Greenhouse Film Market: Snapshot
Greenhouse film is used to cover the frame or inflated structure of a greenhouse in which crops are cultivated. Greenhouse film provides the greenhouse with suitable farming conditions and protects the crops from adverse environmental conditions such as strong wind, heavy rain, and snow; fluctuating temperatures; and diseases and pests. It retains the heat from solar radiation and helps the crops to grow. It creates an appropriate farming condition in the greenhouse which boosts the yield of crops. Thickness of the film is selected based on the climate of the area where crops are to be grown.
Requirement of greenhouse conditions for high yield of crops and cultivation of out-of-season crops
Fluctuating temperatures in different parts of the world is a crucial factor influencing the rise in consumption of greenhouse films. Climatic conditions such as temperature, humidity, wind, rain, etc. not only differ from one region to another but also vary during the course of the day. Excess or lack in any of these conditions can have a negative impact on the crops. Temperature fluctuates throughout the day; it generally reaches its peak during noon and then drops gradually to its minimum around midnight. High desert areas typically have maximum diurnal temperature variations. Greenhouse films used in greenhouses help in cultivating the crops that cannot be grown outdoors due to unsuitability of the season. However, there is an additional expenditure involved in the process, such as heating system in greenhouses during winter, followed by labor cost. Nonetheless, demand for greenhouse films is on the rise owing to the increase in cultivation of out-of-season crops, which are a good source of income to the farmers.
High operating cost of greenhouse
Maintenance of greenhouse is expensive as it involves high capital investment for kits and supplies required for the efficient growth of crops. These include heating and ventilating systems for balancing the temperature. Other resources required in a greenhouse include pollination, electricity, and water. Pollination is done using specific tools such as battery-operated pollinators. Farmers sometimes employ bumblebees for pollination, which requires boxes or hives and prepackaged supplemental food. Pollination is a capital-intensive process.
Government initiatives encouraging farmers to adopt greenhouse farming
Governments of different countries across the world are striving to evade losses incurred due to improper implementation of greenhouse cultivation. Various programs are being conducted to explain the different types of greenhouse films available in the market and their uses to the farmers. Governments of India, Canada, Poland, etc. are providing subsidies to farmers for greenhouse cultivation. Subsidies are provided for electricity, resources used for heating in the greenhouse, etc.
Fragmented greenhouse film industry is heading toward consolidation through mergers & acquisitions
Berry Global Group signed a purchase agreement to acquire all outstanding shares of Clopay Plastic Products Company, Inc. for approximately US$ 475 Mn in 2017. POLIFILM took over Folag Vietnam in 2016. POLIFILM also acquired WMS-Folien GmbH, a Germany-based manufacturer of packaging films, in the same year. A merger of equals signed between the Dow Chemical Company and DuPont in 2017 is considered a milestone in the chemical industry. These mergers and acquisitions are expected to consolidate the fragmented greenhouse film market. Plastika Kritis S.A. invested US$ 13.2 Mn in creating a new production unit with seven-layer technology that began operations in 2015.
LDPE resin-based greenhouse films with thickness of more than 150 microns are anticipated to be the dominating segment during the forecast period
The global greenhouse films market can be segmented based on resin type, thickness, and applications. Resins such as polyethylene, ethylene vinyl acetate (EVA) or ethylene butyl acrylate (EBA), polyvinyl chloride, polycarbonate, etc. are used to produce greenhouse films. Low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and high-density polyethylene (HDPE) are the different types of polyethylene used for greenhouse films. In terms of thickness, the greenhouse film market can be classified into greenhouse films <100 microns, 101 microns - 150 microns, and >150 microns. Greenhouse films with thickness more than 150 microns are primarily used by farmers. Based on application, the global greenhouse film market can be divided into vegetables, flowers & ornamental, and fruits. Vegetables and flowers and ornamental plants are mainly cultivated in greenhouse. They accounted for a major share of the greenhouse film market in 2016.
Asia Pacific constituted a major share of the greenhouse film market in 2016
Asia Pacific accounted for a major share of the greenhouse film market in 2016 and the trend is expected to continue during the forecast period. The region is projected to witness a healthy growth in the greenhouse film market owing to the availability of limited arable land against the demand for high yielding crops to feed its population.
Fragmented greenhouse film market with few top players accounting for less than 40% of its share
The global greenhouse film market was highly fragmented with the leading companies accounting for less than 40% of its share in 2016. Key companies operating in the global greenhouse film market include Berry Global Group, Inc., BASF SE, RPC BPI Group, Barbier Group, RKW Hyplast NV, and Plastika Kritis S.A.
Greenhouse films are used to cover greenhouse structures in order to generate suitable conditions for cultivation of crops against adverse environmental settings. The global greenhouse films market can be segmented based on type of resin, thickness, application, and geography. In terms of type of resin, the greenhouse film market can be divided into LDPE, EVA/EBA, LLDPE, PVC, and others. LDPE accounted for a significant share of the greenhouse film market in 2016. Based on thickness, greenhouse films with thickness of more than 150 microns constituted a leading share of the greenhouse film market in 2016. Applications of greenhouse films include cultivation of vegetables, flowers & ornamental plants, and fruits.
Greenhouse Film Market: Trends and Opportunities
Increasing greenhouse cultivations owing to the rising need for appropriate environmental conditions is a major driving factor for the growth of greenhouse films. These conditions play a crucial role in increasing the yield of crops. Crops such as tomatoes, lettuce, basil, and cucumbers grow outdoors only during a specific period in the year. These crops command high prices commercially. Greenhouse films used in greenhouse structures help in cultivation of these crops during their off-season. However, there is an additional investment involved in the process, such as heating of the greenhouse during winter, labor cost, etc.
Asia Pacific dominated the global greenhouse film market in 2016 and is expected to witness a significant growth of the market during the forecast period. Asia Pacific was followed by Europe in terms of revenue and volume of the greenhouse film market in 2016. In Latin America, Mexico and Brazil were the major markets for greenhouse film in 2016. The trend is expected to continue during the forecast period. Middle East & Africa is considered an attractive market for greenhouse films owing to the rise in greenhouse cultivation in Israel, Iran, and Turkey.
This report analyzes and forecasts the greenhouse film market at the global and regional level. The market has been forecast based on volume (kilo tons, tons) and revenue (US$ million, thousand) from 2017 to 2025, considering 2016 as the base year. The study includes drivers and restraints of the global greenhouse film market. It also covers the estimated impact of these drivers and restraints on the demand for greenhouse film during the forecast period. The report also highlights business opportunities for the greenhouse film market at the global and regional level.
The report includes detailed value chain analysis, providing a comprehensive view of the global greenhouse film market. Porter’s Five Forces model for the greenhouse film market has also been included to help understand the competitive landscape of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.
Greenhouse Film Market: Segmentation
The study provides a decisive view of the global greenhouse film market by segmenting it in terms of thickness – <100 microns, 101 - 150 microns, >150 microns; resin type – LDPE, EVA/EBA, LLDPE, PVC, others; and application – vegetables, flowers & ornamental, fruits. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for greenhouse film in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa.
The report provides the actual size of the greenhouse film market in 2016 and the estimated size of the market for 2017, along with forecast for the next eight years. The global market size has been provided in terms of volume and revenue. Volume has been defined in kilo tons & tons, while revenue in US$ million & thousand. Market numbers have been estimated based on key applications of greenhouse films. Market size and forecast for end-users have been provided at global, regional, and country levels.
The report comprises profiles of major companies operating in the global greenhouse film market. Key players include Berry Global Group, Inc., BASF SE, RPC BPI Group, Barbier Group, RKW Hyplast NV, and Plastika Kritis S.A. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The global greenhouse film market has been segmented as follows:
Greenhouse Film Market: By Thickness (Volume Kilo Tons and Tons, Revenue US$ Mn and Thousand; 2016-2025)
- <100 microns
- 101 - 150 microns
- >150 microns
Greenhouse Film Market: By Resin Type (Volume Kilo Tons & Tons, Revenue US$ Mn & Thousand; 2016-2025)
Greenhouse Film Market: By Application (Volume Kilo Tons & Tons, Revenue US$ Mn & Thousand; 2016-2025)
- Flowers & Ornamental
Greenhouse Film Market: Regional Analysis (Volume Kilo Tons & Tons, Revenue US$ Mn & Thousand; 2016-2025)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- Rest of Middle East and Africa
- The greenhouse film market is mainly concentrated in Asia Pacific and Europe. The Middle East is generating considerable revenue as Israel and Iran are adopting greenhouse cultivations extensively.
- For cultivation of vegetables, greenhouse films with thickness of more than 150 microns (mainly thickness of 200 microns) are preferred. Cultivation of flowers requires greenhouse films with thickness of more than 150 microns but less than 200 microns
- Areas having high wind wave and temperature rely on greenhouse films with higher thickness
- Globally, LDPE-based greenhouse films are the largely preferred by farmers
- Fruits grown on trees cannot be cultivated in greenhouse. Only strawberries and muskmelons are cultivated in greenhouses as they are creepers.
- Asia Pacific is anticipated to dominate the greenhouse film market during the forecast period