Stretch Wrap Market Size, Share & Industry Analysis, By Type (Cast Wrap and Blown Wrap), By Material (Polyethylene (PE), [Low Density Polyethylene (LDPE) and High Density Polyethylene (HDPE)], Polyvinyl Chloride (PVC), Polypropylene (PP), Biaxially Oriented Polypropylene (BOPP), and Others), By End User (Shipping & Logistics, Food & Beverage, Agriculture, Building & Construction, Chemical, Household, and Others), and Regional Forecast, 2024-2032

The global stretch wrap market size was valued at USD 4.27 billion in 2023 and is projected to grow from USD 4.47 billion in 2024 to USD 6.71 billion by 2032, exhibiting a CAGR of 6.68% during the forecast period. Asia Pacific dominated the stretch wrap market with a market share of 36.53% in 2023. Moreover, the stretch wrap market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.70 billion by 2032, driven by the increasing demand of shipping and logistics in the market.

Stretch wrap is a thin, stretchable plastic film made from polyethylene. It is generally used to reduce problems that can occur during transit, including product damage, tampering, and loss. It also comes in a range of widths, thicknesses, and formulations so that it can secure and protect a variety of product sizes. The wide usage of stretch wrap in food & beverage, building & construction, agriculture and especially in shipping & logistics to secure goods on a pallet for storage or transportation is enhancing the growth of the market.

The emergence of COVID-19 holistically impacted the market, as it led to the lockdown and ceased trade activities, severely impacting the shipping & logistics industry along with other industries. However, the post-pandemic phase has seen a boom in the shipping & logistics market due to ease in the lockdown, leading to the rising demand for these wraps.

Stretch Wrap Market Trends

Development of the Nano Stretch Wraps by Manufacturers is Trending Nowadays

Nano stretch film is a pallet wrap manufactured from 55 layers of different polymers, giving extremely high strength and a thin film. These films are designed specifically for increased pallet stability. Nano stretch film performs at higher wrapping speeds with ease. It has excellent load retention, reducing the risk of load damage when in transit. The nano stretch films are cost-effective as they use less material, providing stronger and safer packaging.

One of the most significant benefits of nano stretch film is that it can reduce the thickness while retaining a strong holding force on the wrapped pallet. These films offer stronger durability against tearing and puncture. Nano films protect goods by keeping them free from dust, moisture, and dirt, minimizing shipping damage. It also prevents ultraviolet rays and reduces the instances of pilferage. The feature offered by nano stretch wraps is increasing their adoption among manufacturers, leading to high demand in the market.

For instance, in August 2023, Gerdau Graphene, a nanotechnology company pioneering advanced graphene-enhanced materials for packaging industrial products, announced that Packseven, one of Brazil’s largest flexible film-makers, has commercialized the world’s first graphene-enhanced stretch film. The new ultra-thin film, developed using Gerdau Graphene’s specialized graphene additive technology, is significantly thinner and more durable. Initial testing revealed that the new films could pack 120% more material without breaking compared with comparable flexible films.

Stretch Wrap Market Growth Factors

Increasing Demand of Shipping & Logistics is Driving the Market Growth

In an increasingly integrated world, shipping and logistics play an important role in facilitating international trade. The industry is evolving, and the way companies conduct their business is influenced by increasing globalization and relationships between nations. For instance, the logistics sector is undergoing rapid growth and transformation and contributes a significant 14.4% to India's GDP. It is crucial for connecting different industries through optimized procurement, warehousing, and resource delivery processes.

In addition, the rise of e-commerce and the associated growing demand for last-mile delivery services. The last-mile delivery ecosystem has changed swiftly in recent years, and by 2024, major U.S. retailers will be taking steps to adopt many aspects of their last-mile delivery operations. In recent years, Target, Walmart, and Home Depot have extended their last-mile delivery options, choosing to adopt some operations from existing carriers to offer services, such as faster deliveries. Many retailers have also opted for same-day delivery offers.

In addition, for instance measures taken by the government to improve trade across the country have increased the demand for shipping and logistics. Driven by recent industry reforms, including the government's Production-Linked Incentive (PLI) scheme, robust production numbers as well as changing consumption patterns, innovative business models, such as 3PL (Third-Party Logistics) and increasing rural demand, India's logistics industry is in the coming year ahead of rapid growth.

All such factors lead to the augmenting demand of the shipping & logistics industry, boosting the stretch wrap market growth.

Availability of Stretch Wraps’ Varieties to Serve Different Applications is Bolstering the Growth of the Market

Stretch wrapping is one of the most common tools for unitizing products for transport. There are many different types of stretch films that serve different purposes for consumers.

Machine stretch film is produced for use in stretch wrap machines. It has an advantage over hand film in different ways but is not limited to greater and quicker efficiency in packaging, greater safety, superior containment of load, and less material spending. Another one is the pre-stretched film, which is expanded close to its breaking point before it is wrapped into rolls. This film does not necessitate as much energy as other stretch films to achieve the same wrapping force. The hay baling stretch film is a multi-layer specialty stretch wrapping substrate made for wrapping baled rolls of hay. It is used primarily in the agricultural and farming industries. Also known as silage stretch wrap, many types of these wraps feature LDPE (low-density polyethylene) formulations with oxygen barriers to keep your hay bales dry.

Furthermore, hand stretch film is made exclusively to be manually wrapped by human labor. It is also known as hand film, hand wrap, or manual pallet wrap. It is commonly used by businesses that wrap small volumes of products. Color stretch films are created to serve a very specialized niche area of packaging needs that other stretch film types cannot adequately service. The color stretch film is perfect for international transportation, warehouse color coding, or dating inventory. Color stretch wrap is designed to be resistant to puncture.

In addition, ultraviolet film is a stretch film with special light-discouraging additives that defend it from photographic degeneration in applications where wrapped products are kept outside and exposed to the elements. Thus, the availability of a variety of films for different applications is causing the growth of this market to flourish.

RESTRAINING FACTORS

Selection of the Inappropriate Wraps and Their Environmental Impacts Hinders the Market Growth

Using the wrong type of film to wrap the products can result in a waste of materials, money, time, costly repairs, failures, and other undesirable dynamics. The size of stretch film ultimately depends on the size and shape of your products as well as the width and height of the pallets. Just as using the wrong stretch film size can lead to various problems, so can using an inappropriate stretch film thickness (or strength). Using stretch film that is too thin for products can result in constant tears, resulting in wasted materials, time and money. In the cases where proof of tampering is required, especially for sensitive products, additional packaging solutions may be added alongside the stretch film. Although stretch film is versatile, it may not be compatible with all products and packaging materials.

For instance, objects with sharp edges or corners can puncture the packaging, reducing its effectiveness. In addition to being susceptible to punctures, the stretch film can potentially be over-stretched if packaged improperly, resulting in the weakening of the film and reduction in load stability. Likewise, applying stretch film too tightly to products can cause them to deform or become damaged.

A major disadvantage of stretch film is its impact on the environment. Most stretch films are prepared from low-density polyethylene (LDPE), a plastic that is not easily biodegradable. This means that stretch film can increase environmental waste and pollution, if not disposed of appropriately.

Stretch Wrap Market Segmentation Analysis

By Type Analysis

Use of Cast Wrap in Several End-Use Industries Drives Cast Wrap Segment Growth

Based on the type, the market is segmented into cast wrap and blown wrap.

The cast wrap segment holds the largest stretch wrap market share. The cast wrap is manufactured using a cast extrusion process. It is extremely transparent and has a glossy appearance. Cast wraps are often used for lighter products and loads stacked on pallets and require less force to stretch. The wide usage of cast wrap in several industries, such as shipping & logistics, agriculture, and food & beverage, among others, is bolstering the segment’s growth.

Blown wrap is the second dominating segment in the market. These wraps have high tear and puncture resistance, providing resistance against moisture, gases, and aromas. Blown wraps produce less manufacturing scrap and a high level of cling, contributing to the segment’s growth.

By Material Analysis

Various Benefits Offered by the Polyehtylene to Propel Polyethylene Segment Growth

Based on the material, the market is classified into polyethylene (PE), {low density polyethylene (LDPE), high density polyethylene (HDPE)}, polyvinyl chloride (PVC), polypropylene (PP), biaxially oriented polypropylene (BOPP), and others.

The polyethylene segment is dominating the market. PE stretch wrap can tightly cover the goods as a whole, reducing the damage, collapse, and loose packaging of the goods during storage and transit.

The goods are packed with PE stretch wrap, which can be waterproof and dustproof, with high transparency, and can easily distinguish the variety of the packaged goods. It has high tear strength, tensile strength, winding solid force, good self-adhesion, and retraction and bundles the product into a compact and fixed unit. Even in unfavorable environments, the product does not have any looseness and separation, so it can wrap the object into a whole and prevent it from being scattered and collapsing during transportation, thus increasing the demand for this material in the market.

PVC is the second dominating segment in the market. These wraps are generally used in the food industry due to their high oxygen transmission rate, allowing products to breathe naturally. The booming food packaging thus drives the demand for this segment.

By End-User Analysis

Growing Trade Among the Countries is Driving the Shipping & Logistics Segment Growth

By end user, the market is divided into shipping & logistics, food & beverage, agriculture, building & construction, chemical, household, and others.

The shipping & logistics is the dominating segment of this market. In a world that is becoming increasingly integrated, shipping and logistics play a vital role in facilitating international trade. The industry is evolving, and how businesses conduct their operations is being influenced by the rise of globalization and new technologies. The growing use of stretch wraps in covering pallets for the safe transportation of goods globally is causing the growth of this segment to flourish.

The food & beverages segment is the second dominating segment in the market. The increasing use of stretch wrap in the transportation and packaging of fresh products like fruits, vegetables and seafood by keeping them fresh is enhancing the growth of this segment.

REGIONAL INSIGHTS

By geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific holds the largest share of the market. The increasing purchasing power and globalization led to international trade between Asian countries, such as China, India, and Japan, raising the demand for stretch wraps for the safe transport of goods. The growing agriculture and building & construction industries are also fueling the growth of this region.

North America is the second dominating region in the market. The presence of key players and continuous innovation to give a competitive edge to other players is enhancing the growth of this region.

The European region is growing at a significant rate. The high demand for sustainable packaging and flexible products drives the growth. The rising demand for fresh products, such as fruits, vegetables, and seafood, is thriving the market growth in the region.

Latin America is anticipated to grow at a moderate rate during the forecasted period. The rising food & beverage industry and well-established agricultural industry are bolstering the region’s growth.

List of Key Companies in Stretch Wrap Market

Key Participants in the Market Witnessing Significant Growth Opportunities

The global market is highly fragmented and competitive. In terms of market share, a few major players are dominating the market by offering innovative packaging in the packaging industry. These major players in the market are constantly focusing on expanding their customer base across the regions and innovation.

Major players in the market include Berry Global, Dow, Coveris, SABIC, and others. Numerous other players operating in the industry are focused on delivering advanced packaging solutions.

List of Key Companies Profiled:

• Berry Global (U.S.)


• SHRINKFLEX (Thailand)


• SABIC (Saudi Arabia)


• SCIENTEX BERHAD (Malaysia)


• Thong Guan Industries Bhd (Malaysia)


• Dow (U.S.)


• Coveris (Austria)


• POLIFILM (Germany)


• Swiftpak (U.K.)


• DUO PLAST AG (Germany)


• American Eagle Packaging (U.S.)


• Manupackaging (Italy)


• Dongguan Yalan Packing Materials Co., Ltd. (China)


• ZPF Efekt Plus (Poland)

KEY INDUSTRY DEVELOPMENTS:

• November 2023 - Coveris, an Austrian packaging company, recently announced the launch of new sustainable stretch films named Unterland R and Unterland Crystal for silage bale wrapping. Both films are designed to offer enhanced sustainability benefits and are manufactured using only renewable resources.


• August 2021 - Revolution continued its expansion by acquiring Tennessee-based stretch film manufacturer Five Points Film. Five Points’ record of producing quality products while also bringing innovations and sustainable solutions to the stretch film market, including the use of post-consumer material in stretch film products, helped Revolution increase its portfolio of products and expand its customer base.


• February 2021 - Cortec announced the launch of Eco Wrap, a compostable industrial strength machine-grade stretch film that can be used on the most standard automated stretch wrap equipment to prepare pallets of goods for storage, inventory, or shipment.


• February 2020 - BASF and Fabbri Group developed a certified compostable cling film for the packaging of fresh food. The development of sustainable film contributes to lowering greenhouse gas emissions, reducing food waste and promoting organic recycling.


• January 2019 - Sigma Stretch Film of Asia announced the purchase of their first new cast stretch film production lines for installation in Thailand. This joint venture between Sigma Plastics Group based in the US and King Pac Industrial in Thailand will leverage Sigma’s experience in the demanding US market and King Pac’s local manufacturing and distribution networks.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, competitive landscape, product/service types, Porter’s five forces analysis, and leading end-use industries of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the above factors, the report encompasses several factors that contributed to the market's growth in recent years.

Report Scope & Segmentation