Shrink Plastic Film Market Forecasts to 2028 – Global Analysis By Material Type (Polyvinyl Chloride (PVC), Polyethylene (PE), Polyolefin (POF) and Other Material Types), Thickness (Above 150 micron, 100-150 micron, 50-100 micron and Less than 50 micron),

Shrink Plastic Film Market Forecasts to 2028 – Global Analysis By Material Type (Polyvinyl Chloride (PVC), Polyethylene (PE), Polyolefin (POF) and Other Material Types), Thickness (Above 150 micron, 100-150 micron, 50-100 micron and Less than 50 micron), Type (Printed and Unprinted), Application Packaging (Labels, Wraps and Bags), Multipack Sizes, End User and By Geography

According to Stratistics MRC, the Global Shrink Plastic Film Market is accounted for $2.78 billion in 2022 and is expected to reach $3.83 billion by 2028 growing at a CAGR of 5.5% during the forecast period. Shrink film is a flexible polymer material used for finished goods packaging. A conveyor heat tunnel or an electric or gas heat gun is used to apply heat to the film, causing it to shrink closely around the item placed within. The growing retail and hypermarket industries, as well as the rising e-commerce business, as well as the requirement for product packaging and safety, are the key factors driving market expansion. The films provide advantages such as extended shelf life for one wide range of food items, reduced leakers while packing stiff or sharp-edged products, major intensity and puncture resistance, and high impact and puncture resistance. Furthermore, it provides premium product presentation, kept durability at freezing conditions, and preserved package integrity, all of which contribute to market growth.

According to the National Renewable Energy Laboratory, US Department of Energy, more than 82 million metric tons of polyethylene terephthalate (PET) is produced each year globally to make single-use beverage bottles, packaging, clothing, and carpets. The volume is expected to reach 600 million tons by 2050.

Market Dynamics

Driver:

Excessive Alcohol Consumption

The most common global trend is an increase in recorded per capita alcohol use. This trend is also beneficial to the shrink plastic film market for beverage multipacks. A market for multipacks is emerging as a result of rising demand. The huge increase in worldwide population and rising disposable income are the key variables driving beer and other alcoholic beverage consumption. Another driving element is the alcoholic beverage producers' high commercialization and enhanced distribution routes, as well as the purchase channels they use, such as internet stores. Furthermore, rising per capita income, combined with rising youth disposable money, has increased alcoholic beverage consumption which in turn boosting the shrink film market.

Restraint

Raw material scarcity

Increased demand for shrink plastic film is driving rising demand for virgin plastics, as demand exceeds supply. Supply has been constrained due to the shutdown of plastic manufacturing plants in China, the United States, and Germany. Furthermore, Russia and Saudi Arabia's pricing battle is causing supply chain bottlenecks. China is critical to the supply chain of the American plastics industry. Packaging inks and coatings are also under supply chain strain due to global raw material shortages and quick price increases which hindered the growth of the market.

Opportunity

Growing packaged beverage utilization

The primary opportunity in the shrink plastic film market is changing consumer consumption patterns with an increase in demand for ready-to-drink beverages. Customers like bottled beverages because they are healthful, safe, convenient, refreshing, and easy to transport. They are interested in alternative packaging materials to the standard glass bottle packaging in cartons. They require lightweight, portable beverage multipacks for long-term use. Furthermore, as consumer awareness grows, they are looking for an environmentally responsible packaging solution. Shrink film packaging offers a packaging solution that includes all of the attributes desired by the client. As a result of increased beverage consumption, the market for beverage multipacks expands as customers purchase more beverage multipacks.

Threat

High cost associated with the testing of the packaging

Packaging manufacturers must assure the use of high-quality packaging materials since they come into direct contact with products such as food, pharmaceuticals, or personal care items that have a direct impact on consumer health. As a result, the packaging manufacturer must conduct a thorough toxicological analysis test. The cost of evaluating plastics and other materials rises in tandem with migration. Automatic instruments produce more consistent and timely test findings. Unfortunately, because of the high cost of instruments, testing costs rise as well. Because of the high costs associated with testing, end-user businesses have become hesitant to undertake tests on packaging, resulting in failure to meet required regulatory standards. The high expenses of testing contribute to a rise in the price of shrink plastic film, making it harder for manufacturers to compete in the market.

Covid-19 Impact

The global epidemic of COVID-19 has had a significant influence on the shrink film sector. Because of government limitations and customer concerns about eating outside food, the breakout of the COVID-19 pandemic in 2020 benefited the ready-to-eat food industry. The epidemic has driven consumers to prioritise safety and hygiene, making packaged food a favoured choice over restaurant-cooked food. The lockdown limits had a significant influence on the foodservice industry's revenues, resulting in a decrease in sales of packaging materials like as shrink films.

The Polyvinyl Chloride (PVC) segment is expected to be the largest during the forecast period

The Polyvinyl Chloride (PVC) segment is estimated to have a lucrative growth, due to its durability, it is frequently employed in a wide range of applications. Packaging boxes, CD and DVD packaging, software, small canisters, and other non-edible products are all examples of PVC shrink wrap applications. PVC shrink wrap was the most often used shrink film until it was superseded by polyolefin (POF) shrink wrap a few years ago. The increasing use of PVC shrink film in numerous industries such as packaging, food and drinks, and pharmaceuticals is driving market expansion. Substantial growth in the consumer products industry is likely to drive significant market growth throughout the review period.

The Printed segment is expected to have the highest CAGR during the forecast period

The Printed segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the option to add branded imagery and eye-catching graphics directly on the packaging, unlike ordinary shrink film. Printed polyolefin shrink film eliminates the need for labelling while also enhancing the packaging with vivid graphics. It is a popular choice among many high-volume CPG companies. A single impression is the length of film required to wrap one bundle. Because it can be printed with full colour, high quality graphics and text, printed shrink film has substantially higher shelf appeal. This makes it significantly more appealing to customers than plain shrink film. In this way, it outperforms paperboard boxes in terms of carbon footprint, visibility, and shipping cost thereby propelling the market growth.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the consumers in the Asia Pacific region are looking for varied comfort foods and on-the-go beverage options due to the region's high population and increased purchasing power. Customers are seeking for more packaged options as their consumption patterns change as a result of increased stress and a lack of time to cook. This has resulted in an increase in the demand for bottled juices, drinks, and water. The millennial population is growing demand for carbonated and alcoholic beverages, which is driving the shrink plastic film market for beverage multipacks once again.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to due to rising food and beverage consumption, particularly in the United States and Canada. Growing demand for packaged food, combined with rising consumer disposable income, is predicted to drive demand for flexible packaging over the projection period. Furthermore, regulatory support targeted at encouraging domestic foreign direct investments as a result of political change, particularly in the United States and Canada, aimed at increasing the country's industrial output is predicted to magnify food and beverage growth.

Key players in the market

Some of the key players profiled in the Shrink Film Market include Coveris Holdings Sa, Baroda Packaging, Ceisa Semo, Amcor Plc, Plastotecnica SpA, RKW Group, Clondalkin Group, Brentwood Plastic, Inc, Elite Plastics Ltd., Xinjiang Rival Tech Co. Ltd, Poly-Pack Verpackungs-GmbH & Co. KG, Allied Propack Pvt. Ltd, Don Polymer, Sandeep Polymers, Clearpack group, Aintree Plastics Limited, Huan Yuan Plastic Film Co. Ltd, Jiangyin Bairuijia Plastics Science & Technology Co., Ltd., Berry Global Inc and Sarkina

Key Developments

In March 2023, Amcor, Nfinite enter into joint research agreement to leverage nanotechnology in recyclable and compostable packaging with Nfinite Nanotechnology Inc. to validate the use of Nfinite’s nanocoating technology to enhance both recyclable and compostable packaging.

In Feb 2023, Coveris supports leading food-to-go business, Simply Lunch launch its eye-catching new Stir Me up Salad range with vibrant packaging achieving visual appeal. Through its partnership with Coveris, Simply Lunch’s Stir Me Up Salads deliver significant environmental benefits through its new engaging packaging.

Material Types Covered:
• Polyvinyl Chloride (PVC)
• Polyethylene (PE)
• Polyolefin (POF)
• Other Material Types

Thicknesses Covered:
• Above 150 micron
• 100-150 micron
• 50-100 micron
• Less than 50 micron

Types Covered:
• Printed
• Unprinted

Application Packagings Covered:
• Labels
• Wraps
• Bags

Multipack Sizes Covered:
• 3X2
• 4X2
• 4X3
• 6X3
• Other Multipack Sizes

End Users Covered:
• Food & Beverages
• Healthcare & Pharmaceuticals
• Electronics & Electricals
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements