Shrink Wrapping Machines Market

Shrink Wrapping Machines Market Outlook from 2024 to 2034

The shrink wrapping machines market size is estimated to be worth USD 982.7 million in 2024 and is anticipated to reach a value of USD 1,270.4 million by 2034. Sales are projected to rise at a CAGR of 2.6% over the forecast period between 2024 and 2034. The revenue generated by shrink wrapping machines in 2023 was USD 946.8 million.

L-bar sealers have applications in diverse end-use industries such as food and beverage, pharmaceutical, retail and many others for strong and durable packaging that can withstand handling and transportation, capturing a market share of 41.8% in 2024 in the shrink-wrapping machines market.

This rise is amid its versatility to handle products having variations within their shapes and sizes and high-speed efficiency in sealing and shrinking, improving the overall production process and packaging time.

Shrink Wrapping Machines Industry Forecast

Attributes	Key Insights
Historical Size, 2023	USD 946.8 million
Estimated Size, 2024	USD 982.7 million
Projected Size, 2034	USD 1,270.4 million
Value-based CAGR (2024 to 2034)	2.6%

Among several end uses, the manufacturing and warehousing sector finds major applications for shrink-wrapping machines. The manufacturing and warehousing sector is set to capture more than 56.3% of the total market share in the assessment period. This is due to the need for shrink wrapping for various products for protection against dust, moisture, and damage. Shrink-wrapped products are compact, allowing for better use of storage space and more efficient palletization for shipping.

In terms of automation, automatic shrink-wrapping machines are used most often and are anticipated to dominate the market in upcoming years. This is because automatic machines offer quick packaging needs and provide uniform and consistent shrink wrapping, which is very crucial for maintaining product standards and scalability to handle large volumes of products, making them ideal for businesses with high packaging demands.

The shrink-wrapping machines market is set to experience profitable growth during the forecast period. It is projected to create an incremental opportunity of USD 323.6 million and is predicted to rise 1.34 times the current value through 2034.

Semi Annual Market Update

The below table presents the expected CAGR for the global shrink-wrapping machines market over several semi-annual periods spanning from 2024 to 2034.

Particular	Value CAGR
H1	2.5% (2023 to 2033)
H2	2.7% (2023 to 2033)
H1	2.3% (2024 to 2034)
H2	2.9% (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 slightly higher growth rate of 2.7% in the second half (H2) of the same decade.

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 2.3% in the first half and remain relatively moderate at 2.9% in the second half. In the first half (H1) the market witnessed a decrease of 20 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.

Key Industry Highlights

Surging Demand for Safe Packaging Products for Fresh Produce Food

With the spread of awareness regarding the benefits of consuming fresh produce fruits, vegetables, meat, seafood and other meat products over packaged foods and increasing cases of due to the consumption of spoiled or contaminated foods, the demand for secured packaging solutions such as shrink wraps has gained impetus demand.

There are chances of contamination of the fresh produce food products during handling and transportation from warehouses to hypermarkets and supermarkets. Consumption of contaminated foods can lead to severe food-borne illness. World Health Organization (WHO) in 2022 estimated that around 600 million fall sick every year because of eating contaminated food products.

To prevent the cases of foodborne illnesses that are primarily caused because of consuming spoiled and contaminated food products, they are packaged using shrink-wrap machines to offer protection against dirt and moisture. Shrink wraps safeguard the product integrity during storage and transit, leading to extended shelf life and improved safety for consumption.

Shrink wraps also provide visibility in their packaging, creating a sense of trust among the customers as they can differentiate the spoiled and non-spoiled products visually.

Thus, the increasing consumption of fresh fruits, vegetables are meat products across generations all over the world and the ideal benefits provided by shrink wraps for preventing the spoilage of these food products, ultimately reducing the food-borne illness cases is driving the demand for shrink-wrapping machines in the developed as well as developing regions.

Thriving Manufacturing Spurs Demand for Storage Security Solutions

The global manufacturing sector is flourishing due to rising consumer demand, innovations technological advancements and globalization. According to the World Manufacturing Foundation, the manufacturing industry contributes a major share of the global gross domestic product with a share of 17% in 2022.

Manufacturing activities are many times associated with high-volume production to fulfil the fluctuating demands of the consumers. In cases of reduced demand, the excess products or goods are then stored in the warehouse.

These products pass through adverse conditions such as harsh handling and exposure to environmental conditions that can have a severe impact on the products leading to their damage or decline in their efficacy during the transport from production units to warehouses, etc.

To prevent such cases, companies prefer shrink wrapping for their products owing to their exceptional characteristics which include clarity and visibility of the packaged product, tight and secure fit to the product and cost-effective nature as compared to other rigid packaging products like boxes and clamshells.

As the shrink-wrapping machines provide increased packaging speed and consistency, available in various sizes and configurations and can also be integrated with other packaging processes for streamlined operations, they have been used to a large extent in the manufacturing sector for efficient, protective, and visually appealing packaging solutions for easy identification in warehouses.

Environmental Concerns Related to the Disposal and Recycling of Shrink Wrap Materials

Shrink wraps are often made from materials like PVC or polyethylene. Recycling these materials is a challenging factor due to the thin shrink wraps and mixed-material composition and potential contamination from adhesives or inks used in printing.

The rising awareness over the use of sustainable, recyclable and environmentally friendly packaging products and materials having minimal waste management and difficulty in disposal and recycling of sheer volumes of shrink wrap used across industries, can hinder the adoption of shrink wrapping machines in industries increasingly focused on sustainability and regulatory compliance regarding recycling practices and minimal impact to the ecosystem.

2019 to 2023 Global Shrink Wrapping Machines Sales Outlook Compared to Demand Forecast from 2024 to 2034

The global shrink-wrapping machines market recorded a CAGR of 1.9% during the historical period between 2019 and 2023. Market growth of shrink-wrapping machines was positive as it reached a value of USD 946.8 million in 2023 from USD 878.6 million in 2019.

The shrink-wrapping machines market is experiencing growth due to its increased need for packaging solutions from manufacturing, warehousing, e-commerce, logistics and transportation end-use industries for safeguarding products from external factors that can degrade their integrity or contaminate them.

Shrink wrapping machines offer a tight shrink wrap with excellent barrier properties over the products against dust, moisture, and tampering that can withstand handling and transportation.

The growth of the e-commerce industry and logistics and transport activities are major factors that are propelling the demand for shrink-wrapping machine product types like L-bar sealers, I-bar sealers and side sealers. Shrink wrapping machines are available in multiple automation types consisting of automatic, semi-automatic and manual machines.

The shrink-wrapping machines market is expected to experience high demand in North America and Europe due to the strong presence of e-commerce sectors and growing manufacturing industries.

Innovations in shrink-wrapping technology, such as automated systems and environmentally friendly materials are pushing manufacturers to develop recyclable and eco-friendly shrink-wrap materials. The rise in demand for protective packaging options to ensure that the product reaches the customers in the desired quality from several end users is expected to create opportunities for the market.

Market Concentration

Tier 1 companies comprise market leaders with a market revenue of above USD 40 million capturing significant market share of 20% to 25% 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 across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.

They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include PAC Machinery, Syntegon Technology GmbH, ProMach, Omnia Della Toffola SpA, Erapa (UK) Limited and Sidel.

Tier 2 companies include mid-size players with revenue of USD 10 to 40 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 Aetna Group S.p.A. (ROBOPAC), Duravant LLC, Standard-Knapp, Inc., Tripack and Conflex Incorporates.

Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 10 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.

Country-wise Insights

The section below covers the future forecast for the shrink wrapping machines market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is anticipated to remain at the forefront in North America, with a CAGR of 1.9% through 2034. In South Asia and Pacific, India is projected to witness a CAGR of 4.7% by 2034.

Countries	Value CAGR (2024 to 2034)
USA	1.9%
Germany	1.1%
China	3.7%
UK	1.5%
Spain	2.5%
India	4.7%
Canada	1.4%

UK's Booming Cosmetic Industry Drives Shrink-Wrap Demand

The shrink wrapping machines industry in UK is projected to grow at a CAGR of 1.5% compared to other countries in the European region by 2034.

The personal care and cosmetic industry in the UK is growing due to the rise in consumer awareness for personal grooming, skincare, and overall well-being. The personal care and cosmetic industry in UK contributed for £24.5 billion to the country’s GDP, as per the reports from The Cosmetic, Toiletry and Perfumery Association Limited.

Shrink wraps are used as a secondary packaging material in the personal care and cosmetic industry to ensure that products like lipstick, mascara, and eyeliners remain sealed and not tampered or opened until they are purchased, preventing contamination and maintaining hygiene standards.

Various products like serums, creams, and lotions, are packed using shrink-wrapping machines to protect sensitive skincare ingredients from exposure to air and light, which can affect and deteriorate their effectiveness.

These wraps also allow for packaging multiple configurations together in a pack of six, twelve or more for effective transportation and storage in retail shops or other stores. The growing cosmetic and personal care industry in the UK is propelling the demand for shrink-wrapping machines.

Shrink Wrap Boosts Protection in India's E-commerce Surge

E-commerce industry in India offers a lot of opportunities for the market. The country is anticipated to record a CAGR of 4.7% during the valuation period.

The rising population with busy schedules across regions in India and popularity of e-commerce industry across generation in urban areas, major population have shown a transition to e-commerce websites and apps because of the extra convenience for purchasing of several products instead of personally visiting the retail shops or supermarkets.

The e-commerce industry in India experienced a growth of 21.5% in 2022 and is anticipated to reach USD 350 billion by 2030, as per Indian Brand Equity Foundation. This rise translates to the need for protective packaging solutions like shrink wraps to guarantee the safe delivery of products to the customers in the desired quality without any cases of spoilage or loss of functionality and effectiveness.

Shrink wrapping machines offer the required packaging option to protect the products from environmental factors like moisture, humidity, rainwater and temperature fluctuations. Additionally, they provide transparency in packaging, offering a clear view of the product to ensure its quality and integrity. Overall, shrink-wrap packaging plays a vital role in the e-commerce industry by safeguarding products, enhancing their visual appeal, and maintaining hygiene standards.

Category-wise Insights

The section contains information about the leading segments in the industry. In terms of product, L-bar sealers is estimated to account for a share of 41.8% by 2034. By end use, the manufacturing and warehousing industry is projected to dominate by holding a share of 56.3% by the end 2034.

Versatile L-Bar Sealers Preferred Choice for Efficient Shrink-Wrapping

Product	L-bar sealers
Value CAGR (2034)	2.2%

Among products related to shrink wrapping machines, the L-bar sealers are expected to lead the market during the forecast period. L-bar sealers are anticipated to rise at a CAGR of 2.2%, and hold for 41.8% of the total market share till the end of 2034.

L-bar sealers, I-bar sealers and side sealers are some of the product types in shrink-wrapping machines, each of them having its peculiarities and end-use industries. L-bar sealers are favored more often compared to the other two products due to distinct features such as seamless sealing that creates a tight seal offers a professional finish to the product packaging, enhances product appearance and protection and adaptability to be integrated into automatic production lines, providing flexibility for different packaging needs.

Additionally, L-bar sealers are easy to operate and maintain, requiring minimum training regarding their operations and capability to handle a wide range of products from several end-use industries in different sizes and shapes.

They are known for their perfect balance between cost and functionality and compact footprint, making them suitable for facilities with limited space becoming a preferred choice for businesses seeking efficient, reliable, and cost-effective shrink-wrapping solutions, leading to burgeoning demand over the forecast period.

Need for Safe and Efficient Packaging in Food Industry

End Use	Manufacturing and Warehousing
Value CAGR (2034)	2.1%

The manufacturing and warehousing segment among other end uses like e-commerce, logistics and transport is estimated to lead the shrink wrapping machines market with a CAGR of 2.1% till 2034.

Shrink wrapping machines are used for a variety of purposes protection and preserving product integrity during storage and transport. The manufacturing and warehousing sector utilizes these machines for product protection from external factors that are susceptible to damage or contamination of the product quality.

As these sectors involve activities related to the transport of products from production units to packaging units or warehousing, shrink-wrapping machines offer a tight wrap to these products, reducing the chances of theft and product tampering. Shrink wraps use minimum packaging materials, resulting in reduced packaging waste and costs associated with the packaging material.

Products wrapped used shrink wrapping machines usually accommodate lesser space as compared to other packaging options, allowing for better storage and optimized use of warehouse space. These benefits collectively make shrink-wrapping machines indispensable in the manufacturing and warehousing sector.

Competitive Landscape

Key players of shrink wrap machines industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.

Key Developments in Shrink Wrapping Machines Market

• In April 2024, PAC Machinery introduces the CLAMCO 6800CS-HS CONTINUOUS BOX MOTION SIDE SEALER, a high speed continuous motion automatic side sealing system that excels at shrink wrapping products of varying lengths.
• In April 2024, ProMach, a worldwide leader in processing and packaging machinery and related solutions, acquired Etiflex, a leading producer of pressure-sensitive and RFID labels

Key Players in Shrink Wrapping Machines Market

• Aetna Group S.p.A. (ROBOPAC)
• PAC Machinery
• Duravant LLC
• Syntegon Technology GmbH
• Standard-Knapp, Inc
• ProMach
• Tripack
• Conflex Incorporates
• Omnia Della Toffola SpA
• Erapa (UK) Limited
• Sidel

Shrink Wrapping Machines Market Segmentation

By Product:

In terms of product, the shrink wrapping machines market is divided into L-bar sealers, I-bar sealers and side sealers.

By Closure Type:

Among automation in shrink wrapping machines market, the market includes automatic, semi-automatic and manual machines.

By End Use:

Some of end users related to shrink wrapping machines market include manufacturing and warehousing, e-commerce, logistics and transport.

By Region:

Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.