Demand for stretch and shrink film ‘to approach $2.4 billion in 2015’

Demand for stretch and shrink film in the US is forecast to rise by just over three percent yearly to 2.4 billion dollars in 2015, according to a new study from The Freedonia Group, a Cleveland-based industry market research firm.

The expected growth is said to be driven by accelerating demand for product packaging and the bundling and protection of goods during warehousing and distribution, as well as competitive advantages over other packaging materials. Other stimulants include resin and machinery improvements, and opportunities in areas such as stretch hoods and stretch labels and sleeves.

According to the report, stretch film demand will increase 2.8 percent annually through 2015 to 1.4 billion dollars, accounting for almost three-fifths of the total. The fastest growth is anticipated for stretch hoods due to their cost advantages, high throughput rates and excellent load integrity and weather protection. Stretch film advances will come from advantages in energy and labor savings.

Demand for shrink film will grow 4.2 percent annually to 970 million dollars in 2015. Advances will be promoted by shrink film’s high clarity and excellent print capabilities, greatly enhancing product marketability. In particular, growth will be aided by increased use in labels. Shrink film also provides a better seal and moisture barrier than stretch film, and is frequently used in conjunction with corrugated trays as a case overwrap. Shrink film is well-suited for covering heavy, non-uniform pallet loads such as heavy equipment or bricks due to its higher puncture resistance and ability to help maintain load integrity.

Demand for stretch and shrink film resins is expected to rise two and a half percent annually to 1.9 billion pounds in 2015. Low density polyethylene (LDPE) is the leading stretch and shrink film resin due to its competitive cost and excellent elongation, puncture resistance and other properties. Polyvinyl chloride (PVC) stretch and shrink film demand will remain flat through 2015 in volume terms, though value gains will be based on price increases. Shrink sleeve labels for foods and beverages will be the primary area of opportunity for PVC, with other areas declining as a result of PVC’s poor environmental image and competition from LDPE films. 

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