Stretch and shrink film demand in the US is forecast to grow 4.7% annually to US$4.7 billion in 2011, requiring 3.2 billion pounds of resin, The Freedonia Group has forecast.
Product packaging will remain the leading market for stretch and shrink film, accounting for 56% of the total in 2011.
Advances will reflect continued requirements for product packaging, as well as the bundling and protection of goods during transportation and storage.
Demand will also be supported by retail trends, such as the popularity of club stores and other mass market retailers that use shrink wrap for multipack items, and pallet wrap for product warehousing.
These and other trends are presented in Stretch & Shrink Film, a new study from The Freedonia Group, a Cleveland-based industry market research firm.
Stretch film
Stretch film demand is expected to reach $2.7 billion in 2011, stimulated by increased manufacturing activity, and resin and processing improvements that heighten cost competitiveness.
A weaker US dollar vis-a-vis other currencies is also stimulating export markets by making US goods more price competitive in international markets.
Best growth is anticipated for stretch hoods, which are elastic film tubes used to wrap stacked pallets.
Stretch hoods have higher throughput compared to other unitisation methods, as well as energy and machinery cost advantages over shrink hoods.
Shrink film
Shrink film demand will expand to nearly $2 billion in 2011.
Advances will reflect the continued popularity of bulk purchasing and shrink film’s rising use in the unitising of multipacks for mass retailers.
Shrink film provides a better seal and moisture barrier than stretch film, and is frequently used in tandem with corrugated trays as a case overwrap which provides greater product visibility, as well as cost savings over corrugated boxes.
Further shrink film advances will be constrained by the advantages offered by less energy- and equipment-intensive stretch films.
LDPE
Low density polyethylene (LDPE) stretch and shrink film demand is expected to grow 5.2% annually, accounting for 78% of all stretch and shrink film used.
Linear low density polyethylene (LLDPE) will remain dominant and present the best opportunities based on the film’s higher impact strength, elongation properties, and downgauging potential.
Conventional LDPE has advantages in shrink film due to its higher clarity, good drawdown characteristics and processing ease.
Demand for polyvinyl chloride stretch and shrink film will grow 2.4 percent yearly to US$855 million in 2011, with best opportunities expected in labels and sleeves for beverages and foods.
Thr Stretch & Shrink Film report is available for $4,400 from The
Freedonia Group.
www.freedoniagroup.com