The global polyethylene terephthalate shrink films market is estimated to witness a healthy growth, at an estimated CAGR of over 4%, over the forecast period. The major factor driving the growth of the market studied is increasing demand from the food & beverage industry.
- Availability of substitutes for PET shrink films is likely to hinder the markets growth.
- Growing demand for eco-friendly material for packaging is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Demand from the Food and Beverage Industry
- PET shrink films are used for the packaging of individual food products such as muffins, cookies, candies, and other confectionary products. For bundling multiple products, these films can be used as primary packaging coming into direct contact with the food product.
- PET is one of the most commonly used material for shrink wrapping because it can be produced in a range of different densities and modified with additives to perform many functions.
- Additionally, these films are also used for the purpose of bundling smaller units and lumber. Supermarket tray wraps are also manufactured using PET shrink films.
- The ASEAN food and beverage industry is expected to grow strongly during the forecast period, due to the target set by the Industry Ministry of Indonesia for the national food and beverage industry in the country. A significant rise in commodity prices in Indonesia has boosted the purchasing power of people, with the rise in population in the country, particularly in the regions that have huge amount of production of commodities.
- Owing to all these factors, the market for polyethylene terephthalate shrink films is likely to grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific dominated the global market with a share of more than 40%. With growing packaging and healthcare industries in countries like China, India, Japan, and South Korea, the consumption of PET shrink films is increasing in the region.
- China has the second-largest packaging industry in the world. The country is expected to witness a consistent growth during the forecast period, owing to the rise of customized packaging, increased demand for packaged consumerist goods.
- Moreover, the country witnessed rapid growth in the fast-moving consumer goods (FMCG) sector in the recent past. The growth of the FMCG market was majorly driven by the increased spending on premium and healthier products by the middle-class consumers in the country.
- Additionally, India has the fifth-largest packaging industry worldwide which is growing at a significant rate. The country’s packaging industry is majorly driven by growing innovation in industries to make their products compact and portable.
- Due to all such factors, the market for polyethylene terephthalate shrink films in the region is expected to have a steady growth during the forecast period.
The polyethylene terephthalate shrink films market is partially consolidated in nature. Some of the major players in the market include Allen Plastic Industries Co., Ltd., Bonset America Corporation, Polyplex, Flint Group, and Klöckner Pentaplast, among others.
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