Fuji Seal International, Inc., Berry Plastics, and Dow Chemicals are to name a few dominant players in the global stretch and shrink films market. A report by Transparency Market Research finds that these companies along with others wanting to bolster their positions are mostly resorting to strategic tie-ups with local distributors and enhancing operations in emerging economies.
Bemis Company Inc., for example, has consistently focused on expanding its geographical outreach. It has been particularly keen on improving its presence in India, China, and South America, on account of the presence of cheap labor and affordable raw materials in these regions. With an intent of gaining a stronghold in the Brazilian market, Bemis Company Inc. acquired Brazilian manufacturer of plastic packaging Emplal Participações S.A. in December 2015.
The TMR report forecasts the revenue in the global market for stretch and shrink films to rise at a 5.2% CAGR from 2016 to 2024 to reach a value of US$21.1 bn by 2024 from US$14.1 bn in 2015.
Cheap Resources Draw Players to Asia Pacific Market
Depending upon the type of product, the global stretch and shrink films market can be segmented into stretch films and shrink films. Among the two, the shrink films segment holds a dominant position in the market and going forward too is predicted to be the most preferred one because of the growing applications of light-weight packaging films.
Geographically, the key segments of the global market for stretch and shrink films are Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. Among them, Asia Pacific is slated to be the market leader in the near future both in terms of market share and growth rate. The region holds out a strong promise of growth for players on account of the rising investments in the manufacturing sector, swift pace of urbanization, and growing spending capacity. In the near future, the markets in Europe and North America are expected to pare some share on account of them being already saturated and also because of the phenomenal rise of the Asia Pacific market that will dent some their shares. In fact, prominent manufacturers operating in North America and Europe are now turning to Asia Pacific for new avenues of growth by taking advantage of the cheap resources available in the region.
Soaring Popularity of Flexible Packaging Drives Demand
At the forefront of driving demand in the global stretch and shrink films market is the growing popularity of flexible packaging. Among the different types of flexible packaging, stretch and shrink films find maximum use in the supply chain. “The food and beverages sector is one of the leading end users of stretch and shrink films owing to the rising demand for packaged products and the growing use of flexible packaging,” explains the lead analyst of the TMR report.
The global stretch and shrink films market is also being stoked by the rising demand from the flourishing pharmaceutical sector, the transportation and logistics industry, and the booming retail industry.
One deterrent in the global stretch and shrink films market has been the rising concerns about the environmental damage caused by the packaging industry over the years. Strict mandates seeking to curb the damage has dealt quite a blow to the manufacturers. This is posing as a headwind to the market.
This review is based on the findings of a TMR report, titled, “Stretch and Shrink Film Market (Product Type – Stretch and Shrink; Materials Type - Polyvinyl Chloride (PVC), Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE), and Polypropylene; End-use - Food & Beverage, Pharmaceutical, Electronics, and Paper & Textile) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
Stretch and Shrink Films Market, by Product
- Stretch Films
- Shrink Films
Stretch and Shrink Films Market, by Material
- Linear Low Density Polyethylene (LLDPE)
- Low Density Polyethylene (LDPE)
Stretch and Shrink Films Market, by End Use
- Food & Beverage
- Paper & Textile
Stretch and Shrink Films Market, by Geography
- North America
- Latin America
- Middle East & Africa
- Asia Pacific (APAC)
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