Stretch and Shrink Film Market

Increased development of the cosmetic industry to propel the market growth

Similar to many other industries, the personal care industry experiences regular product damage during the necessary distribution-related transportation process. Stretch & shrink films are used in personal care products including body care, skincare, and more because personal care goods frequently need extra protection to keep the products and primary packaging in great form for consumers. Stretch and shrink film demand is being driven by the expanding cosmetics sector.

The sales of hand care products, for instance, climbed by 26.2% to €68.25 million (US$77.9 million) in 2020, from €54.09 million (US$60.6 million) in 2019, according to the Cosmetic, Toiletry and Perfumery Association (CTPA). Additionally, sales of body lotion and cream were €198.39 million ($222.1 million) in 2019 and €201.36 million ($229.99 million) in 2020, an increase of 1.5%, which led to a rise in demand for stretch & shrink films. Thus, it is projected that the market would rise due to the personal care industry's quick development. Thus, this factor is driving the market CAGR.

The electronic and electrical industries employ stretch and shrink films to shield exposed electrical wires in various systems from damage. The market is expanding more quickly thanks to rising smartphone demand. For instance, the System for Mobile Communication predicts that by 2025, there will be 700 million additional mobile customers worldwide, increasing the market for stretch and shrink films. Similar to this, the consumer electronics and appliance sectors are supporting the expansion of the stretch and shrink film industry.

For instance, Invest India predicts that by 2025, the consumer electronics and appliances market in India will be worth US$21.18 billion and increase at a CAGR of 11%. As a result, it is projected that the stretch & shrink market will continue to rise throughout the forecast period due to the rising need for the electronic and electrical sector.

Additionally, shrink wrap is frequently utilised to package various products in the e-commerce industry. The films have a number of advantages, including a wide range of oxygen transmission rates, optimal shelf-life for a number of food packaging types (meat, cheese, poultry, and case-ready packaging), premium product presentation, high impact and puncture resistance, fewer leaks when packing rigid or sharp-edged products, retained strength at freezing temperatures, and preserved package integrity. Additionally, over 5.3 million Americans used almost 10 million boxes.

The Global Stretch and Shrink Film Market Industry is poised for substantial growth, with projections indicating a market size of 17.9 USD Billion in 2024 and an anticipated increase to 31.9 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 5.37% from 2025 to 2035, driven by various factors including technological advancements, rising demand for sustainable packaging, and the expansion of e-commerce. These projections underscore the industry's potential and highlight the importance of strategic investments and innovations to capture emerging opportunities.

The versatility of stretch and shrink films across various industries is a key driver for the Global Stretch and Shrink Film Market Industry. These films find applications in sectors such as food and beverage, pharmaceuticals, and consumer goods, where they serve to protect products and extend shelf life. The ability to customize films for specific applications enhances their appeal, leading to increased adoption across different markets. As industries continue to evolve, the demand for tailored packaging solutions is likely to rise, further propelling the market's growth trajectory.

The expansion of the e-commerce and retail sectors is a pivotal driver for the Global Stretch and Shrink Film Market Industry. As online shopping continues to proliferate, the need for effective packaging solutions that ensure product safety during transit becomes increasingly critical. Stretch and shrink films provide excellent protection against damage, making them ideal for e-commerce applications. The market is anticipated to grow significantly, with projections indicating a rise to 31.9 USD Billion by 2035. This growth is likely to be fueled by the increasing volume of goods shipped globally, necessitating efficient packaging solutions.

The Global Stretch and Shrink Film Market Industry is significantly influenced by the increasing focus on supply chain efficiency. Businesses are recognizing the importance of optimizing packaging solutions to reduce waste and enhance logistics. Stretch and shrink films play a crucial role in this optimization by providing lightweight and space-saving packaging options that streamline transportation. As companies strive to improve their operational efficiency, the demand for these films is likely to rise. This trend is expected to contribute to the overall growth of the market, aligning with the broader objectives of cost reduction and sustainability.

Technological advancements in film production are reshaping the Global Stretch and Shrink Film Market Industry. Innovations such as improved extrusion techniques and the development of multi-layer films enhance the performance characteristics of stretch and shrink films. These advancements not only increase the durability and flexibility of the films but also reduce production costs, making them more accessible to a broader range of industries. As a result, the market is expected to witness a compound annual growth rate of 5.37% from 2025 to 2035, indicating a robust trajectory driven by continuous innovation in manufacturing processes.

The Global Stretch and Shrink Film Market Industry is experiencing a notable shift towards sustainable packaging solutions. As environmental concerns gain prominence, manufacturers are increasingly adopting biodegradable and recyclable materials in their film production. This trend is driven by consumer preferences for eco-friendly products, which are projected to influence market dynamics significantly. For instance, the demand for sustainable packaging is expected to contribute to the market's growth, with the industry projected to reach 17.9 USD Billion in 2024. Companies that innovate in this space may capture a larger share of the market, aligning with global sustainability goals.

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific stretch and shrink film market accounted for USD 6.9 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period. Due to the rising food and beverage industries, notably in China and India, the region is predicted to dominate. Over the projected period, rising consumer disposable income and rising packaged food demand are anticipated to drive up the demand for flexible packaging.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: STRETCH AND SHRINK FILM MARKET SHARE BY REGION 2021 (%) Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America stretch and shrink film market accounts for the fastest growing market share. Shrink and stretch film demand is being driven by the region's expanding requirement for product packaging, as well as for bundling and safeguarding things during storage and transit. Moreover, US stretch and shrink film market held the largest market share, and the Canada stretch and shrink film market was the fastest-growing market in this region

Europe stretch and shrink film market is expected to grow at a substantial CAGR from 2022 to 2030. Due to the widespread laws governing the use of polymers in applications involving food contact, the market for stretch and shrink films for packaging is only anticipated to expand somewhat in Europe. The region's manufacturers create cutting-edge items that adhere to the regulations, raising regional product costs as a result. Further, the UK stretch and shrink film market held the largest market share, and the Germany stretch and shrink film market was the fastest-growing market in the region.

Major market players are spending a lot on R&D to increase their product lines, which will help the stretch and shrink film industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the stretch and shrink film industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, stretch and shrink film industry has provided medicine with some of the most significant benefits. The stretch and shrink film market major player such as Dow, Berry Plastics, Vitopel, Anchor Packaging, Intertape Polymer Group, Bemis Company, Paragon Films and FUJI.

The Dow Chemical Company, sometimes known as Dow Inc., is a chemical company with headquarters in Midland, Michigan. One of the top three chemical producers in the world is the business. In September 2021, in a trial project, Dow Inc. and Bolloré worked together to incorporate recycled material into new food-contact packaging that can be recycled after use.

The Bemis Company, Inc. produced pressure-sensitive materials and flexible packaging products on a scale. Neenah, Wisconsin, in the United States, served as the company's headquarters. Its branches were spread over 12 nations, and its adhesive materials and packaging films were sold all over the world. In June 2019, Amcor Plc acquired Bemis Company Inc. in order to strengthen its presence in the US market.