Pet Shrink Films Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, India, Germany, UK - Size and Forecast 2024-2028

Pet Shrink Films Market Size 2024-2028 

The pet shrink films market size is forecast to increase by USD 363.4 million at a CAGR of 4.5% between 2023 and 2028. The packaged food and beverage industry is experiencing significant growth due to increasing consumer preferences for convenience and longer shelf life. This trend is further fueled by the expansion of the retail sector, which is driving demand for efficient supply chain solutions. The market is expanding as the cosmetics industry increasingly adopts these films for packaging, providing enhanced protection and aesthetic appeal for beauty products. Logistics and warehousing have become essential components of the retail value chain, enabling businesses to meet customer demands promptly and cost-effectively. The growth in these sectors presents opportunities for companies specializing in logistics and warehousing services to provide integrated solutions, and personal care, streamline operations, and enhance overall supply chain efficiency. By leveraging advanced technologies and innovative practices, these companies can help their clients reduce costs, improve product freshness, and enhance customer satisfaction.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is a significant segment of the packaging industry, primarily used for packaging food and beverages in PET bottles. The Renewable Energy Laboratory has highlighted the importance of energy efficiency in the production of Pet Shrink Films. The Food and Beverage Processing and Packaging Association (FPA) and the PET Resin Association have emphasized the importance of adhering to regulatory standards in the production and use of these films. The market for Pet Shrink Films is driven by the growing demand for FMCG products, particularly beverage multipacks. Alcoholic beverages account for a significant share of the market due to their high demand for packaging solutions that ensure product protection during transportation. The use of Pet Shrink Films is not limited to the food and beverage industry. They are also used in various sectors, such as offices, restaurants, and houses for packaging fragile products.

The market for Pet Shrink Films is expected to grow due to the increasing popularity of PET bottles over glass bottles, as PET bottles are lighter and more cost-effective. The production of Pet Shrink Films involves various analytical techniques such as HPLC, Gas chromatography, Atomic absorption spectroscopy, and FTIR. The market is expected to witness growth due to the increasing demand for sustainable packaging solutions, with some players focusing on the use of renewable raw materials. The market for Pet Shrink Films is expected to face challenges in terms of regulatory standards and the availability of alternatives such as glass bottles and biodegradable packaging materials. The market is competitive, with key players including OICA, APMMI, and various conference and webinar materials providers. The use of shrink wraps and pallets is also a significant part of the market, with Polyethylene terephthalate being the primary raw material used in the production of Pet Shrink Films. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Rising demand for packaged food and beverage products is notably driving market growth. The food industry is a major contributor to economic growth worldwide, and the demand for food packaging is a crucial aspect of its supply chain. As food products move from manufacturers to retailers and ultimately to consumers, it is essential to maintain their quality and freshness. Pet shrink films, a type of packaging material, have gained popularity due to their ability to protect food products from contamination and extend their shelf life.

Moreover, these films are used for secondary packaging, particularly in developed economies, for applications such as shopping malls, offices, restaurants, and houses. They are ideal for wrapping various food items, including water bottles, using wrap machines. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Increased use of LLDPE over other forms of polyethylene is the key trend in the market. PET shrink films are primarily manufactured using polyethylene forms such as LLDPE, LDPE, and HDPE. In the past, LDPE was the preferred choice for creating PET shrink films due to its availability and affordability. The vaccination market is growing steadily due to increased global efforts to enhance public health through widespread immunization programs and the development of new and improved vaccines. However, LLDPE has gained significant traction in the market due to its superior properties.

LLDPE offers advantages like flexibility, improved mechanical strength, comfortability, and excellent optical strength, making it a popular choice for various applications. Its pliability and softness distinguish it from LDPE, making it ideal for producing films that require high strength to withstand impact without puncturing or tearing. The powdered drinks market is thriving as consumers seek convenient and customizable beverage options, with a growing preference for flavors and nutritional benefits that cater to diverse dietary needs LLDPE is extensively used in the production of plastic films, molds, and sheets. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Volatility in raw material prices is the major challenge that affects the growth of the market. The global market is experiencing price instability due to the significant reliance on crude oil prices for the production of raw materials. The manufacturing process involves various substrates, such as polymers, resins, and additives. The escalating demand for PET shrink films in developing economies, including India, Brazil, Bangladesh, and Iran, is posing a challenge to market expansion.

In recent years, the decline in crude oil prices led oil and gas industry players to adopt cost-saving measures, resulting in workforce reductions and rig idling. This situation has influenced the pricing dynamics of petroleum-based raw materials, thereby affecting the PET shrink films industry. The market's growth is further impacted by the increasing application areas of PET shrink films in sectors like shopping malls, offices, restaurants, houses, and water bottles, which are wrapped using wrap machines and heat guns. Hence, the above factors will impede the growth of the market during the forecast period.

Key Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Allen Plastic Industries Co. Ltd: The company offers polyethylene terephthalate shrink film which are designed for various application of bottles, cups, trays and containers use.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• allfo GmbH and Co. KG
• Berry Global Inc.
• Bonset America Corp.
• BUERGOFOL GmbH
• Coveris Management GmbH
• Dow Inc.
• FLEXOPACK SA
• Flint Group
• HUBEI HYF PACKAGING Co. Ltd.
• KP Holding GmbH and Co. KG
• KUPLAST MATEJKA KUMAR SP
• Kyungwon Hwaseong Co. Ltd.
• Plastic Suppliers Inc.
• Polyplex Corp. Ltd
• Premiumpack GmbH
• Schur Flexibles Holding GesmbH
• Triton International Enterprises Inc.
• Vintech Polymers Pvt. Ltd.
• Winpak Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By End-user 

The food and beverage segment is estimated to witness significant growth during the forecast period. The market is a significant sector in the packaging industry, particularly for Food and Beverage applications. The Renewable Energy Laboratory has highlighted the importance of Energy efficiency in PET shrink film production.

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The food and beverage segment was the largest segment and was valued at USD 889.40 million in 2018. The Association of Plastics Manufacturers and Distributors (APMMI) and the PET Resin Association advocate for the use of PET shrink films in the FMCG sector due to their lightweight and protective properties. The Organisation International des Constructeurs d'Equipements Automatises (OICA) recently held a conference and webinar materials discussed the commercialization of Alcoholic beverages in Alcohol, Beer, and Beverage multipacks using PET shrink films. Hence, such factors are fuelling the growth of this segment during the forecast period.

By Region

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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in the Asia-P Pacific (APAC) region is the largest and is anticipated to continue leading the global market during the forecast period. The surge in the production of consumer goods, particularly in the food and beverage industry, fuels the demand for PET shrink films in APAC. The region's industrialization and expanding distribution channels, including online stores, contribute to the market growth. Key countries such as China, Japan, India, South Korea, Australia, and Indonesia, with their rising demand for alcoholic beverages, beer, and other FMCG products, significantly drive the market. Hence, such factors are driving the market in APAC during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• End-user Outlook
  • Food and beverage
  • Industrial packaging
  • Personal care and cosmetics
  • Others
• Application Outlook
  • Large Enterprise
  • Small and Medium Enterprise
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market in the food and beverage sector is experiencing significant growth due to the increasing demand for lightweight, convenient, and sustainable packaging solutions. The Renewable Energy Laboratory's research on energy efficiency in packaging has emphasized the importance of PET shrink films in reducing the carbon footprint of commercialization and distribution channels. Associations such as APMMI, PET Resin Association, and OICA have been instrumental in promoting the use of PET shrink films for FMCG products, alcoholic beverages, and beer. The global population's changing habits of waste disposal and the shift towards recycling have also influenced the market's growth. PET bottles, shrink wraps, and pallets made of virgin plastics are popular packaging materials for various consumer products, including beverage multipacks and fragile items.

Furthermore, the market landscape depends on the National Bureau of Statistics, Global population, Toxicological analysis test, and Tempering issues. The supply chain's efficiency and the need for packaging testing, such as toxicological analysis tests, have led to the adoption of automated instruments like HPLC, gas chromatography, and Atomic absorption spectroscopy. Regulatory standards for food and beverage packaging, including FTIR and other testing methods, ensure the safety and quality of PET bottles and shrink films. The distribution channels have expanded to include online stores, and transportation and shelf life are crucial factors in the market's growth. In conclusion, the PET shrink film market in the food and beverage industry offers numerous opportunities for growth, driven by consumer demand for sustainable and convenient packaging solutions, regulatory compliance, and technological advancements.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies