Asia Pacific Agricultural Films Market Outlook to 2028

Asia Pacific Agriculture Films Market Overview:

Asia Pacific Agricultural Film Market was valued at USD 5.5 billion in 2023, driven by increasing demand for improved crop yield and enhanced farming techniques. The adoption of modern farming practices such as mulching and greenhouse farming in China and India has propelled the need for agricultural films. Technological advancements, especially in biodegradable films, have also stimulated market growth, making farming more sustainable and efficient.

Key players in the Asia Pacific agricultural film market include BASF SE, Berry Global Inc., Dow Inc., Ginegar Plastic Products Ltd., and Kuraray Co., Ltd. These companies lead the market through innovative products such as high-performance polyethylene and EVA-based films. Their extensive R&D efforts, strong distribution networks, and ability to offer customized solutions help them maintain dominance in the region’s competitive landscape.

In 2023, BASF announced an increase in the production capacity of its ecovio biopolymer in response to growing demand in the Asia Pacific market. This biopolymer is designed for various applications, including biodegradable agricultural films, which align with the rising consumer preference for environmentally friendly products.

China’s major agricultural regions, such as Shandong and Henan, dominate the Asia Pacific agricultural film market due to their vast farmland and focus on high-intensity agriculture. Furthermore, cities like Bangalore and Hyderabad in India also contribute significantly to the market owing to large-scale agricultural activities and government incentives to adopt modern farming technologies.

Asia Pacific Agriculture Films Market Segmentation:

By Polymer Type: Asia Pacific agricultural film market is segmented by polymer type into Linear Low-Density Polyethylene (LLDPE), Low-Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), Ethylene-Vinyl Acetate (EVA), Reclaim, and Others. In 2023, LLDPE films dominate the market due to their superior flexibility and strength, making them ideal for mulch and greenhouse applications. LLDPE’s ability to withstand harsh weather conditions and UV radiation while maintaining durability makes it the most preferred material among farmers across the region.

By Application: Asia Pacific agricultural film market is segmented by application into Mulch Films, Greenhouse Films, and Silage Films. Mulch films held the largest market share in 2023 due to their extensive use in increasing crop yield and controlling soil temperature. Countries like China and India rely heavily on mulch films to enhance agricultural productivity. Greenhouse films are also seeing significant growth as more farmers invest in protected cultivation to ensure higher yields, even in adverse weather conditions.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and the Rest of the APAC region. China dominated the agricultural film market in 2023 with the largest market share, driven by its vast agricultural land and advanced farming practices. Chinese farmers are increasingly adopting plastic mulch films to improve crop efficiency.

Asia Pacific Agriculture Films Market Competetive Landscape:

Company Name

Establishment Year

Headquarters

BASF SE

1865

Ludwigshafen, Germany

Berry Global Inc.

1967

Evansville, USA

Dow Inc.

1897

Midland, USA

Ginegar Plastic Products Ltd.

1969

Ginegar, Israel

Kuraray Co., Ltd.

1926

Tokyo, Japan

Kuraray Co. Ltd.: In 2024, Kuraray has announced plans to invest in a new production facility for EVAL EVOH resin at its subsidiary in Singapore, Kuraray Asia Pacific Pte. Ltd. This investment aims to meet the growing demand for ethylene vinyl alcohol copolymer, which is crucial for various applications, including agricultural films. The groundbreaking ceremony for this plant was recently held, highlighting Kuraray's commitment to expanding its capabilities in the Asia-Pacific region.

Berry Global Inc.: In 2022, Berry Global announced a collaboration with Cleanfarms and Poly-Ag Recycling on a closed-loop approach to advancing Canada's circular economy for agricultural films. This initiative launched in early 2022 to recover used agricultural films, process recovered grain bag material, and produce new products with recycled content. This collaboration aims to reduce plastic waste in the agricultural sector and promote sustainable practices through recycling and reusing materials.

Asia Pacific Agriculture Films Market Analysis

Growth Drivers:

Adoption of Biodegradable Films: The increasing focus on sustainability is driving the adoption of biodegradable agricultural films in Asia Pacific. Over 80% of farmers in the Asia-Pacific region are reported to use mulch films, highlighting the significant penetration of biodegradable options as part of sustainable agricultural practices. As a result, the growing shift towards biodegradable agricultural films is expected to significantly reduce environmental impact and enhance long-term sustainability in the Asia-Pacific agricultural sector.

Rising Agricultural Investments in Asia: Agricultural investments in the Asia Pacific region increased with a significant portion directed toward modern farming technologies such as agricultural films. In 2022, upstream ventures in agrifoodtech secured $3.2 billion, while downstream food delivery startups raised $2.7 billion. Preliminary data for 2023 indicates that this trend of increasing upstream investment continued, surpassing downstream investments for the first time in years.

Government Support for Protected Cultivation: Governments in the Asia Pacific region is promoting protected cultivation methods, such as greenhouses, to enhance agricultural productivity. The ADB has committed to providing at least $14 billion from 2022 to 2025 to support food security and enhance agricultural resilience against climate change. This includes investments in climate-smart agriculture and nature-based solutions across the agricultural value chain, which encompasses protected cultivation techniques like greenhouses.

Challenges
:

Environmental Concerns Over Plastic Waste: Despite the growing use of agricultural films, the environmental concerns related to plastic waste remain a major challenge. Several countries, including Japan, are now pushing for stringent regulations to curb plastic usage in farming. However, the high cost of biodegradable films compared to traditional polyethylene alternatives remains a barrier for many small-scale farmers.

High Production Costs of Biodegradable Films: While biodegradable films are gaining popularity, their production costs remain significantly higher than traditional polyethylene films. The manufacturing cost of biodegradable films was higher than that of conventional films due to the complex production process and raw material expenses. This cost discrepancy discourages small-scale farmers from switching to biodegradable options, thereby limiting the adoption of these films across certain markets.

Government Initiatives:

China’s Plastic Waste Reduction Law: Originally introduced in 2008, this order restricts the production and sale of plastic shopping bags that are less than 0.025 mm thick. By the end of 2020, this initiative had reportedly led to a significant reduction in the use of plastic bags, with estimates suggesting a decrease of over 1.4 million tons. This initiative is expected to significantly reduce agricultural plastic waste, which contributes heavily to soil pollution in key farming regions.

FAOs Hand-in-Hand Initiative: The Hand-in-Hand Initiative was launched by the Food and Agriculture Organization (FAO) in late 2019. This initiative aims to accelerate agricultural transformation and sustainable rural development, focusing on eradicating poverty and ending hunger and malnutrition. The Hand-in-Hand Initiative promotes agricultural development, driving demand for advanced agricultural films to improve productivity and sustainability.

Asia Pacific Agriculture Films Market Future Outlook

Asia Pacific Agricultural Film Market is projected to experience significant growth over the next five years, driven by the increasing demand for sustainable farming practices and government initiatives that encourage the adoption of biodegradable film

Market Trends

Increased Focus on Biodegradable Films: As environmental concerns grow, biodegradable films will become the preferred choice for farmers, supported by government mandates and incentives. The agricultural film market will see a substantial shift toward these eco-friendly products, which will replace conventional polyethylene films, especially in countries like China and India. This transition will not only help reduce soil pollution but also contribute to sustainable agricultural practices.

Advancements in High-Performance Films: Technological advancements will lead to the development of high-performance agricultural films that offer better UV protection, durability, and flexibility. These films will cater to the specific needs of protected cultivation in countries like Japan and South Korea, where high-tech greenhouses are prevalent. With enhanced properties, these films will increase crop yields by providing optimal growing conditions and extending the growing season.
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