US Packaging Wrap

US Packaging Wrap

Demand for packaging wrap in the US is projected to increase 2.4% per year to $2.5 billion in 2026. The inflationary pressures on raw material costs that drove prices upward in 2021 and 2022 are expected to recede somewhat in the coming years, which will slow growth in value terms. Real demand growth will be supported by the ongoing shift away from rigid packaging and the increasing popularity of case-ready and pre-wrapped meats and other fresh products, the largest outlets for packaging wrap.Sustainability Efforts Have Strong Influence on Demand for Wrap
Both suppliers and end users of packaging wrap have sustainability goals, which have a complicated effect on demand for wrap. On one hand, the general shift favoring flexible packaging will be beneficial to wrap demand, as will food waste reduction efforts achieved by using wrap to package meat and other fresh foods in smaller portion-sized amounts. At the same time, efforts to reduce secondary and other inessential packaging – such as film overwrap of beverage containers or pharmaceutical products – will serve to curb packaging wrap demand in those applications.

Performance Characteristics Ensures Plastic Retains Market Share

Plastic is expected to remain the dominant material used to produce packaging wrap. While paper wrap will retain much of its market presence (due in part to its image as an environmentally preferable material), it is not expected to take market share from plastic wrap as it has for pouches. Instead, plastic wrap will actually increase in popularity as it offers better barrier properties and moisture protection in food packaging and other applications where such attributes are required.

Major Food Applications to Lead Growth

The market for packaging wrap is fairly mature, and the prospects for wrap demand are primarily determined by the outlook for the major markets in which they are used. Wrap markets that will have the biggest impact on wrap demand are meat, poultry, and seafood; and fresh produce:

•  Growth in the meat, poultry, and seafood market – by far the largest market for packaging wrap – will be driven by increased packaging of products into single portions, and the growing popularity of case-ready fresh meat and ready-to-cook meal items such as specialty ready-to-cook cheeseburgers.
  
•  Gains in the produce market will result mainly from the increased share of fresh produce being packaged rather than being sold unpackaged in retail stores.
  

Study Description

This study examines the US market for packaging wrap. Historical data are provided for 2011, 2016, and 2021, with forecasts through 2026. Also provided is an analysis of key industry players.