The global stretch and shrink film market size was USD 12.06 billion in 2015. Increasing adoption of shrink labels and hoods in food & beverage industry owing to its ability to sustain at wide temperature range is expected to propel demand. Rising sale of retail items coupled with increasing e- e-commerce sales is expected to drive packaging industry growth, which in turn is expected to have a positive impact on the industry growth over the next eight years.
The stretch films are being increasingly used for the packaging various palletized consumer goods including electrical and electronic gadgets, toys, gift packs, and compact discs. Globalization has led to the transportation of shipments across various continents which has increased the need for robust packaging solutions for improved durability. As a result, the demand for stretch and shrink films is expected to increase substantially over the projected period.
U.S. stretch and shrink film market revenue, by resin, 2013 - 2024 (USD Million)
Stringent regulatory norms pertaining to the packaging materials for food contact applications primarily in Europe and North America is expected to restrain the market growth. In addition, raw material price volatility coupled with the instability of the natural gas and petroleum market is expected to be a key concern for the manufacturers.
The existing major manufacturers are likely to face intense competition from emerging small-scale manufacturers owing to low product differentiation. Furthermore, buyers in the market are focused on application specific products on account of availability of diverse product offerings by manufacturers. Product innovation and cost is a key criterion for the buyer as a result of which manufacturers constantly strive for an upper edge in the competition through new product launches.
The demand for LLDPE stretch films was over 30% of the global stretch films demand and is anticipated grow at a CAGR of over 4.5% from 2016 to 2024. Improved stretchability, pellet unitization and high resistance to external environmental conditions offered by the product as compared to its counterparts are likely to drive demand.
PVC based stretch and shrink films are likely to grow at a slower pace in food packaging application owing to stringent regulations and potential health hazards associated with the product. However, the rapid growth of consumer goods industry in Asia Pacific is anticipated to drive the product demand over the next eight years.
Shrink hoods are likely to grow at a CAGR of 5.5% from 2016 to 2024. The product is expected to witness substantial growth owing to the ease of application offered as compared to film wraps. In addition, an increase in automation of the packaging process achieved by the product is expected to propel demand.
The wraps application segment is expected to witness sluggish growth owing to increasing substitution by hoods. The demand for wraps is expected to decline in the wake of availability of superior alternative for packaging. However, growing demand for the wraps by small-scale consumer goods producers is expected to drive the demand over the next eight years. The shrink sleeves and labels are expected to grow at a CAGR of over 5.5% from 2016 to 2024 owing to increasing adoption by the soft drink beverage manufacturers.
The shrink film demand in food & beverage application was valued over USD 3.32 million in 2015. Growing demand for the product for meat, fruits, and vegetable packaging is expected to drive demand. Positive outlook on food & beverage industry, particularly in BRICS and Middle East, is expected to be a key market driver over the forecast period. Growing domestic consumption of food & beverages in light of the expansion of the retail network, new product launches, and population growth is expected to have a positive impact on the industry growth.
Increasing demand for the product for industrial applications such as metal, timber, and non-volatile chemical products owing to significant waste reduction coupled with ease of transportation is expected to drive the demand for stretch and shrink films 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.
The demand for bulk packaging materials by the rapidly developing economies such as China and India is expected to drive the industry growth. Increasing demand for consumer goods in the region driven by high population in is expected to benefit the market. Furthermore, rising awareness regarding personal health is expected to drive the demand for health based packaged beverages in the region, which in turn is expected to have a positive impact on the industry growth.
The competition in the market is extremely price sensitive. The existing major manufacturers are likely to face intense competition from emerging small-scale manufacturers. The manufacturers are coming up with high quality, product differentiation, and innovations to strengthen company presence in the market.
Major players in the market include AEP Industries Inc., Berry Plastics Corporation, Bemis Company Inc., Sigma Plastics Group, Bollore Inc., Allied Global Plastics Pvt. Ltd., American Eagle Packaging, Bonset America Corporation, and Coveris Holdings Inc.
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