The global stretch and shrink films market size was estimated at USD 12.06 billion in 2015. Growing demand for the product due to burgeoning food processing industry has led to an increase in the consumption of the product. In addition, high product demand food items, including fruits, vegetables, is expected to drive the market growth over the forecast period.
Raw material manufacturers such as BASF SE and Arkema S.A. manufacture materials such as polyethylene and polyvinyl chloride that are produced from chemicals such as ethylene and vinyl chloride. The companies are mostly backward integrated i.e. they are involved in the production of ethylene and vinyl chloride for product manufacture.
The growth of the stretch and shrink films market in the U.S. is expected to be driven by growing substitution of the other means of packaging by the aforementioned products. The presence of a number of international and local manufacturers in the economy coupled with growing penetration level of the products based secondary packaging is expected to benefit the market growth.
The economy is one of the major manufacturers of processed food which finds high use of stretch films in both primary and secondary packaging. The demand for LLDPE based films in food processing industry is expected to grow on account of high transparency coupled with superior performance as a food contact material.
The products manufactured by the companies are distributed primarily through a distribution channel setup by manufacturers or through a third-party distribution channel. Companies such as Allied Plastics; Genuine Package Venture; and AmTopp distribute products through well-established distribution channels
The raw material prices exhibit a high degree of volatility owing to fluctuating crude oil prices which further imparts a degree of uncertainty in the price of shrink films. The demand for polyethylene-based plastic films is expected to register growth owing to increasing rejection of polyvinyl chloride films.
The market 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 that offers increase load stability for the packaging of food products.
The availability of LDPE films in a variety of gauges and sizes, protecting and showcasing the product on shelves contributes toward the increased application of product. The films, due to their sustainability for use on irregular shaped loads and applications where clarity and other visual qualities are the overriding priority, have an advantage over other packaging solutions.
The demand for the application of advanced technologies in the development of improved packaging products is driving 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 demand for LLDPE based stretch and shrink films is expected to grow at a CAGR of 5.1% from 2016 to 2024 on account of high demand in secondary packaging of a multitude of health and beauty products including soaps, cosmetics, hair products, perfumes, pharmaceuticals, and food products.
The global LLDPE stretch and shrink films industry is expected to witness growth due to rising e-commerce market. The rising health awareness among consumers and the move toward smaller pack size on account of rising single parent household 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 over the forecast period on account of the 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.
The use of stretch hoods in industrial application primarily for palletizing goods was the major growth driver triggering the product demand. The demand was high in the major product exporting economies such as China and India due to the need for reduction in transportation cost and the need to ensure product integrity.
The use of stretch hoods is expected to reach a value of USD 4,008.3 Million by 2024 on account of high adoption of the product by major players in industrial manufacturing. 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 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 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 over the forecast period.
Stretch film-based sleeve labels offer packaging solutions for all types of pharmaceutical containers including plastic bottles, glass bottles trayed products, cartons, and tubes. The demand for sleeve labels is expected to grow as the packaging provides an additional option for the marketing of the product.
Food and beverage was the largest application for stretch films in 2015, accounting for 41.7% of the market 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 expected to drive demand.
Stretch films are primarily employed for packaging of 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.
Increasing demand of the products for packaging of industrial goods is expected to have a positive impact on the industry growth. The product serves various industries including timber, cement, construction material, metal and other industrial products where these films are used for transportation and shipping of abovementioned goods.
One of the key growth drivers for the industry is growth of pharmaceutical industry. Owing to advances in science and technology, the pharmaceutical industry has been growing at a rapid pace over the past few years and this trend is expected to continue over the forecast period especially in emerging counties such as China, India and Brazil.
The product is used for packaging of various palletized consumer goods such as CDs, electrical and electronic gadgets and toys. Stretch and shrink films are used to hold these products in together in order to offer easy transportation and eliminate misplacement of the products. In addition, growth of the electronics industry is expected to benefit the industry.
Asia Pacific was the largest market, accounting for 38.3% of global stretch films market revenue share in 2015. The region is expected to dominate due to growing food & beverage particularly in China and India. Increasing demand for packaged food coupled with growing disposable income of consumers is expected to propel demand for flexible packaging over the forecast period.
The market 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 a 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.
Companies, such as Dow, Bemis, and LyondellBasell, have established themselves as major players in the market, enjoying a significant early mover advantage. Significant market experience of the companies enables them to formulate better competitive strategies in comparison to other players in the market.
Linpac Senior Holdings Limited, Bonset America Corporation, and Groupo Barbier rely on their market experience and extensive product portfolio that is customizable in accordance with consumer needs. The companies offer price reductions and discounts in a move to attract more customers. The strategic initiatives are primarily limited to setting up retail & distribution chains and networks for the sale of the product.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2024. 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, 2013 - 2024)
Product Outlook (Revenue, USD Million, 2013 - 2024)
Sleeves and labels
Application Outlook (Revenue, USD Million, 2013 - 2024)
Food & beverage
Regional Outlook (Revenue, USD Million, 2013 - 2024)
Middle East & Africa
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."