North 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(U.S., Canada) Forecasts, 2024-2032

Market Overview

The North American stretch and shrink wrap market witnessed significant growth in the past and is expected to grow at a CAGR of 4.1% 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.​

North America’s stretch and shrink wrap market is driven by COVID has propelled the demand for stretch and shrink films. Intense competition by conventional packaging acts as in restraint for this market. On the other hand, rising sales of retail products and online shopping is an opportunity for North America’s stretch and shrink wrap market.

Market Dynamics

North America Stretch and Shrink Wrap Market Drivers

COVID has Propelled the Demand for Stretch and Shrink Films

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.

North America Stretch and Shrink Wrap Market Restraints

Intense Competition by Conventional Packaging

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.

North America Stretch and Shrink Wrap Market Opportunities

Rising Sales of Retail Products and Online Shopping 

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.

Regional Analysis

North America’s stretch and shrink wrap market based on country is segmented by U.S. and Canada. The U.S. holds the major share of the country’s 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.

The U.S.

The stretch and shrink wrap market in the United States has expanded significantly recently. Stretch and shrink wrap are two types of packaging frequently used in various sectors to secure and safeguard products during storage and transportation. Several important factors have fueled the US’s stretch and shrink wrap market. First, the market has expanded significantly due to the development of e-commerce and the rising demand for effective packaging solutions. Stretch and shrink wrap have evolved into crucial methods for protecting goods during transit due to the surge in online shopping and the requirement to deliver goods safely to consumers' doorsteps.

Canada

Canada's stretch and shrink wrap business has steadily grown due to several variables. First, e-commerce's expansion has boosted demand for certain packaging materials. The demand for strong and dependable packing solutions to ensure the safe delivery of goods to customers has increased along with the popularity of online shopping. The industrial sector has also helped Canada's stretch and shrink-wrap industry grow. To protect their products throughout the supply chain, industries like food and beverage, medicines, electronics, and logistics significantly rely on these materials.

Segmental Analysis

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 hold the major share of the market and are expected to register a CAGR of 4.7% 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 3.8% 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. In India, the cost of LDPE has increased by USD 45 to USD 930–950. These elements fuel the segment's expansion.

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 4.5% 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. The positive trend of cost-effective packaging, such as cups, jars, food, beverages, and other fragile products, also supports the stretch and shrink films market. 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

• Mar 2023- Berry Global Inc declared that it had paid USD 2.2 billion to acquire the Flexible Products segment of RPC Group's assets. Berry's portfolio of flexible packaging goods and services will grow due to the acquisition.