Collation Shrink Films Market

Growing demand for the sustainable and eco-friendly packaging solutions is driving the market growth

Market CAGR for collation shrink films is being driven by the rising demand for the sustainable and eco-friendly packaging solutions. As the businesses and consumers alike become more environmentally conscious, there is a surging emphasis on adopting packaging materials that reduce environmental impact. Collation shrink films, often made from recyclable materials and designed for efficient recycling processes, align with the shift towards sustainable packaging practices.

One of the main reasons thriving the market is the recyclability of collation shrink films. Many of these films are manufactured from polyethene, a widely recyclable material. The recyclability aspect is crucial in meeting businesses' sustainability goals and addressing the concerns of environmentally conscious consumers. Companies seeking to enhance their corporate responsibility profile are increasingly turning to collation shrink films as part of their commitment to reducing the environmental footprint of their packaging. The lightweight nature of collation shrink films further contributes to their eco-friendly appeal.

Being lightweight means lower transportation costs and reduced carbon emissions during transportation, aligning with sustainability objectives. This feature not only supports businesses in their efforts to minimize their environmental impact but also addresses the broader concerns associated with carbon emissions in the logistics and supply chain.

Moreover, the demand for sustainable packaging solutions has led to innovations in the manufacturing of collation shrink films. Manufacturers are investing in research and development to create films with enhanced biodegradability and compostability features. These advancements cater to the growing market preference for packaging materials that have minimal long-term environmental effects. The development of bio-based and bio-degradable collation shrink films provides a solution for industries looking to reduce their reliance on traditional fossil fuel-derived materials. The eco-friendly nature of collation shrink films also aligns with stringent regulatory requirements and standards related to environmental conservation.

Governments and regulatory bodies are increasingly imposing the restrictions on single-use plastics and promoting the use of recyclable and sustainable materials. Collation shrink films, with their recyclability and eco-friendly characteristics, position themselves as a compliant and responsible choice for businesses looking to adhere to evolving regulations.

Furthermore, consumer awareness and preferences play a significant role in driving the demand for the sustainable packaging. As consumers become more informed about environmental issues, they express a preference for products with eco-friendly and recyclable packaging. Collation shrink films, meeting these expectations, become a market-driven choice for businesses aiming to capture the loyalty of environmentally conscious consumers. Thus driving the Collation Shrink Films market revenue.

June 2024: Dow has introduced and released its new line of REVOLOOP Recycled Plastics Resins. This launch signifies a significant achievement in Dow's dedication to promoting circularity and revolutionizing waste management. Dow's objective for 2030 is to revolutionize waste management and market three million metric tons of circular and sustainable solutions every year. In order to accomplish this, Dow is intensifying its endeavors to promote circular and sustainable packaging.

The Global Collation Shrink Films Market Industry is experiencing a notable shift towards sustainable packaging solutions. As consumers become increasingly environmentally conscious, manufacturers are compelled to adopt eco-friendly materials. This trend is reflected in the growing preference for recyclable and biodegradable shrink films. Companies are investing in research and development to create films that not only meet packaging needs but also minimize environmental impact. The market's value is projected to reach 4.56 USD Billion in 2024, indicating a robust demand for sustainable options. This shift is likely to drive innovation and expand the market further, aligning with global sustainability goals.

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Collation Shrink Films market area dominates this market, increasing demand for sustainable and recyclable packaging solutions, coupled with stringent regulatory measures promoting environmental responsibility in packaging practices.

Further, the prime countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: COLLATION SHRINK FILMS MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Collation Shrink Films' market accounts for the second-largest market share owing to the low cost of bariatric surgery and the rise in the number of people with diabetes. Further, the German Collation Shrink Films market held the largest market share, and the UK Collation Shrink Films market was the fastest-growing market in the European region.

The Asia-Pacific Collation Shrink Films Market is expected to rise at the fastest CAGR from the year 2023 to 2032. This is due to the rapid expansion of the retail sector, increased manufacturing activities, and the growing demand for efficient and visually appealing packaging solutions. Moreover, China’s Collation Shrink Films market held the largest market share, and the Indian Collation Shrink Films market was the fastest-growing market in Asia-Pacific region.

Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Collation Shrink Films market grow even more. Market players are also undertaking various strategic activities to grow their footprint, with important market developments including mergers and acquisitions, higher investments, new product launches, contractual agreements, and collaboration with other organizations. To spread and survive in the  more competitive and rising market climate, the Collation Shrink Films industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Collation Shrink Films industry to benefit the clients and grow the market sector. In recent years, the Collation Shrink Films industry has offered some of the most significant advantages to the packaging industry. Major players in the Collation Shrink Films market, including Scientex, MURAPLAST d.o.o., ITP - Industria Termoplastica Pavese, SABIC, Coveris Holdings SA, Tilak Polypack Pvt.

Ltd, Polystar Plastics Ltd, Polipaks Ltd., Plastotecnica SpA, Silvalac SA, and others are attempting to increase the market demand by investing in research and development operations.

Berry is a leader in providing innovative packaging and engineered products, serving a diverse range of industries. Headquartered in Evansville, Indiana, Berry operates worldwide, with a strong presence in North America, Europe, Asia, and South America. The company specializes in manufacturing a broad array of packaging solutions, including plastic packaging, flexible packaging, tapes and adhesives, and engineered materials. With a commitment to sustainability, Berry focuses on creating environmentally responsible products and promoting circular economy practices.

Announced in June 2023, Berry Global, a leading US-based packaging company, acquired RPC Group, a major European manufacturer of rigid plastic packaging solutions, including collation shrink films. This acquisition strengthens Berry Global's presence in the European market and expands its product portfolio.

Sealed Air Corporation is a packaging solutions company headquartered in Charlotte, North Carolina. Established in 1960, the company has become a leader in innovative packaging technologies and materials. Sealed Air is renowned for inventing the iconic Bubble Wrap® and has since expanded its portfolio to offer broad range of packaging solutions, including protective packaging, food packaging, automation systems, and cleaning and hygiene solutions. With a presence in more than 125 countries, Sealed Air serves diverse industries such as food and beverage, e-commerce, healthcare, and industrial manufacturing.

Announced in March 2023, Sealed Air Corporation, a leading provider of packaging solutions, acquired Automated Packaging Systems, a US-based company specializing in automated bagging and packaging systems, including equipment used for applying collation shrink films. This acquisition expands Sealed Air's automation capabilities and enhances its offering of integrated packaging solutions.