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At the same time, the rise of vertical and indoor farming is introducing new requirements for specialized films that optimize light diffusion, humidity control, and durability within enclosed environments. Key trends shaping the market include the strong shift toward biodegradable and bio-based films to reduce agricultural plastic waste, the growing use of UV-resistant and multilayer coextruded films for durability and performance, and an increased emphasis on recycling initiatives and take-back programs to close the loop in film use.
Innovations are expected to disrupt the market significantly, including advanced soil-biodegradable polymers that eliminate the need for film removal, smart films embedded with sensors or coatings to regulate microclimates, and breakthroughs in chemical recycling technologies to handle complex multilayer films more sustainably. Regulatory and certification frameworks add another important layer, with USDA, ASTM, and other standards bodies setting guidelines for biodegradability, compostability, and biobased content to ensure films are safe, effective, and environmentally compatible.
Additionally, discussions about whether biodegradable films qualify for organic farming highlight how certification impacts adoption rates. In October 2020, Dow Inc. introduced its first recycled plastic resin for shrink film applications in North America. The recycled plastic resin had been designed specifically for retail and logistic shrink film applications.
According to the research report "North America Agriculture Films Market Outlook, 2030,", the North America Agriculture Films market is expected to reach a market size of more than USD 4.21 Billion by 2030. Technological advancements in film design such as multilayer coextruded films, UV-resistant formulations, and light-diffusing films are improving crop protection, extending film life, and increasing yields, making them highly attractive for farmers in the U.S. and Canada who face volatile weather conditions.
Another key factor is the shift toward biodegradable and bio-based films, which is accelerating due to concerns about plastic pollution and stricter sustainability targets; farmers are increasingly adopting soil-biodegradable mulch films that eliminate the need for retrieval and reduce disposal costs, especially in high-labor markets. In February 2024, The California Film Commission (CFC) announced a significant boost to California’s entertainment industry economy with the addition of five big-budget projects and ten independent films into Film and Television Tax Credit Program.
These fifteen productions, spanning a diverse range of budgets and narratives, are projected to bring close to $408 million into California’s economy through qualified in-state expenditures. These projects provide a substantial boost to local employment and economic activity with an estimated 2, 252 crew, 598 cast, and 16, 800 background performers poised to work across a combined 579 filming days. Regulation and certification frameworks also play a critical role in North America, as standards like ASTM testing for biodegradability and USDA guidelines on biobased products influence whether films are approved for organic farming, which directly impacts adoption rates and market penetration.
Economic and labor-related pressures add another dimension, as rising costs of labor and raw materials push farmers toward solutions that save time and money, including films that degrade naturally or films with extended durability to reduce replacement cycles. In November 2023, the U.S. Department of Agriculture, led by Deputy Secretary Xochitl Torres Small, committed $27.9 million to support 45 organizations focused on educating and training new farmers and ranchers. This investment encompasses initiatives tailored for U.S. veterans transitioning into agricultural professions and launching their own farming enterprises.
Market Drivers
- Expansion of Greenhouse and Controlled-Environment Farming: The growth of greenhouse and controlled-environment agriculture in North America is driving demand for agricultural films. Greenhouses rely heavily on high-quality films for temperature control, light diffusion, and protection from pests and harsh weather conditions. With rising consumer demand for year-round fresh produce and organic crops, farmers are increasingly investing in greenhouse infrastructure, which in turn boosts the consumption of films designed for durability, UV protection, and energy efficiency.
- Government Support and Subsidies: Government initiatives and subsidies aimed at modernizing agriculture and promoting resource-efficient farming practices are key drivers. Programs supporting the adoption of plastic films for mulching, silage, and greenhouse covers help reduce costs for farmers, encouraging wider use. These policies also emphasize environmental compliance, prompting the use of recyclable and biodegradable films, thereby stimulating market growth.
Market Challenges
- Climate Variability and Extreme Weather: North American farmers face challenges from unpredictable weather, including hail, heavy snow, and high winds, which can damage agricultural films. This variability increases the need for frequent replacement or maintenance, raising operational costs and limiting the lifespan of films. It also creates uncertainty for manufacturers and suppliers in forecasting demand accurately.
- Limited Recycling Infrastructure: While the adoption of recyclable films is increasing, the lack of robust recycling facilities in many regions of North America remains a challenge. Farmers often struggle to dispose of used films responsibly, which discourages large-scale adoption of recyclable materials. The cost and logistics associated with collection and recycling create additional barriers for manufacturers and end users.
Market Trends
- Use of Anti-Drip and Anti-Fog Films: There is a growing trend toward specialized films such as anti-drip and anti-fog varieties, especially in greenhouse and tunnel farming. These films improve light transmission and prevent condensation, reducing plant disease and promoting healthier crop growth. Their adoption reflects the market’s focus on increasing crop productivity and optimizing resource efficiency.
- Rise of Multi-Layer and Co-Extruded Films: Multi-layer and co-extruded films are increasingly being adopted for their enhanced strength, durability, and UV resistance. These films allow farmers to achieve better performance in extreme weather conditions while extending the service life of the films. The trend toward multi-layer solutions reflects the industry’s push for high-performance, long-lasting films that offer better ROI for farmers.
High-Density Polyethylene (HDPE) agricultural films in North America are experiencing moderate growth because they offer a balanced combination of durability, chemical resistance, and affordability, making them a reliable choice for farmers seeking long-term, low-maintenance solutions. HDPE films are highly resistant to tears, punctures, and UV degradation, which is particularly valuable in applications such as greenhouse coverings, silage wraps, and mulch films where structural integrity over extended periods is critical.
Farmers appreciate HDPE’s ability to withstand harsh environmental conditions, including intense sunlight, heavy rainfall, and fluctuating temperatures, without significant loss in performance, which ensures crop protection and reduces the frequency of replacement. Moreover, HDPE films are lightweight yet strong, which facilitates easy handling, installation, and storage, adding to their practical appeal. Another key driver of moderate growth is the cost advantage of HDPE compared to more flexible alternatives like Low-Density Polyethylene (LDPE). While LDPE offers superior elasticity and light transmission, HDPE remains more economical, making it attractive for large-scale applications where budget constraints are important.
Additionally, the rising adoption of sustainable and recyclable materials in North American agriculture supports HDPE usage because it is highly recyclable, aligning with environmental compliance requirements and farmers’ increasing focus on sustainability. However, the growth remains moderate rather than rapid because HDPE has certain limitations in terms of transparency and flexibility. LDPE and multilayer composite films often outperform HDPE in applications requiring high light diffusion, tight sealing, or enhanced crop yield performance. This has slightly restrained HDPE’s market expansion, as some growers prioritize performance characteristics over cost savings.
Mulching leads the North American agricultural films market due to its proven ability to enhance crop yield, conserve soil moisture, and suppress weed growth effectively.
Mulching is the leading application in North America’s agricultural films industry because it offers multiple agronomic and economic benefits that directly impact crop productivity and farm profitability. Mulch films, typically made from polyethylene such as LDPE or biodegradable alternatives, create a protective layer over the soil that helps regulate temperature, retain moisture, and reduce soil erosion, all of which are critical for healthy plant growth. By covering the soil, mulch films minimize water evaporation, allowing farmers to optimize irrigation efficiency and conserve water resources, which is increasingly important in regions facing drought or water scarcity issues.
Additionally, mulch films suppress weed growth by blocking sunlight, reducing the need for chemical herbicides, lowering production costs, and promoting environmentally friendly farming practices. The films also prevent soil compaction and nutrient loss, maintaining soil structure and fertility over time, which enhances overall crop quality and yield. In North America, the adoption of advanced agricultural practices and precision farming techniques has further fueled the popularity of mulching films, as growers increasingly seek ways to maximize efficiency and output per acre.
Furthermore, the availability of colored and UV-stabilized mulch films allows for better control of soil temperature and light reflection, which can improve crop development and accelerate harvest cycles, providing economic advantages in high-value crops such as vegetables, fruits, and berries. The trend toward sustainable agriculture has also encouraged the use of biodegradable and compostable mulch films, which decompose naturally, reducing plastic waste and addressing environmental concerns, making them more attractive to progressive farmers.
The USA is leading the North America agriculture films industry due to its large-scale commercial farming, high adoption of advanced agricultural technologies, and strong focus on increasing crop productivity and sustainability.
The United States dominates the North American agriculture films industry primarily because of its extensive agricultural infrastructure, diverse crop cultivation, and emphasis on modern, technology-driven farming practices. Agriculture in the U.S. is highly commercialized and mechanized, with vast farmlands dedicated to both staple crops such as corn, wheat, and soybeans, and high-value crops like fruits, vegetables, and horticultural products. To enhance yield, protect crops, and improve overall farm efficiency, American farmers increasingly rely on agriculture films including mulch films, greenhouse films, silage films, and row covers.
These films help regulate soil temperature, conserve moisture, prevent weed growth, and protect crops from pests, diseases, and adverse weather, which is especially important given the country’s varied climatic conditions ranging from arid regions in the Southwest to humid areas in the Southeast. Precision agriculture, drip irrigation, and controlled-environment agriculture have become standard practices on large farms, and agriculture films are integral to these techniques. For instance, plastic mulch films are extensively used in horticulture and vegetable farming to maximize water efficiency, improve soil fertility, and accelerate crop growth cycles.
Additionally, innovations in polymer technology, such as UV-stabilized, biodegradable, and anti-drip films, have further fueled adoption by offering sustainable and efficient solutions that align with the U.S.’s growing environmental awareness and regulatory standards. Government policies and programs supporting sustainable agriculture, coupled with financial incentives for the adoption of eco-friendly farming materials, also bolster the market. Federal and state-level initiatives aimed at promoting soil conservation, water management, and reduced chemical usage encourage the use of agricultural films that contribute to environmental sustainability while improving yields.
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Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Amcor plc
- Dow Inc.
- Exxon Mobil Corporation
- BASF SE
- Kuraray Co., Ltd.
- Versalis S.p.A.
- RKW SE
- Armando Alvarez Group
- Trioworld Industrier AB
- Imaflex Inc.
- INDEVCO Group
- Sigma Plastics Group
- Achilles Corporation
- Coveris Group
- Manupackaging U.K. Ltd.
- Plastika Kritis S.A.
- Rani Group
- POLIFILM GmbH
- Barbier Group
- Agroflex Brasil