Shrink Film Market Expected to Reach $8.0 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Shrink Film Market," The shrink film market size was valued at $4.7 billion in 2021, and shrink film industry is estimated to reach $8.0 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.

Shrink films are flexible packaging films that are sealed around a product and shrink tightly when heat is applied. Shrink films find wide usage in packaging of food items and other consumer goods.

Shrink films find applications in packaging of food such as meat, poultry and seafood, bakery & confectionary, and various others. Shrink films are primarily made up of polyethylene material which is cost efficient as compared to other raw materials. On the other hand, polypropylene shrink films have high heat resistance and provide good transparency as compared to polyethylene and polyvinyl chloride shrink films.

Globalization has led to rapid growth of import and export businesses of manufacturers worldwide. This has resulted in large supply chains and increased the role of logistics, with companies adopting flexible packaging to optimize packaging systems for efficient and effective delivery which led to increase in the demand for shrink films in the market. Low-cost, lightweight, tight sealing ability, and damage-resistant features of shrink films packaging make it the highly-sought after packaging product in the transport industry.

Moreover, e-commerce players have taken to shrink films seeing their advantages over stretch and other films. Key features of shrink films such as cost efficiency, high barrier resistance, and damage control packaging characteristics have proved beneficial for e-commerce players to ensure convenient and efficient delivery of their products. However, increasing government rules and regulations towards plastic packaging can hinder the shrink film market.

The high reliance of customers on packaged food products and the strong foothold of the food processing companies in the region have increased the demand for shrink films. U.S. emerged as the largest food packaging market in North America in 2020 on account of a large food manufacturing base in the country. For instance, it accounted for approximately 19.0% of the total milk produced globally as of 2020. In addition, the U.S. accounted for 28.0% of the total cheese production across the world in 2020. The dairy industry is one of the key sectors for food packaging manufacturers in the U.S.

Moreover, the growing popularity of plant-based dairy products is expected to offer lucrative opportunities for the packaging product manufacturers in the country over the forecast period. The country is home to a diverse global population with high adoption of multiple global cuisines, such as Japanese, Indian, Mexican, Chinese, and Spanish. Thus, consumers are increasingly opting for food away from home for a different cuisine experience, benefitting the sales of foodservice outlets, thereby driving the shrink film market growth for food packaging.

The shrink film market forecast is segmented on the basis of material type, thickness, packaging application, end-use and region. On the basis of material type, it is classified into polyvinyl chloride (PVC), polyolefin (POF), polyethylene (PE), and others. In material type, the polyethylene segment is further divided into High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), and Linear Low-Density Polyethylene (LLDPE). On the basis of thickness, the market is categorized into Less than 50 micron, 50-100 micron, 100-150 micron, and Above 150 micron.

On the basis of packaging application, the market is fragmented into wraps, bags, and labels. On the basis of end-use, the market is segmented into food, beverages, healthcare and pharmaceuticals, electronics and electricals, and others. Furthermore, the food segment is further segregated into meat, poultry, and seafood, snacks, bakery and confectionary, and others.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest shrink film market share, followed by Europe and North America.

Key findings of the study

• As per shrink film market analysis, by region, Asia-Pacific is projected to exhibit CAGR of 5.8% during 2022-2031.
• By material type, the polyethylene segment accounted for the largest share in 2021.
• By thickness, the less than 50 microns segment was the leading segment in 2021.
• By end-use, the beverage segment occupied 32.3% of total market share in 2021.
• By packaging application, the labels segment held largest market share in 2021.

Impact of Covid-19 on Global Shrink Film Market

The global COVID-19 pandemic has negative impact on the shrink film market. The outbreak of the COVID-19 pandemic in 2020 positively affected the ready-to-eat food segment due to the government restrictions and consumer apprehensions about having outside food. The pandemic has compelled consumers to focus on safety and hygiene, which has made packaged food a preferential choice over food cooked in restaurants. The lockdown restrictions severely impacted the sales of the foodervice industry, which resulted in a decline in sales of packaging materials such as shrink films.

With the ease in lockdown norms, the various industries started to produce products which are in huge demand for consumers. Food & beverage industries have started production of snacks and other food items. The increase in the demand for fast food and rise in awareness among the people regarding the importance of packaging of food materials during pandemic outbreak is also another factor which led to surge in shrink film market opportunitites.

Competitive Landscape

The major companies profiled in this report include Intertape Polymer Group Inc., Sealed Air Corporation, SYFAN USA, Clysar, Bollore Group, Kureha Corporation, Winpak Ltd., Flexopack S.A., Coveris Holdings S.A., PREMIUMPACK GmbH, Schur Flexibles Group, Kuplast Matejka Kumar S.P., Buergofol GmbH, Atlantis-Pak Co. Ltd., and Crawford Packaging. Due to rapid development in the food processing industries and e-commerce services across the globe will drive the market growth. Additional growth strategies such as expansion of storage capacities, acquisition, partnership and research & innovation in the customized packaging technologies for medical and personal care products have led to attain key developments in the global shrink film market trends.