Stretch and shrink film: Key market research findings
- Increased use of pallet unitization films
- Growing demand in the food and beverage industry
Technavio has released a new market research report on the global stretch and shrink film market, which is expected to grow at a CAGR of more than 5% between 2016 and 2020. Factors like the high efficiency of film manufacturing and layering, growing sales of retail items, and the increasing use of stretch and shrink hoods and beverage and pallet unitization wraps, are boosting the growth of stretch and shrink film market. APAC leads the global stretch and shrink film market, occupying 37% of the overall market revenue. This region is expected to witness a growing demand for stretch and shrink films from the packaging and manufacturing industries, which leads to market growth during the forecast period. Also, the market for resin which is used for the manufacture of stretch and shrink films, is also growing in the region, boosting the growth of stretch and shrink films.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the major trends gaining grounds in this market is the growing use of pallet unitization stretch films. These stretch films are especially designed to wrap pallets to prevent them from damage. They provide improved pallet stability a high level of stretch flexibility without damaging the film. Also, these films minimise the wrap weight and are cost-effective,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research
Rapid growth in the food and beverage (F&B) sector is the key driver for the growth of this market. This sector is predicted to be the major customer for plastic packaging and stretch and shrink films during the forecast period. Since products in this sector are fast moving, they need to be light and cheap to reduce the transportation cost and facilitate instant disposal. The inherent property of plastics to mold into various shapes and sizes for the consumption, storage, and transportation of edible items is expected to facilitate market growth during the forecast period.
The major players dominating the global stretch and shrink film market include AEP, Bemis, Berry Plastics, and Sigma Plastics. The presence of many multinational, regional, and local vendors in this market results in intense competition during the forecast period. In this market, the local players offer innovative solutions at a price lower than the international players, which leads to price wars among the vendors. The international players in this market are expected to exhibit inorganic growth during the forecast period as their growth is heavily dependent on the acquisition of local players.
A more detailed analysis is available in the Technavio report, Global Stretch and Shrink Film Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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