Shrink Films Category Overview
The Shrink Films Category is anticipated to grow at a CAGR of 6% from 2023 to 2030. Three primary types of films are used in shrink wrapping or packaging: polyvinyl chloride (PVC), polyolefin (POF), and polyethylene (PE). Shrink films can be converted into bags, flattened roll stock, overwrap, tubing, and banding. Shrink films can also be segregated into centerfold and single-wound films. These are mainly made from POFs and PE. PVC shrink films are extensively used for non-food goods such as CD and DVD packaging, game and software boxes, and other packaging. This is because PVC is banned in many countries due to its chemical composition and the hazardous byproducts that are generated during its synthesis and decay. Hence, companies such as Walmart take extra precautions and ensure the highest standards for use and disposal when certain manufacturers use this chemical in their packaging.
In the plastics packaging industry, the key trend is the increasing focus on sustainability. Considering the increasing momentum of the anti-plastic movement, there are significant concerns about the usage of shrink wrap/films in the packaging industry. However, most of the films are produced using LDPE, the production of which does not emit polluting agents and is recyclable in most cases. As a result, companies are increasingly trying to implement environmental-friendly plastics or recycled content while manufacturing films or wraps. One such instance is the use of green polyolefin film, which can help companies achieve more than 25% in annual savings.
Order your copy of the Shrink Films Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Strong robust demand from the F&B, electronics, pharmaceutical, and cosmetics sectors has contributed to the increasing requirement for shrink films. By consumption, the F&B sector accounts for the largest share, between 45 - 55% of the total. The rise in canned, packaged, and frozen food and the growing concerns about products during transit has led to the further expansion of shrink-wrap/film packaging. In addition, rising awareness among consumers about packaging is also positively impacting the industry. For instance, in 2022, it was found that 74% of customers are prepared to pay extra money for packaging that is fully recyclable or sustainable.
According to industry experts, as of April 2023, the PPWR proposal particularly in the European region could have a tremendous negative impact on the shrink films/wrap market. The proposed regulation intends to eliminate or drastically cut down on the usage of pallet wraps, shrink wraps, and stretch films made of polyethylene for transit packing. This poses a risk to all European Union producers and users of these wrapping products.
The global shrink films category is fragmented. Regionally, plastics, polymers, and in turn, the shrink films industry is highly fragmented. As a result, the bargaining power for most of the suppliers is moderate to low. Large corporations having long-term agreements with their approved vendors may have higher negotiation power. Most of the manufacturers prefer using POFs due to their excellent durability and versatility properties. It is made of 100% recyclable material, which further helps companies contribute to sustainability. POFs have replaced PVC in many applications, and it also has received FDA certification for food packaging applications. In July 2023, Amcor announced the introduction of a new sustainable production line in its Swansea, U.K. “Flexibles” facility. The line is mainly for shrink films and bags for cheese and meat items. It is produced using thinner material with a formulation that is devoid of PVDC and has a high barrier.
Shrink Films Procurement Intelligence Report Scope
- Shrink Films Category Growth Rate: CAGR of 6% from 2023 to 2030
- Pricing growth Outlook: 10% - 15% (Annually)
- Pricing Models: Volume-based, contract-based pricing model
- Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence
- Supplier selection criteria: Material type (PVC, PE, or POF), application (food, bottles, sensitive products), features (tamper resistant, moisture and oxygen barrier), certifications, operational and functional capabilities, technology used, and others
- Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Key companies
- Amcor Plc
- Berry Global Inc.
- Bolloré Group
- Sealed Air Corporation (SEE)
- The Dow Chemical Company
- Bonset America Corporation
- Allen Plastic Industries Co., Ltd
- Barbier Group
- Mitsubishi Chemical Corporation
- American Eagle Packaging
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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