United States Stretch and Shrink Wrap Market

Market Overview

The United States stretch and shrink wrap market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.0% during the forecast period (2022-2030).

Highlights

• Sleeves And Labels dominate the market by Material. 
• LDPE dominates the market by Resin.
• Food and Beverages dominate the market by End Users.

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.

Market Dynamics

United States 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.

United States 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.

United States 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.

Segmental Analysis

The United States 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.

Regional Analysis

The stretch and shrink wrap market in the US is a vibrant and quickly developing sector of the economy. Essential packaging materials like stretch and shrink wrap are utilized in many industries, including manufacturing, logistics, retail, and e-commerce. These materials provide effective and affordable solutions for product stability, confinement, and protection throughout transit and storage.

The stretch and shrink wrap market in the United States is still expanding and adapting to shifting market trends and consumer expectations. The market is ready for additional growth and innovation because of the ongoing growth of e-commerce, the demand for eco-friendly packaging options, and ongoing technical improvements. Manufacturers adapting to these changing requirements will do well in this cutthroat industry.

Recent Developments

• Mar 2023- Coveris declared that it had paid USD 2.5 billion to acquire the Flexible Packaging business of Sonoco Products Company. The acquisition will increase the range of flexible packaging goods and services Coveris offers.