Shrink Packaging Market Size, Share & Industry Analysis by Material (Polyethylene (PE), Polyvinyl Chloride (PVC), Polyolefin (POF), Ethylene-vinyl Alcohol (EVOH), and Others), By Product Type (Sleeves & Labels, Films & Wraps, Hoods, Bags, and Others), By Application (Food, Beverages, Personal Care & Cosmetics, Consumer Goods, Logistics & Transportation, and Others), and Regional Forecast, 2024-2032

The global shrink packaging market size was valued at USD 11.00 billion in 2023 and is projected to be worth USD 11.61 billion in 2024 and reach USD 18.85 billion by 2032, exhibiting a CAGR of 6.24% during the forecast period. North America dominated the shrink packaging market with a market share of 31.18% in 2023. Moreover, the shrink packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 5.07 billion by 2032, driven by the increasing adoption of biodegradable and recyclable shrink films.

Shrink packaging is an innovative packaging solution that protects and packages a single product and is also used to help bundle several products together. The packaging is difficult to puncture or tear, unlike other materials, and ensures overall product protection, further driving the global market growth. In addition, the rising utilization of shrink films, wraps, and sleeves by the food & beverage industries contributes to the market share.

During the COVID-19 pandemic, more than 60% of stretch and shrink film sales came from storing, bundling, and transporting goods such as hygiene products (e.g., paper towels, toilet paper, and wipes), drugs, and medical devices. Moreover, the utilization of shrink films for the packaging of e-commerce products and grocery items, cheeses, meats, dairy, bottled water, frozen meals, and other products also contributed to the market growth.

Shrink Packaging Market Trends

Rising Demand from E-commerce & Retail Sectors Emerges as a Key Market Trend

Shrink packaging is the most preferred packaging solution in the transportation sector owing to its low cost, lightweight, and damage-resistant features. The rapidly accelerating retail & hypermarkets globally, along with the growing e-commerce industry, drives the demand for shrink packaging. Moreover, the increasing demand for shrink hoods, tubes, and bags from retail and e-commerce industries for overall product packaging and safety is a major factor as a key market trend. In addition, as shrink film is helpful for warehouse distribution centres, it is mainly used by e-commerce packaging manufacturers globally. These packaging solutions also save lots of space, making them ideal for e-commerce needs. Unlike other packaging types that are brittle, shrink products are sturdy and versatile and can contain objects with non-uniform and irregular shapes, further boosting the market growth.

Shrink Packaging Market Growth Factors

Noteworthy Benefits of Shrink Packaging to Propel the Market Growth

Shrink packaging is an effective and most-used packaging method for various end-use industries. The packaging provides excellent product protection from many external factors and holds up in most weather conditions. The improved barrier-resistant feature, along with the cost-effectiveness and lightweight properties of the shrink films, wraps, and hoods, makes them an ideal solution for the packaging of numerous goods.

Moreover, as the plastic material is utilized to manufacture shrink wraps is very sturdy and durable, it has gained traction in the food, beverages, and transport sectors, further driving the market growth. In addition, as the packaging does not weaken or brittle when in contact with extreme weather conditions, the market growth is accelerating. Furthermore, the glossy finish that generates an attractive appearance, along with the convenience of carrying offered by these packaging solutions, also contributes to market growth.

Substantial Rise in Demand from Food Sector to Drive the Market Growth

Food is highly perishable, and owing to this, several manufacturers face challenges in extending the shelf life of their products. In this regard, shrink packaging plays a vital role and is an excellent choice for food production manufacturers as the exposure of food items to external factors may lead to faster spoilage, further increasing food waste. Sealing food items with shrink wraps and films is an effective and vital method to prevent food wastage.

Hence, the rising demand for such packaging solutions from the food sector is the major factor driving the global shrink packaging market growth. The shrink films prevent oxygen from reaching the food items inside, further reducing the rate of decomposition and increasing the shelf life of the enclosed food product. The longer the food product is safe for consumption, the less energy is needed to produce and deliver another of its kind. Rising demand for shrink wraps and films to package several food items such as meat, seafood, cheese, and cooked meals is thus enhancing the market growth.

RESTRAINING FACTORS

Difficulty in Recycling and Increasing Environmental Concerns May Restrain the Market Growth

Shrink films, wraps, labels, and other products provide various benefits to the packaged products. However, several factors are analyzed to limit the utilization of these products, further impacting the market growth. These products are hard to recycle and create crucial environmental impacts that hinder the shrink packaging market growth.

The packaging is also not suitable for several luxury products, and its usage as a secondary method increases the overall costs, further hampering the market growth. In addition, shrink films are not considered an eco-friendly option, as they release harmful chemicals when burned and do not decompose easily. Moreover, the rising environmental concerns about plastic usage and plastic bans in several countries are also analyzed to restrain the market growth globally.

Shrink Packaging Market Segmentation Analysis

By Material Analysis

Rising Utilization of Polyethylene (PE) Shrink Films Among Several Industries to Drive the Segment’s Growth

Based on material, the market is segmented into polyethylene (PE), polyvinyl chloride (PVC), polyolefin (POF), ethylene-vinyl alcohol (EVOH), and others.

The polyethylene (PE) is the dominating material segment and is projected to attain rapid growth during the forecast period. Polyethylene (PE) is a majorly used plastic material for the packaging of food & beverage, medical, and various heavy and bulky products. Low-density polyethylene (LDPE), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE) shrink films are in high demand in those industries, which is flourishing the segment growth.

The polyvinyl chloride (PVC) is the second-dominating material segment and is analyzed to witness a significant growth rate during the forecast period. The rising utilization of PVC films in the packaging of consumer goods drives the segmental growth.

By Product Type Analysis

Potential Benefits Offered by the Films & Wraps to Aid the Segmental Growth

Based on product type, the shrink packaging market is segmented into sleeves & labels, films & wraps, hoods, bags, and others.

The films & wraps is the leading product type segment and is analyzed to witness significant growth in the forthcoming years. The films & wraps offer higher protection levels than any other regular films. Moreover, the durability, versatility, and water-resistance properties of the films & wraps increase their usage in varied end-use sectors, further boosting segmental growth.

The sleeves & labels is the second-dominating product type segment. The rising utilization of such product types for the packaging of food products and non-alcoholic beverages such as water bottles and many others drives the segment growth.

By Application Analysis

Overall Product Protection Offered by Shrink Packaging to Fuel the Food Segment Expansion

Based on application, the market is segmented into food, beverages, personal care & cosmetics, consumer goods, logistics & transportation, and others.

The food is the dominating application segment and is estimated to grow robustly in the upcoming years. The food industry highly utilizes shrink films & wraps to prevent oxygen from reaching the food products, further reducing the rate of decomposition and boosting the shelf life. The products are also protected from external factors such as dirt, moisture, and dust, propelling the segment growth.

The consumer goods is the second-leading application segment and is expected to grow significantly during the forecast period. The increasing utilization of hoods, sleeves, and labels to pack consumer goods and ensure product safety enhances the segment’s growth.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa.

North America is the dominant region in the shrinking packaging market share. The increasing demand for shrink films & wraps among the food & beverages and consumer goods sectors in the U.S. drives the market growth in North America. Moreover, the presence of key players and continuous mergers & acquisitions by them also contributes to the growth of the shrink packaging market.

Europe is the second-dominating region and is witnessing significant growth. The rising utilization of shrink hoods for the transportation of heavy and fragile items in the European region majorly contributes to regional growth. In addition, the augmented demand for shrink wraps in the personal care sector boosts market growth.

The Asia Pacific is the third leading region and is expected to grow steadily during the forecast period. The presence of well-established healthcare and pharmaceutical manufacturing sectors in the region where shrink films are majorly used for product packaging boosts market growth.

The Latin American market is expected to grow steadily during the forecast period due to the presence of developing food & beverage sectors in the region.

List of Key Companies in Shrink Packaging Market

Key Companies Focus on Providing Advanced Packaging Solutions to Gain a Competitive Edge

The global shrinking packaging market is highly fragmented and competitive. A few significant players are dominating the market by offering innovative packaging solutions in the packaging industry. These major players constantly focus on expanding their customer base across regions by innovating their existing product range.

Major players in the shrink packaging industry include Amcor Plc, Allen Plastic Industries Co., Ltd., Bonset America Corporation, Berry Global Inc., Coveris Holdings, Clondalkin Group Holdings, and others. Numerous other companies operating in the market are focused on market scenarios and delivering advanced packaging solutions.

List of Key Companies Profiled

• Amcor Plc (Switzerland)


• Allen Plastic Industries Co., Ltd. (Taiwan)


• Bonset America Corporation (U.S.)


• Berry Global Inc. (U.S.)


• Coveris Holdings (Austria)


• Clondalkin Group Holdings (Netherlands)


• CCL Industries Inc. (Canada)


• C-P Flexible Packaging (U.S.)


• Printpack Incorporated (U.S.)


• PPC Flexible Packaging (U.S.)


• PremiumPack GmBH (Austria)


• Sealed Air Corporation (U.S.)


• Smurfit Kappa (Ireland)


• Sigma Plastics Group (U.S.)


• Winpack Ltd. (Canada)

KEY INDUSTRY DEVELOPMENTS

• November 2023 – Packaging consultancy and manufacturer Duo and Danish plastic recycler Plastix announced the launch of shrink film for food & beverage outer packaging by utilizing Plastix’s Oceanix recycled plastic, which is developed from 98% maritime waste such as fishing nets and ropes.


• January 2023 – Gunze Limited announced the launch of an eco-friendly “GEOPLAS® HCT3” heat-shrinkable film manufactured with recycled resin. The films are developed with polystyrene/polyethylene terephthalate multi-layered material and by using 30% chemically recycled raw materials with the mass-balance approach.


• April 2022 – PepsiCo Germany declared the launch of a sustainable shrink film. The packaging films developed for beverage cans and bottles are manufactured from 50% rLDPE and one-tenth recycled yellow bag packaging waste for the first time.


• December 2020 –  Leading packaging manufacturer Amcor introduced a recyclable PVDC-free shrink bag, especially for the packaging of fresh and processed meat, poultry and cheese products. Eco-Tite R is a new product that can be recycled in its existing polyethylene (PE) plastic recycling streams.


• December 2020 –KM Packaging declared the launch of its compostable packaging range. The range includes shrink wrap, adhesive tape, stretch wrap, nets and bags. It improves the company’s portfolio of sustainable, flexible packaging products and provides customers with a broader range of choices.

REPORT COVERAGE

The research report provides a detailed market analysis and focuses on key aspects, such as top market players, competitive landscape, product/service types, market segmentation, Porter’s five forces analysis, and leading segments of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market intelligence & growth in recent years.

Report Scope & Segmentation