The collation shrink film market is projected to achieve sales growth of USD 4.3 billion in 2024, with an expected CAGR of 4.8% during the forecast period. By 2034, the market is predicted to reach a revenue of USD 6.9 billion. In 2023, the industry generated USD 4.1 billion in terms of revenue and is expected to demonstrate a Y-o-Y growth of 4.2% in 2024.
Low-density polyethylene (LDPE) collation shrink films are anticipated to capture 1/4th of the market in 2024 and are expected to lead in terms of material. This increasing adoption can be attributed to the fact that LDPE shrink films are flexible and can be wrapped into a variety of materials. Also, LDPE with an attractively low melting point are set to be used to wrap temperature-sensitive products. Clarity, gloss, salability, and recyclability further amplify the trend.
The collation shrink film market size and growth dynamics are significant factors to consider. The food and beverage industry is estimated to consume more than 1/4th of the overall collation shrink film sector in 2024, while the cosmetic industry is anticipated to experience burgeoning growth during the forecast period.
Emerging health concerns driven by declining quality of food and beverages produced in developing nations have resulted in strict regulations across the globe.
Collation shrink films help protect products from dirt, moisture, and other external factors, thereby compelling manufacturers and retailers to prefer these to wrap several products. Also, properties such as high packaging efficiency, product stability, cost efficiency, visibility, and aesthetics help to increase the adoption.
Based on current trends and consumer behavior, there is a noticeable surge in demand for LDPE collation shrink films. This is mainly due to increasing preference for sustainable and environmentally friendly packaging solutions.
Shift towards LDPE shrink films, which are recyclable and offer enhanced sustainability credentials, is expected to significantly influence the market dynamics and propel growth. The global collation shrink film sector is projected to experience substantial growth, with a predicted incremental opportunity of USD 2.7 billion. The industry is expected to rise 1.6 times the current value during the assessment period.
| Attributes | Description |
|---|---|
| Estimated Global Collation Shrink Film Market Size (2024E) | USD 4.3 billion |
| Projected Global Collation Shrink Film Market (2034F) | USD 6.9 billion |
| Value-based CAGR (2024 to 2034) | 4.8% |
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High Demand for Collation Shrink Films from Food and Beverage Companies
Processed foods are unsafe and often get contaminated when these come into contact with various external agents. Manufacturers of food and beverages are focusing on finding possible solutions to preserve food quality and increase shelf life.
Collation shrink films with exceptional barrier properties are gaining traction among food and beverage manufacturers as these prevent contamination of vulnerable food products. In response to growing advancements in the food and beverage sector, especially in North America, East Asia, and Europe, strict regulations have been imposed by the government.
These can help address growing fatalities due to consumption of contaminated food. The food and beverage industry of these regions have started adopting collation shrink films to adhere to the regulatory measures.
Collation shrink films with glossy finish are finding increasing usage in the beverage industry as manufacturers are adopting these to enhance product aesthetics and branding opportunities. Leading film manufacturers consistently focus on product development, design, and chemical compositions to gain traction in the competitive sector.
Key players can enhance traction, particularly by focusing on material innovation and customization concerning specific product requirements. Enhancing temperature efficiency and inertness towards food and beverage items can further increase growth.
Increasing Demand from Logistics with Booming E-Commerce Business
The COVID-19 pandemic that started back in 2019 accelerated the trend of convenient shopping, leading to substantial growth in the e-commerce sector. This growth was driven by consumer preference for online product selection and the convenience of return and refund policies.
To mitigate potential damage during shipping, industries like food and beverage, personal care, and home care are increasingly adopting collation shrink films for packaging due to protective properties. This has further intensified the focus on packaging advancements in the e-commerce sector.
Key players in the e-commerce sector often adopt collation shrink films for possible branding opportunities. Due to glossy finish and transparent nature, manufacturers are using these films to increase the aesthetics of packaging and achieve consumer satisfaction.
Companies in the collation shrink film industry are focusing on increasing sustainability and recyclability in product offerings to adhere to the regulatory requirements. Companies are also looking to increase research and development investments to surge product quality and safety.
Compliance with Regulations like Ban on Plastic to Hamper the Market
Rising awareness of the harmful effects of plastics and growing global tension regarding worsening climate change are anticipated to hamper growth. Regions such as North America and Europe have been consistently updating the regulatory requirements of plastic-related material usage.
The country have also been affected negatively by novel inventions in the current market scenario. Adhering to current sustainability trends is crucial to survive in the sector. Manufacturers are set to adopt recyclability measures and sustainable materials to push growth.
The global sales of collation shrink films witnessed a CAGR of 2.2% during the historical period. The industry reached a value of USD 4.1 billion in 2023 from USD 3.8 billion in 2019.
Collation shrink films are one of the crucial products in the packaging sector designed to secure and protect a bundle of items. These films are set to offer convenience to those buying multiple items. At the same time, manufacturers are seeking these films to enhance the shelf appeal as these offer full face printing opportunities. The films help to achieve overall efficiency in the supply chain, which is another factor propelling demand.
Alcoholic and non-alcoholic beverage manufacturers are considered the most significant consumers of collation shrink films, while the food sector is the second important consumer. Manufacturers are increasingly searching for advancements in material selection considering safety and regulatory framework.
Growing sustainability practices in North America and Europe have compelled manufacturers to adopt recyclable solutions to adhere to the regulatory systems. LDPE is the first choice in terms of material due to exceptional tear resistance, low melting point, clarity, high gloss, and recyclability features.
Even though sales of collation shrink films are expected to increase in the forecast period, multiple factors pertaining to the current economic scenario are set to hamper demand. These include the presence of alternate solutions and strict plastic bans across the globe. Hence, key players are increasingly adopting innovation and investing in research and development to face the growing challenges.
Principal Consultant
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, Asia Pacific, Europe, and others, is provided.
The United States is anticipated to remain at the forefront in North America, with a CAGR of 2.2% through 2034. In South Asia, India is projected to witness a CAGR of 5.7% by 2034 and the demand for collation shrink film in Europe has been slow. As per the table given below.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 2.2% |
| Germany | 1.8% |
| United Kingdom | 2.2% |
| China | 4.9% |
| India | 5.7% |
India is projected to secure a significant portion of the South Asian collation shrink film market by 2024, with an anticipated 5.7% CAGR. The country's food sector, particularly the food service industry, is experiencing substantial growth and is expected to continue thriving in future.
According to the India Brand Equity Foundation, the food industry in India is poised to expand from USD 41 billion in 2022 to USD 80 billion by 2028, representing an 11.2% growth rate. The burgeoning food and beverage sector in India is driving the collation shrink film sector. Implementation of strict regulatory frameworks are set to prompt manufacturers and retailers to adopt safe and more convenient options such as collation shrink films.
Sales of collation shrink films in the United States are expected to reach a value of USD 1.2 billion by 2034 and acquire more than 3/5th of North America’s market. The United States Census Bureau reports a significant increase in the country’s food sector, with sales rising from USD 701 billion in February 2024 to USD 697 billion in 2023.
Growth can be attributed to the country’s expanding demographic and economic advantage, leading to increased consumption of food and beverage products. Notably, rising sales are particularly prominent in the organic and plant-based food segments.
These reflect shifting consumer preferences towards healthy and sustainable options. Additionally, surging e-commerce sales have also contributed to growth, indicating an inclination in consumer purchasing behavior towards online platforms for food and beverage products.
Germany's e-commerce industry is considered to be a significant revenue generating source across Europe. The country has achieved exceptional supply chain resilience, attracting key industrial leaders.
The e-commerce sector demands sustainable, lightweight, and secure packaging solutions, driving the need for innovative options like collation shrink films. Germany is projected to reach USD 206 million by 2034. Additionally, the country is expected to rise at a CAGR of 1.8% through 2034.
The section contains information about the leading segments in the industry. In terms of material, the LDPE segment is estimated to account for a CAGR of 4.4% by 2034. By end-use, the food and beverage category is expected to acquire more than 1/4th of the sector in 2034.
| Segment | Low-density Polyethylene (Material) |
|---|---|
| Value CAGR (2024 to 2034) | 4.4% |
Low-density polyethylene (LDPE) material dominates the collation shrink film market. This dominance is due to the material’s exceptional stretch ability and low melting point. The low melting point factor makes the material more adaptive to diverse products.
The LDPE collation shrink films market trends indicate a surging demand for the packaging of irregularly shaped or sized products, which further contributes to LDPE's dominance due to its high cost-effectiveness and suitability.
Linear low-density polyethylene (LLDPE), on the other hand, is a close competitor to LDPE and gaining traction in the market. High recyclability and robust strength of LLDPE are anticipated to propel demand.
| Segment | Food and Beverages (End-use) |
|---|---|
| Value CAGR (2024 to 2034) | 4.7% |
The food and beverage industry is expected to reach a value of USD 1.8 billion in 2034. The industry is anticipated to acquire more than 1/4th of the market in the same period. Rising food and beverage consumption across the globe and growing demand for safety have led to the adoption of more effective and safe packaging options. Collation shrink films come with high barrier properties and hence are gaining impetus.
The logistics and transportation industry, on the other hand, is set to create a growth opportunity of USD 579 million in the forecast period. Consumers are focusing on the purchase of bundles of products due to high focus on convenience, reduction in shopping time, and low miscellaneous costs. Supply chain and logistics sectors have recognized this trend and started focusing on packaging bundled products with attractive discounts.
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Market leaders in the sector are focused on manufacturing novel products with an emphasis on sustainability, quality, and safety. Companies are also engaging in various strategic activities such as collaborations and partnerships with small-scale industries and local brands to drive innovation and development. These initiatives have been gaining traction and are contributing to the industry's overall growth.
Established companies are making significant investments in research and development to upgrade product portfolios. This allows companies to maintain a strong presence in specific areas and appeal to a wide base of consumers.
Key players are also leveraging advanced technologies to enhance manufacturing processes, improve product quality, and reduce environmental impact. A few leading collator shrink film companies are actively involved in corporate social responsibility initiatives.
The main aim is to contribute to the community and environment while maintaining sustainable business practices. These activities are positioning the market leaders as innovators and responsible contributors to the industry.
Industry Updates
Based on thickness, the market is segmented into less than 25 microns, 25 to 50 microns, 50 to 100 microns, and above 100 microns.
In terms of material, 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 market is segmented into 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, Europe, South Asia, East Asia, Oceania, and Middle East, and Africa are covered.
The industry is set to reach USD 4.3 billion in 2024.
Demand is slated to reach a 4.8% CAGR by 2034.
The industry is set to reach USD 6.9 billion in 2034.
Low-density polyethylene is estimated to lead the industry.
Scientex Bhd., Berry Global Inc., Napco National, and Coveris Holding Inc.
Novel packaging solutions to secure several products.
Solvent and moisture loss during film production.
Packaging made of polymer-based plastic that shrinks when heated.
1. Executive Summary
2. Industry Introduction
2.1. Market Taxonomy
2.2. Market Definition
3. Market Trends and Success Factors
4. Market Background
4.1. Macro-economic and Industry Outlook
4.2. Market Dynamics
4.3. Value Chain Analysis
4.4. List of Key Market Participants (Manufacturers/Channel Partners)
4.5. Analysis of Key Industry Matrices
4.6. Industry Development Roadmap
5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034
5.1. Historical Market Volume Analysis
5.2. Future Market Volume Projections
6. Pricing Analysis
7. Global Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034
7.1. Historical Sales Analysis
7.2. Future Market Size and Growth Projections
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, Thickness
8.1. Less than 25 microns
8.2. 25 to 50 Microns
8.3. 50 to 100 Microns
8.4. Above 100 Microns
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Material
9.1. Low-density Polyethylene (LDPE)
9.2. Linear Low-density Polyethylene (LLDPE)
9.3. Medium-density Polyethylene (MDPE)
9.4. High-density Polyethylene (HDPE)
9.5. Polypropylene (PP)
9.6. Other Materials
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application
10.1. Bottles
10.2. Cans
10.3. Books and Magazines
10.4. Cartons
10.5. Other Applications
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End-use
11.1. Food & Beverage
11.2. Cosmetics
11.3. Personal Care & Home Care
11.4. Pharmaceuticals
11.5. Transport & Logistics
11.6. Printing & Publishing
11.7. Others
12. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
12.1. North America
12.2. Latin America
12.3. Europe
12.4. East Asia
12.5. South Asia
12.6. Oceania
12.7. Middle East and Africa
13. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
14. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
15. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
16. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
17. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
18. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
19. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
20. Competition Outlook, Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. Scientex Bhd
21.2. Berry Global Inc.
21.3. Napco National
21.4. Coveries Holdings SA
21.5. Plastotecnica SpA
21.6. Bolloré Group
21.7. Silvalac SA
21.8. Polipaks Ltd.
21.9. EuroFilm Extrusion Limited
21.10. MURAPLAST d.o.o.
21.11. Polystar Plastics Ltd
21.12. ITP - Industria Termoplastica Pavese
21.13. Advanced Flexible Packaging Co.
21.14. Folplast
21.15. Tilak Polypack Pvt. Ltd
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Collation Shrink Film Market
