Stretch Films
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Stretch Films Market Outlook

The market is expected to reach USD 11.2 Billion by 2025 (F) at a CAGR of 4.5–5 percent from 2020 (E)–2025 (F)

High end-use demand from food & beverages and industrial segments across regions is likely to foster growth

• APAC leads the Stretch films market with a share of 45% and is expected to witness the maximum growth rate in the next 5 years due to rise in young population, change in consumer buying patterns and increase in modern retailing methods like super/hyper markets

Increasing awareness for sustainability has been a major trend in the Stretch Films industry due to the recent ban on plastics across the region suppliers are moving towards usage of more recyclable film formats. Following the trend major innovations in Stretch film formats have been introduced by key suppliers.

• For example Megaplast has introduced Fiber Stretch Films, a 30% PCR content Film, Barbier Group’s down gauged films with 15% cost reduction, etc.
• In films types industry is moving towards usage of macro perforated and more than 300% pre stretched films 

APAC is likely to lead the demand growth for Stretch Films packaging, growing at a CAGR of around 6-6.5%, 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