Biodegradable Mulch Film Market - Forecast(2023 - 2028)

Biodegradable Mulch Film Market Overview

The Biodegradable Mulch Film Market size is estimated to reach US$5.9 billion by 2027, after growing at a CAGR of 7.8% during the forecast period 2022-2027. Biodegradable Mulch Film is a film utilized to prevent heat from reaching the plant's roots for modifying soil temperature, limiting weed growth, preventing moisture loss and for improving crop yield. It is made up of raw materials such as polylactic acid, polyhydroxyalkanoate and others. The growing government initiatives for increasing crop production are driving the growth of the biodegradable mulch film industry. Also, the rising demand for high-quality and quantity of crops, along with the growing organic food industry is focusing on increasing organic food crops, by utilizing biodegradable mulch film. Owing to such factors, the demand for biodegradable mulch film, made up of biodegradable plastic such as thermoplastic starch (TPS), controlled degradable masterbatches and others, is expected to grow significantly over the forecast period. The economic downturn caused by the COVID-19 pandemic resulted in a huge drop in the demand for plantation crops, floriculture and others, all across the world. This had a significant impact on the growth of the Biodegradable Mulch Film market size.

Biodegradable Mulch Film Market Report Coverage

The report: “Biodegradable Mulch Film Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Biodegradable Mulch Film industry.

Key Takeaways

• The Asia-pacific region dominates the Biodegradable Mulch Film Market owing to the rising growth in the agriculture industry. According to the United States Department of Agriculture (USDA), in 2022, Japan’s rice production for the marketing years 2021 and 2022 is at 7.64 million metric tons (mmt), up from 7.57 million metric tons (mmt).
• Rapidly rising demand for Biodegradable Mulch Films due to the initiatives taken by the government and the increase in agricultural production in various countries have driven the growth of the Biodegradable Mulch Film market.
• The increasing demand for Biodegradable Mulch Film for high-quality and quantity of crops, due to its usage in the restoration of soil moisture, has been a critical factor driving the growth of the Biodegradable Mulch Film market in the upcoming years.
• However, the high cost of the installation of Biodegradable Mulch Films can hinder the growth of the Biodegradable Mulch Film market.

Figure: Biodegradable Mulch Film Market Revenue Share, by Geography, 2021 (%)

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Biodegradable Mulch Film Market Segment Analysis – By Crop Type

The horticulture crops segment held the largest Biodegradable Mulch Film market share in 2021 and is estimated to grow at a CAGR of 7.6% during the forecast period 2022-2027. Moreover, farmers have prevailed in using biodegradable mulch films, made up of raw materials such as polylactic acid, polyhydroxyalkanoate and others, to maintain steady growth in horticulture crops production as a result of rising horticulture crops exports. The growing popularity of organic crop protection products has increased the demand for biodegradable mulch films among farmers. The emerging trend of consuming organic and clean-label foods is expected to boost the utilization of horticulture crops. According to the government of Canada, the Minister of Agriculture and Agri-Food announced an investment of up to US$297.3 million for the Prairie Organic Development Fund (PODF) to enable farmers to adopt best practices in organic farming production. With the growing demand for horticulture crops, the market growth for Biodegradable Mulch Film would further rise over the forecast period. 

Biodegradable Mulch Film Market Segment Analysis – By End-use Industry

The agriculture segment held a significant Biodegradable Mulch Film market share in 2021 and is projected to grow at a CAGR of 8.2% during the forecast period 2022-2027. The demand for biodegradable mulch film is rising to protect the crops from modifying soil temperature, prevent moisture loss and for improving crop yield. In September 2021, the Spanish government allocated EUR13 million (US$15.4 million) to fund the country’s agricultural projects. The projects aim at increasing the country’s food production capacity while contributing to rural development and regional balance. Also, according to the United States Department of Agriculture (USDA), in 2022, Russian wheat production for the marketing year is forecasted at 81.0 million metric tons (mmt), which is 1 percent more as compared to last month and 8 percent from last year. Thus, to enhance the farm yield, the need for controlling the damage to farm output from temperature variations and with the increased investments by the government in the agriculture sector, the growth of the Biodegradable Mulch Film market is expected to rise. 

Biodegradable Mulch Film Market Segment Analysis – By Geography

The Asia-pacific region held the largest Biodegradable Mulch Film market share of up to 45% in 2021. APAC region is one of the leading biodegradable mulch film manufacturers globally, with China and India being the key consumers and suppliers of agricultural films. Biodegradable mulch films are made up of biodegradable plastic such as thermoplastic starch (TPS), controlled degradable masterbatches and others. They are used in the greenhouse, silage clamps and able to reduce the amount of water lost from the soil due to evaporation so that less water is required for irrigation and other applications. According to the Indian Brand Equity Foundation (IBEF), from 2017-2020, India received funding of US$1 billion in agritech. Indian agritech companies are likely to observe investments worth US$30-35 billion by 2025. Moreover, according to the Ministry for Development of the North-East Region, in 2019, the Government of Japan invested 205.784 billion Yen (US$1.50 billion) in several ongoing projects for Sustainable Agriculture & Irrigation as well as new projects in different states of India's North-Eastern region. Thus, the growing agriculture sector is proving to be a market booster for the Biodegradable Mulch Film market size in this region.

Biodegradable Mulch Film Market Drivers

Increasing Government Initiatives:

Due to the rapid increase in population in underdeveloped and developing countries, the demand for food is rising at a faster pace. Due to this, the governments are spending heavily on initiatives and investments in the agricultural sector. In 2020, the Canadian government invested a total of US$560 million in the Canadian Federation of Agriculture (CFA) to develop the Canadian Agri-Food Sustainability Initiative. Moreover, according to the International Trade Administration (ITA), in 2020, the French government announced a grant of US$120.7 million to the agricultural sector. Thus, due to the initiatives taken by the government, agricultural production is also increasing in various countries, which is driving the growth of the Biodegradable Mulch Film industry during the forecast period.

Rising Demand for High-Quality and Quantity of Crops:

Increasing population and income have led to the rising demand for high quantity and quality crops. According to the United Nations, the world’s population is forecasted to rise from 7.7 billion in 2021 to 9.7 billion by 2050. Globally, farmers are increasing crop production, either by increasing the agricultural land to grow crops or by improving the production of crops on existing agricultural lands by using fertilizer, irrigation, biodegradable mulch films and adopting other new methods. Rising demand for year-round access to freshly produced, high-quality crops has driven the market for greenhouse-grown fresh produce. This is increasing the demand for biodegradable mulch films, made up of raw materials such as polylactic acid, polyhydroxyalkanoate and others, for enhancing crop productivity. The US Department of Agriculture's National Agricultural Statistics Service (NASS) estimated that the soybean area planted is estimated at 88.3 million acres, up by 1% from last year. Thus, the growing demand for high-quality and quantity of crops would drive the market for Biodegradable Mulch Film.

Biodegradable Mulch Film Market Challenge

High Cost of Installation:

The high price of the installation of Biodegradable Mulch Films is the primary factor that hinders their implementation, mainly in developing nations. The market has potential in developing nations such as India. However, the high initial price has become a problem for farmers. Additionally, biodegradable mulch films are applied through the machinery after the leveling and shaping of the soil, which adds to the cost. The average land occupancy per farmer is reducing slowly due to the increasing population. This obstructs the purchasing power of the farmer and reduces the sale of biodegradable mulch films. Thus, the high cost of the installation of Biodegradable Mulch Films is hampering the market growth, especially in developing countries.

Biodegradable Mulch Film Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the Biodegradable Mulch Film markets. The top 10 companies in the Biodegradable Mulch Film market are:

1. BASF SE
2. Kingfa Sci & Tech Co Ltd.
3. BioBag International AS
4. AEP Industries Inc.
5. RKW SE
6. British Polythene Industries PLC
7. Armando Alvarez
8. Al-Pack Enterprises Ltd.
9. Novamont S.Pa.
10. AB Rani Plast OY

Recent Developments

• In July 2020, Carbiolice and Barbier Group partnered on the development of a new PLA-based Biodegradable Mulch Film.
• In August 2019, BASF launched a certified soil-biodegradable plastic for Mulch Films known as Ecovio M 2351. This film is made from its biodegradable co-polyester known as PBAT (polybutylene adipate terephthalate) Ecoflex and other major biodegradable polymers that are based on renewable raw materials.
• In July 2019, Berry Global Group, a Fortune 500 global manufacturer and marketer of plastic packaging products and biodegradable films, acquired RPC Group for US$6.5 billion. The acquisition would offer Berry Global Group the opportunity to leverage combined know-how in innovative material science, product development and manufacturing technologies to create significant value for shareholders.

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