Polybags Market Trends
Category Intelligence on Polybags covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Polybags Global Market Outlook:
The market is expected to reach $14.4 billion by 2025, with a value growth of 3–4 percent from 2019 to 2025.
Major Trends:
Barrier Properties
High-barrier films and structures are gaining prominence to increase shelf-life of products
Sustainability
Shift from petroleum-based resin to nature-friendly products, like PLA, PHA, PTMT, TPS, etc.
Growing End-use
From packaged fruits, vegetables to pet food, cosmetics, and pharmaceutical medicines
Porter's Analysis on Polybags - Developed Regions
Supplier Power
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Consolidated resin supply base, led by Exxon Mobil, Dow, and Nova Chemicals, etc., cater to various converters, thereby increasing their power in value chain
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Use of shale gas has reduced imports from Middle-East, moving the industry towards self- sufficiency in this region. This has further increased the power of suppliers
Barriers to New Entrants
- Capital investments are high, depending on the value adds, which increases the barrier to new entrants
- Most suppliers are backward integrated into film extrusion. Knowledge about technology is freely available, which eases the barriers to new entrants
- Based on the end-use industry, converters have to have relevant certification and clean-room facilities increasing complexities for the converter
Threat of Substitutes:
- Competition is primarily among flexible plastics, paper, and foil, as opposed to rigid packaging
- Rigid packaging formats, such as bottles and containers, are still being used in pharmaceuticals, which are gradually being replaced by flexible alternatives, such as blisters and pouches in the near future
Intensity of Rivalry
- The supply base is highly fragmented with converters offering products with less differentiation
- Converters cater to various industries, which drive innovation-based competition
- Production capacity and product customization provide an edge over competition
Buyer Power
- Buyers enjoy better negotiating power over suppliers, in terms of voluminous demand
- Their power is moderate, as most buyers are not backward integrated to packaging
- Buyers who prefer end-to-end services from integrated suppliers have less bargaining power
