[Introduction] PETG heat shrink film, as a new type of environmentally friendly packaging material, has been expanding its market scale due to its superior performance. With the increasingly strict global environmental regulations and the enhanced environmental awareness of consumers, PETG heat shrink film, thanks to its high transparency, excellent shrinking performance, and easy recyclability, is replacing traditional PVC shrink film in various fields such as food and beverage, cosmetics, and electronic products, becoming the new favorite in the packaging industry. Its future still has considerable growth potential.

PETG heat shrink film, as a new type of environmentally friendly packaging material, is characterized by having a final shrinkage rate of over 75%, which is the highest among all commercial shrink films. This extremely high shrinkage rate enables it to perfectly fit highly contoured container shapes, making it possible to produce packaging for complex external containers. It solves the shortcomings of traditional packaging films, such as opacity or poor packaging effect. Compared with ordinary PET materials, PETG has better heat forming performance and higher transparency through modification. From an environmental perspective, due to its consistency with the bottle material, it reduces the recycling cost and has become the most ideal substitute for PVC shrink film in developed countries.

The market size of PETG heat shrink film is expanding year by year. 

Due to the excellent shrinkage performance and environmental-friendly properties of PETG heat shrinkable film, its market size has been continuously expanding in the past five years. By the end of 2024, the output of PETG heat shrinkable film in China was 210,000 tons, an increase of 150,000 tons compared to 2020, which was more than three times the original amount. Looking at the growth rate, the growth was the fastest in 2023 at 60%, and in 2024, due to increased production capacity and price decline, the growth rate dropped to around 31%. However, the compound growth rate over the past five years was 78%, indicating a rapid expansion of the market size. The distribution of production capacity for PETG heat shrinkable film in China shows a significant regional concentration feature. By the end of 2024, Jiangsu region accounted for the largest share, approximately 55% of the national total; Henan region followed closely, accounting for about 29%; Zhejiang region accounted for 7%; and Shandong and Guangdong regions each accounted for around 5%. 

From the perspective of enterprises, a number of competitive manufacturing enterprises have emerged in China, such as Henan Yinqindar New Materials Co., Ltd., Jiangsu Shuangxing Color Plastic New Materials Co., Ltd., Jiangsu Jinghong New Materials Technology Co., Ltd., Shandong Shenghe Plastic Development Co., Ltd., Jiangsu Yixing Guanghui Packaging Materials Co., Ltd., Zhejiang Daisan Dongxi Group Co., Ltd., and Guangdong Shuye Environmental Protection Technology Co., Ltd. Among them, Yinqindar and Jinghong can both produce PETG particles for their own use. These enterprises have grown rapidly in recent years and have strong technical capabilities. They demonstrate significant competitive advantages in market development, customer service, and other aspects. Yantai Fuli New Materials Co., Ltd. will add a new melt processing unit in 2024, capable of producing PETG particles. Subsequently, it will also be equipped with 2 PETG heat shrink film production lines. After full production, the output of PETG heat shrink film will reach around 250,000 tons.

The application scope of PETG heat shrink film is continuously expanding. 

The PETG heat shrink film, with its excellent performance and environmental-friendly characteristics, has been widely applied in numerous industries and has shown a continuously growing market demand. Initially, it was mainly used for beverage packaging, but due to the highly seasonal nature of beverage packaging demand, enterprises have been continuously developing other application areas in recent years. Thanks to its superior performance, the development progress of its application fields has accelerated. Currently, from the overall application structure, PETG heat shrink film has been applied in multiple fields. Among them, food and beverage packaging still occupies the largest market share, approximately 45%; cosmetic packaging accounts for about 20%; electronic product packaging accounts for about 15%; pharmaceutical packaging accounts for about 10%; and other application areas such as daily necessities and toys account for a combined 10%. This diversified application distribution enables the PETG heat shrink film market to have a good ability to resist risks and is not easily affected by fluctuations in a single industry.

The future of PETG heat shrink film still has considerable room for development. 

In recent years, the rapid growth in the demand for PETG heat shrink packaging in China is mainly due to the substitution of PVC and the development of other application fields. Specifically, the increasingly strict environmental regulations and the gradual convergence of the prices of PETG heat shrink film and PVC heat shrink film have prompted enterprises to abandon PVC and switch to PETG; the upgrading of consumption standards has led to an increase in the demand for high-quality packaging; the development of e-commerce has increased the demand for transportation packaging; and technological innovation has expanded the application scope of PETG films. According to incomplete statistics from Zhuochuang Information, the current market demand for PVC heat shrink film is still 300,000 - 400,000 tons. It is expected that in the coming years, with the improvement of environmental requirements and the price advantage of PETG heat shrink film rising, the potential for replacing PVC heat shrink film may be around 200,000 - 300,000 tons. Coupled with the development of degradable PETG products, the market demand will continue to maintain a stable growth trend.