Biodegradable Mulch Film Market- By Crop Type , By Biodegradable Plastic , By Type , By Raw Material Type , By End-use Industry and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Biodegradable Mulch Film Market Overview:

The Biodegradable Mulch Film Market size is estimated to reach $7.4 billion by 2030, growing at a CAGR of 7.8% during the forecast period 2024-2030. Biodegradable mulch films are eco-friendly alternatives to traditional plastic mulch films designed to degrade naturally over time reducing environmental impact. These films are primarily used in agricultural practices to control weeds, retain soil moisture and enhance crop yields while also offering the benefit of eliminating the need for film removal after harvest unlike conventional plastic mulch films. The market is experiencing rapid growth, driven by growing awareness of environmental sustainability and the detrimental effects of plastic waste on ecosystems is encouraging the shift toward biodegradable solutions. Additionally, governments worldwide are implementing stricter regulations on plastic use in agriculture promoting the adoption of biodegradable alternatives. The increasing demand for sustainable farming practices, the need for enhanced soil health and the desire to reduce dependency on single-use plastics further contribute to the market’s expansion. The growing trend for organic farming is shaping the market as consumers continue to shift toward more sustainable and eco-friendly agricultural practices. An April 2024 article by Euractive highlights that stakeholders in the organic sector are urging the European Commission to take additional steps to encourage consumers to buy organic products, as increasing demand could challenge the EU’s goal of having 25% of agricultural land under organic farming by 2030. This heightened trend for organic produce is putting pressure on agricultural practices to not only be more environmentally friendly but also to find alternatives to conventional farming methods that rely heavily on plastic mulch. Also, there is a growing trend for enhanced soil health and fertility as traditional plastic mulch films, have been shown to degrade over time, leading to environmental concerns. An October 2023 article by the European Geoscience Union highlighted that significant degradation of plastic films was observed in several soils, with the degradation rates ranging from 11% to 98% after just 12 months. This breakdown of plastic mulch results in micro and nano-plastic particles, which can contaminate the soil and affect its fertility, creating long-term issues for agricultural productivity. As a response to these challenges, there is an increasing shift towards biodegradable mulch films, which decompose naturally, helping preserve soil health and reduce contamination.

Biodegradable Mulch Film Market- Report Coverage:

The “Biodegradable Mulch Film Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Biodegradable Mulch Film Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

During COVID-19 pandemic, the market faced challenges as manufacturing facilities were forced to shut down and raw material procurement became uncertain due to lockdown measures and reduced workforce availability. These disruptions led to delays in production, increased cost and limited availability of biodegradable mulch films. Additionally, transportation restrictions hampered the timely distribution of products to key markets, particularly in regions reliant on international supply chains. This caused a temporary dip in product availability and market growth, as farmers struggled to source essential materials for the agricultural season.
The Russia-Ukraine conflict has significantly affected the biodegradable mulch film market by disrupting supply chains and increasing raw material costs. Ukraine is a major producer of agricultural products and the ongoing war led to disruptions in the country’s agricultural activities, including the production and distribution of biodegradable mulch films. Additionally, Russia’s invasion has caused significant shifts in global trade patterns, as both countries are key exporters of agricultural products and raw materials which are essential for manufacturing biodegradable mulch films. 

Key Takeaways:

• Asia-Pacific Leads the Market

Asia is currently leading the biodegradable mulch film market, driven by its strong agricultural foundation and growing emphasis on sustainable farming practices. According to FAO, Asia accounts for about 90% of the world’s rice production. Key agricultural nations like India, Thailand and Vietnam heavily rely on plastic mulch to boost crop yields and minimize soil erosion. However, the widespread use of plastic mulch has created significant environmental challenges including soil degradation and plastic waste accumulation. This has sparked a growing demand for eco-friendly alternatives such as biodegradable mulch films, which break down naturally and help mitigate environmental problems. Governments and agricultural sectors in countries like India, Thailand and Vietnam are increasingly turning to biodegradable mulch films as a sustainable solution to the negative environmental impacts of plastic mulch. For example, Vietnam, with its extensive agricultural industry, is exploring biodegradable alternatives to support global sustainability goals and reduce the long-term environmental damage caused by plastic mulch. In May 2023, the Ministry of Agriculture and Rural Development (MARD), in collaboration with organizations such as the National Plastic Action Partnership (NPAP), UNDP Vietnam, and the Vietnam Circular Economy Hub, led discussions on promoting solutions to reduce plastic waste in agriculture.

• Agriculture is the Largest Segment 

Agriculture is the largest end-user segment in the biodegradable mulch film market due to the critical role it plays in enhancing crop productivity and sustainability. As per a global agricultural report by the Food and Agriculture Organization (FAO), it is projected that90% of the growth in crop production globally (and 80 percent in developing countries) will come from higher yields and increased cropping intensity, rather than land expansion. The report also highlights that land equipped for irrigation is expected to expand by 32 million hectares (11%), with harvested irrigated land growing by 17%. This increased demand for higher crop yields, coupled with the need for sustainable farming practices, is driving the adoption of biodegradable mulch films. These films help improve soil health, conserve water and reduce the negative environmental impact of traditional plastic mulches, making them an essential tool in modern agriculture.

• Polylactic raw material is the Largest Segment

Polylactic Acid (PLA) raw material remains the largest segment in the biodegradable mulch film market, primarily due to its sustainable nature and its ability to decompose naturally, reducing long-term environmental impact. PLA is derived from renewable sources like corn and sugarcane, which makes it a favorable alternative to traditional petroleum-based plastics. The demand for PLA is further fueled by its versatility, as it is used not only in mulch films but also in various packaging materials, medical devices, and textiles, promoting its growth across multiple industries. In March 2024, Sulzer announced its partnership with Balrampur Chini Mills Limited (BCML) to supply advanced PLA production technologies for India’s first bioplastics plant. This new facility, set to produce 75,000 tons of compostable, fully recyclable bioplastics per year, will rely on sugarcane as a feedstock, emphasizing the growing trend of using agricultural waste or crops for bioplastic production. The plant will contribute to India's sustainability objectives by promoting a circular economy, as PLA-based products are not only biodegradable but also compostable, offering an alternative to single-use plastics that pollute the environment.

• Integration with Circular Economy Models Boosts the Market

The integration of biodegradable materials like biopolymers into circular economy models is a key driver for the growth of the biodegradable mulch film market. Circular economy principles emphasize sustainability, waste reduction, and the efficient use of resources by ensuring that products are reused, recycled, or biodegraded. Biodegradable mulch films, particularly those made from materials like Polylactic Acid (PLA) and biopolymers align perfectly with these principles by offering an environmentally friendly alternative to conventional plastic mulch, which often contributes to soil contamination and plastic waste. In April 2024, BASF expanded its certified compostable biopolymer, Ecovio, which can be used to produce black twines in commercial greenhouses. These twines are used for growing annual fruits and vegetables, and after harvesting, they can be collected along with plant residues and transported to industrial composting facilities. In these facilities, the twines biodegrade into valuable compost, which can then be used to enrich soil quality. This process not only supports organic recycling but also helps close the nutrient loop, an essential component of a circular economy. By promoting the use of biodegradable materials that can be composted and reintroduced into the ecosystem, BASF's initiative contributes to reducing waste and ensuring that valuable nutrients are returned to the soil, fostering a sustainable agricultural system.

• High Cost to Hamper the Maket

As highlighted in a June 2023 article by Ohio Ag Net, the cost of purchasing and applying biodegradable mulch is 1.5 to 2 times higher than traditional plastic mulch, even when considering the additional collection and disposal costs associated with conventional plastic. This price disparity can make it difficult for farmers to justify the switch to biodegradable alternatives, particularly for those in regions with tight profit margins, such as small-scale or organic growers. A survey conducted among U.S. strawberry growers in California, the Pacific Northwest, Pennsylvania, and New York found that half of the growers would be willing to try biodegradable plastic mulches if the price were to decrease. This indicates that while there is a growing interest in more sustainable farming practices, the current pricing model remains a barrier to widespread adoption. The higher cost of biodegradable mulch films is primarily due to the more expensive raw materials used in their production, as well as the more complex manufacturing processes involved. As demand for biodegradable mulch films increases, it is anticipated that technological advancements and economies of scale will help drive costs down, making these environmentally friendly options more accessible to a broader range of farmers. However, for now, the price remains a critical factor limiting market growth.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Biodegradable Mulch Film Market. The top 10 companies in this industry are listed below:

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

Scope of the Report: 

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