According to Future Market Insights research, during the anticipated period, the heat shrink packaging market was valued at around US$ 4.3 Bn in 2021. Heat Shrink Packaging sales are anticipated to increase at a CAGR of 4.6% and top a valuation of US$ 7.0 Bn by 2032.
The food & beverage end-use segment is projected to hold the major portion of the global heat shrink packaging market. The target segment is estimated to hold around 49% of the global heat shrink packaging market by the end of 2032.
According to the research conducted by Future Market Insights, the heat shrink packaging market generated total revenue of US$ 4.3 Bn in 2021. With the rising demand for better plastic packaging solution for food products, the global heat shrink packaging market is projected to reach US$ 7.0 Bn by 2032, increasing at a CAGR of 4.6% throughout the forecast period.
Further, in 2021, the heat shrink packaging market grew at a CAGR of 3.2%bucking initial incredulity about how the market would perform during a global pandemic.
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Historic Market Outlook for Heat Shrink Packaging Market
The heat shrink packaging market created an incremental opportunity of US$ 736 Mn during the historic years 2015-2021 and held the market value of US$ 3.5 Bn in 2015 and reaching around US$ 4.3 Bn by the end of 2021. Thus, the market for heat shrink packaging is expanding at a remarkable rate over the last few years.
The rapidly growing demand for packaged food and beverages, electronics, healthcare, etc. is driving the heat shrink packaging market. Due to high demand in these industries manufacturing units have started increasing their capacity to cope with the demand and satisfy their consumers. Heat Shrink packaging is generally used to increase its durability by combining multiple products into one package unit. This works best in packaging small products together in one combined package unit as it allows seamless and smooth transportation. It helps in lowering cost-effective methods and increases the shelf life of these products.
Also due to increasing economic growth all around the globe, there is a rise in demand for packaged foods. And this in turn is increasing the demand for the heat shrink packaging market.
Considering all the above-mentioned factors, the heat shrink packaging market is expected to increase at a CAGR of 4.6% with an incremental opportunity of US$ 2.5 Bn. Over the next decade. Thus, the heat shrink packaging market is growing at a remarkable rate with a surprising increase in the food, healthcare sector, etc.
Which factors are driving the demand for Heat Shrink Packaging Market?
The heat shrink packaging market has increased widely in recent years. The food & beverage sector and healthcare sector have majorly been a part of the huge profit in the market. Heat shrink packaging is used for the packaging of various products. Heat shrink packaging is made of recyclable material such as polyolefin, polyethene (PE) polyvinyl chloride (PVC), etc. which can be further reused. With the recyclable feature, these heat shrink packaging bags are in huge demand.
Heat plays a vital role in the shrink packaging market. Heat machines are used to shrink-wrap the products to combine into one unit. So protection is the second major factor driving the heat shrink packaging market. When heat is generated to wrap the shrink bags to products, it makes a tight seal and combines the small products into one. Once this is done it gets very easy for transportation, as well as the product packaged, stays safe for a longer time. This helps the product to stay safe from moisture or dust from the environment. Also, heat shrink packaging bags are very affordable and it saves the space of bulky packages like boxes saving money and space for the manufacturers.
Therefore, these are the major factors which are driving the demand for the heat shrink packaging market. The most convenient reason is this process needs only two things that are heat and shrink packaging bags. This makes it very handy for the manufacturers.
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What Are the Latest Market Trends for the Heat Shrink Packaging Market?
The packaging industry has changed drastically in recent years. It has made many positive changes and has flourished enormously. The same is with the heat shrink packaging market. With increasing lifestyle changes, sustainability is the most important change everyone is trying to adopt. Manufacturers in this market are also looking for sustainable packaging solutions by eliminating toxic substances from the shrink packaging materials. This in turn recycles the product and helps to maintain the product performance.
When the products are shrink-packed and sealed, it is easy to identify if any tampering is done after the packaging as it holds its shape tight without loosening. Due to this many food and health care companies shrink their products now for the safety of their products to rectify the tampering if done in future. Thus these are the latest market trends driving the heat shrink packaging market.
Country-wise Analysis
How is China projected to augment the sales of the Heat Shrink Packaging Market?
The China market in the heat shrink packaging market is expected to observe a rise at a CAGR of 5.0% by 2032 according to FMI forecast. According to the Ministry of Industry and Information Technology, a state agency of people’s republic of china published that major beverage producers in China registered double-digit growth in output last year. This results in increasing growth for heat shrink packaging market. As China has the largest population the demand for packaged food, healthcare, etc. is increasing day by day due to rising disposable income.
Thus, the market value of China in heat shrink packaging market is anticipated to reach at US$ 1.0 Bn by the year 2032.
Why does India Have a Prominent Market Value in the Heat Shrink Packaging Market?
The Indian heat shrink packaging market is projected to create an incremental opportunity of US$ 268 Mn during the forecast period. The reason behind the same is the growing healthcare and food and beverage sector in the end use industry. According to the India Brand Equity foundation, Government of India, the packaging market in India has grown rapidly over the past few years, which is expected to continue over the forecasted period. India's exposure to technology has made a significant impact on its growth. Thus, the rise in the packaging of food products in turn is giving an increase in the heat shrink packaging market.
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Category-wise Insights
Which Material Type Is Predicted to Hold a Significant Share in the Global Heat Shrink Packaging Market?
During the forecast period, the polyethylene (PE) material is projected to hold the majority of the market share which is anticipated to account for a CAGR of 3.8% by the end of 2032. This material is majorly used for heat shrink packaging as it has strong heat sealing power. It has variations like low density, linear low density and high-density temperature shrink. Another benefit of Polyethylene material is that it is available at the lowest cost to manufacturers.
There is a rising demand for the usage of recycled low-density polyethylene (LDPE) in heat shrink packaging production which is driving the market growth. Thus, this is giving a huge growth opportunity to the heat shrink packaging market. As per FMI analysis Polyethylene material is anticipated to total revenue of US$ 3.4 Bn by 2032.
Which End-Use Accounts for Maximum Sales of Heat Shrink Packaging Market?
Food & beverage is the largest end-use in the heat shrink packaging market by having the highest market share, accounting for 49%of the total market. The expansion of the retail network is expected to impact the demand for packaged foods resulting in heat shrink packaging market growth.
Due to changing lifestyles toward convenient consumption of food and beverages, the demand in this end-use industry has boosted positively. The FMI analysis anticipates that during the forecast period, the food and beverage end-use segment for the heat shrink packaging market is expected to make an incremental opportunity of US$ 1.0 Bn by the year 2032.
The above images present the BPS analysis, which analyses the variation in market shares between 2022 and 2032.
As shown in the above image Polyolefin (POF) shows a huge growth as it has witnessed a maximum gain of 350 basis points in market shares during the 10 years between 2022 and 2032. Polyolefin (POF) has flexible and strong packing which ensures tight sealing and consistency.
The healthcare segment is estimated to see a decent growth of 250 basis points, with increasing usage of healthcare products across the globe the end-use segment is expected to reflect lucrative growth in the heat shrink packaging market.
Competitive Landscape
The heat shrink packaging market is differentiated due to the presence of many market players around the world. With the presence of different regional and local competitors in the market, the heat shrink packaging market is highly competitive. Key players are focusing on various different strategies to increase their revenue and market share in the global market such as capacity expansion, mergers & acquisitions, expansions, collaborations, and partnerships.
Some of the recent developments in the market are as follows –
November, 2021 - EDL Packaging Inc, a top leader providing packaging solutions and systems, inaugurated a new and improved a shrink bundling system which is double tight wrap DTW 25. The system is built with an easy-to-clean design that allows constant cleaning and meets regulatory needs.
June, 2022 – Amcor Plc, a global leader in building and providing best packaging solutions, declared rebranding of product to provide sustainable packaging solutions to the customers to give a clear and holistic view.
Scope of the Report
Attribute
Details
Growth Rate
CAGR of 4.6% from 2022 to 2032
Base Year for Estimation
2021
Historical Data
2015-2020
Forecast Period
2022-2032
Quantitative Units
Revenue in USD Million, Volume in Units and CAGR from 2022-2032
Report Coverage
Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
