The North America stretch and shrink wrap market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.1% 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 was propelled by COVID. Intense competition by conventional packaging acts as a restraint for this market. On the other hand, rising sales of retail products and online shopping act as opportunities for the stretch and shrink wrap market.
The COVID outbreak has seriously impacted the world ecology, negatively affecting both daily life and industry. The food and beverage business has seen enormous demand throughout this epidemic period. The USD 900 billion per year global packaging business is on the front lines, with food packaging being its major activity area. This situation has mandated the requirement for a flexible and hygienic packaging method. In addition to COVID, rising customer demand for high-quality products and food safety is another factor driving the need for hygienic packaging. Due to the high cost of cold chain transportation, there is an increasing need for this type of packaging in China and India, where food is needed to be conveyed to rural areas.
The global demand for packaging exceeded USD 917.1 billion in 2019 and is anticipated to increase significantly over the next five years. Online and e-commerce shopping is expanding significantly at the same time. Stretch and shrink film manufacturers should expect fierce competition from traditional packaging methods like corrugated packaging, films, and containers. Since stretch and shrink films don't offer enough protection, many products on the global markets aren't wrapped in them. However, more research and development into the quality of stretch and shrink films is anticipated to boost their demand in global markets.
Rising retail goods sales and moving towards online shopping will positively impact the industry. Consumers are predicted to consume more snacks than conventional foods, increasing demand for packaged goods and propelling market expansion. For instance, the worldwide market for online shopping will reach more than $4 trillion in 2020 due to its rapid growth. And by 2023, there will likely be 300 million internet buyers in the United States alone. That represents 91% of all people living in the nation. During the forecast period, it is anticipated that this enormous demand will significantly impact the market for stretch and shrink films.
The North 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 4.7% 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 3.8% 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 4.5% over the forecasted period.
North America’s stretch and shrink wrap market based on country is segmented by U.S. and Canada. U.S. dominates the country market and is expected to grow at a CAGR of 4.0% during the forecast period.
Spending on logistics climbed by 8% in 2019 and 11.4% in 2018, driven by rising demand from sectors including food and beverage, chemical, and pharmaceutical across North America. Over the projected period, this expenditure trend in the transportation and logistics sector is anticipated to increase demand for stretch and shrink films directly. Additionally, one of the main factors anticipated to accelerate demand for stretch and shrink films at a larger scale is the rising demand for processed food in the food and beverage industry, which demands cold chain logistics in the U.S.
To offer clients faster and better services, businesses always improve their technologies and logistics services. For instance, XPO Logistics, Inc. introduced the "Drive XPO" mobile app in 2018 to assist truckers in scheduling their load. This has made transport easy and well-managed. Players intend to spend money on cutting-edge technologies to provide better logistics services. These technological expenditures and advances by logistics organizations should lead to efficient and swift logistics services, increasing demand for stretch and shrink films in the area.
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