Shrink Plastic Film Market Size, Share, Trends, Growth 2030

Shrink Plastic Film Industry Prospective:

The global shrink plastic film market size was worth around USD 2.3 billion in 2021 and is predicted to grow to around USD 3.3 billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.2% between 2022 and 2030.

The report analyzes the global shrink plastic film market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the shrink plastic film market.

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Shrink Plastic Film Market: Overview

Shrink plastic films are utilized for wrapping boxes, food, and bottles. These are made from polymer plastic film. The plastic covers the product and external heat is provided to the plastic so that it shrinks tightly around the product. Such plastic films comprise polypropylene, polyethylene, PVC, polyolefin, and many other compositions. Polyolefin is a widely used plastic film owing to its physical and chemical properties like clarity, wide availability, durability, availability in a variety of thicknesses, shrink ratio, and many others.

Key Insights

• As per the analysis shared by our research analyst, the global shrink plastic film market is estimated to grow annually at a CAGR of around 4.2% over the forecast period (2022-2028).
• In terms of revenue, the global shrink plastic film market size was valued at around USD 2.3 billion in 2021 and is projected to reach USD 3.3 billion, by 2030.
• The constant replacement of conventional food packaging material with shrink films attributes significantly to its growing demand in the global market.
• Based on the form, the flat roll-stock segment held the largest market share in 2021.
• Based on the application, the food & beverages segment accounted for the largest revenue share in 2021.
• Based on region, the Asia Pacific is expected to hold the largest market share during the forecast period.

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Shrink Plastic Film Market: Growth Drivers

Expanding the use of polyolefin shrink plastic films in the packaging industry to drive the market growth

Polyolefin shrink plastic films are incredibly resilient and flexible. These films can be used to bundle a wide range of items together and have good tensile strength. Additionally, cross-linked polyolefin film helps keep the buildup on machinery sealing components to a minimum. Due to their qualities, polyolefin shrink plastic films are frequently utilized in the packaging sector. These films are also commonly utilized in the food packaging industry because they have FDA approval and are recognized as food-safe materials.

Shrink plastic film demand is anticipated to expand in the coming years as a result of a greater understanding of the many advantages and uses of polyolefin films. Furthermore, Polyolefin shrinks plastic films are the best option for securing irregularly shaped products for the entire supply chain because of their high seal strength and puncture resistance. Manufacturers of packaging are increasingly relying on polyolefin due to its wide range of benefits and affordability. Thus, driving the global shrink plastic film market growth over the forecast period.

Shrink Plastic Film Market: Restraints

Strong Competition from Traditional Packaging

Global packaging demand exceeded USD 917.1 billion in 2019 and is anticipated to increase significantly in the future. Online and e-commerce shopping are expanding significantly at the same time. Stretch and shrink films face fierce competition from conventional packaging methods like containers, films, corrugated packaging, and other techniques. As stretch and shrink films do not offer the necessary protection, there are still a lot of products on the global markets that are not film sped up. However, more research and development into the quality of stretch and shrink films is anticipated to boost their demand in global markets. Thus, the strong competition from traditional packaging is expected to restrain the market expansion.

Shrink Plastic Film Market: Opportunities

The printed shrink plastic film provides a lucrative opportunity

The global shrink plastic films market is growing as a result of the increased demand for printed shrink plastic films in the beverage packaging sector. Since shrink plastic films lighten the product, they are an eco-friendly packaging option. It provides a straightforward answer to the need for lighter packing and reduced waste. Inexpensive shrink plastic films are also attractive on the shelf. Saving money on things like pre-labeled goods and UPCs is possible using printed shrink plastic films. These films also lessen the need for additional polyvinyl chloride sleeves for branding and adhesives. As a result, there has been an increase in demand for shrink plastic films in the beverage packaging industry since these films offer businesses searching for sustainable, affordable, and shelf-appealing packaging options a one-stop shop. Thus, providing a lucrative opportunity for market expansion.

Shrink Plastic Film Market: Challenges

Availability of substitutes  

The availability of plastic substitutes is expected to place limitations on the global market for shrink plastic films. Regular plastic films used for product packaging are less expensive than shrink plastic films. This might reduce the demand for shrink plastic films in the near future. Biodegradable plastic is currently available. There is a considerable demand for biodegradable polymers as a result of growing environmental awareness. Further hindering the market's growth is the general view around the world about the use and disposal of plastic films and other similar products. According to a survey, humans use 500 billion plastic bags annually.

Shrink Plastic Film Market: Segmentation

The global shrink plastic film market is segmented based on type, form, application, and region

Based on the form, the global market is bifurcated into flat roll-stock, center-folded film, and pre-formed plastic shrink bags. The flat roll-stock segment held the largest market share in 2021, and this is anticipated to remain dominant during the anticipated time frame. The availability of flat roll stock in various sizes, which is used to pack a wide range of goods, is the factor driving the market in this category. The lightweight characteristics of shrink plastic film and its resistance to water, dust, and other elements are driving its use in numerous applications and boosting market growth.

Based on application, the global shrink plastic film is categorized into buildings, product packaging, food & beverages packaging, industrial packaging, and others. The largest market share in 2021 was held by the Food & Beverage Packaging segment, and this is anticipated to hold over the estimated time. Food and beverage were the greatest use for shrink plastic films because of the rise in demand for packaged foods such as ready-to-eat meals, frozen meals, snack foods, and bakery goods. Additionally, it is anticipated that there would be an increase in the demand for packaging fresh and frozen food items such as meat, fruits, and vegetables. The most typical application for shrink plastic films is in the processing of foods. The need for such equipment to store and transport retail and bulk beverages like coffee is expected to increase.

Recent Developments:

• In February 2021, a memorandum of understanding (MoU) was signed by Dow and Lucro Plastecycle, an Indian recycling business, to jointly develop and commercialize polyethylene (PE) film solutions derived from post-consumer recycled (PCR) plastics in India. This collaboration broadens Dow's circularity portfolio in the Asia Pacific region while bringing a closed-loop packaging solution to India to support the growth of a circular economy.
• In June 2019, medium shrink and low shrink force PET films were introduced by Indian film manufacturer Garware Polyester. For HDPE and LLDPE containers where a strong shrink force is not available to shrink the films over the container, low shrink films are produced. The films would have a thickness of 40–45–50 microns, and customers wouldn't need to make any special adjustments. The business has also been preparing to launch a distribution hub in North America.

Shrink Plastic Film Market Report Scope:

Shrink Plastic Film Market: Regional Analysis

The Asia Pacific is expected to hold the largest market share during the forecast period

The Asia Pacific is expected to hold the largest global shrink plastic film market share during the forecast period. The regional growth is attributed to the growing markets for foods and beverages, especially in China and India. Moreover, future years are projected to see an increased need for flexible packaging due to rising disposable income and expanding packaged food demand. For instance, According to the India Brand Equity Foundation (IBEF), the food business was worth US$ 39.71 billion in 2017 and is predicted to grow to US$ 65.4 billion in 2018, with an 11% CAGR. Furthermore, in recent years, the region's pharmaceutical industry has experienced rapid growth. It has become more important because of how people's lifestyles are changing and how many more people are getting diagnosed with diseases like cancer and heart issues.

The Asia Pacific region has seen an increase in healthcare spending as a result. China's overall public and private healthcare spending hit USD 948 billion in 2019 and is projected to nearly double to USD 2 trillion by 2030, according to a study issued by the International Trade Administration. The country's pharmaceutical industry is anticipated to grow as a result of these factors, which will increase demand for the shrink plastic films used in the supply chain and for product transportation.

On the other hand, Europe is expected to hold a significant market share over the forecast period. With more than 500 pharmaceutical firms producing drugs worth USD 39.2 billion in 2019, Germany is a key producer of medicines in Europe. With the nation's production of COVID-19 vaccinations in 2020, the value increased even more. Bayer, Boehringer Ingelheim, and Merck are a few notable pharmaceutical firms. Due to the advantages of hygiene and contamination control, this well-established pharmaceutical business requires significant quantities of shrink plastic films compared to other films. This is anticipated to spur market expansion in the region over the coming years.

Shrink Plastic Film Market: Competitive Analysis

The global shrink plastic film market is dominated by players like:

• RKW SE
• Sealed Air
• Plastotecnica Spa
• Clondalkin Group Holdings Bv
• Ceisa Packaging Sas
• Vishakha Polyfab Pvt Ltd
• Coveris Holdings S.A.
• Bemis Company Inc
• Amcor Limited
• Berry Plastics Corporation 
• Aep Industries Inc.

The global shrink plastic film market is segmented as follows:

By Type

• Printed
• Unprinted

By Form

• Flat Roll-stock
• Center-folded Film
• Pre-formed Plastics Shrink Bags

By Application

• Buildings
• Product Packaging
• Food & Beverages Packaging
• Industrial Packaging
• Others

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