According to a new market report published by Credence Research “Global Shrink Film MarketGrowth, Future Prospects and Competitive Analysis, 2017 – 2025,” the global shrink film market is expected to reach over US$ 8,117.4 Mn by 2025, expanding at a CAGR of 5.5% from 2017 to 2025.
On the basis of material type, the global shrink film market is segmented into polyolefin, polyvinyl chloride (PVC), PETG (PET), oriented polystyrene (OPS), and polylactic acid (PLA). In 2016, polyolefin material is observed to be the most dominant segment accounting for more tahn 45% in global shrink films market. The segment is projected to grow at the higher CAGR and is expected to maintain its dominance over the forecast period.
On the basis of application, the shrink film market is categorized into food & beverages, pharmaceuticals, automotive & industrial, electronics and others. In 2016, food & beverage accounted for the largest share of global shrink film market. It accounted for more than 65% revenue share in the global shrink film market. Increasing use of shrink films in packaging of beverages and food products is projected to drive the demand for shrink films in food & beverages industry during the forecast period.
For the purpose of this study, the global shrink film market is categorized into regional markets viz., North America, Europe, Asia Pacific and Latin America and Middle East and Africa. In 2016, Asia Pacific was observed as the largest market for shrink film followed by Europe and North America. The overall growth of the Asia Pacific market will be above the global average during the forecast period. Asia Pacific is expected to achieve highest growth rate compared to other regions due to presence of countries such as China, India and Japan are observing significant industrial growth.
Global shrink film market is highly consolidated. Major players includes AEP Industries Inc., Berry Plastics Corporation, Bemis Company Inc., Sigma Plastics Group, Bollore Inc., Allied Global Plastics Pvt. Ltd., American Eagle Packaging, Bonset America Corporation, and Coveris Holdings Inc. accounting for over 55% market share of the global shrink film market. Existing players are facing intense competition from the small/ regional players as the market is highly price sensitive. The manufactures are investing in research and development to develop high quality, differentiated and cost effective products to increase their market penetration especially in key consuming economies.
– High demand from end-use industries
– Growing popularity of shrink films owing to its light weight and low cost in varied application is anticipated to fuel the demand
– Price fluctuation is projected to hamper the growth global shrink films market
– Stringent regulations by various governments over the recycling and disposal of plastic waste