PE Films
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global PE Films Market Outlook

• In 2020, the global PE film demand is expected to be valued at about 57.7 MMT and is expected to grow at a CAGR of 3.5–4 percent to reach 68.79 MMT until 2025. The top global manufacturers are expanding their capacity to meet the increasing demand
• The key growth drivers are:
•  Growing end-use demand from the FMCG segment
•  Packaged food industry

Global PE Films End-use Split

As the demand for food & beverages is growing at a high CAGR of 8–9 percent globally, the demand for PE films is also expected to be strong.

• The packaging sector consumes 60 percent of the total PE films produced, out of which, food packaging and non-food packaging sectors hold 22 percent and 38 percent, respectively. Non-packaging sector accounts for the rest, 40 percent
• In 2017, approximatly 11.5 MMT of PE films were used for the food packaging segment globally. By 2022, the demand is estimated to grow at a CAGR of 5–6 percent to reach 14.9 MMT. The largest consuming applications in this sector are stretch wrap, shrink wrap, and liner films
• In 2017, the global demand from the non-packaging sector was 20.1 MMT of PE films. By 2022, it is estimated to grow at a CAGR of around 3.48 percent to reach 23.8 MMT. In the non-packaging sector, PE films are primarily used in construction, consumer goods, agricultural and horticultural, and medical and healthcare.
• Asia Pacific would lead the growth in polyethylene films market, owing to end demand from packaged food and beverage packaging applications.
• Cost containment and sustainability are likely to be the focus of product development in the next five years. Major trends include the usage of biodegradable and sustainable films, down gauging, etc., would likely to be the key focus of product development in this segment
• Technical properties, like less weight, ease of fabrication are the key drivers of PE films across segments

Major Global Trends in PE Films

• The major trend prevailing in packaging industry is sustainability. High demand for sustainable packaging is arising from the developed regions like NA (US and Canada) and Europe (UK, Germany, France, etc.). To tackle the pollution, countries in the developing regions (APAC: China, India, etc.,) are also tending towards sustainable packaging solution

Sustainable Solutions

• As the world is shifting towards environment friendliness and sustainability, eco-sustainable packaging solutions will continue to foster green practices with expected introduction of new regulations relating to environmental sustainability.Impact: Various advancements in the packaging sector and products with lower carbon footprint are gaining prominence

Recycling of Films

• In both developed and emerging regions, recycling of used plastic films is growing rapidly. Several new entrants have initiated the collection of used plastic packaging materials for recycling.Impact: This initiative has shown a positive impact in both waste management and reducing the carbon footprint.

Lightweight Packaging

• PE film manufacturers have been focusing their effort towards producing lighter packaging materials.Impact: Saves raw material costs and reduces other cost overheads

Product Innovation

• mPE (Metallcene Polyethylene) resins are developed by top resin manufacturers, which has higher physical strength when compared to LDPE, PVC films. They could be used in packaging of food and pharmaceutical products due to hygienic properties

 Anti-counterfeit Packaging

Counterfeiting practice is more common in developing countries than the developed ones. Most of the demand for anti-counterfeit products come from developed markets, such as NA, Europe, and Japan, as proper guidelines have been laid down in these markets and the markets are well equipped to implement the changes.

PE Films –Drivers and Constraints

Drivers

End-use Demand

• One of the major growth drivers for PE films is the increasing usage of stretch and shrink films, which is expected to grow at a CAGR of 4–5 percent in Australia by 2023. These films are used in packaging and non-packaging applications because of its physical properties, such as tear strength, stress, durability, etc.
• The increase in demand for food, beverages, and consumer goods products in emerging regions, due to growing urbanization and increasing disposable income of middle class

Technology and Innovation

• Technological innovations in the field of manufacturing machineries and production process are gaining momentum, mainly due to dynamic consumer preference, which would provide PE films an edge over its rigid packaging counterpart

Constraints

Substitutes

• There is an increase in the usage of BOPP films, mainly in food packaging segment, due to its barrier properties.

Sustainability

• In the developed markets, there is a major sustainability trend toward the use of paper, cloth, and jute bags to replace the PE bags
• Several major cities are also banning the use of plastic bags. In the recent past, the top retail chains have moved from using plastic bags to jute/paper bags