Stretch and Shrink Film Market size is set to grow by USD 3.57 billion from 2024-2028, Growth in retail sector boost the market, Technavio

NEW YORK, July 10, 2024 /PRNewswire/ — The global stretch and shrink film market size is estimated to grow by USD 3.57 billion from 2024-2028, at a CAGR of 4.5%, driven by growth in the retail sector and increasing adoption of bioplastics. However, volatility in raw material prices poses a challenge. Innovations in sustainable packaging include the development of biodegradable and recyclable films, and use of bio-based materials. Key market players include Allied Propack, American Eagle Packaging, Anchor Packaging, Baoding Enshi Packaging, Barbier Group, Berry Global, Bollore SE, Dow Chemical, and Exxon Mobil.

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Market Driver

The Stretch and Shrink Film Market is experiencing significant growth due to increasing demand for eco-friendly and biodegradable plastic products. Bioplastics, made from renewable raw materials like corn, wheat, sugarcane, and other biomass, are gaining popularity in industrial and consumer goods applications, particularly in the packaging industry. Bio-based plastics, which use biodegradable base materials in bio-based plastic films, are expanding the scope of stretch and shrink films. The waste management industry’s growing requirement and the availability of abundant raw materials for manufacturing bioplastics are driving the industry’s growth. Bio-based resins, derived from sugarcane, wood pulp, soybean, coffee, castor plant seeds, and corn, are used to make eco-friendly plastic straps. Bioplastics offer a reduction in emissions and carbon footprint compared to petroleum-based resins. The food and beverages, fiber and textile, paper and printing, and electronics industries use stretch and shrrink films extensively. The trend toward bioplastic packaging is expected to continue, but the transition from conventional plastics will be gradual. Continuous product development by polymer manufacturers is a significant market trend, with new innovations driving competition. 

The Stretch and Shrink Film market is thriving, particularly in the food industry. Films extend shelf-life and ensure package integrity for various food products, including frozen foods and ready-to-eat meals. SABIC and Mitsubishi Plastics lead in supplying impact and puncture-resistant films for leakers. Premium presentation is key for consumer goods, driving demand for advanced technologies like stretch hoods and sleeves. Eco-friendly materials, such as LDPE resin, are trending, as are corrugate and paperboard alternatives. The frozen food industry, beverage sector, and pharmaceutical products are major consumers. Raw material costs and plastics regulations impact market growth. Developing economies and retail networks expand the market, while industrial goods, cargo, and goods transportation benefit from lightweight, easy-to-transport films. Form-fill-seal applications, collation wrap, and pre-made pouches are popular. The market caters to industries like confectionaries, canned products, and carbo-loaded beverages. 

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Market Challenges

• The global stretch and shrink film market faces challenges due to the unpredictability of raw material prices, primarily driven by crude oil. Crude oil prices significantly impact the cost of raw materials such as LLDPE, polyvinyl chloride, LDPE, HDPE, polypropylene, polyolefin, binders, and additives, which are petroleum derivatives. Fluctuations in crude oil prices can lead to increased production costs, reduced profit margins for vendors, and market instability. The average price of Brent crude oil declined from USD 101 per barrel in 2022 to USD 83 per barrel in 2023 but rose to USD 85.41 per barrel in March 2024. These price fluctuations result from a demand-supply imbalance in the global crude oil market. The increasing demand for stretch and shrink films in emerging economies further complicates the market situation. Therefore, the volatility in crude oil prices is expected to hinder the growth of the global stretch and shrink film market during the forecast period.
• The Stretch and Shrink Film Market encompasses various types of plastic films, including LLDPE, LDPE, and PVC, used for hoods, sleeves, labels, wraps, and packaging applications in sectors like Food & Beverage, Consumer Goods, and Pharmaceutical. The use of these films in stretch films for industrial packaging and shrink films for food & beverage applications provides benefits such as longer shelf life and visual appeal. However, challenges exist in the form of environmental concerns and plastic waste generation. Revenue is generated from sleeves & labels, food & beverage applications, industrial packaging applications, and pharmaceutical applications. E-commerce growth and urbanization increase demand. Circular economy models, biodegradable materials, recycling technologies, and sustainable packaging practices are crucial to address recycling challenges and offer sustainable alternatives. Polyethylene and Polypropylene are common materials, but manufacturing activities must consider the impact on the environment.

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Segment Overview 

This stretch and shrink film market report extensively covers market segmentation by  

1. Application 

• 1.1 Food and beverages
• 1.2 Industrial or bulk
• 1.3 Consumer goods
• 1.4 Pharmaceuticals

Type 

• 2.1 Stretch film
• 2.2 Shrink film

Geography 

• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Food and beverages-  The global stretch and shrink film market is primarily driven by the food and beverages segment. This sector is anticipated to witness substantial growth due to the increasing demand from the packaged food and beverages industry. Stretch and shrink films are versatile packaging materials used for various fresh food and beverage products such as dairy, meat, seafood, poultry, fruits, vegetables, cheese, and meat. Shrink films are preferred for their high strength and durability, making them suitable for heavy loads. They protect cargo during warehousing, logistics, and distribution. Shrink films are particularly used for wrapping baked goods due to their ability to resist moisture. Clear shrink films offer a display solution for food products. Baked goods like muffins, doughnuts, cookies, and gourmet products are commonly wrapped with shrink films. Stretch films are ideal for packaging bottled and canned beverage products due to their ability to bear heavy-weight freight. Beverage manufacturing companies use semi-automatic and automatic stretch film wrapping machines to increase operational speed and reduce workforce requirements. The demand for liquid beverages is expected to grow significantly, leading to increased demand for stretch and shrink films.

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Research Analysis

Stretch and shrink films are essential plastic packaging solutions widely used in various industries for their ability to adapt to different shapes and sizes. These films offer extended shelf-life to food products by preventing air and moisture intrusion. In industrial packaging, they ensure impact resistance during transportation of cargo and goods. Lightweight materials make them ideal for the personal care industry, where they are used in body care, skincare, and cosmetics sector applications. Stretch films are known for their elasticity, while shrink films shrink during heating to form a tight seal around the packaged item. Both films come in various materials such as polyethylene, polypropylene, and PVC. Hoods are often used in conjunction with these films to provide additional protection. The food & beverage sector is a significant market for these films due to their ability to maintain product freshness and prevent leakers.

Market Research Overview

The Stretch and Shrink Film Market encompasses a diverse range of plastic films used for various packaging applications in industries such as food and beverage, consumer goods, pharmaceutical, and industrial goods. These films offer benefits like extended shelf-life, impact and puncture resistance, and premium product presentation. They are used in different gauges and sizes for various applications, including form-fill-seal, stretch hoods, sleeves, collation wrap, pre-made pouches, and shrink films. The market caters to various sectors like the frozen food industry, ready-to-eat meals, canned products, beverage industry, and packaging for industrial goods, retail networks, and cargo. Advanced technologies and eco-friendly materials like LDPE resin, PVC-based films, and biodegradable materials are increasingly being adopted to meet sustainability demands. Key applications include food packaging for meats, cheeses, poultry, and case-ready packaging. The market is influenced by factors like raw material costs, packaging trends, and regulations. Industries like the pharmaceutical sector, personal care industry, and beverage industry also use stretch and shrink films for their products. The market is expected to grow due to the increasing demand for lightweight materials, waste reduction, and ease of transportation. Additionally, the development of advanced technologies and circular economy models will further drive market growth.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Application
• Food And Beverages
• Industrial Or Bulk
• Consumer Goods
• Pharmaceuticals
• Type
• Stretch Film
• Shrink Film
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

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