Cellophane Market Size, Share, Trends, Growth and Forecast 2030

Cellophane Industry Prospective:

The global cellophane market size was worth around USD 369.74 million in 2022 and is predicted to grow to around USD 522.78 million by 2030 with a compound annual growth rate (CAGR) of roughly 4.49% between 2023 and 2030.

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Cellophane Market: Overview

Cellophane is a part of the packaging industry. It is a transparent, thin sheet that is made using regenerated cellulose. It shows excellent resistance to all types of greases, oil, and bacteria along with exhibiting low permeability to air and water making it an ideal choice for several packaging applications. However, it has a high permeability to water vapor but manufacturers generally tend to coat it with nitrocellulose lacquer to prevent packaged products. It is sometimes also used as a pressure-sensitive tape or an adhesive tape that sticks to surfaces when pressure is applied. Other crucial applications include taping. Cellophane can be produced using biomaterials. It is also biodegradable and compostable which means that the product is environmentally friendly. Additionally, since the material produced prismatic colors when placed between two plane polarizing filters, it is used by several artists to create stained glass-like art that is interactive and kinetic. However, there are specific problems associated with the production and manufacturing of cellophane which could act as a growth barrier against higher consumption of cellophane.

Key Insights:

• As per the analysis shared by our research analyst, the global cellophane market is estimated to grow annually at a CAGR of around 4.49% over the forecast period (2023-2030)
• In terms of revenue, the global cellophane market size was valued at around USD 369.74 million in 2022 and is projected to reach USD 522.78 million, by 2030.
• The cellophane market is projected to grow at a significant rate due to the growing focus on sustainable packaging
• Based on formation segmentation, bags were predicted to show maximum market share in the year 2022
• Based on commodity segmentation, plain transparent cellophane was the leading type in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Cellophane Market: Growth Drivers

Growing focus on sustainable packaging may drive market growth

The global cellophane market is projected to grow owing to the increasing focus and demand for sustainable packaging across end-user verticals. The packaging industry is considered as one of the most environmentally damaging sectors due to the large waste generated by the sector. The packaging industry typically uses non-biodegradable products such as plastic and thermocol for packaging and transporting products. As per the World & Resource Action Program, more than 141 million tonnes of plastic packaging is produced every year. This leads to around 1.8 billion tonnes of carbon emissions annually. In addition to this, the rapidly expanding e-commerce industry and sales through online portals are further contributing to environmental pollution as billions of products are delivered by e-commerce websites ranging from everyday consumer products to heavy machinery. As the awareness of the environmental impact of non-biodegradable packaging is growing, the demand for sustainable solutions is on the rise. Moreover, regional governments have undertaken several measures to regulate the consumption of non-sustainable packaging solutions leading to a growing number of suppliers opting for alternatives such as cellophane packaging.

Excellent characteristics of cellophane to promote higher adoption

Cellophane is a transparent material. This helps in improving product transparency as consumers can clearly see the product packaged using cellophane. These items can include food products, medicines, or any other item. From a brand’s perspective, cellophane packaging can help improve brand perception and assist in improving brand recognition. Furthermore, cellophane is more versatile in terms of printing and branding making it an excellent choice as a packaging material.

Cellophane Market: Restraints

High toxicity rate during the production of cellophane to restrict market growth

Cellophane in itself is a biodegradable material and does not contain toxic content. However, during the production process, highly toxic carbon disulfide is used thus putting the workers at severe health risks. Studies indicate that acute inhalation of carbon disulfide can lead to chest pains and changes in breathing. Other side effects include vomiting, nausea, headache, lethargy, and blurred vision. The chemical can also impact peripheral and central nervous systems leading to psychiatric disturbances. Regional regulatory bodies have initiated multiple laws and rules to regulate the use of the hazardous liquid. Companies operating in the global market must ensure protection and safety during the production of cellophane to avoid irreparable damages.

Cellophane Market: Opportunities

Growing applications in the food & beverages industry to create growth opportunities

The cellophane industry is projected to come across multiple growth opportunities owing to the increasing application of cellophane in the growing food & beverages sector where it is used to package food products. The growing population rate and subsequent demand in the food industry along with the extensive product portfolio diversification strategy adopted by market players is likely to impact the consumption of cellophane during the forecast period. The material is highly resistant to external factors such as air and water that have the potential to damage food products. This specific attribute along with the need to adopt sustainable packaging has caused higher demand for cellophane.

In recent times, several new industries have tried investing in using cellophane for packaging. In April 2016, Aethic, a London-based skincare brand, became the first company from the cosmetics sector to try cellophane packaging solutions. The company used a product developed by Novamount, an Italian MATER-BI manufacturer. On the other hand, in June 2023, Kerosram Industries Ltd. announced that it would invest an additional INR 60 crore in its wholly-owned subsidiary Cygnet Industries Ltd. The funds will be used to completely change the production ecosystem for cellulose transparent paper. The company is currently the only business in South Asia that produces cellophane paper for food wrapping and protection.

Cellophane Market: Challenges

Rising phasing out of cellophane with alternate solutions to challenge market growth

In recent times, several companies have started replacing cellophane packaging with alternate solutions which is posing a crucial challenge for the global cellophane market investors. In October 2022, Nestle, a global leader in the food industry, announced that it would replace the cellulose wrapper used for its Quality Street range with Forest Stewardship Council (FSC)-certified paper packaging solutions. The novel packaging material was developed by researchers at the Confectionary Research and Development Centre run by Nestle in association with the company’s owned Institute of Packaging Sciences. On the other hand, in May 2022, Amerplast and Woodly joined hands to develop an excellent substitute for cellophane thus disrupting the demand and consumption of the biodegradable material.

Cellophane Market: Segmentation

The global cellophane market is segmented based on formation, commodity, process, distribution network, and region.

Based on formation, the global market segments are films, bags, tapes, and others. In 2022, the highest demand was observed for the bags segment due to the greater application of cellophane-based bags to wrap and package essential food products such as bakery items, confectionery, snacks, and other consumer goods. They provide excellent moisture resistance and transparency thus driving the segmental growth. Cellophane tapes are used as adhesive tapes and are used for wrapping and sealing items such as stationery and industrial products. Films are used to wrap goods such as flowers, gift items, and cigarettes. However, cellophane and viscose rayon manufacturing together contribute to around 75% of total carbon disulfide industrial use, and the high toxicity of carbon disulfide could impede segmental growth.

Based on process, the cellophane industry divisions are battery packaging, food packaging, tobacco & cigarette packaging, pharmaceutical packaging, and others.

Based on commodity, the global market divisions are coated cellophane, plain transparent cellophane, and others. In 2022, the highest revenue-generating segment was plain transparent cellophane due to its higher application in the food industry along with the packaging of confectionery and bakery items. They are transparent materials and help improve product visibility. Coated cellophane undergoes a coating process to improve overall product performance and application. The coating is either applied on one side or both depending on the final application. Coated cellophane tends to have better heat-sealing capabilities. As of 2022, the global food packaging sector was valued at USD 363.1 billion.

Based on distribution network, the cellophane industry is fragmented into direct and indirect.

Cellophane Market: Report Scope

Cellophane Market: Regional Analysis

North America to lead with the highest growth rate during the projected timeline

The global cellophane market will witness the highest growth in North America driven by rising environmental awareness and growing demand for sustainable packaging solutions. Strict regulations surrounding the consumption of plastic packaging could shift more players in the end-user verticals to choose cellophane packaging since the product is biodegradable. The growing food & beverages sector along with the presence of crucial players that are undertaking innovation and development projects could result in higher regional growth.

Asia-Pacific is expected to emerge as a significant market. Factors such as rapid urbanization, surging industrialization, and exponential growth in the food industry may work comprehensively to deliver higher regional demand. Moreover, countries such as China and India have a robust chemical manufacturing sector with the existence of large-scale production facilities that promote the production of several chemicals including cellophane packaging solutions. The growth in the e-commerce sector and the subsequent demand for innovative packaging are crucial to Asia’s growth.

Europe, on the other hand, is likely to benefit from the growing initiatives that promote the use of environmentally friendly and biodegradable cellophane packaging. Europe is home to a well-defined and operational retail section that acts as a large consumer of cellophane-based products.

Cellophane Market: Competitive Analysis

The global cellophane market is led by players like:

• Bruker Corporation
• Smiths Detection
• FLIR Systems
• Morpho Detection
• Leidos Holdings Inc.
• L3Harris Technologies
• Westminster International Ltd.
• Rapiscan Systems
• Ion Applications Inc.
• Thermo Fisher Scientific
• Kromek Group plc
• Agilent Technologies
• DetectaChem
• Autoclear LLC
• AS&E.

The global cellophane market is segmented as follows:

By Formation

• Films
• Bags
• Tapes
• Others

By Process

• Battery Packaging
• Food Packaging
• Tobacco & Cigarettes Packaging
• Pharmaceutical Packaging
• Others

By Commodity

• Coated Cellophane
• Plain Transparent Cellophane
• Others

By Distribution Network

• Direct
• Indirect

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa