The global sales of cavitated films is estimated to be worth USD 4.1 billion in 2024 and anticipated to reach a value of USD 5.4 billion by 2034. Sales are projected to rise at a CAGR of 2.9% over the forecast period between 2024 and 2034. The revenue generated by Cavitated Films in 2023 was USD 3.9 billion. The industry is anticipated to exhibit a Y-o-Y growth of 3.2% in 2024.
Biaxially oriented polyester (BOPET) cavitated films are projected to reach USD 0.9 billion in 2024 and are anticipated to grow at a CAGR of 3.3% during the assessment time. BOPET films are widely used in applications requiring high-performance packaging solutions such as food & beverage packaging where they preserve the product’s freshness and extend shelf life.
Global Cavitated Films Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 3.9 billion |
| Estimated Size, 2024 | USD 4.1 billion |
| Projected Size, 2034 | USD 5.4 billion |
| Value-based CAGR (2024 to 2034) | 2.9% |
Wraps are anticipated to a market valuation of USD 1.5 billion by the end of 2034 and are expected to gain an incremental expansion of 1.4x times the total market value. Wraps made from cavitated films offer ease of use, flexibility, and durability making them ideal for both consumers and industrial applications.
The food & beverages end-uses are expected to grow at a CAGR of 2.7% during the forecast period and are projected to account for 41.3% of the total market share in 2024.
The rise in consumer preference for convenient, ready-to-eat meals and the rise in e-commerce are further propelling the adoption of cavitated films due to their excellent barrier properties against oxygen, moisture and sunlight making it ideal for snacks, baked goods, dairy, and frozen foods.
The cavitated films market in East Asia is predicted to gain an incremental expansion of 1.5x times the total market value and is anticipated to reach a market valuation worth USD 1.17 billion in 2024.
The expansion of food & beverages, pharmaceuticals, and personal care industries in countries like China, Japan coupled with the increasing disposable incomes of consumers and changing preference towards convenient and packaged foods attributed to regions growth.
The below table presents the expected CAGR for the global cavitated films market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 2.5%, followed by a higher growth rate of 3.3% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 2.5% (2023 to 2033) |
| H2 | 3.3% (2023 to 2033) |
| H1 | 2.6% (2024 to 2034) |
| H2 | 3.2% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 2.6% in the first half and slightly decrease to 3.2% in the second half. In the first half (H1) the market witnessed an increase of 10 BPS while in the second half (H2), the market witnessed a decrease of 10 BPS.
Growing Adoption of See-through Packaging Solutions for Enhanced Shelf-Appeal
The growing adoption of transparent or see-through packaging solutions allows consumers to clearly see the product which indicates freshness and quality of the packaged product. If the consumer is not able to see the product it does affect the buying decision. This factor of visibility gave rise to the demand for see-through packaging particularly in the food and beverage industry.
These see-through packaging solutions also look more appealing to consumers as compared to other rigid packaging solutions. This factor of visibility plays a crucial role in consumer goods identification and is primarily focused on by manufacturers for product differentiation.
Packaging films including cavitated films offer excellent transparency and glossy packaging compared to rigid solutions and thus are cost-saving solutions by saving printing and decoration costs further fueling the demand for cavitated films.
Rise in consumption of Ready-to-eat & Packaged Food Triggering Market Growth
The rise in demand for ready-to-eat food, ready-to-cook meals, processed foods, and freezer-to-microwave meals witnessed a remarkable rise in recent times. A growing corporate culture and increase in disposable incomes of the people led to a lack of time for cooking at home boosting sales of online food services.
This growth in food services requires reliable and durable packaging solutions thus increasing the demand for flexible packaging solutions offering convenience to consumers. Packaging films including cavitated films emerged as suitable packaging solutions for processed and packaged foods as these films offer enhanced protection against oxygen, moisture, and sunlight and also benefit in keeping eatables fresh for a longer duration.
These films are particularly used for packaging poultry, meat, sauces and soups thus consumers shift towards convenience and on-the-go food to fuel the market growth.
Low Stacking Capabilities & Handling Issues for Specific Applications Poised to Hamper the Market
Packaging films including cavitated films has a limited scope in terms of storing items in warehouses and retail stores. Compared to rigid packaging such as corrugated boxes and cartons cavitated films have less stacking capabilities. Cavitated films like pouches and bags require extensive shelf space in stores.
A cavitated film of a thin layer or monolayer is not able to offer physical protection to the inside contents thus chances of product damage and contamination or wastage become high. Further packages made from cavitated films that are not sealed with proper temperature and pressure are poised to damage the product.
Thus these products made from cavitated films require gentle handling throughout the process from production to storage which may create challenges for the manufacturers.
The global cavitated films industry recorded a CAGR of 2% during the historical period between 2019 and 2023. The growth of the cavitated films industry was positive as it reached a value of USD 3.9 billion in 2023 from USD 3.6 billion in 2019.
The cavitated films particularly made from polypropylene resemble low density, high opacity, and excellent mechanical properties catering to various end-use industries such as food and beverage, pharmaceuticals, personal care, and others.
These end industries prefer cavitated films for their barrier properties that protect products from moisture, oxygen and sunlight. These films also possess the ability to enhance product shelf life ensuring the quality during transportation.
Innovations in cavitated films such as co-extrusion and multi-layer film not only improved the functional properties but also made it more versatile and efficient.
The trend of growing preference for sustainability experienced a shift for manufacturers towards biodegradable and recyclable materials for cavitated films catering to the rising demand for eco-friendly solutions from consumers and also aligning with the strict regulations imposed by various government bodies. These advancements enhanced overall performance in cavitated films thus expanding the application scope across sectors.
The expansion of e-commerce that necessitates robust packaging solutions able to handle the rigors of shipping is likely to boost demand for cavitated films. The demand for high-quality and aesthetically appealing packaging solutions is further driving the adoption of cavitated films. The rapid industrialization and urbanization resulting in the rise of consumption of packaged foods is poised to fuel the demand for the market.
Tier 1 companies comprise market leaders with a market revenue of above USD 80 million capturing significant market share of 10% to 15% in global market. These market leaders are characterized by high production capacity and a wide product portfolio.
These market leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within Tier 1 include Cosmo Films Limited, Vibac Group S.p.a., Innovia Films, JPFL Films Private Limited, Inteplast Group, and Flex Films.
Tier 2 companies include mid-size players with revenue of USD 30 to 80 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge.
These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in Tier 2 include vpipl, Chiripal Poly Films, Brückner Maschinenbau GmbH, Rowad National Plastic Co., Ltd., Süper Film Packaging Industry Inc., Rowad National Plastic Co., Ltd., Nahar PolyFilms Ltd., Ampacet Corporation, POLYFIL, SIBUR petrochemical group, Transparent Paper Ltd., and VALTEC ITALIA.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 30 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the industry analysis of the cavitated films market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided. The United States is anticipated to remain at the forefront in North America, with a CAGR of 1.7% through 2034. In Asia Pacific, India is projected to witness a CAGR of 6.5% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 1.7% |
| UK | 1.5% |
| Italy | 1.6% |
| Spain | 2.8% |
| India | 6.5% |
| China | 5.5% |
| Thailand | 4.5% |
According to the data published by Invest India, the pharmaceutical industry is projected to reach USD 65 billion in India in 2024 and it is predicted to reach a market valuation of USD 130 billion by 2030.
The rise in the pharmaceuticals industry of India is observed due to a rise in healthcare needs with a continuously growing population in the country, an increase in investment for better facilities and the government’s supportive initiatives and schemes.
These factors lead to an increase in demand for reliable and high-performance protective packaging solutions during the transport of these pharmaceuticals. Cavitated films offer excellent mechanical properties and boost the shelf life of pharmaceutical products.
Cavitated films also offer a protective barrier against moisture, and oxygen and help maintain the integrity of these products making it the ideal solution. The growing focus on stringent regulatory compliance and quality standards is poised to further propel the adoption of cavitated films in India. The growth of pharmaceuticals in India domestically as well as internationally is set to raise demand for packaging solutions including cavitated films.
According to the US Department of Agriculture (USDA), the USA exported around USD 36.61 billion in the year 2023 for processed food such as confectionary, chocolate & cocoa products, dairy products and others.
This increase in the exports of these processed foods in the USA gives rise to eco-friendly packaging solutions amid rising consumer demands for sustainability. Cavitated films help maintain the freshness and quality of the food reducing spoilage and waste.
Innovation in the materials and use of recyclable and biodegradable solutions that align with consumer demands to boost the market for cavitated films. Further, the continuous growth in the exports of processed food in the USA is expected to drive the cavitated films market.
The section contains information about the leading segments in the industry. By end use, the food and beverages are estimated to grow at a CAGR of 2.7% throughout 2034 reaching a market valuation of USD 1.69 billion by 2024. Additionally, East Asia’s cavitated film industry is projected to expand at 3.9% by 2034 and is expected to account for 28.6% of the total market share in 2024.
| Material | Polypropylene (PP) |
|---|---|
| Value Share (2034) | 49.6% |
Polypropylene cavitated films dominate the market in terms of revenue, accounting for almost 46.7% of the market share in 2024. Polypropylene’s characteristics such as low density, high tensile strength, and excellent resistance to moisture and chemicals make it ideal for a wide range of packaging solutions, particularly in the food and beverage industry where product freshness and extending shelf life are crucial.
PP material is not only lightweight in nature thus reducing the transportation costs and carbon footprint but also recyclable aligning with the increasing demand for eco-friendly packaging solutions.
| Application | Bags & Pouches |
|---|---|
| Value Share (2034) | 39.7% |
Bags & Pouches made of cavitated films are forecasted to account for a revenue of over USD 1.4 billion by 2024 end. It is also poised to expand at a CAGR of 3.2% across the forecast period. The ability to customized these films for specific applications such as resalable pouches and stand-up bags adds to their versatility and functionality catering to diverse consumer needs.
This trend of customized products is further supported by advancements in printing and design technologies allowing for high-quality packaging. Further, the growing adoption of recyclable and biodegradable cavitated films to meet consumer demand for eco-friendly products to fuel the market growth.
Key players operating in the cavitated films market are investing in advanced technologies and facilities and also entering into partnerships. Key cavitated films providers have also been acquiring smaller players to grow their presence to further penetrate the cavitated films market across multiple regions.
Recent Industry Developments in the Cavitated Films Market
In terms of material, the industry is divided into polypropylene (PP), polyethylene (PE), Biaxially oriented polyester (BOPET), polyamide (PA), polystyrene (PS), and polyvinyl chloride (PVC).
In terms of application, the industry is segregated into bags and pouches, lamination, tapes, labels, wraps, and others.
The industry is classified by end use as food & beverages, pharmaceutical, cosmetics & personal care, electrical and electronics, chemical, and other industrial.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and the Middle East & Africa have been covered in the report.
The global cavitated films industry is projected to witness a CAGR of 2.9% between 2024 and 2034.
The global cavitated films industry stood at USD 3.9 billion in 2023.
The global cavitated films industry is anticipated to reach USD 5.4 billion by 2034 end.
East Asia is set to record the highest CAGR of 3.9% in the assessment period.
The key players operating in the global cavitated films industry include Cosmo Films Limited, Vibac Group S.p.a., Innovia Films, JPFL Films Private Limited, Inteplast Group, and Flex Films.
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Cavitated Films Market
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