Latin America Stretch and Shrink Wrap Market Size, Share & Trends Analysis Report By Product (Hoods, Sleeves and Labels, Wraps), By Resin (LLDPE, LDPE, PVC, Other Resins), By Application (Food and Beverage, Industrial Packaging, Consumer Goods, Electronics, Paper & Textile, Pharmaceutical) and By Country(Brazil, Mexico, Argentina, Chile, Colombia, Rest of LATAM) Forecasts, 2024-2032

Market Overview

The Latin America stretch and shrink wrap market witnessed significant growth in the past and is expected to grow at a CAGR of 4.5% during the forecast period (2022-2030).

Polythene films, also known as stretch and shrink films, result from cutting-edge engineering and are used for packaging. These films vary in pliability and stretchability due to their chemical compositions. Shrink films are thin films wrapped around a single product or commodity and require heat to pack, while stretch films are thin polythene films that are flexible and elastic and are used to wrap around pallet loads. These coatings improve the quality of packaged goods by preventing spoilage caused by air and moisture.​

Market Dynamics

Latin America Stretch and Shrink Wrap Market Drivers

Advantages of Stretch and Shrink Wrap

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.

Latin America Stretch and Shrink Wrap Market Restraints

Shift Towards Sustainable Alternatives 

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.

Latin America Stretch and Shrink Wrap Market Opportunities

Technological Advancement

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.

Regional Analysis

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 holds the major share of the country’s market and is expected to grow at a CAGR of 4.2% during the forecast period.

In Latin America, cold chain logistics have increased demand for stretch and shrink films, particularly in the food and beverage and pharmaceutical industries. 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.

Segmental Analysis

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 hold the major share of the market and are expected to register a CAGR of 5.2% over the forecasted period. Labels made of polyester or plastic that completely encircle a product and fit the packaging's precise geometry are called sleeves and labels. Stretch labels, made of LDPE and stretchable, can be pulled over the product container. When exposed to heat while transported via a heat tunnel, shock sleeves are placed loosely on the product package and molded to it. The product can obtain a high-impact presentation on the store shelf thanks to the 3600-message branding. Stretch and shrink-sleeve labels are a preferred technique of product labeling that is gaining popularity.

Based on Resin, the market is segmented by LLDPE, LDPE, PVC, and Others.

LDPE holds the major share of the market and is expected to register a CAGR of 4.2% over the forecasted period. As more individuals order meals for delivery to their homes, there is an increase in the demand for LDPE, which is largely due to COVID.

Based on End-Users, the market is segmented by Food and Beverage, Industrial Packaging, Consumer Goods, and Pharmaceuticals.

Food and Beverage holds the major share of the market and is expected to register a CAGR of 5.1% over the forecasted period. Demand for thin wall packaging is increasing in the post-COVID era due to the demand for packaged and quickly consumed food. Along with this, the market for stretch and shrink films is supported by the positive trend of cost-effective packaging, such as cups, jars, food and beverages, and other fragile products. As restaurants quickly innovated and switched to takeaway and delivery, according to statistics, there was a more than 150% increase in the number of restaurants actively using online ordering with up-serve during the Covid era from February to April, along with an 840% increase in weekly sales via online ordering. The elements above all influence sector growth.

Recent Developments

• Feb 2023- Bollore Inc declared that it had paid USD 3.7 billion to acquire the assets of Sealed Air Corporation's Food Care division. Bollore's portfolio of goods and services for food packaging will grow due to the acquisition.