South America Agricultual Films Market

South America Agricultual Films Market Analysis

The South America Agricultual Films Market size is estimated at USD 1.41 billion in 2025, and is expected to reach USD 1.93 billion by 2030, at a CAGR of 6.5% during the forecast period (2025-2030).

Greenhouse farming is expanding in South America, particularly in Brazil and Argentina, where weather patterns are variable. Agricultural films, including greenhouse films, are essential for creating controlled environments for crop cultivation, protecting plants from adverse weather conditions, and maintaining optimal growing conditions. Brazil currently operates approximately 6,000 greenhouses, producing 1.5 million metric tons of tomatoes and other crops annually, according to a 2024 AgriFarming report. The primary greenhouse farming regions in Brazil with potential of utilizing agricultural films include Sao Paulo, Parana, Mato Grosso do Sul, Minas Gerais, and Rio de Janeiro.

The region's robust horticulture industry, focused on fruits, vegetables, and flowers, extensively uses mulching films to maintain soil moisture, control temperature, and suppress weed growth. The horticulture sector contributes significantly to the agricultural GDP of Brazil, Chile, Peru, and Colombia, increasing the use of agricultural films to improve crop yields. The Brazilian Institute of Geography and Statistics reported that orange production reached 17.6 million metric tons in 2023, generating BRL 20.0 billion (USD 4 billion) for the national economy, representing a 39.2% increase from 2022. Thereby, catalyzing the market growth in the region.

South America Agricultual Films Market Trends

Rising Greenhouse Farming is Boosting the Market

Horticulture and greenhouse farm owners, along with forage crop cultivators, are the primary consumers of agricultural films in South America. The region's horticulture sector is well-established in vegetables, fruits, and flower production, with advanced farming practices and diverse crop portfolios. According to FAOSTAT, vegetable production in Brazil reached 9.0 million metric tons in 2023, a 4% increase from 8.7 million metric tons in the previous year. The extensive vegetable cultivation requires substantial quantities of agricultural films for mulching applications, soil protection, and moisture retention.

Greenhouse farming in countries like Brazil and Argentina continues to expand, driven by technological advancements and increasing demand for year-round crop production. In Brazil, Sao Paulo leads greenhouse farming with 38% of the total cultivation area, followed by Parana at 19% and Mato Grosso do Sul at 13%, according to a 2024 Agrifarming report. The combination of an extensive horticulture industry, characterized by diverse crop production and modern farming techniques, and growing greenhouse farming infrastructure is expected to drive the South American agricultural films market growth.

Brazil Dominates the Market

Brazil maintains its position as the agricultural leader in South America, with a well-developed horticulture industry encompassing fruits, vegetables, and flower cultivation. According to FAOSTAT, strawberry production increased by 4.4%, reaching 187.7 thousand metric tons in 2023 from 179.8 thousand metric tons in 2022. Brazil accounts for 41% of the strawberry production in the region in 2023.

Government policies supporting sustainable agriculture and input subsidies enhance agricultural film adoption, with farmers accessing subsidies covering up to 50% of greenhouse crop planting costs, available to both small and large-scale operations. These subsidies are determined by crop type, regardless of greenhouse variety, and are supported by key initiatives highlighted in the 2024 USDA Report, including the Low-Carbon Agriculture (ABC) Plan, the Safra Plan, and the National Program for the Conversion of Degraded Pastures into Production Systems (PNCPC). While Brazil's greenhouse farming sector remains in its early stages, it shows significant growth potential, with the country's extensive horticulture industry and large forage acreages establishing Brazil as the regional industry leader in South America.

South America Agricultual Films Industry Overview

The South American agricultural film market consists of numerous regional players, creating a highly fragmented competitive landscape. Major companies in the region include Agroflex, Novamont S.p.A. (BioBag Americas, Inc.), Manupackaging, Dow, and Berry Global Inc. These companies focus on brand and product promotion to increase revenue while pursuing partnerships and acquisitions to expand their geographical presence.

South America Agricultual Films Market Leaders

South America Agricultual Films Market News

• October 2024: Dow and Ambipar established a partnership to expand plastic recycling operations in South America, with a focus on Brazil. The collaboration aims to process 80,000 metric tons of plastic waste annually and convert it into 60,000 metric tons of post-consumer resin through mechanical recycling facilities, supporting agricultural film production.
• January 2024: Kuraray Co., Ltd. announced that its Niigata Plant received ISCC PLUS certification for its 3-methyl-1,5-pentanediol (MPD) production. ISCC PLUS is an international certification program that validates sustainable product manufacturing.