Greenhouse Film Market

Market Overview

The global greenhouse film market size was valued at USD 5.7 billion in 2022 and is projected to reach USD 8.6 billion by 2031, registering a CAGR of 4.8% during the forecast period (2023-2031). Increased demand for greenhouse-cultivated crops and advances in greenhouse-protected cultivation are driving the growth of the greenhouse film market.

Greenhouse films are important components in controlled environment agriculture because they provide a protective covering that allows growers to control temperature, humidity, and light conditions for maximum plant growth. These coatings produce a greenhouse effect by trapping solar energy and maintaining a more suitable environment inside the building. Expanding demand for greenhouse films to improve agricultural yields and demand for greenhouse-protected agriculture have driven market expansion.

However, the limited life period of these films compared to polycarbonate sheets is projected to limit market expansion. The growing trend of generating out-of-season crops in the greenhouse is likely to accelerate the greenhouse film market share over the coming few years because the crops are a strong source of income for farmers.

Market Dynamics

Global Greenhouse Film Market Drivers:

Controlled Environment Agriculture

The rise of controlled environment agriculture, such as greenhouse horticulture, is a major driver of greenhouse film demand. Growers use greenhouse films to produce an ideal crop environment by managing temperature, humidity, and light parameters. With 2.7 million hectares of greenhouses, China is the world's largest greenhouse producer. China is also the world's biggest producer of vegetables, accounting for half of global vegetable production.

Furthermore, the Netherlands is the world's second-largest exporter of agricultural products. The agriculture sector in the country is extremely productive, innovative, and export-oriented. The Netherlands contains almost 24,000 acres of greenhouse crops. These climate-controlled farms allow the country to be a global leader in greenhouse-grown produce exports. Greenhouses cover around 4,000 hectares of land in the United States. In 2018, greenhouse operations had a total production area of 423,013,000 square feet. This accounted for over half of the total covered production area, demonstrating consistent expansion in greenhouse farming.

The greenhouse business is likely to develop because of technological advancements. This expansion reflects the increased use of controlled environment practices, such as greenhouse farming. As the world's population grows and climatic concerns remain, the demand for controlled and optimum agricultural conditions becomes increasingly important, driving the use of greenhouse technologies and, as a result, the greenhouse film market trend.

Global Greenhouse Film Market Restraints:

High Initial Investment

The high upfront cost necessary for erecting superior greenhouse structures and adding modern greenhouse films is a key hurdle in adopting greenhouse technologies. Greenhouse film manufacturing costs can be considerable, resulting in higher end-user prices. Greenhouse building in India might cost between 700 and 1000 rupees per square meter. 

The United Nations Food and Agriculture Organization (FAO) recognizes the financial hurdles of adopting greenhouse technologies, particularly for smallholder farmers in poor countries. The FAO highlights the importance of financial assistance, subsidies, and capacity-building programs to encourage the use of greenhouse farming. Regional economic variables are also important. The initial costs of greenhouse adoption may be more manageable in some areas, while they may be a significant financial burden in others. To address this difficulty, financial support mechanisms, government incentives, or joint efforts to make greenhouse technologies more accessible to a broader range of producers may be used.

Global Greenhouse Film Market Opportunity:

Technological Advancement

Continuous technological improvements in greenhouse film materials and manufacturing techniques create a major market opportunity. The incorporation of modern technology can result in the creation of films with improved characteristics and functionalities. A smart greenhouse employs sensors and automated controls to keep plants in a healthy growth environment. Heat, humidity, and light are all controlled by the sensors. Irrigation, ventilation, lighting, and energy management can all be controlled by the greenhouse. 

Similarly, nanotechnology can be used to improve the performance of greenhouse films. For example, introducing nanoparticles into films can improve UV resistance, thermal insulation, and overall film durability. The application of nanotechnology in greenhouse films is gaining popularity. According to research studies and industry data, nanomaterials can improve films' mechanical and optical properties, contributing to increased overall performance. The market for advanced films with specific functionality, such as anti-reflective coatings or self-cleaning qualities, is also growing. This implies a move toward films that provide more than just basic protection, in line with modern agriculture's technical requirements. Extrusion procedures and multi-layer film structures, for example, lead to the development of films with specific qualities. This enables producers to design films with exact properties for optimal plant development.

Regional Analysis

The global greenhouse film market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global greenhouse film market shareholder and is estimated to grow at a CAGR of 4.6% over the forecast period. Factors such as increased greenhouse cultivations due to the increasing need for proper climatic conditions have pushed the region's greenhouse film requirements. Greenhouse film protects crops from frost, wind, rain, and temperature fluctuations while assuring excellent quality and faster ripening, allowing for the harvest of many crops in a single year. The growing need to increase agricultural productivity and a growing emphasis on nutritious food products and indoor farming is predicted to drive the expansion of the greenhouse film business. For example, tomatoes, lettuce, basil, and cucumbers develop outside only during a specific time of year. Commercially, these crops attract high prices. Greenhouse films used in greenhouse structures aid off-season crop cultivation, lowering prices.

Furthermore, favorable government measures for protected agriculture are assisting in expanding greenhouse films in nations such as China, India, Thailand, and Japan. The structure of China's agriculture industry is constantly changing, with contemporary technology driving the all-around development of farming and forestry. As a result, the agriculture business is predicted to grow, driving the market for greenhouse films. India is the world's largest producer of spices, pulses, and tea and the world's second-greatest producer of wheat, rice, fruits, and vegetables. This expands the country's use of greenhouse films, driving the industry. ASEAN countries are key contributors to the region's agriculture sector, with Malaysia, Thailand, and Indonesia making significant contributions. 

North America is anticipated to exhibit a CAGR of 5.0% over the forecast period. The growing demand to increase agricultural productivity and a growing emphasis on nutritious food products and indoor farming will drive market expansion in this region. Organic farm goods in the United States are labeled organic in compliance with specifications established by the United States Department of Agriculture (USDA). Organic farming covers an estimated 71.5 million hectares of land worldwide. The food market in the United States generated the most money internationally, with sales totaling Euro 40.6 billion.

Europe holds a significant market share. It has a moderate share because of customers' increased desire for plant-based foods. Agriculture will contribute 1.4% of the E.U.'s GDP in 2022. The Common Agricultural Policy (CAP) of the E.U. is a collaboration between society, agriculture, and farmers.

Segmental Analysis

The global greenhouse film market is segmented based on resin type, Thickness, functionality, application, and region.

By Resin type, the market is further segmented into Low-Density Polyethylene (LDPE), Linear Low-Density Polyethylene (LLDPE), and Ethylene Vinyl Acetate (EVA).

Low-density polyethylene (LDPE) occupies the maximum share of the market.

Low-Density Polyethylene (LDPE)

Thermoplastic LDPE is derived from the monomer ethylene. It's well-known for its flexibility, transparency, and chemical resistance. LDPE films are extensively employed in greenhouse applications because of their low cost and ease of production. The LDPE segment dominated the market, and the greenhouse film market is expected to be driven by increased demand for high-quality film that can endure harsh climatic conditions. The market for LDPE resin-based greenhouse film is expected to increase due to LDPE's superior properties over other resin types, such as improved Thickness, optical characteristics, and resistance to excessive sunlight and the outside environment. It is less expensive, transparent, and flexible than other polymer films. Furthermore, LDPE films are appropriate for a wide range of greenhouse constructions and are frequently chosen for their cost-performance balance.

Linear Low-Density Polyethylene (LLDPE)

LLDPE is a polyethylene that has linear polymer chains. It combines the tensile strength of LDPE with the flexibility of LDPE. LLDPE films are noted for their hardness and puncture resistance, making them ideal for harsh environments. LLDPE films are frequently used in greenhouses in difficult weather locations because they provide durability and protection against physical harm.

Based on Thickness, the market is fragmented into 80<200 Microns, 200 Microns, and>200.

>200 Microns segment drives the market growth.

>200 Microns

The 200 Microns category dominated the market due to the development of advantages such as U.V. stability for solar aging resistance. This category includes films with a thickness of more than 200 microns. These are thick sheets that provide strong protection and insulation. They are appropriate for harsh climates and locations that need optimum durability and service life. In places prone to harsh weather, thick films (>200 Microns) are chosen, giving optimal protection against physical damage and ensuring a longer lifespan for the greenhouse cover.

200 Microns

This category includes films with a thickness of 200 microns. This thickness level denotes a moderate to thick layer that increases durability and protection. These films are chosen for more demanding settings or farmers wanting improved durability. 200 microns was the fastest expanding category because of its strong mechanical qualities in harsh environmental conditions. For better durability and insulation, year-round cultivation in more difficult settings may need moderate to thick sheets (200 Microns).

Based on functionality, the market is sub-segmented into Diffused GHF, Photo-selective GHF, and Anti-dirt GHF.

Diffused GHF holds the major market share.

Diffused GHF

Diffused greenhouse films are intended to scatter or diffuse sunlight across the greenhouse uniformly. This diffusion aids in lowering the intensity of direct sunlight and providing a more even light distribution. It benefits crops by reducing shading and limiting localized overheating.

Photo-selective GHF

Photo-selective greenhouse films are intended to transmit some wavelengths of light while blocking others. This can improve certain elements of plant growth, such as flowering, fruiting, or insect management. The spectral parameters of the film are adjusted to optimize plant responses.

The market can be bifurcated by application into fruits, vegetables, flowers and ornamentals.

Flowers and Ornamentals influenced the market growth.

Flowers and Ornamentals

Greenhouse films for flowers and decorative plants are intended to provide a favorable environment for the growth and aesthetic development of various flower and ornamental plant species. The films help with light diffusion, temperature regulation, and protection from outside elements. Flowers and ornamentals dominated the market; the flowers and ornamentals category had a significant share in 2022. Ornamental plants improve one's quality of life. Flower and ornamental plant producers employ greenhouse films to create an atmosphere that improves the visual appeal and quality of their flowers and decorative plants while catering to market aesthetics.

Vegetables

Greenhouse films are used in vegetable production to produce an ideal atmosphere for the growth of various vegetables. The films help with temperature control, light diffusion, and protection from the weather, allowing for producing a wide variety of plants. Furthermore, due to the expanding population, veggies are the quickest growing. Greenhouse films aid vegetable growers by providing a controlled atmosphere that promotes optimal circumstances for growing a range of vegetables.

Recent Developments

• November 2023- DuPontTM FilmTecTM FortilifeTM NF1000 membrane elements will be available globally. Compared to previous iterations of the technology, the high-productivity nanofiltration elements enable enhanced wastewater reuse and resource recovery in some of the most difficult applications while consuming less energy.
• November 2023- Chemours increased HFC-152a capacity, providing a reliable, domestic supply of solutions with low global warming potential.