Strapping Materials Market Analysis, By Material (Steel, Polypropylene, Polyester), By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global strapping materials market was valued at USD 4.54 billion in 2016. Plastic materials (ingredients) can be recycled, making it a sustainable packaging substitute. This is expected to be a key factor driving market growth over the forecast period.

Plastic ingredients are derived from petroleum-based feedstock like polyester and polypropylene, while metal ingredients are manufactured using steel. Plastic straps exhibit various advantageous properties such as high elongation and tension resistance Steel straps, on the other hand, show high tensile strength, which renders them useful in packaging of metal and building and construction materials.

There has been a rise in demand for consumer electronics, household appliances, pharmaceutical products, medical devices, and textile goods, which is projected to result in an increase in demand for strapping material as a suitable packaging material. Growth in mail orders and the logistics business, along with expansion of the e-commerce industry, is projected to further boost the demand for strapping materials.

The e-commerce industry uses corrugated cardboard and paper as a retail-ready packaging option at the point of purchase, display, and sale as they protect goods from damages and vibration while handling or shipping. As an application segment, corrugated cardboard and paper is witnessing growth owing to expansion of the e-commerce industry.

The strapping materials market in U.S. was valued at USD 968.0 million in 2016 and is anticipated to register a CAGR of 6.3% from 2017 to 2025. Rise in demand from the food and beverage industry followed by continuous innovation in food and beverage packaging in U.S. is expected to boost market growth. The growth of packaged food in U.S. on account of the on-the-go lifestyle of consumers is expected to promote the packaging industry.

There is rising awareness among consumers regarding sustainable and environment-friendly packaging. Consumers also expect innovative designs from manufacturers of corrugated cardboard and paper, which will eventually boost the application segment over the forecast period. However, these materials lack the ability to protect products from damage resulting from rain, frost, or moisture. This may pose a challenge to the growth of this segment.

Key trends:

        • Plastic ingredients serve as a sustainable packaging solution as they can be recycled
        • Expansion of the e-commerce sector has resulted in greater demand for corrugated cardboard and paper
        • Rise in demand for packaged food in U.S. will increase the consumption of strapping materials

Material Insights

Steel, polypropylene, and polyester are among the most commonly used strapping materials. As polyester straps help maintain uniform tension on load during transportation of goods, they are increasingly being used in rigid loads. Shrinking type load, on the other hand, requires the use of polypropylene as it exhibits greater elongation recovery. This implies that it elongates or shrinks from its original size and shape as per requirement.

Steel straps are used in the metal and building and construction sectors, where high tensile strength is required for heavy-duty loads. These straps possess lesser elongation recovery, which helps withstand rough handling of heavy loads during transportation. However, in cases where the load shrinks during transportation, negligible elongation can be a downside for steel straps as they will loosen over time.

These straps are used in packaging and handling metal bars, rods, and coils as they ease product storage and handling in the metal industry. Brick and concrete paver industries also make use of steel straps due to their higher tensile strength.

Which is the leading material type?

            • Polypropylene is the largest material segment, with a 45.63% share in 2016. This cost-effective, lightweight, and easy-to-recycle strapping material is in high demand in Asia Pacific.

Application Insights

Industrial logistics and warehouse was the largest application segment for strapping materials in 2016 and accounted for 26.68% of the global revenue. There is enormous growth potential for industrial logistics and warehousing in developed economies such as U.K. and Germany. Germany is one of the significant logistics hubs in Europe due to its central location, which provides logistics services to about 500 million European residents.

As per a 2016 report on Logistics Performance Index of 160 countries by the World Bank, Germany was the top performer with annual revenue in the logistics business amounting to approximately USD 279.22 billion. According to the Federal Logistics Associations Statistics Office, Germany is likely to gain significant growth in this sector over the forecast period, with rise in air cargo and waterway transport. Driven by Germany’s strong performance, the demand for strapping materials in the logistics and warehouse application segment is sure to rise.

In emerging economies, the newspaper and graphics segment has been growing due to an increase in production and circulation of various magazines and print advertisements. This can be attributed to a rise in the number of pages in a newspaper on specific occasions and rapid urbanization. Newspapers and magazines are often used in the packaging industry and this can subsequently increase the uptake of strapping materials in the newspaper and graphics application segment.

Key application facts:

           • Industrial logistics and warehouse dominated the market with a 26.68% share in 2016
           • Germany significantly contributes to demand for strapping materials in logistics and warehouse application
           • Newspaper and graphics segment fares well in emerging economies

Regional Insights

Asia Pacific is estimated to be the fastest growing regional market from 2017 to 2025 with a CAGR of 6.5%. The region was valued at USD 1.58 billion in 2016. This growth can be attributed to increased application of strapping materials in industries such as food and beverages, industrial logistics and warehouse, and newspaper and graphics.

North America was the second-largest region in terms of revenue in 2016, accounting for a 25.21% share. Rapid growth of the packaged food and industrial logistics and warehouse industries, coupled with growing building and construction activities, is propelling the demand for strapping materials in North America.

North America is characterized by large consumer markets in U.S., Canada, and Mexico. U.S. is among the major global trade partners, while Canada is likely to generate more trade opportunities from U.S. in the coming years. This is likely to generate significant demand for application of strapping materials in industrial logistics and warehousing.

Competitive Insights

The global strapping materials market is oligopolistic, with few leading players, such as 3M and Mosca GmbH, dominating the market. These and other major players have a global presence and have diversified their business portfolio. On the other hand, players such as Strapack, Inc. and Signode Packaging Systems have integrated vertically in the value chain.

Companies such as Signor Strapping Solutions and Titan Umreifungstechnik GmbH & Co. KG operate solely in the area of manufacturing straps, tools, and other materials. The players are incorporating forward integration as a growth strategy, which may pose a challenge for new players aspiring to enter the market.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global strapping materials market on the basis of materials, application, and region.

• Material Outlook (Revenue, USD Million, 2014 - 2025)

  • Steel

  • Polypropylene

  • Polyester

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Food & Beverage

  • Industrial Logistics & Warehouse

  • Corrugated Cardboard & Paper

  • Newspaper & Graphics

  • Building & Construction

  • Metal

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa