Stretch Films

Global Stretch Films Market Outlook

MARKET OVERVIEW

Global Market: $9.1 billion (2023E)

Global Demand CAGR: Approx. 4.5–5 percent (2023E–2027F)

• In 2023E, the global stretch film demand is expected to be valued at about $9.1 billion and is expected to grow at a CAGR of 4.5–5 percent from 2023E to 2027F. The top global manufacturers are expanding their capacity to meet the increasing demand

• The key growth drivers are:

–Growing end-use demand from the food and beverages segment

Industry Overview : Stretch Films

• APAC is likely to lead the demand growth for Stretch Films packaging, growing at a CAGR of around 6-6.5 percent (2023E-27F), owing to the rapidly growing food and beverage sector and also other manufacturing industries

• Cost containment and sustainability are likely to be the focus of product development in the next 5 years. Major trends include, usage of biodegradable films, down gauging, increasing of stretch percentages, etc. would likely to be the key focus of product development

• Increase in demand for stretch films in bulk packaging requirements in logistic and distribution segment would remain as one of the key drivers of stretch films

• Growing stretch percentages and material advancements like sustainable films, multi perforation films is likely to facilitate growth in stretch films segment

Stretch Films – Drivers and Constraints

Drivers

Growing end-use market

• Increase in growth for soft drinks, beverage packaging and packaged foods in Europe is the major driver for stretch films demand

• Increasing demand from bulk-packaging requirements and tertiary packaging pallet unitization in warehousing and distribution segments remains one of the key drivers of stretch films market

Consumer buying pattern

• Growing bulk consumption of beverages with the growth of large format retail stores and hypermarkets

• With growing disposable incomes of middle-class population in countries like Germany, France, Belgium, Iberia, etc. consumers are increasingly attracted towards packages like multipacks

• Increase in e-commerce and online purchasing is one of the boosters for stretch films demand in the region

Strong performance features

• In addition to increasing mechanical strength and heat stability light-weighting through down-gauging can help to reduce carbon footprint without compromising on the performance

• Stretch films can also be easily recycled, landfilled or incinerated after usage

Constraints

Substitutes

• Increase in usage of reusable pallet wraps can act as replacement for stretch films in the region

Impact of Plastic bans

• Increase in regulations across Europe would act as a major deterrent for stretch films demand in the region, as the manufacturers are looking to shift to other biodegradable packaging alternatives other than fossil-based packaging

Major Global Trends in Stretch Films

Down-gauging of the Films

• Stretch Films manufacturers have continually strived to further reduce the film thickness, without compromising on the containment strength or using any additional layer of film.

• Down-gauging can reduce overall Stretch film costs by 20-25% while maintaining the package security, and also reduce the overall waste to landfill content of the package

Sustainable Films

• Sustainability and reducing the carbon footprint has been the prime area of concern for packaging over the last few years and the awareness has further increased due to recent govt. regulation on plastic bans. Innovations like 50% recycled content films are preferred in the industry. Barbier Group has made a recent invention in the Recyplast films in Europe

Improved Printing Capabilities

• Printed Stretch films eliminate the need for additional labels to incorporate brand communications. Water-based inks are gaining preference among converters, as they are designed for surface printing on films and do not come into direct contact with the actual product packed inside

Increasing of Stretch Percentage

• Increase of stretch ability of more than 300% has been a major trend followed in Stretch Films. Suppliers are making major innovation in stretch films by increasing the percentage stretch without affecting the integrity of packaging and maintaining the load safety