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The stretch and shrink film market size is forecast to increase by USD 3.57 billion at a CAGR of 4.5% between 2023 and 2028. The market is experiencing growth driven by several key factors. Firstly, there is growth in the retail sector, driven by factors such as urbanization, rising disposable incomes, and changing consumer preferences, which is increasing demand for packaged food and beverage products. Secondly, the increasing demand for packaged food and beverage products is driving the need for efficient logistics and warehousing solutions to ensure timely delivery and storage of goods. Lastly, the increasing demand for logistics and warehousing is also being driven by the growth of e-commerce and the need for last-mile delivery services. These factors collectively highlight the interconnected nature of the retail, packaged goods, and logistics sectors, driving market growth.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is integral to the retail and hypermarket industries for product packaging and safety. These films are essential for extending the shelf-life of food products and preventing issues like leakers or damage to rigid or sharp-edged products during transportation. Key attributes such as impact resistance and the use of lightweight materials make them ideal for industrial packaging and securing cargo. The personal care industry, including body care, skincare, and the cosmetics sector, also relies heavily on stretch and shrink films for packaging applications. Materials commonly used in these films include polyethylene, PVC, and LLDPE (Linear Low-Density Polyethylene). They are utilized in various forms, including hoods, and are crucial components in the food & beverage sector for ensuring product safety and freshness. Our researchers analyzed the market research and growth 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.
The growth of the market is significantly driven by the expansion of the retail sector. Large organized retail stores offer a wide variety of consumer products, including household items, furnishings, personal care products, and home decor, all under one roof. Additionally, the rise of e-commerce and online retailing plays a crucial role in this growth. Increasing internet penetration and the widespread use of smart gadgets enhance consumer access to online shopping platforms.
Furthermore, the convenience of online shopping, along with improved transactional and security features of e-commerce platforms, boosts online retailing among consumers. Stretch and shrink films are commonly utilized for packaging consumer products in the e-commerce industry. Moreover, small and local market players are leveraging online platforms to make their products available on a national scale, thereby increasing their sales. As internet penetration continues to widen and consumer trust in online retail grows, combined with faster shipping services and a shifting consumer preference, the e-commerce market is expected to drive significant growth in the stretch and shrink film industry during the forecast period.
The increasing adoption of bioplastics is one of the key trends positively impacting the market in the forecast period. The demand for biodegradable plastic products is rapidly rising in both industrial and consumer goods applications, particularly in the packaging industry. This growth is fueled by the growing need for effective waste management, which has spurred the bio-based plastic industry. Bio-based resins, derived from renewable raw materials such as sugarcane, wood pulp, soybean, coffee, castor plant seeds, and corn, are becoming increasingly popular.
Furthermore, eco-friendly initiatives by corporations, along with the abundant availability of raw materials for manufacturing bioplastics, have also boosted the use of biodegradable packaging. Companies like FKuR Kunststoff GmbH offer a wide range of bioplastics-based stretch and shrink films, including Green LDPE SBF 0323 HC, Green LDPE SBF 0323/12HC, Green LLDPE SLH 118, Green LLDPE SLH 218, Green LLDPE SLL 118, and Green LLDPE SLL 318. Additionally, the continuous development of new products by polymer manufacturers is expected to further drive market growth during the forecast years.
One of the key challenges to the growth of the market is the volatility in raw material prices. The prices of raw materials used to manufacture these films are highly unpredictable due to their high dependence on crude oil prices. The price volatility of petroleum-based raw materials, coupled with the increasing demand for stretch and shrink film products in emerging economies, is hindering market growth.
Furthermore, raw materials such as LLDPE, polyvinyl chloride, LDPE, HDPE, polypropylene, polyolefin, binders, and additives frequently fluctuate in price because they are petroleum derivatives. The recent decline in crude oil prices has led players in the oil and gas industry to implement cost-cutting measures, including workforce layoffs and rig idling. For instance, Brent crude oil fell to USD 104.58 per barrel in April 2022 from USD 117.25 per barrel in March 2022. Such fluctuations in raw material prices can lead to market unpredictability, adversely affect production costs, and reduce vendors' profit margins, ultimately hampering market growth during the forecast period.
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 and forecasting strategies.
Market Customer Landscape
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.
Allied Propack Pvt. Ltd. - The company offers stretch and shrink films such as Pe Heat, Polythene, and Pallet Hood Cover.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The market share growth by the food and beverages segment will be significant during the forecast period. Stretch and shrink film wraps are versatile packaging materials and can be used in the packaging of a variety of fresh food and beverage products such as dairy products, meat, seafood, poultry, fruits, vegetables, cheese, seafood, and meat. Shrink films are widely used in food and beverage packaging due to their high strength and durability. Thus, the rising demand from the packaged food and beverages industry will drive the segment growth.
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The food and beverages segment showed a gradual increase in the market share of USD 5.36 billion in 2018. The consumer goods industry, including personal care items like body care, skincare, and cosmetics, also utilizes shrink films for hand care products and exposed electrical wires. Moreover, the food & beverage sector's expansion, driven by the smartphone demand and e-commerce growth, necessitates the use of efficient packaging applications. The implementation of circular economy models and the adoption of biodegradable materials and recycling technologies further contribute to the market's growth.
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APAC is estimated to contribute 50% 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.
Hand care products, another application area, also benefit from the protective properties of these films. Exposed electrical wires and smartphone demand necessitate the use of films with optimal oxygen transmission rates. In the food and beverage sector, stretch and shrink films are indispensable for case-ready packaging, ensuring product presentation and preservation. The steady rise in production of end-products for domestic use as well as exports will facilitate the market growth in APAC over the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Micro Perforated Films Market: Micro Perforated Films Market by Material, Application and Geography - Forecast and Analysis
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Flexible Packaging Market in North America: Flexible Packaging Market in North America by Material and Geography - Forecast and Analysis
The market is crucial for ensuring the package integrity and presentation of products, especially in the food and beverage and pharmaceutical industries. These films offer puncture resistance and are designed to withstand freezing temperatures, making them ideal for packaging frozen food items, ready-to-eat meals, and canned products. Manufacturers are increasingly using eco-friendly materials in response to plastics regulations and environmental concerns. Polyethylene (PE) shrink film and LLDPE stretch films are among the popular choices, along with polyvinylchloride-based films for various applications. Advanced technologies such as multilayer and polymer blend technology are driving innovations in flexible plastic packagings, while sleeves and labels play a crucial role in the beverage industry and other consumer goods applications. Despite challenges like plastic waste generation, the market continues to evolve with a focus on sustainable packaging alternatives and waste reduction.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2024-2028 |
USD 3.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, India, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allied Propack Pvt. Ltd., American Eagle Packaging, Anchor Packaging LLC, Baoding Enshi Packaging Co. Ltd., Barbier Group, Berry Global Inc., Bollore SE, C.I. TAKIRON Corp., Coveris Management GmbH, Dow Chemical Co., Eurofilms Extrusion Ltd., Exxon Mobil Corp., Fuji Seal International Inc., HIPAC SpA, Inteplast Group, Intertape Polymer Group Inc., IPS Packaging and Automation, ISOFlex Packaging Corp., Paragon Films Inc., Rollsion Product Inc., and SmartShield Packaging |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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