricultural film market are Dow Chemicals, Armando Alvarez, Trioplast, ExxonMobil, Novamont, Kuraray, Berry Plastics, Britton Group, Ab Rani Plast Oy, British Polyethylene Industries, Hyplast NV, AEP Industries, and BASF.