The global greenhouse films market is highly fragmented wherein a handful of top companies held less than 40% market share in 2016. In this scenario, leading companies are vying for mergers and acquisitions to bolster their market share, which in turn, will consolidate vendor landscape to some extent. For example, Berry Global Group entered into a purchase agreement with Clopay Plastic Products Company to acquire all the outstanding shares of the latter. POLIFILM acquired Folag Vietnam and WMS-Folien GmbH in 2016 is a case in point.
Apart from this, investments for setting up technologically advanced production facilities is another growth strategy key players in the market have resorted to. For example, Plastika Kritis S.A. invested US$13.2 mn to set up a new production unit that commenced operations in 2015.
Some leading companies in the global greenhouse film market are Berry Global Inc., RPC BPI Group, RKW Hyplast NV, BASF SE, Barbier Group, and Plastika Kritis S.A.
According to a market intelligence study published by Transparency Market Research (TMR), the global greenhouse film market is projected to attain a value of US$6,900 mn by 2025 expanding at 8.1% CAGR over the forecast period between 2017 and 2025. Among the key segments based on resin type, low-density polyethylene (LDPE) held the dominant share of the market vis-à-vis volume and revenue in 2016. By thickness, the segment of more than 150 microns held the leading share of the market in 2016. Key applications of greenhouse films include flowers & ornamental, vegetables, and fruits cultivation. Of them, vegetable cultivation remains lucrative in the greenhouse films market. Geography-wise, Asia Pacific led the greenhouse films market in the recent past and is anticipated to remain at the fore over the forecast period.
Increasing Practices of Out-of-Season Crop Cultivation Boosts Demand for Greenhouse Films
Majorly fuelling the greenhouse films market is the need for greenhouse films in greenhouses for crop cultivation due to severe temperature fluctuations in several parts of the world. Climatic conditions such as humidity, temperature, wind, precipitation, etc. varies greatly from region to region and also during the course of the day. Such climatic fluctuations can have a negative impact on crops. Temperature fluctuates during the course of the day, wherein it reaches its highest during noon and then plummets to its lowest around midnight. For example, desert areas typically have diurnal temperature fluctuations.
Several crops especially the ones that are cultivated out-of-season require optimum ambient conditions for maximum yield. This is stoking the demand for greenhouse films for greenhouses, mainly for out-of-season crops, which are mainly cultivated for additional income.
Increasing practices of greenhouse cultivation and rising awareness about greenhouse technology is positively impacting the greenhouse films market. Greenhouse crop cultivation practices are widely prevalent in desert regions and cold regions that have temperature extremities and is mostly not suitable for commercial agriculture. Developed countries such as the U.S. display widespread demand for greenhouse films.
Request to view Sample Report:
High Maintenance Cost of Greenhouse Hampers Growth
On the downside, high cost of maintenance of greenhouse leading to increasing switch to seasonal crop cultivation is hampering the greenhouse films market. Greenhouses require heating and ventilating systems to maintain favorable temperature for various stages of plant growth.