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. 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. 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 manufacturing.
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 presence of a number of international and local manufacturers in the economy coupled with growing penetration of the products based secondary packaging is expected to benefit the growth. 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. The demand for LLDPE based films in food processing industry is expected to witness growth on account of high transparency coupled with superior performance as a food contact material.
The manufactured products are primarily distributed 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.
Decreasing preference for polyvinyl chloride films is anticipated to fuel the demand for polyethylene-based plastic films in near future. The stretch and shrink film market is expected to witness significant growth owing to growing technological innovations with respect to stretch films. For instance, introduction of highly advanced packaging film by SABIC manufactured through a multilayer and polymer blend technology that offers increase load stability for food product packaging.
Availability of LDPE films in a variety of gauges and sizes, protecting and showcasing the product on shelves contributes toward the increased product application. 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. Application of advanced technologies for manufacturing improved packaging products is expected to further drive the demand. Rising demand from consumer goods manufacturing sector, owing to better seal, prolonged shelf life, and superior print capability of the resin is expected to further fuel the segment growth.
The global LLDPE stretch and shrink film market is expected to witness substantial growth over the forecast period, due to the rising e-commerce market. Factors, such as rising consumer health consciousness and the move toward smaller packing size on account of rising nuclear households in developed economies are anticipated to fuel the growth of the segment in the forthcoming years.
Demand for polyvinylchloride-based films is expected to register growth on account of the product application in secondary packaging. Superior sealing performance coupled with the ability of the product for manual and automated operations is also likely to trigger demand in the forthcoming years.
The use of stretch hoods in industrial application primarily for palletizing goods was the major growth driver for the segment in 2019. High demand from the major product exporting economies such as China and India due to the need for reducing transportation cost and ensuring product integrity is expected to continue driving the growth of the segment. Stretch hoods are also used extensively for high volume secondary packaging of foods such as fruits and vegetables, which is expected to further fuel the growth of the segment.
Stretch wrap films find application in consumer goods industry for form-fill-seal applications, adhesive labels, sleeves, collation wrap, and pre-made pouches. Increased consumption of fresh products, such as cold salads is expected to drive the segment growth. 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 witness growth in the near future, as the packaging provides an additional option for product marketing.
Food and beverage was the largest application for stretch films in 2019, accounting for 40.41% 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 the 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 growth. Mitsubishi Plastics, Inc. offers multilayer polyolefin-based stretch film, used for food packaging applications.
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 and beverages in light of expansion of retail network, new product launches, and population growth is anticipated to further promote the growth of the market in BRICS countries.
In addition, regulatory support aimed at facilitating foreign direct investments at domestic level in BRICS on account of political change, particularly in India and China, aimed at increasing manufacturing output of the country, is expected to amplify growth of the segment growth. Robust manufacturing of confectionaries and carbonated soft drinks in U.S. is expected to have a positive impact on the stretch films market over the forecast period.
Increasing demand for stretch films in the packaging of industrial goods is expected to have a positive impact on market growth. The stretch films find application in timber, cement, construction material, metal, and other industrial products. They are used for transportation and shipping application of the above mentioned goods. Factors, such as waste reduction and ease of transportation with stretch films are expected to have a positive impact on the growth over the forecast period.
Increasing demand for the stretch film for storage, distribution, and labeling of palatalized pharmaceutical goods is expected to further drive the growth. Easy application and removal along with low prices are likely to have a positive impact on the market expansion over the forecast period. Growth of the pharmaceutical industry, owing to technological advancements, especially in emerging countries, such as India, China, and Brazil, is one of the key growth drivers for the stretch film industry.
The Asia Pacific was the largest market, accounting for 41.51% of revenue share in 2019. The region is expected to continue its dominance during the forecast period, due to growing food and beverage industry, particularly in China and India. Increasing demand for packaged food coupled with growing disposable income is expected to propel demand for flexible packaging in the forthcoming years.
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. The use of stretch and shrink films for secondary packaging of beverages, personal care, and household products is expected to drive the regional market growth.
Europe is expected to witness limited growth in demand for stretch and shrink films for packaging, on account of the presence of stringent regulations regarding the use of plastics in contact with food. Manufacturers in the region focus on developing advanced products that conform to the mandated standards, thereby driving up the product prices in the region.
Stretch And Shrink Film Market Share Insights
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. Linpac Senior Holdings Limited, Bonset America Corporation, and Groupo Barbier rely on their market experience and extensive product portfolio that is customizable as per the consumer requirements. The companies offer price reductions and discounts in a move to attract more customers. The strategic initiatives are primarily limited to setting up retail and distribution chains and networks for product sales.
|Base year for estimation
|Actual estimates/Historical data
|2016 – 2018
|2020 – 2027
|Revenue in USD Million & CAGR from 2020 to 2027
|North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
|Revenue forecast, competitive landscape, growth factors and trends
|U.S., Germany, U.K., China, India, Japan, Brazil, South Africa
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