Shrink Films Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global Shrink Films market reached a value of about USD 4.4 billion in 2021. The industry is projected to grow at a CAGR of around 5.3% in the forecast period of 2022-2027 to reach a value of about USD 6 billion by 2027.

The global Shrink Films industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The demand for the product from various end-user industries, including packaging, etc., drives the market growth. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Shrinkwrap, commonly known as shrink film, is a polymer plastic material, and it shrinks tightly over whatever it is covering when heated. A portable heat gun can provide heat, or the product and film can be sent through a heat tunnel. They have a wide range of applications and are commonly used to wrap food, gift baskets, cartoons, toys, books, soaps, and other items. The Shrink Films industry report comprises segments by application (food, beverages, healthcare, and consumer goods) and region (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific is the largest market due to the millennial generation's growing need for bottled drinking water and fizzy beverages. Polyolefin shrink films are becoming more popular, thanks to the developing packaging and healthcare sectors in nations like China, India, Japan, and South Korea. In addition, China has the world's second-largest packaging industry due to the introduction of customised packaging and the rising demand for packaged consumer products.

The industry is primarily driven by the extensive application of the product in various end-user industries. The product is extensively employed in packaging different food and beverage products. Furthermore, the growing popularity of ready-to-eat meals, frozen food items like meat, fruits and vegetables, etc., augmenting the market growth. Moreover, the demand for bottled water in developed regions also propels industry growth. Other factors bolstering demand in the sector are rising alcohol consumption, increased disposable income, and robust sealing features of the product. In addition, the wide range of properties of the material, such as availability, range of thickness, clarities, strengths, and shrink ratio, is gaining traction. Other characteristics of the product are its low weight and resilience to water, dust, and other elements driving its use in various applications, thus resulting in the industry's growth.

However, the adverse effects of the material on the environment, paired with the availability of other substitutes, are hampering the industry's expansion.

Best Procurement Practices

The global Shrink Films industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major international Shrink Films regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

After the film is warmed, it is stretched out to orientate the molecules from their casual model. The film's qualities are established until it is warmed, at which point it shrinks back to its original size. The molecules in a sheet or tube are randomly entangled, coiled, and twisted and have no specific alignment before orientation. The unstructured sections of the chains are straightened out and aligned to the route of direction when a draw force is employed. The molecules will be frozen in this condition if suitable cooling is used until enough heat energy is given to allow the chains to shorten again. On a commercial scale, either a tenter frame or a bubble technique can be used to obtain orientation. Tenterframe technology is used to make several "heat-set" goods, the most popular biaxially orientated polypropylene (BOPP). The bubble process is the second commercial method. A primary tube is made in this technique by blowing or casting it onto an external or internal mandrel. At this time, it's normal to use water to assist cool the principal tube. After cooling, the primary tube is warmed and expanded into a second bubble with air. When the tube is inflated, it is orientated in both directions simultaneously.

Major Demand from the Packaging Industry, Further Propelling the Procurement of Shrink Films

The industry is being propelled by the product's extensive application in the packaging of items during transportation, furthering the product's demand. Furthermore, the rapid development of the fast-moving consumer goods sector, driven by the factors such as increased expenditure on premium and healthier products, is furthering the market's expansion. The growing globalisation has led to the advancement of the e-commerce sector, which drives the need for logistic services. As a result, the packaging industry heavily relies on the product for packaging, boosting sales.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Shrink Films Industry Report

• Amcor Flexibles
• Berry Global
• RKW Group
• Sealed Air Corporation
• Kureha Corporation

Market Landscape

The polyolefin shrink film market is very fragmented, and the worldwide pre-stretch film market has seen steady expansion thanks to several global businesses. The top players from the Asia-Pacific region have dominated the shrink plastic film market in terms of value and volume.

Key Initiatives by Companies

• Dow and Plastigaur will launch recycled plastic collation shrink sheets in February 2021. For the first time, Dow's Agility C.E. resin, which is 70% recycled plastic, has been selected for large-scale commercial use. Agility C.E. resin is used by Plastigaur, a prominent Spanish film converter, in their collation shrink film, extensively used in the transportation of cans and PET bottles.
• Dow signed a memorandum of understanding with Lucro Plastecycle, an Indian recycling firm, in February 2021 to develop and commercialise polyethylene (P.E.) film solutions derived from post-consumer recycled (PCR) plastics in India. This agreement will provide a closed-loop packaging solution to help India establish a circular economy while increasing Dow's circularity portfolio in the Asia Pacific.