KSA Mulch Film Market Outlook to 2030

KSA Mulch Film Market Overview

• The KSA Mulch Film Market has witnessed a notable growth, this is reflected by the global mulch film market reaching a valuation of USD 7.5 billion in 2023. This growth is driven by several factors including the increasing awareness of the benefits of mulch films in agriculture, such as improved crop yield, soil moisture retention, and weed control. Additionally, government initiatives promoting modern agricultural practices have further fueled the market expansion.
• The KSA Mulch Film Market is dominated by several key players who have established a strong presence in the region. Some of the notable companies include Ginegar Plastic Products Ltd., Berry Global Inc., AEP Industries Inc., BASF SE, and RKW Group. These companies have been at the forefront of innovation, offering a wide range of mulch films tailored to the specific needs of Saudi farmers.
• In 2023, Berry Global Inc. launched a new line of biodegradable mulch films that decompose naturally after their useful life, addressing environmental concerns associated with traditional plastic mulch films. This product has been well-received in the market, with initial sales surpassing expectations, highlighting a growing demand for sustainable agricultural solutions.
• Riyadh, the capital city of Saudi Arabia, dominates the mulch film market in 2023. This dominance can be attributed to the region's advanced agricultural infrastructure, higher adoption rate of modern farming techniques, and significant government support. Additionally, the presence of large-scale farms and agribusinesses in Riyadh has further boosted the demand for mulch films.

KSA Mulch Film Market Segmentation

The KSA Mulch Film Market can be segmented by various factors like by product type, by application and by region.

By Product Type: The KSA Mulch Film Market is segmented by product type into polyethylene mulch films, biodegradable mulch films, and others (including polypropylene and polyvinyl chloride mulch films). In 2023, polyethylene mulch films were dominating due to their cost-effectiveness and widespread availability. Polyethylene mulch films have been the preferred choice among farmers due to their durability, UV resistance, and ability to enhance soil temperature.

By Application: The KSA Mulch Film Market is segmented by application into horticulture, floriculture, and others (including landscaping and forestry). In 2023, Horticulture segment was dominating the market in 2023, due to the extensive use of mulch films in the cultivation of high-value crops such as tomatoes, cucumbers, and strawberries, which require optimal soil conditions for maximum yield.

By Region: The KSA Mulch Film Market is segmented by region into north, south, east, and west. The Northern region was dominating the market in 2023, driven by large-scale agricultural activities and significant government investment in agriculture. The Northern region's dominance can be attributed to its favorable climate for agriculture, extensive arable land, and strong government support for farming initiatives.

KSA Mulch Film Market Competitive Landscape

Berry Global Inc.: In July 24, 2024 Berry Global Group, Inc. and Glatfelter Corporation announced that the proposed merger of Berrys Health, Hygiene and Specialties Global Nonwovens and Films (HHNF) business with Glatfelter progressed further today with the creation of the Magnera brand (pronounced Mag-nair-uh), a global leader in the specialty materials industry. The launch of this new identity marks the next chapter in the transaction journey, emphasizing a commitment to innovation and leadership in the specialty materials industry.

AEP Industries Inc.: Berry issued 6.5 million common shares and paid$297 millionas merger consideration in exchange for all of the outstanding shares of AEP common stock and outstanding AEP equity awards. Additionally, Berry paid$164 millionto retire outstanding AEP debt. Berry financed the cash consideration of the acquisition with a new$500 million7-year term loan.

KSA Mulch Film Market Analysis

KSA Mulch Film Market Growth Drivers

• Increasing Agricultural Investments: The Saudi Agricultural Development Fund, which approved over SR2.3 billion (approximately USD 610 million) in loans for agricultural projects in early 2023 to modernize its agricultural sector, emphasizing the adoption of advanced farming technologies, including mulch films. This substantial investment is projected to enhance agricultural productivity and drive demand for mulch films in the coming years.
• Increased Focus on Environmental Sustainability: Environmental sustainability is becoming a major focus in Saudi Arabia's development plans. In 2024, the Kingdom launched the National Environmental Strategy, which includes initiatives to reduce waste generation and increase recycling rates. This strategy has spurred the growth of the waste management sector, with significant investments in eco-friendly technologies and processes.
• Technological Innovations and Sustainable Practices: To support this agricultural transformation, Saudi Arabia has invested heavily in advanced agricultural technologies and sustainable practices. The government has implemented modern irrigation techniques and desalination technologies, allowing for more efficient use of scarce water resources. This integrated water management system has reduced agricultural water consumption from 86% to 70%.
• Rising Demand for High-Value Crops: The cultivation of high-value crops such as fruits and vegetables has surged, driven by Saudi Arabia's focus on enhancing agricultural productivity. In 2023, the Agricultural Development Fund highlighted that farms utilizing mulch films for these crops reported significantly higher yields compared to traditional methods. This increase in productivity is fueling the demand for mulch films, as farmers seek to optimize their output and meet the growing market demand for premium produce.

KSA Mulch Film Market Challenges

• High Cost of Advanced Mulch Films: The cost of advanced mulch films, particularly biodegradable options, remains significantly higher than traditional plastic films. In 2024, the price of mulch films is increased and the increase in price presents a financial burden for small-scale farmers who are unable to afford the higher costs, limiting the widespread adoption of these environmentally friendly alternatives. The financial strain is particularly evident among farmers with limited access to subsidies or financial aid, highlighting the need for more affordable solutions to promote sustainable farming practices across the region.
• Disposal and Recycling Issues: The disposal and recycling of traditional plastic mulch films pose significant environmental challenges. In 2024, the used plastic mulch films will end up in landfills in Saudi Arabia, contributing to plastic pollution and environmental degradation. The lack of efficient recycling infrastructure and programs exacerbates this issue, as many farmers are unaware of or unable to access proper disposal methods. This situation underscores the need for improved recycling facilities and increased awareness about sustainable disposal practices to mitigate the environmental impact of plastic mulch films.
• Limited Awareness and Training: The limited awareness and training among farmers hinder their adoption. In 2024, the farmers in Saudi Arabia have yet to receive adequate training on the proper use and advantages of mulch films. This lack of knowledge affects the effective implementation of these films, leading to suboptimal results and reduced interest in adopting modern agricultural practices. To address this challenge, comprehensive training programs and educational initiatives are essential to equip farmers with the necessary skills and knowledge to utilize mulch films effectively and maximize their benefits.

KSA Mulch Film Market Future Outlook

The KSA Mulch Film Market is expected to continue by 2028. This growth will be driven by the increasing adoption of advanced agricultural technologies, rising investments in the agriculture sector, and continued government support for sustainable farming practices. The market is also likely to see further innovations in biodegradable and recyclable mulch films, catering to the growing environmental awareness among consumers and businesses alike.

Market Trends

• Expansion of Biodegradable Mulch Film Usage The adoption of biodegradable mulch films is expected to expand significantly over the next five years. By 2028, the farmland in Saudi Arabia will be using biodegradable mulch films, driven by increasing environmental awareness and supportive government policies. This shift towards biodegradable options will reduce environmental impact and align with the country's sustainability goals, promoting eco-friendly farming practices across the region.
• Development of High-Performance Mulch Films Continued research and development will lead to the creation of high-performance mulch films with enhanced properties. By 2028, new mulch films with superior UV resistance, durability, and biodegradability will dominate the market, catering to the specific needs of Saudi farmers. These advancements will improve the effectiveness and cost-efficiency of mulch films, making them more attractive to farmers and driving market growth.