Stretch Films Market

Introduction

Stretch films are engineered polythene films and are extensively used in various applications due to their superior properties such as elasticity and flexibility. As they are moisture and air-resistant, stretch films are largely used to wrap pallet loads. These films improve the overall quality of packaged food, beverages, chemicals and others by offering strong load protection and reducing time and cost incurred the packaging process. As a result, demand of stretch films is rising constantly rising.

Stretch films are cost-effective, user-friendly, and more energy-efficient in comparison to alternatives such as strapping and stretch hoods. Owing to this, they are gaining immense popularity among end-use industries such as constructions, food and beverages, pharmaceuticals, consumer product, and many more.

Governments across the world and international organizations are working to ensure that no one suffers hunger due to the negative impact of COVID-19. As a result, they are initiating several programs and making communities to ensure flow of food trade. For instance, in April 2020, World Bank joined other organizations to collectively take the charge for the flow of food trade across the borders.  To prolong the shelf life of food, and facilitate long-distance transportation, demand for effective packaging solutions is rising. Owing to this, players operating in the stretch market are witnessing several growth opportunities.

Future Market Insights (FMI) foresees that the market will grow with a CAGR of 4.7% between 2020 and 2030.

Growing Food and Beverages and Construction Industries Supporting Growth

The food and beverages industry is growing exponentially. According to Edlong Corporation, industry is witnessing major transformations such as shift towards a plant-based diet, rising uptake of fruits and vegetables, guilt free desserts and many more.  As the industry is showing no sign of slowing down, increasing demand for processed food and beverages is the key for the global stretch films market growth.

According to Plant and Food Research, New Zealand‘s Crown Research Institute , food sector in New Zealand produces food to feed more than 20 million people which is around five times its population. This growth is attributable to the rising production of new high value food and beverages, coupled with value chains that are improving the delivery of products to its premium customers.  As a result, the demand for stretch films, for a safer delivery to avoid contamination of food products, is growing consistently.

Owing to rising health awareness, the demand for clean and labeled products is increasing. This is compelling players of the food and beverages industry to ensure the quality of their product packaging. As a result, stretch film manufacturers are working consistently to upgrade the quality of their products and thereby engaging in various research and development (R&D) initiatives. For instance, sometimes high temperatures and condensation damage the branded labels used on beverages. Considering the issue, IPS Packaging conducted R&D and manufactured Air Flo Stretch Film, a stretch film that reduces condensation. This film is known for allowing airflow through it rather than holding it caught up against the bottles, causing damage.

Besides application in the food and beverages, the market is set to gain impetus from the rising demand in the construction industry. In order to strengthen the economy, emerged and emerging countries are increasing their focus on the construction sector. Spurred by government projects and renovations of existing homes, the demand for stretch films is forecast to rise notably through the assessment period.  According to the National Association of Realtors, sales of existing homes grew at 2.4% in 2020. Such raised sales are increasing renovation projects globally. The association further stated that, this year, sales are 10.5% higher compared with August 2019. With this, it has become the highest sales pace since December 2006.

Hence, the market is likely to gain notably from the growing construction and food and beverages industries. 

Bio-based Polymer Boosts Market Growth

Increasing environmental concerns among consumers and governments response to soaring pollution have resulted in implementation of stringent regulations. Subsequently, the packaging industry is encouraged to manufacture biopolymer-based plastics.

According to the United Nations (UN), over 99% of plastics are manufactured from chemicals obtained from oil, natural gas, and coal. All these are non-renewable resources. On the other hand, bio-based plastics are manufactured from biodegradable biomass. It is considered eco-friendlier and it has way less carbon footprint compared to that of petroleum based-resins.

Additionally, raw materials for bio-based plastics are easily available. These factors have been encouraging top stretch film manufacturers to adopt bio-based plastics. For instance, Katan-Ex Bio-based Stretch Film uses 50% less petroleum-based raw materials. Additionally, this stretch film has proven 90% less CO2 footprint compared to traditional stretch films and is produced with an aim to satisfy sustainable objectives of organizations.

Hence, rising preference for bio-based plastics is expected to positively impact the growth of stretch films market.

COVID-19 Results in Limiting Growth

The ongoing COVID-19 pandemic has produced several challenges for the stretch films market. During the initial phases of the pandemic, governments across the globe imposed various transportation restrictions to prevent and contain the spread of the pandemic. As a result, manufacturers of the stretch films market had to face a shortage of raw material. This hindered manufacturing activities across the market significantly. Apart from these, the market also experienced decreasing demand due to disruptions across end-use industries.

Stretch films play a vital role in the protection of rugged, heavy-duty, high puncture, and unstable loads building materials. Since the market depends significantly on the construction sector, disruptions witnessed in the industry resulted in declining demand for stretch films. With governments taking initiatives to support the construction sector, the market is anticipated to recover during the projection period.

 For instance, in India, the mega investments lined up in the National Infrastructure Plan and Affordable Rental Housing Complex (ARHC) scheme are forecast to help the sector recover from losses witnessed during the pandemic. Such investments and schemes will support the recovery of the construction sector, which, in turn, will drive the stretch films market through the forecast period.

Apart from this, FMI expects major support to come from the food and beverages industry.

Key Challenges

Rising raw materials cost and the availability of specialized alternatives such as stretch hoods are restraining the growth of the market.

Besides these, rising environmental concerns are hampering the growth of the market. With an increasing demand for packaging products, consumption of plastics has also increased. As plastics require proper disposal, this is resulting in increasing environmental concerns.

The United Nations (UN) has stated that only 9% of all plastic waste has been recycled. Nearly 12% has been incinerated, while the rest 79% is collected in landfills, dumps, or is open. Stringent regulations implemented to curb the use of plastic will therefore pose threat to stretch film manufacturers.

Region-wise Analysis

North America Stretch Films Market

North America is the strongest market for stretch films. As stretch films are extensively for the storage and safe transportation of building materials, the market is gaining significantly in response to rising residential construction projects in North America. According to Normac, a company providing highest quality insurance appraisals in the businesses, for the past few years, condo constructions in various regions in Canada, especially in metropolitan areas like Toronto, Calgary, and Vancouver, has been on a steady rise. Such a rise in construction in North America is augmenting the use of stretch films.

Furthermore, robust production of confectionaries and carbonated soft drinks is foreseen to support the growth of the stretch films market in the U.S. For instance, in 2008, PepsiCo sparkled with the title of best beverage packaging. In order to maintain that benchmark, company is working both on the development of new products and on their first-in-class packaging for a safer transportation. Such initiatives are expected to bode well for the market.

Europe Stretch films market

Europe is an attractive market for stretch films. Due to COVID-19, the market experienced sluggish demand. However, the overall outlook is forecast to remain positive during the assessment period particularly in response to the revived interest of home builders towards construction projects. For instance, Barratt, one of Britain's leading house builders, reported that its sales grew after the lockdown was lifted, and was further boosted by the government's stamp duty holiday and the help-to-buy scheme.

Besides this, owing to the stringent administration and initiatives by the European Union (EU) toward the adoption of eco-friendly products, the market in Europe is heading towards a greener production. Such factors witnessed in the region are presenting a positive environment for the growth of the stretch films market in Europe.

East Asia Stretch films market

East Asia is a lucrative market for stretch films. The rising demand from China, Japan, and South Korea will support the expansion of the stretch films market in East Asia. Even after several challenges faced due to the pandemic, the food and beverages sector in East Asia is regaining momentum, which is expected to bode well for the stretch films market. According to the China Chain Store and Franchise Association, in 2019, the food and beverage sector in China reached US$ 595 Bn.

Moreover, consistent efforts by governments toward the expansion of industries are expected to augment the demand for stretch films in East Asia. The International Monetary Fund has estimated that China’s economy will grow by 1.9% this year, which will make China the only economy in 2020 to register a positive growth. This clearly reflects the industrial expansion of China. With industries, such as food and beverages, chemicals and fertilizers, expanding at a remarkable rate, companies are trying their best to ensure the overall quality of their products. As packaging is one of the key factors responsible for safety of products, stretch films market is growing notably in response to increasing use of stretch films for industrial goods in East Asia.

Furthermore, the growing textile industry and increasing disposable income are projected to propel the demand for stretch films in the coming years.

Category-wise Insights

Food and Beverages Leads by End Use

Based on end use, the food and beverages segment is forecast to continue leading the market through the assessment period. Growth witnessed in the segment is attributable to the rising demand for packaged foods including snack food packaging, ready-to-eat meals, frozen meals, and bakery products. Additionally, increasing demand for the packaging of fresh and frozen food items such as meat, fruits, and vegetables is also posing a positive impact on the growth of this segment.

Polyethylene Remains Lead

By material, polyethylene (PE) is forecast to remain the first choice among other materials. Polyethylene-based plastic films can withstand extreme climates and does not degrade quickly in hot and cold temperatures, thus preserves the integrity of the product inside it. It also shields products from moisture, oxygen, dust, light, and odors. As a result, PE is the most preferred material.

However, rising environmental concerns due to the improper disposal of these materials are posing a negative impact on the growth of this segment.

Cast Stretch Film Dominates by Manufacturing Process

Cast stretch films are projected to remain dominant through the forecast period. Blown stretch film is hard and less flexible. On the other hand, cast stretch film is simple to stretch and requires less time and effort to unwrap the pallets. As a result, stretch film manufacturers and end-users prefer cast stretch films over blown stretch films, as they are relatively cost-efficient in nature.

Furthermore, as cast stretch films are manufactured from materials such as polyolefin polymers, they are in great demand in the food and beverages industry.

Competitive Landscape

With the entry of several newcomers, the stretch films market is getting more competitive. For instance, Scientex Packaging Film, headquartered in Port Klang, Selangor, Malaysia, is a new player in the stretch films market.

Consequently, to maintain their market position, established market players are launching innovative products and increasing their production. For instance, Mitsubishi Plastics, Inc. launched multilayer polyolefin-based stretch film, which is a result of company's advanced research. These films are gaining immense popularity in the food and beverages industry.

Besides this, players are adopting various strategies such as mergers and acquisitions and focusing on R&D activities to expand their footprint and portfolio. For instance, in 2018, Transcontinental Inc., a Montreal-based packaging, commercial printing, and specialty media company acquired Coveris Holdings S.A. With this acquisition, the company enhanced its product portfolio.

Some of the leading players included in the stretch films market report are

• Vishakha Polyfab
• Allen Plastic Industries Co. Ltd
• four star plastics
• Griff paper and film
• CS Hyde company
• International plastics Inc
• Bagla group of companies
• Italdibipack group.

The list is only indicative – a full list of stretch films market key players is available upon request

Stretch Films Market Report: Scope

Key Questions Answered by the Report

• At what rate the stretch films marketis forecast to grow?

  According to FMI, the market is expected to rise at 4.7% CAGR between 2020 and 2030.

• Which is the largest market for stretch film?

  North America is the leading market. Growth registered in the region is driven by growing construction industry. Besides this, increasingproduction of confectionaries and carbonated soft drinks in North America is forecastto further increase the demand for stretch films through the forecast period.

• Which are the top companies in thestretch films market?

  Some of the leading companies operating in the stretch films market areAllen Plastic Industries Co. Ltd, Vishakha Polyfab, four star plastics, Griff paper and film, CS Hyde company, International plastics Inc, and Bagla group of companiesamong others.

• What is the outlook on the stretch films market?

  While growth is expected to be hampered due to COVID-19, recovery is on cards as key end users such as food and beverages sector regain momentum. Government stimulus to construction sector will further boost prospects for the market within the industry.

• What are the key challenges witnessed in the stretch films market?

  Rising raw materials cost, availability of cheap alternatives, and growing environmental concerns due to improper disposal of stretch films are restraining the growth of the market.

• Who is the leading end user in stretch films market?

  According to FMI, the food and beverages segment is the most lucrative segment in the stretch films market. Growth witnessed in the segment is attributable to the rising demand for stretch films for packaged foods and fresh and frozen food items such as meat, fruits, and vegetables.

Enquiry before Buying

• Is this research conducted by Future Market Insights?

  Yes, the report on the stretch films market has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request detailed methodology.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

• Is a sample of this report available for evaluation?

  Yes, you can request a sample and it will be sent to you through an email.

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Stretch Films Market Segmentation

Material

• Polyethylene (PE)
  • High – DensityPolyethylene (HDPE)
  • Low – DensityPolyethylene (LDPE)

• Polyvinyl Chloride (PVC)
• Polypropylene (PP)
• Others

Manufacturing Process

• Cast Stretch Film
• Blown Stretch Film

End Use

• Constructions
• Food and Beverages
• Pharmaceutical
• Consumer Product
• Paper
• Textile
• Chemicals &Fertilizers

Regional Outlook

• North America - U.S., Canada
• Latin America - Mexico, Argentina, Brazil, Rest of Latin America
• Europe – Germany, Italy, France, U.K., Spain, BENELUX, Nordics, Poland, Russia,Rest of Europe
• Middle East and Africa – GCC Countries, Turkey, North Africa,South Africa, Rest of MEA
• East Asia - China, Japan, South Korea
• South Asia - India, Thailand, Malaysia, Indonesia, Rest of South
• Oceania – Australia, New Zealand