The global stretch and shrink films market size was estimated at USD 15.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.4% from 2022 to 2030. The growing retail and hypermarket industries coupled with the rising e-commerce industry with the need for product packaging and safety are primary factors contributing to the growth of the market. The films offer benefits such as optimal shelf-life for a variety of food products, fewer leakers when packing rigid or sharp-edged products, high impact, and puncture resistance. Additionally, it also offers premium product presentation, retained strength at freezing temperatures, and preserved package integrity thus driving the market growth.
The growth of the market for stretch and shrink film in the U.S. is expected to be driven by the growing demand for eco-friendly materials for packaging. Furthermore, the presence of a number of international and local manufacturers operating in the stretch and shrink film space with a strong foothold in the country is also expected to benefit market growth. A growing number of brands are focusing on meeting sustainability targets and exploring more sustainable options to meet their commitments. The demand for Polyethylene (PE) shrink film is growing over corrugate and paperboard as it is more environmentally friendly and uses less energy, thereby driving growth during the forecast period.
Furthermore, the market for stretch and shrink film is expected to witness significant growth owing to growing technological innovations with respect to stretch films. For instance, the introduction of highly advanced packaging film by SABIC manufactured through a multilayer and polymer blend technology offers increased load stability for the packaging of food products thus positively contributing to the growth of the market. The demand for flexible plastic packagings such as stretch and shrink films for the growing frozen food industry is increasing owing to its benefits such as low cost and lightness. A number of traditional materials, such as paperboard, metals, and glass, are being replaced by these packaging alternatives, bolstering product demand during the forecast period.
The shift in preference towards ready-to-eat meals and frozen meals, along with canned products such as vegetables, fruits, seafoods, and meat are expected to offer lucrative opportunities for the stretch and shrink film manufacturers. However, the rising raw material costs may restrict the market growth during the forecast period. The outbreak of COVID-19 led to an upsurge in the demand for food and beverage and pharmaceutical product. During the initial outbreak of the pandemic, factories shut down, forcing these industries to find domestic packaging alternatives where demand for shrink sleeve packaging increased as it offered shorter lead times, lower cost, and fewer inventory requirements.
The LDPE resin segment dominated the market for stretch and shrink film and accounted for the highest revenue share of 30.4% in 2021 owing to the availability of LDPE films in a variety of gauges and sizes for protecting and showcasing the product on the shelves Additionally, its increasing use on irregular shaped loads and applications where clarity and other visual qualities are the overriding priority, have contributed towards its high market share. The demand for the application of advanced technologies in the development of improved packaging products is driving the LDPE stretch films market in the region. These films are largely being demanded by consumer goods manufacturing products owing to better seal, prolonged shelf life, and superior print capability.
The global LLDPE stretch and shrink films industry is expected to witness the highest growth due to the rising e-commerce market. Moreover, the move toward smaller pack sizes on account of rising single parent households in the developed economies drives the demand for such products thereby driving market growth over the forecast period. The demand for polyvinylchloride-based films is expected to grow on account of the increasing use of the product in secondary packaging. Superior sealing performance coupled with the ability of the product for use in manual and automated operations is also likely to trigger demand during the forecast period.
The sleeve and labels segment dominated the product segment and accounted for the revenue share of 38.3% in 2021. The demand for sleeve labels is further expected to grow as the packaging provides an additional option for the marketing and branding of the product along with its rising demand in pharmaceutical containers including plastic bottles, and glass bottles for trayed products. The use of stretch hoods in industrial applications primarily for palletizing goods is the major factor contributing to its market share. The demand for the product is high in the major product exporting economies such as China and India due to the need for a reduction in transportation costs and the need to ensure product integrity. In addition, stretch hoods are also used extensively for high-volume secondary packaging of foods such as fruits and vegetables.
Stretch wrap films find applications in the consumer goods industry for form-fill-seal applications, adhesive labels, sleeves, collation wrap, and pre-made pouches. Increased consumption of fresh foodstuffs such as cold salads is expected to drive the demand for such products over the forecast period. Sleeve-based stretch packaging solution plays an important role in the beverage industry as the packaging provides banding around bottles. The product finds applications in packaging including leading-edge pouches and beverage multipacks. Extensive nonalcoholic beverage production in North America is expected to drive the demand for sleeve labels during the forecast period.
The food and beverage segment dominated the market for stretch and shrink film and accounted for the largest revenue share of 40.6% in 2021 on account of high demand for packaged foods including ready-to-eat meals, frozen meals, snack foods, and bakery products. In addition, growing product demand for packaging fresh and frozen food items such as meat, fruits, and vegetables is further expected to drive demand. Stretch films are primarily employed for packaging canned food products. Growing demand for such products for storage and transportation of retail and bulk beverages such as coffee is expected to have a positive impact on the industry growth. Mitsubishi Plastics, Inc. offers multilayer polyolefin-based stretch film, which is used for food packaging applications.
The positive outlook on the food and beverage industry, particularly in developing economies such as India, China, and Brazil is expected to be a key market driver over the forecast period. Growing domestic consumption of food and beverages in light of the expansion of the retail network, new product launches, and population growth is expected to promote productivity growth in developing economies. Increasing demand for stretch films for packaging industrial goods is expected to have a positive impact on industry growth. The stretch films serve various industries including timber, cement, construction material, metal, and other industrial products. These films are used for transportation and shipping applications of the abovementioned goods.
Waste reduction and ease of transportation offered by stretch films are expected to have a positive impact on the industry growth over the forecast period. Increasing demand for the stretch film for storage, distribution, and labeling of palatalized pharmaceutical goods is expected to have a positive impact on the industry growth. Easy application, and removal and low prices offered by these products are likely to have a positive impact on the industry growth over the forecast period.
The Asia Pacific dominated the stretch and shrink films market and accounted for a revenue share of 43.4% in 2021. The region is expected to dominate due to growing food and beverage, particularly in China and India. Increasing demand for packaged food coupled with the growing disposable income of consumers is expected to propel the demand for flexible packaging over the forecast period. In addition, regulatory support aimed at facilitating foreign direct investments at the domestic level on account of political change, particularly in India and China, aimed to increase the country’s manufacturing output is expected to amplify food and beverage growth. The robust manufacturing base of confectionaries and carbonated soft drinks in the U.S. is expected to have a positive impact on the stretch films market during the forecast period.
The market for stretch and shrink film in North America is expected to be driven by the presence of a number of consumer goods manufacturing companies such as Groupo Bimbo in Mexico and Canada is expected to result in high demand for the product. The use of the product for secondary packaging of products including beverages, household, and personal care products is expected to drive the industry growth. The demand for stretch and shrink films for packaging is expected to witness limited growth in Europe on account of the prevalence of regulations regarding the use of plastics for food contact applications. Manufacturers in the region develop advanced products that conform to the mandated standards, thereby driving up the product prices in the region.
The market for stretch and shrink film is highly competitive in nature with the presence of large, medium, and small-sized companies. The major companies in the market compete with not only other international companies but also with local players at the regional level with the market moving towards sustainable packaging. The market exhibits the presence of numerous smaller players providing customized products to end-users. There have been various developments such as product innovations and new product launches by manufacturers operating in the stretch and shrink film market space to gain a better customer base and enhance their position in the market.
In January 2021, Cortec introduced Eco Wrap, one of the world's first compostable, machine-grade stretch films. The new product represents a revolution for the industrial packaging and warehouse industries, which heavily rely on the automated stretch wrapping to prepare pallets of goods for storage, inventory, or shipment. Some of the prominent players in the stretch and shrink films market include:
Berry Global Inc
Bonset America Corporation
Allen Plastic Industries Co., Ltd
American Eagle Packaging
Market size value in 2022
USD 16.5 billion
Revenue forecast in 2030
USD 25.2 billion
CAGR of 5.4% from 2021 to 2030
Base year for estimation
2017 - 2020
2022 - 2030
Revenue in USD million and CAGR from 2021 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Resin, product, application, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; France; Italy; Spain; U.K; China; Japan; India; Brazil; South Africa
Key companies profiled
Berry Global Inc; Amcor plc; Bonset America Corporation; Allen Plastic Industries Co., Ltd; Bollore Inc.; American Eagle Packaging; Coveris; Barbier Group
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This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global stretch and shrink films market report on the basis of resin, product, application, and region:
Resin Outlook (Revenue, USD Million, 2017 - 2030)
Product Outlook (Revenue, USD Million, 2017 - 2030)
Sleeves And labels
Application Outlook (Revenue, USD Million, 2017 - 2030)
Food & Beverage
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Central and South America
Middle East & Africa
b. The global stretch and shrink films market size was estimated at USD 15.7 billion in 2021 and is expected to reach USD 16.5 billion in 2022.
b. The stretch and shrink films market is expected to grow at a compound annual growth rate of 5.4% from 2021 to 2030 to reach USD 25.2 billion by 2030.
b. LDPE dominated the product segment with a share of 30.4% in 2021 as these films can be used as primary packaging coming into direct contact with the food product along with being produced in a range of different densities and modified with additives to perform many functions.
b. Some of the key players operating in the stretch and shrink films market include Berry Global Inc; Amcor plc; Bonset America Corporation; Allen Plastic Industries Co., Ltd; Bollore Inc.; American Eagle Packaging; Coveris; and Barbier Group.
b. The key factors that are driving the stretch and shrink films market include growing demand for eco-friendly material for packaging coupled with increasing demand from packaged food & beverage products for safe and economical packaging solutions.
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