The Latin America stretch and shrink wrap market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.5% during the forecast period (2022-2030).
Stretch wrap is a thin, flexible plastic sheet to lock and secure cased items onto a pallet. It is commonly constructed of polyethylene. When heated, shrink wrap can be used to cover products loosely. Once heated, the shrink wrap secures the goods.
The Stretch and Shrink Wrap Market is driven by stretch and shrink wrap advantages. Shift towards sustainable alternatives act as restrain for this market. On the other hand, technological advancement is an opportunity for the Stretch and Shrink Wrap market.
Many benefits of stretch and shrink wrap lead to their widespread use. These materials offer great product protection to preserve products during storage and shipping. While shrink wrap creates a tight, protective barrier around individual products, stretch wrap stabilizes palletized goods, avoiding shifting and damage. Stretch and shrink wrap can provide tamper-evident packaging options, protecting the products' integrity and safety.
Stretch and shrink wrap are giving way to more environmentally friendly packaging options as demand for eco-friendly solutions increases. Due to their lower environmental impact, biodegradable, compostable, and recyclable packaging choices are becoming increasingly popular. If manufacturers don't adopt more environmentally friendly procedures, this tendency may limit the growth of the traditional stretch and shrink wrap business.
Stretch and shrink wrap has the potential to perform more effectively and efficiently because of technological improvements. The performance and appropriateness of these materials for certain applications can be improved by including features like anti-fog qualities, UV resistance, or antimicrobial coatings. The packaging process can be made more productive and efficient with the help of advances in stretch and shrink-wrap technology and equipment.
The Latin American stretch and shrink wrap market is segmented based on Type, Product, Distribution Channel, and Country.
Based on material, the market is segmented by Hoods, Sleeves, Labels, and Wraps.
Sleeves and Labels dominated the market and are expected to register a CAGR of 5.2% over the forecasted period.
Based on Resin, the market is segmented by LLDPE, LDPE, PVC, and Others.
LDPE dominated the market and is expected to register a CAGR of 4.2% over the forecasted period.
Based on End-Users, the market is segmented by Food and Beverage, Industrial Packaging, Consumer Goods, and Pharmaceuticals.
Food and Beverage dominated the market and is expected to register a CAGR of 5.1% over the forecasted period.
The Latin America stretch and shrink wrap market is segmented based on country into Mexico, Brazil, Argentina, Colombia, and the Rest of Latin America. The rest of Latin America dominates the country market and is expected to grow at a CAGR of 4.2% during the forecast period.
In Latin America, cold chain logistics, particularly in the food and beverage and pharmaceutical industries, have increased demand for stretch and shrink films. In 2019, Latin America's total exports were worth USD 55 billion, of which 57% were perishable items that required cold chain logistics services. As of 2020, Latin America exported 18% of the world's agricultural and fishery products; this percentage is anticipated to rise to 25% during the forecast period due to the region's rising agricultural commodity production. The increase in agricultural exports is anticipated to propel cold chain logistics in the nation, which principally calls for stretch and shrink films.
Despite the weak global economy, the nation had a trade surplus of USD 50.98 billion in 2020. This is because both exports and imports have decreased significantly. Due to anticipated export activity in the nation, the surplus will rise to USD 70 billion in 2021. The area’s stretch and shrink film market is anticipated to gain from this sudden export surge, which would require a significant supply chain and logistics.
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