The global polyolefin shrink films market is estimated to witness a healthy growth, at an estimated CAGR of over 5%, over the forecast period. The major factor driving the growth of the market studied is superior properties of POF shrink films.
- Stringent environmental regulations are likely to hinder the markets growth.
- By application, food and beverage segment is expected to dominate the demand for polyolefin films.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Polyethylene (PE) Serves to be the Major Material Type
- Polyethylene (PE) is the majorly used material which finds application in various industries, such as food & beverage, marine, medical, and others.
- PE shrink films can be segmented into Low-Density Polyethylene (LDPE), Linear Low-Density Polyethylene (LLDPE), and High-Density Polyethylene (HDPE) shrink films. Among PE material type, LDPE is the most widely used material for producing shrink films.
- LDPE shrink films provide greater strength and durability for heavier, larger items, like multipacks of beverages, marine industrial wrapping of boat for storage, etc.
- 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 polyolefin 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 polyolefin 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 polyolefin shrink films in the region is expected to have a steady growth during the forecast period.
The polyolefin shrink films market is fragmented in nature. Some of the major players in the market include Berry Global Inc., Intertape Polymer Group, Sigma Plastics Group, Exxon Mobil Corporation, and SABIC, among others.
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