The collation shrink film market is projected to reach USD 4.2 billion in 2025, growing at a CAGR of 4.6% CAGR from 2025 to 2035 and reaching USD 6.6 billion by 2035. This reflects steady growth driven by the increasing global demand for flexible and durable packaging solutions.
Used primarily in the food and beverage sector, these films are designed to securely bundle multipacks while ensuring shelf visibility and reducing packaging material use. As consumer preferences shift toward convenient and cost-effective packaging, collation shrink films have gained traction across retail, wholesale, and e-commerce channels.
This upward trend is largely attributed to heightened investments in recyclable and lightweight packaging materials that align with environmental mandates and sustainability goals. Brands are working closely with manufacturers to integrate shrink films made from post-consumer recycled content, ensuring compliance with new regulations while maintaining performance.
One of the key factors driving growth in this space is the evolving landscape of global packaging requirements. As logistics chains become more complex and product protection more critical, products are being valued for their resilience and tamper-resistance.
heir role in improving transport efficiency and minimizing damage across long distribution cycles is helping position them as a preferred packaging format for high-volume product categories.
Government regulations surrounding collation shrink films are becoming increasingly stringent, especially in regions like the European Union, North America, and parts of Asia.
These rules focus on reducing plastic waste, mandating higher recycled content, and enforcing extended producer responsibility (EPR) across the packaging lifecycle. For instance, the EU’s Packaging and Packaging Waste Directive sets clear targets for recyclability and waste reduction, pushing manufacturers to adopt more sustainable materials. In the United States, several states have implemented plastic packaging taxes and minimum recycled content laws.
Meanwhile, countries like India are introducing bans on certain single-use plastics, prompting companies to shift toward biodegradable and recyclable film alternatives. These evolving mandates are reshaping production strategies and compelling firms to invest in eco-friendly packaging technologies that align with national and regional compliance frameworks.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 4.2 billion |
| Industry Value (2035F) | USD 6.6 billion |
| CAGR (2025 to 2035) | 4.6% |
The market is segmented by thickness into less than 25 micron, 25-50 micron, 50-100 micron, and above 100 micron. By material, it includes low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), medium-density polyethylene (MDPE), high-density polyethylene (HDPE), polypropylene (PP), and others (bio-based resins, post-consumer recycled plastics, and specialty polymer blends).
Applications covered in the market are bottles, cans, books and magazines, cartons, and others (irregularly shaped consumer goods, promotional kits, homecare products, and small electronics). The end use segments comprise food & beverages, cosmetics, personal care & home, pharmaceuticals, transport & logistics, printing & publications, and others (packaging for toys, electronic accessories, promotional gift sets, and small hardware).
Regionally, the market is analyzed across North America, Latin America, East Asia, South Asia, and Pacific, Western Europe, Eastern Europe, and Middle East, and Africa.
The 50–100-micronsegment is emerging as the fastest growing in the market, with a projected CAGR of 5.2% from 2025 to 2035. This thickness range strikes an optimal balance between durability and material efficiency.
It offers strong resistance to punctures and tears, which is essential for heavier multipack applications such as bottled water, soft drinks, and canned goods. The growing use of automated packaging lines in the food and beverage industry also supports demand for this segment, as 50-100 micron films maintain structural integrity during high-speed bundling processes.
Their ability to conform tightly around products ensures stable palletization, reducing transit damage and increasing warehouse efficiency.
The 25-50-micron segment continues to play a crucial role in packaging lighter consumer goods. It is preferred for applications requiring good transparency and moderate load strength. However, as sustainability gains traction, thinner films in this range are being engineered with multilayer structures to enhance performance without increasing material usage. The less than 25-micron segment is mostly limited to secondary or promotional packaging due to its low tensile strength and susceptibility to tearing.
On the other end, above 100-micron films cater to niche demands in industrial packaging and bulk transport, where extra thickness provides added protection but raises cost, which restricts wider adoption.
| Thickness | CAGR (2025-2035) |
|---|---|
| 50-100 Micron | 5.2% |
In the market, linear low density polyethylene (LLDPE) is projected to be the fastest-growing material segment, expanding at a CAGR of 5.4% from 2025 to 2035. This growth is supported by its superior stretchability, puncture resistance, and cost-effectiveness, which make it ideal for a wide range of bundling applications. LLDPE also supports downgauging, allowing manufacturers to produce thinner films without compromising performance, aligning well with sustainability and material reduction goals.
Low-density polyethylene (LDPE) continues to dominate the market in terms of volume due to its excellent clarity, flexibility, and sealing properties, making it a popular choice for consumer-facing multipack solutions. Medium density polyethylene (MDPE) is used in specific applications that require a balance between toughness and softness, though its market share remains limited.
High density polyethylene (HDPE) offers greater rigidity and moisture resistance, primarily used in industrial packaging contexts. Polypropylene (PP), while less commonly used in shrink applications, is gradually being adopted for its higher clarity and recyclability in certain markets. The other category includes emerging bio-based and specialty resins, which are seeing niche demand due to regulatory pressures and sustainability commitments.
| Material | CAGR (2025-2035) |
|---|---|
| Linear Low-Density Polyethylene (LLDPE) | 5.4% |
The bottles segment is expected to be the fastest growing in the market, with a projected CAGR of 5.6% from 2025 to 2035. This growth is fueled by rising global consumption of bottled beverages such as water, soft drinks, and juices, particularly in retail and wholesale environments where multipack formats are preferred for convenience and efficient handling.
The cans segment holds steady demand due to its widespread use in packaging alcoholic beverages, energy drinks, and canned foods, where collation shrink films help reduce bulk and streamline transport. Books and magazines utilize shrink films primarily for bulk retail distribution and protection from dust and moisture during transit, though growth is modest due to the digital shift in media consumption.
Cartons, especially in the food and personal care sectors, benefit from collation shrink films for bundling and promotional packaging. The other category includes packaging of non-standard shaped items or niche applications such as electronic accessories and promotional gift sets, which require customized film solutions tailored to irregular dimensions or seasonal retail demands.
| Application | CAGR (2025-2035) |
|---|---|
| Bottles | 5.6% |
The food & beverages segment is projected to be the fastest-growing end use in the market, recording a CAGR of 5.8% from 2025 to 2035. The rise in demand for multi-packaged drinks, canned foods, and convenience products in supermarkets and wholesale channels is fueling adoption. Manufacturers rely on shrink films to bundle products securely while enhancing shelf visibility and minimizing packaging waste.
The cosmetics and personal care & home segments continue to show stable growth, driven by increasing demand for compact, promotional, and seasonal packaging formats. These industries prefer clear shrink films for bundled items, such as skincare kits or household cleaner sets, where visibility and branding are key.
The pharmaceutical sector adopts shrink films for secondary packaging, primarily to ensure tamper evidence and prevent contamination. In transport andlogistics, shrink films are used to stabilize bulk shipments and reduce shifting during transit.
The printing and publications segment, though declining due to digital media, still utilizes shrink films for bulk magazine and catalog distribution. The other category includes toys, small hardware, and electronic accessories that benefit from collation packaging for retail efficiency and protection.
| End Use | CAGR (2025-2035) |
|---|---|
| Food & Beverages | 5.8% |
Rising Adoption of Retail Multipacksto Propel Product SalesCollation shrink films are seeing robust demand due to increased adoption of retail multipacks in the beverage, food, and consumer goods sectors.
They offer lightweight, cost-efficient bundling that enhances product visibility while minimizing packaging volume. In parallel, growing environmental awareness and stricter policies are prompting a switch to recyclable and bio-based shrink films. Companies such as Dow and Coveris are driving innovation in eco-friendly solutions to meet compliance targets and appeal to green-conscious consumers.
These trends are not only pushing volume growth but also fostering investment in advanced material technologies and circular economy practices. Brand owners benefit by reducing costs, meeting regulatory standards, and strengthening consumer trust through visible sustainability efforts.
Regulatory Barriers and Infrastructure Gaps May Hamper DemandOne of the key restraints for the market is the increasingly complex regulatory environment surrounding plastics. Mandates for minimum recycled content, EPR compliance, and plastic reduction targets vary widely across regions, complicating product development and distribution.
Many markets still lack the infrastructure for efficient collection and recycling of shrink films, making compliance difficult and costly. Smaller manufacturers face challenges adapting due to limited access to recycled materials and high capital requirements for process upgrades.
These obstacles can delay innovation, reduce competitiveness, and introduce uncertainty in planning, especially in countries where new regulations are pending or inconsistently enforced.
E-Commerce Growth and Smart Packaging Demand to Create OpportunitiesExpanding online retail channels present a strong opportunity for the market. As product bundling becomes essential for reducing shipping costs and minimizing damage during delivery, shrink films are proving to be an effective secondary packaging option.
They offer transparency, stability, and customization, ideal for automated fulfillment centers. Additionally, the push for smart packaging, enabled by features like tamper-evidence, QR codes, and advanced printing, is further expanding applications.
With logistics networks becoming more automated, manufacturers that offer films compatible with high-speed packaging lines and sustainable materials will gain a competitive edge. This e-commerce transformation is expected to open long-term, high-margin growth avenues.
Market Saturation and Raw Material Volatility May Pose ThreatsThe industry faces threats from increased market saturation and rising input costs. A surge in new entrants and local suppliers in emerging economies has led to oversupply and aggressive pricing strategies. This environment squeezes margins, especially for tier 1 players focused on quality and innovation.
Furthermore, volatility in resin prices due to fluctuations in global crude oil markets continues to challenge cost predictability. Companies dependent on conventional polymers are particularly vulnerable. As global customers push for lower prices without compromising quality, firms that lack flexibility or cost-efficient production models may experience erosion in market share and profitability.
| Countries | CAGR (2025-2035) |
|---|---|
| USA | 3.8% |
| UK | 3.2% |
| France | 3.5% |
| Germany | 3.5% |
| Japan | 4.0% |
The USAcollation shrink film market is estimated to grow at a 3.8% CAGR during the study period. Collation shrink films are heavily used in bundling beverage multipacks such as bottled water, soda, and energy drinks sold in bulk by major retailers like Walmart, Target, and wholesale clubs, including Costco and Sam’s Club.
These packaging formats are preferred not only for product security and logistics optimization but also for shelf presentation and ease of stocking. Additionally, the rapid expansion of e-commerce, particularly for fast-moving consumer goods, is creating fresh demand for durable yet lightweight packaging. Fulfillment centers increasingly rely on shrink films to unitize bundled orders for last-mile delivery.
There is also strong regulatory momentum in several states, such as California and New York, pushing for reduced plastic waste and higher recycled content. This has spurred innovation in recyclable and down-gauged polyethylene films. USA based packaging manufacturers are aligning with these standards to maintain market competitiveness, with automation and sustainable packaging emerging as key focus areas.
The UK collation shrink film market is estimated to grow at a 3.2% CAGR during the study period. The UK is undergoing a major transformation in packaging practices due to legislative and environmental imperatives.
Major UK retailers such as Tesco, Sainsbury’s, and Marks & Spencer are actively phasing out virgin plastics and mandating sustainability in supplier contracts. Collation shrink films are widely adopted in the UK for bundling beverages, household cleaning products, and personal care items, particularly in grocery and pharmacy chains. Moreover, the rise in online grocery delivery has emphasized the need for compact and tamper-evident packaging formats that perform well in logistics networks.
British packaging suppliers are responding by developing films with high post-consumer recycled content and integrating biodegradable elements to meet net-zero goals. Innovation is also being channeled into enhancing clarity and branding elements without compromising recyclability, a key requirement among brand-conscious UK consumers.
The French collation shrink film market is estimated to grow at a 3.5% CAGR during the study period. France has positioned itself as a leader in sustainable packaging policy with the implementation of the AGEC Law (Anti-Waste for a Circular Economy), which has reshaped the packaging landscape.
Collation shrink films are used extensively in the country’s beverage industry to wrap water, dairy, and soft drink multipacks. Additionally, French retailers employ shrink films for bundling promotions across cosmetics, food, and personal care categories. In response to regulatory pressures, producers are now focusing on recyclable polyethylene formulations with lower environmental impact. The country’s strong recycling infrastructure and consumer preference for visibly eco-friendly packaging are accelerating this shift.
Brands are moving toward using shrink films with at least 50% recycled content to stay compliant and build environmental credibility. France is also home to a number of packaging technology companies that are advancing multilayer film extrusion and developing thinner, stronger films. These innovations reduce material use while maintaining protective and visual qualities, essential for brand marketing and transit performance.
The German collation shrink film market is estimated to grow at a 3.5% CAGR during the study period. Germany’s environmental consciousness and advanced recycling systems create a favorable environment for the growth of collation shrink films that meet sustainability benchmarks.
Beverage producers in the country, including those in the mineral water, beer, and dairy sectors, have historically relied on high-performance shrink films to secure multipacks for retail and wholesale. Germany’s well-structured deposit return system (Pfand) also supports the reuse and efficient recycling of beverage containers bundled in shrink films. German packaging firms are investing in down-gauged films with high tensile strength that offer recyclability without sacrificing protection. Local regulations aligned with the EU’s Packaging and Packaging Waste Directive are pushing producers to innovate in the use of post-consumer recycled materials.
Automation in packaging lines is highly prevalent in Germany, and films need to be compatible with high-speed machines while maintaining consistency and strength. This demand has led to the widespread use of multilayer co-extruded shrink films with enhanced optical and mechanical properties. Retailers are also increasingly demanding high-clarity, brand-friendly solutions that meet both sustainability and marketing requirements.
The Japanese collation shrink film market is estimated to grow at a 4.0% CAGR during the study period. Urban lifestyle and small-format retail dominate in Japan, encouraging the use of compact, shelf-ready packaging formats.
Beverage companies, convenience food brands, and personal care manufacturers regularly utilize shrink films to bundle items in attractive and protective formats. Japan’s government has introduced a plastic resource recycling strategy, promoting the use of biodegradable and recyclable plastics across consumer packaging. Domestic manufacturers are responding with thinner, more sustainable shrink films that meet both visual appeal and performance expectations.
High levels of automation across production lines in Japan necessitate films with precise shrink behavior and consistent material quality. Innovations in bio-based plastics derived from sugarcane and other renewable resources are gaining traction. Furthermore, the country’s cultural emphasis on neatness and presentation supports the use of high-clarity films that maintain aesthetic integrity on retail shelves, making Japan a leader in premium shrink packaging applications.
Leading companies in the market are actively pursuing strategies centered around sustainability, innovation, and regional expansion. Many of these players are shifting toward recyclable and bio-based film materials to align with evolving global regulations and consumer preferences.
Investments in multilayer co-extrusion technology and downgauged films are helping manufacturers reduce material usage without compromising strength or clarity. Another priority for market participants is enhancing compatibility with automated packaging systems, ensuring high-speed production while maintaining product integrity.
Strategic partnerships, acquisitions, and expansions into high-growth regions such as Southeast Asia and the Middle East are common, as companies aim to bolster their manufacturing capabilities and distribution networks. Branding flexibility, improved printability, and customization options are also emerging as critical product differentiators in a competitive market landscape.
Among the key players, Scientex Bhd stands out for its strong footprint in the Asia-Pacific region and its focus on lightweight, sustainable films designed for high-performance applications. Berry Global Group, Inc., based in the United States, leads through technological innovation and a robust recycling program aimed at circular packaging solutions.
Napco National, headquartered in Saudi Arabia, offers customized shrink film solutions catering to beverages and consumer goods, with a growing focus on regional manufacturing strength. Coveries Holdings SA specializes in recyclable, high-clarity shrink films with strong branding capabilities, especially in European markets.
Plastotecnica SpA and Polipaks Ltd. focus on co-extruded films that combine performance with environmental responsibility. Bolloré Group and Silvalac SA maintain a significant presence in the European shrink film segment, leveraging expertise in logistics and industrial packaging.
EuroFilm Extrusion Limited and MURAPLAST d.o.o. continue to expand their offerings by introducing thinner, stronger films targeted at multipack retail and transport applications, positioning themselves competitively through innovation and regional specialization.
Recent Collation Shrink Film Industry News
| Attribute | Details |
|---|---|
| Current Total Market Size (2025) | USD 4.2 billion |
| Projected Market Size (2035) | USD 6.6 billion |
| CAGR (2025 to 2035) | 4.6% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020-2024 |
| Projections Period | 2025-2035 |
| Report Parameter | Revenue in USD billion |
| By Thickness | Less Than 25 Micron, 25-50 Micron, 50-100 Micron, and Above 100 Micron |
| By Material | Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE), Medium Density Polyethylene (MDPE), High Density Polyethylene (HDPE), Polypropylene (PP), and Others ( Bio-Based Resins, Post-Consumer Recycled Plastics, and Specialty Polymer Blends) |
| By Application | Bottles, Cans, Books & Magazines , Cartons, and Others (Irregularly Shaped Consumer Goods, Promotional Kits, Homecare Products, and Small Electronics) |
| By End Use | Food & Beverages, Cosmetics, Personal Care & Home, Pharmaceuticals, Transport & Logistics, Printing & Publications, and Others (Packaging for Toys, Electronic Accessories, Promotional Gift Sets, and Small Hardware) |
| Regions Covered | North America, Latin America, Western Europe, South Asia, East Asia, Eastern Europe, and the Middle East & Africa |
| Countries Covered | United States, United Kingdom, France, Japan, Germany |
| Key Players | Scientex Bhd, Berry Global Group, Inc., Napco National, Coveries Holdings SA, Plastotecnica SpA , Bolloré Group, Silvalac SA, Polipaks Ltd., EuroFilm Extrusion Limited , and MURAPLAST d.o.o . |
| Additional Attributes | Dollar sales by value, market share analysis by region, and country-wise analysis |
In terms of thickness, the industry is divided into less than 25 microns, 25 to 50 microns, 50 to 100 microns, and above 100 microns.
In terms of material type, the industry is segmented into low-density polyethylene (LDPE), linear-low-density polyethylene (LLDPE), medium-density polyethylene (MDPE), high-density polyethylene (HDPE), polypropylene (PP), and other materials.
In terms of application, the collation shrink film industry includes bottles, cans, books and magazines, cartons, and other applications.
Based on end-use, the sector is segmented into food and beverage, cosmetics, personal care and home care, pharmaceuticals, transportation and logistics, printing and publishing, and others.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The market is projected to reach USD 6.6 billion by 2035.
The market is expected to grow at a CAGR of 4.6% during the forecast period.
The food and beverages segment is forecasted to grow the fastest, at a CAGR of 5.8% from 2025 to 2035.
Linear low-density polyethylene (LLDPE) is expected to be the fastest-growing material, with a CAGR of 5.4%.
Key players include Scientex Bhd, Berry Global Group, Napco National, and Coveris Holdings SA.
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Collation Shrink Film Market
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