North America Plastic Packaging Film - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

North America Plastic Packaging Film - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The North America Plastic Packaging Film Market size is estimated at 3.77 Million tonnes in 2024, and is expected to reach 4.33 Million tonnes by 2029, growing at a CAGR of 2.81% during the forecast period (2024-2029).

Key Highlights

• The need to integrate technology with plastic film packaging is driven by rising demand for packaging materials with improved barrier qualities, product innovation, and increasing supply chain digitization. The growth of the food ingredients market in the region is driven by the growth of the food and beverage industry, increasing consumption of dairy and frozen dairy products, and increased focus on demand for processed and packaged foods. Plastic film packaging is the common packaging material. The growing demand for portable and suitable food packaging is driving the use of plastic film packaging across various industries.
• According to the US Census Bureau, from April to June 2023, the US retail e-commerce sales amounted to nearly USD 277.6 billion, marking an expansion compared to the previous quarter of 2023. Such a huge rise in e-commerce sales would push the plastic film packaging players in the region to develop new products to cater to the customer’s various needs and expand their market share in the region.
• With the increasing consumption of confectionaries and sweets, several plastic film packaging firms offer packaging products specifically catering to this demand and further driving their sales and revenues. For instance, as per the United States Census Bureau, the confectionery-producing industry revenue in the United States is expected to reach USD 10.89 billion by FY 2023​.
• Recycling and environmental considerations are essential when it comes to packaging. Plastic contamination in the oceans and landfills are both significantly impacted by packaging trash. Plastic film packaging significantly affects the environment's plastic pollution. Plastic can affect marine life and ecosystems since it takes hundreds of years to disintegrate.

Key Highlights

• Single-use packaging is either thrown away or recycled instead of being reused. According to the United States Environmental Protection Agency (EPA), about half of all municipal solid waste comprises food and materials used in food packaging. The issue with plastic packaging is that its natural degradation can take up to many years. Plastic pollutes the oceans, rivers, and lakes, and it litters the streets.

North America Plastic Packaging Film Market Trends

Polyethylene Film Is Expected to Witness Significant Growth

• Polyethylene is the primary material used in plastic film production. It is a lightweight, partially crystalline, thermoplastic resin characterized by high chemical resistance, low moisture absorption, and sound-insulating properties. The LDPE or LLDPE forms are preferred for film packaging and electrical insulation applications.
• LLDPE, a frequently employed packaging film in the industry, is characterized by its low density and the presence of comonomers that create branch-like structures on the main chain, reducing crystallinity. This results in a hazy appearance and a malleable texture. Compared to LDPE at the same density and thickness, LLDPE exhibits superior impact strength, tensile strength, puncture resistance, and elongation.
• Manufacturers are incorporating recycled polyethylene resin in flexible packaging film production. In November 2023, Amcor Group entered an agreement with NOVA Chemicals Corporation, a sustainable polyethylene producer, to procure mechanically recycled polyethylene resin (rPE) for flexible packaging films. This initiative demonstrates Amcor's commitment to circular packaging practices.
• NOVA Chemicals plans to establish its first mechanical recycling facility in Connersville, Indiana, with operations expected to begin in 2025. This collaboration will allow Amcor to acquire SYNDIGO rPE resin manufactured at NOVA Chemicals' upcoming recycling facility.
• The OECD reports that plastic consumption in the United States was 84.8 million tonnes in 2022 and is projected to reach 96.6 million tonnes in 2030. As overall plastic consumption increases, the demand for plastic packaging materials, including plastic films, is expected to rise correspondingly.

Food Segment to Show Significant Growth

• The plastic packaging film industry continues to innovate in material science, production processes, and packaging technologies. While current focus areas include high-performance barrier films, stronger and thinner materials, and improved printing capabilities, future developments may shift toward bioplastics. Due to its recyclability and biodegradability, bio-based PLA film is expected to become a significant component in food, confectionery, bakery, and snack packaging.
• The demand for pet food in Canada, driven by the large number of households owning pets, particularly dogs and cats, creates a substantial market for plastic film packaging solutions. As per Hepper, a company specializing in pet blogs, a statement from an article released in February 2024 suggests that over half of Canadian households (60%) have at least one dog or cat as pets.
• Polyethylene (PE) dominates the market in terms of volume, owing to its lightweight properties and strong resistance to chemicals and moisture. Its versatility allows for wide application, from packaging fruits and vegetables to protecting meat and seafood.
• The United States is a major consumer of frozen food. A 2023 survey by Circana revealed that frozen chicken sales in the United States reached USD 730 million, while frozen pizza sales amounted to USD 1,564 million. This high frozen food consumption is expected to drive growth in North America's films and wraps segment.
• The growth in supermarket and grocery store sales typically correlates with increased demand for packaging materials, including plastic films used for various food and beverage products.
• According to the US Census Bureau, sales at United States supermarkets and other grocery stores rose from USD 600.95 billion in 2016 to approximately USD 846.38 billion in 2023.

North America Plastic Film Packaging Industry Overview

The North American plastic packaging film market is fragmented due to the establishment of numerous manufacturers of plastic films. Players in this market often adopt key strategies such as product launches, collaboration, and partnerships to enhance their market presence and ensure sustainability. These strategies allow them to expand their operational capabilities, access new markets, and strengthen their competitive edge.

• April 2024: Amcor Flexibles North America, a prominent global packaging player, launched its expansion plans to bolster its dairy production capacity. The company is set to elevate its printing and converting capabilities in Northeast Wisconsin, United States, within the next 18 months. This strategic move is in direct response to the escalating demand for flexible dairy packaging.
• November 2023: Berry Global launched an enhanced iteration of its Omni Xtra polyethylene cling film, designed for fresh food applications. This new variant serves as a high-performance substitute for conventional polyvinyl chloride (PVC) cling films. While the original Omni Xtra film was well-received for packaging fruits, vegetables, meats, poultry, and various deli and bakery items, the upgraded Omni Xtra+ film boasts enhanced elasticity, uniform stretching, and superior impact resistance.

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