The market size of collation shrink film market is estimated to reach USD 4.2 billion in 2025 and is likely to reach a value of USD 6.6 billion by 2035. Sales are expected to increase at a CAGR of 4.6% during the forecast period of 2025 and 2035. Revenue from collation shrink film market in 2024 was 4.1 billion.
Collation shrink films dominate the food and beverage sector because they efficiently bundle multipacks of bottled drinks, canned goods, and packaged foods. They reduce material costs, enhance product visibility, and simplify transportation. Their durability ensures product protection, while easy customization supports branding. Retailers prefer them for shelf-ready packaging and streamlined inventory management. Thus, the food and beverages industry will lead with a high market share of 58% over the forecast period compared to other end use industries.
Collation Shrink Film Industry Forecast
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 4.2 billion |
| Industry Value (2035F) | USD 6.6 billion |
| CAGR (2025 to 2035) | 4.6% |
Collation shrink films with thickness 25-50 micron find major applications, capturing market share of 43% in the upcoming years. This is primarily due to their balanced strength, cost-effectiveness, and flexibility. They offer sufficient durability for medium-weight products while minimizing material costs and reducing shipping weight, making them ideal for applications like food and beverage multipacks.
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The below table presents the expected CAGR for the global collation shrink film market over several semi-annual periods spanning from 2025 to 2035.
| Particular | Value CAGR |
|---|---|
| H1 | 2.2% (2024 to 2034) |
| H2 | 3.2% (2024 to 2034) |
| H1 | 3.0% (2025 to 2035) |
| H2 | 4.5% (2025 to 2035) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 2.2%, followed by a slightly higher growth rate of 3.2% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 3.0% in the first half and rise to 4.5% in the second half. In the first half (H1) the market witnessed a decrease of 80 BPS while in the second half (H2), the market witnessed an increase of 130 BPS.
Consumer Demand for Multi-Pack Solutions Drives Growth in Collation Shrink Films Market
The demand for multi-packaging solutions is adding up to the growth of the collation shrink films market. For consumers and retailers alike, it is an attraction for a six-pack of beverages or even multi-packs of snacks because of convenience, better value, and easy storage. Collation shrink films offer a secure, compact solution to bundle these products while maintaining visibility and accessibility on store shelves.
This packaging solution increases the appeal of the product through a clean and uniform look with protection during transport. Further, multi-packs attract price-sensitive consumers, and this allows for purchasing in bulk for retailers. As the demand for efficient and attractive packaging grows each day, collation shrink films are fast emerging as the most popular choice to handle multiple items across various industries.
Need for Improved Product Protection Drives Demand for Collation Shrink Films
Since the supply chains get more complicated, products have a higher exposure rate to potential damage during movement and storage. One of the vital solutions is therefore collation shrink films that are superior because they tightly close and secure the product in a tight, impermeable to moisture barrier, shielding goods from all external impacts like dirt and moisture, keeping them intact until delivered.
Their ability to conform to the shape of the products also minimizes shifting, which prevents breakage or spillage. This heightened focus on product protection drives the demand for collation shrink films, as companies seek reliable packaging to maintain product integrity and improve customer satisfaction during transportation and storage.
Regulatory Pressures and EPR Laws May Impact Demand for Collation Shrink Films
Increasingly, there are strict regulations on the use of plastic and waste in packaging. There is an increase in government actions towards minimizing reliance on single-use plastics. Regulations include a complete ban on some types of plastic, increasing tax rates on plastic packaging, and requirements for minimum recycled content in products.
Another form of EPR is emerging as governments impose a requirement on manufacturers to be responsible for the whole lifecycle of their packaging from manufacturing to recycling. Consequently, companies that utilize traditional plastic shrink films will have to incur more compliance costs and face logistical difficulties since they will have to handle post-consumer waste. Increasing pressure on the adoption of environmentally friendly and recyclable alternatives will further deter demand for traditional collation shrink films.
| Key Investment Area | Why It’s Critical for Future Growth |
|---|---|
| Sustainable & Recyclable Materials | To reduce plastic waste, meet regulatory standards, and enhance brand sustainability. |
| Advanced Barrier Properties | To improve product protection, extend shelf life, and prevent contamination. |
| Lightweight & High-Strength Films | To optimize material usage while maintaining durability and load stability. |
| Automation & Smart Manufacturing | To increase production efficiency, reduce costs, and ensure consistent quality. |
| Enhanced Printability & Branding | To support high-quality graphics for marketing and brand differentiation. |
The global market of collation shrink film market recorded a CAGR of 3.0% during the historical period between 2020 and 2024. Market growth of collation shrink film market was positive as it reached a value of USD 4.1 billion in 2024 from USD 3.6 billion in 2020.
The global collation shrink film market grew steadily, driven by increased demand from industries such as food, beverages, and consumer goods. Increased adoption of lightweight packaging solutions, cost-effectiveness, and enhanced product visibility are reasons for its popularity, with companies seeking efficient packaging for mass production and distribution.
| Market Aspect | 2020 to 2024 (Past Trends) |
|---|---|
| Market Growth | Steady growth driven by beverage and FMCG demand. |
| Raw Materials | Predominantly LDPE and LLDPE for flexibility and durability. |
| Product Innovation | Standard multi-pack solutions for beverage and FMCG. |
| Industry Adoption | Used in food, beverage, and personal care sectors. |
| E-commerce Influence | Growth in bulk packaging for online retail. |
| Market Aspect | 2025 to 2035 (Future Projections) |
|---|---|
| Market Growth | Sustained growth fueled by eco-friendly packaging and automation. |
| Raw Materials | Greater adoption of bio-based resins and post-consumer recycled plastics. |
| Product Innovation | High-strength, ultra-thin films with enhanced barrier properties. |
| Industry Adoption | Expansion into pharmaceuticals, homecare, and e-commerce packaging. |
| E-commerce Influence | Increased demand for tamper-evident, protective, and sustainable shrink films. |
The market will shift ahead in the future due to growing concerns about sustainability. With increasing regulations on the environment, demand for eco-friendly alternatives is expected to increase. Additionally, technological advances in packaging materials may drive transformation in the market, with recyclable or biodegradable films gaining traction, reshaping the future landscape of collation shrink films.
| Factor | Consumer Priorities (2019 to 2024) & (2025 to 2035) |
|---|---|
| Sustainability | Strong desire for environmentally friendly, recyclable, and biodegradable packaging. |
| Product Protection | Focus on ensuring products remain safe and intact during shipping |
| Transparency & Brand Messaging | Desire for clear or printed packaging that highlights branding and product details |
| Cost Efficiency | Preference for cost-effective packaging options without compromising quality |
| Convenience & Usability | Packaging that is easy to handle, resealable, and open. |
| Factor | Manufacturer Priorities (2019 to 2024) & (2025 to 2035) |
|---|---|
| Sustainability | Using sustainable materials, decreasing plastic waste, and offering recycling options |
| Product Protection | Ensure that films provide enough protection against damage, punctures, and tampering |
| Transparency & Brand Messaging | Investing in high-quality, clear films for branding and customer information |
| Cost Efficiency | Balancing cost reduction in production with performance and material quality |
| Convenience & Usability | Creating films that are simple to manage in high-volume production and automated systems. |
Tier 1 companies dominate the collation shrink film industry with high production capabilities and extensive product portfolios. These companies have a strong presence across beverage, food, personal care, and household product sectors, providing durable, high-performance, and sustainable shrink films for multi-packaging solutions.
With robust supply chain networks and global distribution efficiency, they ensure steady market availability. Prominent companies within tier 1 include Scientex Bhd, Berry Global Group, Inc., Napco National and Coveries Holdings SA.
Tier 2 companies include mid-size players having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include Plastotecnica SpA, Bolloré Group, Silvalac SA, Polipaks Ltd., EuroFilm Extrusion Limited, MURAPLAST d.o.o., Polystar Plastics Ltd, ITP - Industria Termoplastica Pavese, Advanced Flexible Packaging Co., Folplast and Tilak Polypack Pvt. Ltd.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
| Region | 2019 to 2024 (Past Trends) |
|---|---|
| Asia Pacific (APAC) | Moderate growth driven by increasing demand for beverage and FMCG packaging. Adoption of recyclable shrink films was slow due to cost concerns. |
| Europe | Strong preference for sustainable and recyclable shrink films. EU regulations promoted reduced plastic waste and circular economy practices. |
| Latin America | Brazil and Mexico showed early interest in recyclable shrink films, but cost and material availability posed challenges. |
| Middle East & Africa (MEA) | Slow adoption due to low regulatory pressure and dependence on conventional plastic shrink films. High import dependency. |
| North America | The USA and Canada saw steady adoption of sustainable shrink films, but efforts were largely voluntary. RFID-enabled tracking in packaging gained momentum. |
| South Asia | Cost-sensitive markets relied on traditional plastic shrink films. Limited awareness of sustainable packaging solutions. |
| Region | 2025 to 2035 (Future Projections) |
|---|---|
| Asia Pacific (APAC) | Rapid growth as governments enforce stricter sustainability regulations. Increased investment in bio-based and fully recyclable shrink films. |
| Europe | The EU mandates 100% recyclable and biodegradable shrink films by 2030. Advanced material innovations, including bio-based and fiber-reinforced shrink films, gain traction. |
| Latin America | Government incentives promote local production of recycled and biodegradable shrink films. Large brands push for increased sustainability efforts. |
| Middle East & Africa (MEA) | Governments introduce plastic waste reduction policies. Investments in local manufacturing of eco-friendly and recyclable shrink films increase. |
| North America | Stricter sustainability laws drive widespread adoption of recycled shrink films. Smart packaging with RFID tracking and high-strength recycled materials becomes the industry standard. |
| South Asia | Governments in India, Bangladesh, and Sri Lanka implement stricter plastic waste reduction policies, accelerating the shift toward sustainable shrink films. Local manufacturers expand eco-friendly production. |
The section below covers the future forecast for the Collation Shrink Film market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided. USA is anticipated to remain at the forefront in North America, with a CAGR of 3.8% through 2035. In South Asia and Pacific India region marks CAGR of 5.9%.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| USA | 3.8% |
| Germany | 3.5% |
| China | 5.7% |
| UK | 3.2% |
| Spain | 4.4% |
| India | 5.9% |
| Canada | 3.5% |
The most significant growth drivers for the USA collation shrink film market are increased dependence on bulk and multipack beverage distribution in retail and wholesale sectors. Large retailers such as Walmart, Costco, and Sam's Club prefer beverage multipacks shrink-wrapped for easier handling, maximum shelf space, and saving costs. Such packaging encourages quicker restocking, saves materials as compared to rigid packaging, and maximizes visibility for display promotions.
Increased demand in convenience stores and club stores has necessitated using collation shrink films, which enhance packaging efficiency but maintain the toughness of products over distance. It also increases the demand in e-commerce fulfillment in beverages in terms of providing lightweight, secure solutions to facilitate bulk transportation.
This is after the sustainability goal aligned with today's retail currents. Beverage brands that lead and private-label suppliers in terms of their product offerings have been investing in high-performance shrink films, which provide enhanced puncture resistance and recyclability.
The strong drive toward sustainable packaging solutions in the beverage industry in Germany is mainly driving the German collation shrink film market. In a country with such a very established DRS with rigorous recycling laws, beverage producers and retailers have become more keen to embrace recyclable and down gauged collation shrink films to minimize their impact on the environment.
German market leaders in beverages, such as mineral water and soft drinks, prefer more post-consumer recycled content in their shrink films to achieve the EU's Packaging and Packaging Waste Directive circular economy objectives.
The demands for low plastic content with strength and efficiency in multipack beverage packaging with collation shrink films among the discounters are on the increase. Bio-based shrink films are becoming a requirement in the supply chain in breweries and dairy companies in a move to elevate sustainability credentials. Largely continuing to meet waste reduction targets, the beverage distribution market, particularly in Germany, continues to require a greater emphasis on recyclability in its collation shrink films.
The section contains information about the leading segments in the industry. In terms of material type, low-density polyethylene (LDPE) estimated to account for a share of 46.8% by 2035. By application, bottles are projected to dominate by holding a share of 45.6% by the end 2035.
| Material | Market Share (2025) |
|---|---|
| LDPE (Low density polyethylene) | 45.9% |
High-Density Polyethylene (HDPE) is the most suitable material for collation shrink films. It provides greater strength, strength endurance, and shock resistance. HDPE offers excellent load-carrying potential so that the products are tightly bunched during handling and shipping. The films are also cost-effective, less weight, and totally provide clarity to allow visibility to the underlying products.
Its high shrink ratio, with flexibility towards various shapes and sizes, protects optimally. For instance, HDPE collation shrink films are used in packaging beverage bottles and ensuring that the bottles are in one piece without damage during the distribution and retail handling.
| Application | Market Share (2025) |
|---|---|
| Bottles | 44.1% |
Collation shrink films are ideal for bottles because they bundle several units together in a tight, compact form that minimizes the risk of damage during transport while being easier to handle and store. The film tightly clings to the contours of the bottles, creating a stable, tight grip. For instance, beverage companies use shrink films to package water bottles into six-packs or twelve-packs.
This offers a cost-effective, lightweight solution compared to rigid alternatives. Clarity in the shrink film allows the product to remain visible, enhancing branding and shelf appeal. This combination of strength, flexibility, and visibility makes it the preferred choice for bottles.
Key players of collation shrink film industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and collaborating with local brands and start-up companies for new product development.
Key Developments in Collation Shrink Film Market
| Manufacturer | Vendor Insights |
|---|---|
| Scientex Bhd | Scientex, a prominent manufacturer of flexible packaging, focuses on sustainable collation shrink films with increased strength and down gauging technology to reduce material consumption. A strong presence in Asia-Pacific. |
| Berry Global Group, Inc. | It manufactures high-performance shrink films using innovative resin formulas to improve clarity, strength, and sustainability. Strong R&D footprint across North America and Europe. |
| Napco National | Napco National, headquartered in the Middle East, manufactures cost-effective, customisable collation shrink films for beverages and consumer goods, with a focus on lightweight packaging solutions. |
| Coveris Holdings SA | Specializes in printed shrink films for branding and retail shelf appeal, with a focus on recyclable and high-clarity solutions. Strong distribution network across Europe. |
| Plastotecnica SpA | An Italian firm noted for producing multilayer co-extruded shrink films with exceptional mechanical qualities, serving the beverage and food industries throughout Europe. |
In terms of thickness, the industry is divided into less than 25 microns, 25 to 50 microns, 50 to 100 microns, and above 100 microns.
In terms of material type, the industry is segmented into low-density polyethylene (LDPE), linear-low-density polyethylene (LLDPE), medium-density polyethylene (MDPE), high-density polyethylene (HDPE), polypropylene (PP), and other materials.
In terms of application, the collation shrink film industry includes bottles, cans, books and magazines, cartons, and other applications.
Based on end-use, the sector is segmented into food and beverage, cosmetics, personal care and home care, pharmaceuticals, transportation and logistics, printing and publishing, and others.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The collation shrink film market industry is projected to witness CAGR of 4.6% between 2025 and 2035.
The global collation shrink film market industry stood at USD 4.1 billion in 2024.
Global collation shrink film market industry is anticipated to reach USD 6.6 billion by 2035 end.
South Asia & Pacific is set to record a CAGR of 5.8% in assessment period.
Some of the key players operating in the collation shrink film industry are Scientex Bhd, Berry Global Group, Inc., Napco National and Coveries Holdings SA.
| Industry Size (2025E) | USD 844.2 million |
| Industry Value (2035F) | USD 1,310.9 million |
| CAGR (2025 to 2035) | 4.5% |
| Estimated Market Size (2024E) | USD 1.6 billion |
|---|---|
| Projected Market Value (2034F) | USD 2.0 billion |
| Value-based CAGR (2024 to 2034) | 2.8% |
| Market Size (2022E) | USD 4.4 Billion |
|---|---|
| Projected Market Size (2032F) | USD 7.0 Billion |
| Value CAGR (2022 to 2032) | 4.6% |
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