Shrink Wrap Packaging Market Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020 - 2025

Procurement Outlook

Shrink wrap is an adaptable polymer material that is used for the packaging of finished goods. Shrink wrap film is available in a variety of types, thicknesses, clarities, strengths, and shrink ratios, which can be employed alone or in conjunction with one another to create the precise type of layering and protection for your product. With the recent changes in the manufacturing industries due to the COVID-19 pandemic, several steps have been considered to ensure that various products continue seamlessly.

The shrink wrap market has witnessed the continuous high demand from the food and beverage, electronics, pharmaceuticals, and cosmetics industries. The demand for products has witnessed to grow in online purchases, as more consumers have sought to seek things virtually, while curbing the rising lack of clients at their physical stores, and reduce the spread of infection.

Shrink wrap packaging is manufactured to bind the product components to prevent the product from spillage and ensure proper storage, particularly when shipping and transportation. Shrink wraps consist of a polymer plastic wrap that consists of polyolefin, polyethylene, and PVC, each offering unique characteristics for use in different areas.

Demand Outlook

The global stretch and shrink film market size was estimated at USD 14.27 billion in 2019 and is projected to register a 5.5% CAGR during the forecast period. The burgeoning food processing industry is expected to drive the market growth. In addition, high demand for fruits, vegetables, and other food products is expected to further drive the product demand.

Rising replacement of conventional packaging materials with stretch and shrink films can be attributed to the growth of the market in the U.S. The country is one of the largest manufacturers of processed food which is a major application area for stretch films in both primary and secondary packaging. Increased consumption of fresh products, such as cold salads is expected to drive the shrink wrap segment growth, with major application in consumer goods industry for form-fill-seal applications, adhesive labels, sleeves, collation wrap, and pre-made pouches.

Cost Drivers

Considering the advantage of shrink film's strength and durability, most manufacturing companies have been able to remove corrugated packaging from their multi-pack products. Heavy products can be securely wrapped in shrink which eliminates the need for a corrugated tray. Lightweight items (like single-serve chips and snacks) can be packaged in a polybag. Along with reducing cost of packaging, shrink wraps also help to minimize shelf footprint and opens up space in the facility.

With continuous improvement in technologies, manufacturers can further optimize packaging for cost reduction by down-gauging or selecting a lower-width film. Working with a packaging specialist to conduct a film audit for the packaging line, will help the client in understanding the options available for packaging. 

Constraints

Procurement and supplier selection is an important exercise for Shrink Wrap Packaging. Multiple chemical formulations are present for shrink film, the most common being POF (Polyolefin), PVC (Poly Vinyl Chloride), and PE (Polyethylene). The formulations of these films are all unique and result in different applications for each type of film.

Chemical formulations need to be perfect, to avoid quality issues in the films. Poor formulations of the films will lead to not sealing and may produce other issues including, smoking, melting, and in some cases mechanical failure.

Supply Chain

Suppliers are currently focusing on developing eco-friendly wraps, for example, Amcor has developed a PVDC free shrink bag for fresh and processed meat, poultry, and cheeses. The technology named Eco-Tite® R is designed to maximize shelf life, maintain food safety, and reduce food waste.

The key suppliers for Shrink Wrap Packaging are Amcor Plc, Sealed Air Corp., Exxon Mobil Corp., Sonoco Products Co., Dow Inc., Berry Global Group Inc., Akriti Packaging, Printpack Inc., American Eagle Packaging, and Bonset America Corp. The market features a fairly fragmented competitive landscape with the presence of several small and local suppliers in the market.

Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.