Shrink Plastic Films Market

Shrink Plastic Films Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2019 - 2027

Shrink Plastic Films Market: Solution for Food & Beverages Packaging Industry

Shrink plastic films provide good shelf life, strong sealing capability, printability, and lightweight packaging features. These films are easier to carry and also reduce the transportation expense of beverages compared to rigid packaging.
Shrink plastic films are used to secure pallets during transportation. They also protect them against contamination and adverse weather.
The advantages of employing shrink plastic films in packaging process includes flexibility, strength, recyclability and visual capabilities.

Key Drivers of Shrink Plastic Films Market

Globalization has led to rapid growth of import and export businesses of manufacturers across the globe. This has resulted in large supply chains and increased role of logistics, with companies adopting flexible packaging to optimize packaging systems for efficient and effective delivery. This is driving the demand for shrink plastic films.
Low-cost, light weight, and damage-resistant features of shrink plastic films packaging are boosting the demand for these films in the transportation industry. Rigid packaging is being rapidly replaced by flexible packaging, due to the latter’s characteristics such as enhanced barrier resistance, re-sealable closures, cost efficiency, and lightweight qualities. Among several variants of flexible packaging, shrink films find numerous applications throughout the supply chain. Demand for shrink plastic films has been increasing significantly in the packaging sector.
E-commerce players have been increasingly adopting shrink plastic films considering the advantages of these films over stretch and other films. Key features of shrink plastic films such as high barrier resistance and damage control packaging have proved beneficial for e-commerce players to ensure convenient and efficient delivery of their products.

Printed Shrink Plastic Films Segment to Offer Attractive Opportunities

Demand for printed shrink plastic films in the beverage packaging industry is anticipated to increase at a rapid pace during the forecast period. Shrink plastic films offer sustainable packaging solutions, as they reduce the weight of packaging. It works as an easy solution towards the regulations concerning less waste and lower weight of packaging. Additionally, shrink plastic films possess good shelf-appeal and are cost effective.
Printed shrink plastic films save hidden costs such as pre-labeled products and expense on Universal Product Code. These films also limit the use of adhesives and the need of secondary sleeves for branding. Thus, demand for shrink plastic films market has been increasing in the beverage packaging industry, as these films provide a one-stop solution for companies that require sustainable, low cost, and shelf-appeal packaging options.

Availability of Substitutes Likely to Hamper Market

Availability of alternative materials to plastic can be the major factor restraining the global shrink plastic films market. The cost of shrink plastic films is higher compared to normal plastic films that are used for packaging of products. This can hamper the demand for shrink plastic films during the forecast period.
Currently, plastic is available in the biodegradable form. Demand for biodegradable plastics is high due to the rise in awareness about environmental issues.

Asia Pacific Expected to Hold Major Share of Global Shrink Plastic Films Market

The shrink plastic films market in Asia Pacific is expected to expand significantly during the forecast period, due to the rise in consumption of alcoholic beverages and increase in demand for ready-to-drink fruit juices in the food & beverages packaging industry. Asia Pacific is the most populated region in the world. Consequently, demand for ready-to-eat food is high in the region. The global shrink plastic films market is driven by the high demand in the food & beverage industry.
The shrink plastic film market in Europe is projected to expand at a moderate pace during the forecast period. Demand for shrink plastic films in these regions is likely to rise in the next few years, due to the increase in usage of canned food products.
Demand for shrink plastic films is estimated to rise significantly in Middle East & Africa and Latin America in the near future. These two regions accounted for low share of the global shrink plastic films market, in terms of demand, in 2018. However, these regions are projected to create lucrative opportunities for the shrink plastic films market during the forecast period.

Key Players in Market

Various players operate in the global shrink plastic films market. However, there is an increasing shift in dynamics toward market consolidation. This can be ascribed to mergers and acquisitions by major companies operating in the U.S. and Europe in order to capitalize on untapped market potential in Asia Pacific and Africa. For instance, in August 2018, Sealed Air Corporation expanded its portfolio and design capabilities with the acquisition of AFP, Inc., a leading manufacturer of barrier films such as stretch and shrink films. Key players operating in the global shrink plastic films market include: