Stretch and Shrink Films Market

Stretch and Shrink Films Market: Overview

The Stretch and Shrink Films Market is valued at USD 11.1 Bn in 2026 and is projected to reach USD 19.4 Bn,  growing at a CAGR of 8% by 2033. The key drivers of market expansion are the expanding retail and hypermarket sectors and the burgeoning e-commerce sector with its demands for product packaging and safety. The films provide advantages, including a long shelf life for various food goods, less leakage when packing products with hard or sharp edges, strong impact resistance, and puncture resistance. It also provides quality product appearance, the strength that endures below-freezing temperatures and preserved package integrity, all of which contribute to the market's expansion.

The electronic and electrical industries employ stretch and shrink films to shield exposed electrical wires in various systems from damage. The market is expanding more quickly thanks to rising smartphone demand. For instance, the Global System for Mobile Communication predicts that by 2025, there will be 700 million additional mobile customers worldwide, increasing the stretch and shrink films market. The consumer electronics and appliance sectors are supporting the stretch and shrink film industry expansion. For instance, Invest India predicts that by 2025, the consumer electronics and appliances market in India will be worth US$21.18 billion. As a result, it is projected that the stretch & shrink market will continue to rise throughout the forecast period due to the rising need for the electronic and electrical sector.

The market is anticipated to benefit from using stretch films in packaging canned goods for storage and transit, such as coffee. Additionally, there are numerous uses for stretch film in the food and beverage sector. The global market is anticipated to expand because of the high demand for packaged goods like ready-to-eat meals, snacks, and frozen foods, including meat, fish, fruits, and vegetables. The growing demand for frozen foods in the areas is helping the market grow significantly. The US Department of Agriculture estimates that in 2020, cold storage volumes for frozen beef and pork totaled 535.9 million pounds and 415.94 million pounds, respectively, while storage volumes for other meats totaled 34.29 million pounds. ​

Stretch and Shrink Films Market: COVID-19 Impact

The Covid-19 pandemic affected the supply chain, which led to a lack of raw materials used to make a stretch and shrink films, which had an adverse effect on the market's expansion. Additionally, the supply chain disruption caused a decrease in raw material exports, which contributed to the raw material scarcity. For instance, the International Trade Centre (ITC) reports that global shipments of linear low-density polyethylene (LLDPE) fell by 11.5% between 2019 and 2020, from US$23.78 billion to US$21.32 billion. However, in 2021, production activities were increased globally to support each nation's economic development, leading to a market boom.

High Elasticity and Stretchable Properties to Drive Market Growth

One of the main factors influencing the rise of the stretch and shrink film market share is its high elasticity and stretchable qualities. Depending on the type of film, stretch films are specially designed to readily stretch and wrap around things to shield them from harm or theft. These films shield the items from tampering during loading and significantly lower the costs associated with packaging and shipping. These stretch films also feature a flat surface for attaching shipping labels, paperwork, and other information while shielding the next boxes from losses and accidents. Shrink films, however, wrap substantial objects of all sizes and shapes. As a result, both stretch and shrink films have a high degree of elasticity and durability, making them distinct from one another. These characteristics are predicted to propel the stretch and shrink film market throughout the forecast period.

Rapid Development of Cosmetics Industry to Drive Market Growth

In the personal care industry, as in many other industries, product damage is common during the necessary distribution-related transportation process. Stretch and shrink films are used in personal care items, including body care, skincare, and more, because personal care products frequently need extra protection to keep the products and main packaging in great form for consumers. Stretch and shrink films are experiencing rapid expansion, largely thanks to the expanding cosmetics sector. For instance, the global sales of hand care products were USD 60.6 million in 2019 and grew to USD 77.9 million in 2020, representing a 26.2% rise overall, according to the Cosmetic, Toiletry and Perfumery Association (CTPA). Additionally, the market for stretch and shrink films saw an increase in demand as global sales of body cream and lotion grew from USD 222.1 million in 2019 to USD 229.99 million in 2020, a 1.5% increase. Thus, it is projected that the market will rise due to the personal care industry's quick development.

Stringent Regulations on Environment by Government to Hamper Market Growth

The market for stretch and shrink films is being constrained by the high price of testing these materials. Packaging businesses must utilize high-quality packaging materials by the European regulation (EC) 1935/2004 because they frequently come into contact with goods that directly affect consumer health, such as food, pharmaceuticals, and personal care products. As a result, the packaging manufacturer must carry out a comprehensive toxicological investigation. The test has a hefty cost. The cost of analyzing plastics and other materials increases as migration increases. As a result, these variables raise the expense of testing, which is a significant barrier to the market's expansion. The production of films has been impacted by fluctuating raw material prices, which is anticipated to be a major barrier for manufacturers competing in the worldwide stretch and shrinking film market throughout the forecast period.

Stretch and Shrink Films Market: Segment Overview

LDPE Segment to Dominate Market Due to its Availability in Variety of Gauges and Sizes

Due to the availability of LDPE films in various gauges and sizes for protecting and presenting the goods on the shelves, the LDPE resin segment dominated the stretch and shrink film market. Its large market share has also been influenced by its expanding use on irregularly shaped loads and applications where clarity and other visual aspects take precedence. The desire to implement sophisticated technology in the production of enhanced packaging items is driving the LDPE stretch films market in the region. These films are mostly requested by consumer goods producing products owing to better seal, increased shelf life, and superior print capabilities. Furthermore, due to the expanding e-commerce sector, the worldwide LLDPE stretch and shrink film market is anticipated to experience the highest growth. Additionally, the demand for these items is driven by a shift toward smaller pack sizes due to increased single-parent households in developed nations, propelling market expansion over the forecast period.

Sleeve and Labels Category to Dominate Market Owing to Increased Demand in Pharmaceutical Containers

The product segment was dominated by the sleeve and labels segment. Along with its expanding demand in pharmaceutical containers, including plastic bottles and glass bottles for trayed goods, the need for sleeve labels is anticipated to increase as the packaging offers an extra option for the marketing and branding of the product. The main element affecting its market share is the usage of stretch hoods in industrial applications, primarily for palletized items. Due to the necessity to cut transportation costs and maintain product integrity, the product is in high demand in major exporting economies like China and India. Stretch hoods are also often used for secondary packaging commodities like fruits and vegetables that must be produced in large quantities. In the consumer goods sector, stretch wrap films are used for form-fill-seal applications, sticky labels, sleeves, collation wrap, and pre-made pouches. Over the projection period, a rise in the consumption of fresh meals such as cold salads is anticipated to fuel demand for these goods.

Asia Pacific to Dominate Market due to Increased Use of Stretch and Shrink Films in End-Use Sectors

Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share because end-use sectors, including food and beverage, personal care, and others, are demanding more. For instance, Invest India reports that India has one of the largest food processing industries in the world, with output expected to exceed USD 535 billion by 2025–2026. The region's expanding personal care industry also contributes to the market's expansion. For instance, Accord Australasia estimates that Australia's cosmetics and personal care market was worth USD 26.06 billion in 2019 and USD 26.3 billion in 2020, a growth of almost 1%. Thus, it is anticipated that Asia-expanding Pacific's food and beverage, personal care, and other industries will fuel market expansion throughout the anticipated timeframe.

The North American market is anticipated to experience stable revenue growth throughout the forecast period. The region’s growing need for product packaging, as well as for bundling and protecting items during storage and transportation, is what is driving the market for shrink and stretch films. Several annual programs are also held in the area that details the significant demand for shrink and stretch films from consumer sectors. From November 29 to December 1, 2021, Louisiana, United States, hosted the International Stretch & Shrink Film US Conference organized by AMI. At the annual conference, brand owners, retailers, stretch and shrink film manufacturers and distributors, raw material suppliers, research organizations, and universities. In addition to providing a thorough overview of the most recent materials, technology, and industry trends, Stretch & Shrink Film 2021 included a spirited discussion between an international panel of experts.

In September 2021, during PACK EXPO Las Vegas, Clysar debuted Clysar EVO-C confidential shrink film for its family of recyclable shrink films that have been pre-approved for the shop drop-off label by the How2Recycle program. A special opaque security and shipping material called Clysar EVO-C film can greatly reduce packaging space and weight while protecting against light deterioration and offering UV-blocking qualities. Similarly, in January 2021, Cortec introduced one of the first machine-grade stretch films that may be composted was introduced as Eco Wrap. The introduction of this new product heralds a change in the warehouse and industrial packaging sectors, which rely largely on the automated stretch wrapping to prepare pallets of merchandise for storage, stocking, or shipping.

A few players in the Stretch and Shrink Films Market 

• Berry Global, Inc.
• Amcor plc
• Sealed Air Corporation
• Novolex (Winchester)
• LINPAC Group
• Sigma Plastics Group
• Coveris Holdings S.A.
• Plastipak Holdings, Inc.
• Uflex Ltd.
• Cosmo Films Ltd.
• Jindal Poly Films Ltd.
• Charoen Pokphand Group (CP Group)
• ITOCHU Corporation (Packaging division)
• SKC Co., Ltd.
• Mondi Group

By Product Type

• Stretch Films
• Shrink Films

By Material Type

• Linear Low Density Polyethylene (LLDPE)
• Low Density Polyethylene (LDPE)
• Polyvinyl Chloride (PVC)
• Others

By Application

• Packaging
• Pallet Wrapping
• Bundling & Unitizing
• Protective Wrapping
• Others

By End Use Industry

• Food & Beverages
• Consumer Goods
• Pharmaceuticals
• Automotive
• Logistics & Warehousing
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa