Market Trends of Europe Agricultural Films Industry
Greenhouse is a Significant Segment by Application
Growing sustainable farming due to rising urbanization is one of the important factors projected to help the segment. Compared to glass greenhouses, plastic film greenhouses are available in smaller sizes. These greenhouses extend the growing season and help heat-loving vegetables thrive, as they provide efficient light diffusion and UV protection, increasing their preference among the growers. Further, greenhouses are increasingly popular among growers, as these plastic films can increase the yield in any season. Thus, the higher production capacity of greenhouses than traditional methods, the rising need for food due to population growth, and climate change problems are anticipated to boost the growth of the segment.
The decreasing agricultural land and increase in the consumption demand of food are leading to an increase in the adoption of greenhouse agriculture practices in the region, boosting the demand for the sales of agricultural films in the greenhouse segment. For instance, According to World Bank statistics, Europe's agricultural land was 41.3% in 2019, which decreased by 40.8% in 2021. In addition, many countries like Germany, France, Spain, the United Kingdom, and many others are facing a reduction in agricultural land, due to which the farmers may switch to greenhouse farming for production and meet the local food demand to some extent.
Further, Germany has traditionally been at the forefront of implementing advanced techniques in smart greenhouse horticulture. The total area under greenhouse cultivation in Germany was 1271 hectares in 2022. Most of this area was occupied by tomato crops, with an acreage of 382.74 hectares. Similarly, the cultivation area under cucumber was 215 hectares. The biggest areas of greenhouse vegetable cultivation in Germany are North Rhine Westphalia, Rhineland Palatinate, and Lower Saxony. This increase in the area of greenhouse cultivation in the country is, in turn, driving the demand for agricultural films in the country over the past few years.
Germany Dominate the Market
The agricultural film market in the country has flourished, with the application of films primarily in silage and mulching. Furthermore, various initiatives by official bodies in recycling agricultural plastics have facilitated the mitigation of environmental concerns arising with the use of films thereby sustaining the film market, especially with likely growth in reclaimed films. The agricultural films recycling initiative Erntekunststoffe Recycling Deutschland (ERDE) in Germany organizes the collection and recycling of used agricultural films made of LDPE and LLDPE with recyclers across Germany. Farmers and agricultural contractors collect the used plastics and deposit them bundled and cleaned of coarse dirt at a collection point. ERDE increased the collection and recycling rates of silage and stretch films marketed in Germany to 50% by 2021 and 65% by 2022.
In addition, Germany has a growing market for organic farming and high-value crops, such as fruits and berries. For instance, Berries organic farming was 1,924.00 ha in 2022 from 1,783.28 ha in 2020. Agricultural films, including silage and mulch films, are essential for enhancing crop quality and protecting sensitive plants from pests and extreme temperatures, further driving demand in the horticulture sector. Besides, Germany’s focus on sustainability and reducing water consumption in agriculture aligns with the use of plastic mulching films, which help retain soil moisture and reduce weed growth. This is particularly useful in regions with limited water resources or during dry seasons.
