Collation Shrink Films Market Outlook
- Collation shrink films market is projected to reach over US$ 6.4 Bn by 2030 as demand for extra thin films surges
- The collation shrink films market projected to expand at volume CAGR of 5.6% during the forecast period 2020 - 2030, expanding at 1.8x of current market volume by the end of 2030
- Food and beverage industries have more demand for collation shrink films to ensure safe transportation of bundles of food container and beverage can
- North America is estimated to lead in the global market with nearly 25% market share in 2020
Reduction in Weight Prompts Packers to Shift from Cardboard to Collation Shrink Films
Study suggests, that moving from cardboard packaging to collation shrink films can reduce the weight of freight by 70%. An added advantage of reduced weight eventually translates to fuel-efficiency in transportation and shorter time to market. Companies are thus favoring collation shrink films.
This trend can be seen packaging of personal care and beauty products and food and beverages sectors. Furthermore, booming e-commerce will demand durable and efficient packaging that is both protective of products during supply chains and the environment.
The addition of metallocene resins to these films gives them the perfect gloss, making the print stand out. Several packaging companies are using this additive to achieve product differentiation with attractive printing designs too.
Every collation shrink films have gained tremendous popularity for secondary packaging as it can hold multiple cans and bottles together, reducing the overall of weight of packaging that cardboard creates. The increasing need to make packaging, logistics and transportation an efficient system, packers and end users are opting for printed collation shrink films.
Carton Packaging Remains an Evergreen Application for Collation Shrink Films
Collation shrink films are highly preferred for bottles and cans packaging in bundle formats. Therefore, these segments are expected to create cumulative incremental opportunity of US$ 774 Mn in next five years.
Collation shrink films for cartons packaging is estimated to gain by 60bps of current market share during the forecast period with the advantage of increasing packaging strength for longer duration. In South Asia, these films estimated to hold nearly 17% market share for books and magazine laminations in 2020.
Post-consumer Recycled Plastic Resin to Define Innovation in Collation Shrink Market
Every plastic packaging company has been struggling to strike a balance between developing superior product and reducing carbon footprint. To reduce this negative impact key players of collation shrink films market are focusing on the use of post-consumer resins (PCR) for production of collation shrink films.
For instance, PCR resin will offer brands and consumers a greener product that reduces plastic waste and is safer for the environment without compromising the quality.
Low Density Polyethylene-based Collation Shrink Films are Gaining Traction
As per FMI research, polyethylene-based collation shrink films are expected to outbid other segments in the next decade. The low-density polyethylene (LDPE) collation films have more demand among the end users, as these films provide additional strength and durability for the heavier and larger items like multipacks of beverage cans and bottles.
These films give an excellent surface texture for printing and quality graphics. Therefore, low-density polyethylene segment is expected to hold 1/4th of the global collation shrink films market share during the forecast year
The market is expected to observe rise of linear low-density polyethylene segment. It will gain by 50bps of current market share in next decade as extra thin collation shrink films for wrapping and packaging soars.
North America is expected to witness a CAGR of over 4% during the forecast period. As it’s a well-established market, strong competition among manufactures is anticipated.
Stringent regulations in Europe pertaining to plastic use are expected to create stagnancy in the regional market. With the presence of many developed key players in the region, a new player might face challenges while establishing business.
With the expansion of food and beverage and pharmaceutical industries, the demand for collation shrink films is consistently increasing in South Asia and East Asia. This trend is especially prominent in countries such as India and China, which will see a large number players investing in the near future. This will make the region competitive for players with excellent scope for flexible packaging solution providers.
Though many local players are present in the region, availability of resources and low material and labour cost will be added advantages. Furthermore, lucrative growth opportunities for usage of collation shrink films will be created with expanding retail and e-commerce vendors in South Asia and East Asia.
Oceania and MEA are estimated to hold nearly 8% market share in the global collation shrink films market in 2020-2030. The collation shrink market attractiveness is less in these regions which results into sluggish market growth opportunities.
Manufacturers Eye Expansion through Acquisitions and Production Capabilities
The exponentially increasing demand for extra thin collation shrink films has pushed key players to upgrade their manufacturing facilities with the new technologies. For instance, in January 2020, Eurofilm Extrusion Limited has installed new extrusion line for manufacturing 10-micron thin collation shrink film which also has less carbon footprint.
Similarly, in July 2019, Daibochi Berhad, a subsidiary of Scientex Bhd acquired Mega Printing & Packaging Sdn Bhd for US$ 29.2 Mn.
Impact of COVID 2019 pandemic on Collation Shrink Films Market
COVID-19 pandemic has created disruption in all sectors including packaging industries. It has a negative impact on the collation shrink films market too with disrupted supply chain and reduced workforce.
Stay-at-home directives in many countries have resulted in reduced production and restrained demand for wrapping films. The fluctuating economic conditions and exchange rates are also affecting the cost of raw material. Drop in the sales of non-essential commodities has hampered the usage of collation shrink films as transportation and logistics have come to a grinding halt.
Analysts anticipate that the collation shrink films market is expected to recover by Q4 2020 gain with potential CAGR, attributing to increasing hygiene concern for food, beverage and medical products. More than 35% of sales of collation shrink films in 2021 are expected due to increasing demand for food safety.
Collation Shrink Films: Regional Analysis
India, Thailand, and Indonesia are the key countries for collation shrink films market in South Asia. India is likely to hold the leading position, registering a growth rate of 8.2% during the forecast period of 2020-2030. Increasing demand for 20-50 micron films is expected to drive the nationwide demand. Expanding e-commerce vendors will opt for these films as durability will remain a deciding factor for packaging products for shipping purposes.
The demand for collation shrink films from supermarkets and e retail stores across East Asia market is expected to create significant growth opportunities in the next decade. Pharmaceuticals, food and beverage, and cosmetics will fuel this expansion in the coming decade. China is expected to outbid the U.S. market between the forecast years of 2020-2030.
Europe is expected to expand at a growth rate of 4% during 2020-2030. Although it’s a mature market, the consumption of collation shrink films is anticipated to increase after COVID-19 pandemic as ensuring safety and hygienic transportation of food and pharmaceutical products has become exceptionally important.
Latin America market is anticipated to expand at 40bps of current market share by 2030, characterised by growing sales of linear low density polyethylene collation shrink films.
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Collation Shrink Films: Competition Landscape
The collation shrink films market is fragmented. According to Future Market Research, SABIC, Scientex Bhd, Napco National, Coveris Holdings SA, Plastotecnica SpA, Bolloré Group, Silvalac SA, Polipaks Ltd., Eurofilms Extrusion Limited, and MURAPLAST d.o.o. are the top 10 key players and accounting for 30%-32% share of the global production.
These players are planning to increase their segmental revenue by enhancing production capabilities and acquisitions. The key players have a maximum emphasis on the production of cost-effective, clear, and high tamper-resistant collation shrink films.
Some of the key players in the collation shrink films market are -
- Napco National
- MURAPLAST d.o.o.
- Eurofilms Extrusion Limited
- Bolloré Group
- ITP - Industria Termoplastica Pavese
- Coveris Holdings SA
- Tilak Polypack Pvt. Ltd
- Polystar Plastics Ltd
- Polipaks Ltd.
- Plastotecnica SpA
- Silvalac SA
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report
Collation Shrink Films Market Sees a Bright Future as Packaging Materials Remain “Essential”
The growth trend of the collation shrink films market is expected to drop down to 3% to 3.9% yearly growth in 2020 – 2021 due to COVID 2019 pandemic. However, it is estimated to reach peak Y-o-Y of 6.6% after 2025.
Significant revenue-generating opportunities for the market growth are expected against the backdrop of an increasing number of cosmetics, pharmaceuticals, and transport & logistics industries attributing to firm packaging material requirement. Furthermore, owing to good printing surface quality of collation shrink films, it is used as an effective marketing tool in the printing and publication industries.
In the recent past, with the increasing awareness about plastic use and its environmental impact, consumers were switching to alternate packaging solutions. But, using advanced technology, key players are manufacturing collation shrink films with the recyclable polymers having negligible carbon footprints. Therefore, the collation shrink films market is expected to expand with prominent CAGR in the next decade.
The global collation shrink films market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
- Less than 25 micron
- 25-50 micron
- 51-100 micron
- Above 100 micron
- Low Density Polyethylene (LDPE)
- Liner Low Density Polyethylene (LLDPE)
- Medium Density Polyethylene (MDPE)
- High Density Polyethylene (HDPE)
- Polypropylene (PP)
- Book & Magazines
By End Use
- Food & Beverage
- Personal Care & Home Care
- Transport & Logistics
- Printing & Publications
- North America
- Latin America
- South Asia
- East Asia