Collation Shrink Films Market Analysis

Global Collation Shrink Films Market Overview

Collation Shrink Films Market Size was valued at USD 4.1 Billion in 2022. The Collation Shrink Films industry is projected to grow from USD 4.354 Billion in 2023 to USD 7.045 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 6.20% during the forecast period (2023 - 2032). Increased demand for the sustainable and eco-friendly packaging solutions and rising focus on product visibility and marketing are the prime market drivers enhancing growth of the market. 

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Collation Shrink Films Market Trends

• 
  

  Growing demand for the sustainable and eco-friendly packaging solutions is driving the market growth

  
  

Market CAGR for collation shrink films is being driven by the rising demand for the sustainable and eco-friendly packaging solutions. As the businesses and consumers alike become more environmentally conscious, there is a surging emphasis on adopting packaging materials that reduce environmental impact. Collation shrink films, often made from recyclable materials and designed for efficient recycling processes, align with the shift towards sustainable packaging practices.

One of the main reasons thriving the market is the recyclability of collation shrink films. Many of these films are manufactured from polyethene, a widely recyclable material. The recyclability aspect is crucial in meeting businesses' sustainability goals and addressing the concerns of environmentally conscious consumers. Companies seeking to enhance their corporate responsibility profile are increasingly turning to collation shrink films as part of their commitment to reducing the environmental footprint of their packaging. The lightweight nature of collation shrink films further contributes to their eco-friendly appeal. Being lightweight means lower transportation costs and reduced carbon emissions during transportation, aligning with sustainability objectives. This feature not only supports businesses in their efforts to minimize their environmental impact but also addresses the broader concerns associated with carbon emissions in the logistics and supply chain.

Moreover, the demand for sustainable packaging solutions has led to innovations in the manufacturing of collation shrink films. Manufacturers are investing in research and development to create films with enhanced biodegradability and compostability features. These advancements cater to the growing market preference for packaging materials that have minimal long-term environmental effects. The development of bio-based and bio-degradable collation shrink films provides a solution for industries looking to reduce their reliance on traditional fossil fuel-derived materials. The eco-friendly nature of collation shrink films also aligns with stringent regulatory requirements and standards related to environmental conservation. Governments and regulatory bodies are increasingly imposing the restrictions on single-use plastics and promoting the use of recyclable and sustainable materials. Collation shrink films, with their recyclability and eco-friendly characteristics, position themselves as a compliant and responsible choice for businesses looking to adhere to evolving regulations.

Furthermore, consumer awareness and preferences play a significant role in driving the demand for the sustainable packaging. As consumers become more informed about environmental issues, they express a preference for products with eco-friendly and recyclable packaging. Collation shrink films, meeting these expectations, become a market-driven choice for businesses aiming to capture the loyalty of environmentally conscious consumers. Thus driving the Collation Shrink Films market revenue.

June 2024: Dow has introduced and released its new line of REVOLOOP Recycled Plastics Resins. This launch signifies a significant achievement in Dow's dedication to promoting circularity and revolutionizing waste management. Dow's objective for 2030 is to revolutionize waste management and market three million metric tons of circular and sustainable solutions every year. In order to accomplish this, Dow is intensifying its endeavors to promote circular and sustainable packaging. In line with these sustainability objectives, the introduction of REVOLOOP Plastics Resins is accompanied by a fresh commitment to enhance the utilization of plastic waste for the benefit of consumers and partners. Two further grades of REVOLOOP Plastics Resins have been introduced and are authorized for use in packaging applications that do not come into contact with food. The first one consists entirely of post-consumer recycled (PCR) materials, while the second one is a designed grade that has a maximum of 85% PCR sourced from domestic waste.

Collation Shrink Films Market Segment Insights

Collation Shrink Films Material Insights

The Collation Shrink Films market segmentation, based on material, includes LCPE, LLDPE, MDPE, HDPE, PP and Others. The LLDPE segment dominated the market, accounting for the largest market revenue due to its exceptional combination of physical properties which make it well-suited for packaging applications. LLDPE offers high tensile strength, puncture resistance, and flexibility, providing durability and stability to collation shrink films during handling, transportation, and storage. Its superior elongation and tear resistance contribute to the efficient wrapping of various product shapes and sizes, ensuring a secure and uniform package. Additionally, LLDPE's excellent heat-sealing properties make it an ideal choice for collation shrink films, enabling manufacturers to achieve tight, secure seals during the packaging process.

Collation Shrink Films Application Insights

The Collation Shrink Films market segmentation, based on application, includes Bottles, Cans, Books and magazines, Cartons and Others. The bottles category dominates the market due to its widespread use in the beverage industry, particularly for packaging water, soft drinks, and other beverages. Collation shrink films provide a secure and visually appealing packaging solution for bundling multiple bottles together, enhancing stability during transportation and in-store displays. The transparency of these films allows for product visibility, enabling consumers to see the packaged bottles and fostering brand recognition. The efficiency of collation shrink films in facilitating multi-packaging for bottles makes them a preferred choice, contributing to their dominance in the packaging of beverages across various sizes and shapes.

Figure 1: Collation Shrink Films Market, by Application, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Collation Shrink Films End-Use Insights

The Collation Shrink Films market segmentation, based on end use, includes Food and beverages, Cosmetics, Personal Care and home Care, Transport and logistics, Pharmaceuticals, Printing and publications and Others. The food and beverages category dominates the market due to the critical role these films play in preserving, protecting, and enhancing the visual appeal of packaged food and beverage products. Collation shrink films are widely utilized for bundling and securing multipacks of items such as bottled beverages, canned goods, and food containers. Their transparent and glossy finish provides excellent product visibility, allowing consumers to inspect the contents, which is particularly important in the food and beverage industry, where packaging aesthetics influence consumer purchasing decisions.

Collation Shrink Films Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Collation Shrink Films market area dominates this market, increasing demand for sustainable and recyclable packaging solutions, coupled with stringent regulatory measures promoting environmental responsibility in packaging practices.

Further, the prime countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: COLLATION SHRINK FILMS MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Collation Shrink Films' market accounts for the second-largest market share owing to the low cost of bariatric surgery and the rise in the number of people with diabetes. Further, the German Collation Shrink Films market held the largest market share, and the UK Collation Shrink Films market was the fastest-growing market in the European region.

The Asia-Pacific Collation Shrink Films Market is expected to rise at the fastest CAGR from the year 2023 to 2032. This is due to the rapid expansion of the retail sector, increased manufacturing activities, and the growing demand for efficient and visually appealing packaging solutions. Moreover, China’s Collation Shrink Films market held the largest market share, and the Indian Collation Shrink Films market was the fastest-growing market in Asia-Pacific region.

Collation Shrink Films Key Market Players & Competitive Insights

Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Collation Shrink Films market grow even more. Market players are also undertaking various strategic activities to grow their footprint, with important market developments including mergers and acquisitions, higher investments, new product launches, contractual agreements, and collaboration with other organizations. To spread and survive in the  more competitive and rising market climate, the Collation Shrink Films industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Collation Shrink Films industry to benefit the clients and grow the market sector. In recent years, the Collation Shrink Films industry has offered some of the most significant advantages to the packaging industry. Major players in the Collation Shrink Films market, including Scientex, MURAPLAST d.o.o., ITP - Industria Termoplastica Pavese, SABIC, Coveris Holdings SA, Tilak Polypack Pvt. Ltd, Polystar Plastics Ltd, Polipaks Ltd., Plastotecnica SpA, Silvalac SA, and others are attempting to increase the market demand by investing in research and development operations.

Berry is a leader in providing innovative packaging and engineered products, serving a diverse range of industries. Headquartered in Evansville, Indiana, Berry operates worldwide, with a strong presence in North America, Europe, Asia, and South America. The company specializes in manufacturing a broad array of packaging solutions, including plastic packaging, flexible packaging, tapes and adhesives, and engineered materials. With a commitment to sustainability, Berry focuses on creating environmentally responsible products and promoting circular economy practices. Announced in June 2023, Berry Global, a leading US-based packaging company, acquired RPC Group, a major European manufacturer of rigid plastic packaging solutions, including collation shrink films. This acquisition strengthens Berry Global's presence in the European market and expands its product portfolio.

Sealed Air Corporation is a packaging solutions company headquartered in Charlotte, North Carolina. Established in 1960, the company has become a leader in innovative packaging technologies and materials. Sealed Air is renowned for inventing the iconic Bubble Wrap® and has since expanded its portfolio to offer broad range of packaging solutions, including protective packaging, food packaging, automation systems, and cleaning and hygiene solutions. With a presence in more than 125 countries, Sealed Air serves diverse industries such as food and beverage, e-commerce, healthcare, and industrial manufacturing. Announced in March 2023, Sealed Air Corporation, a leading provider of packaging solutions, acquired Automated Packaging Systems, a US-based company specializing in automated bagging and packaging systems, including equipment used for applying collation shrink films. This acquisition expands Sealed Air's automation capabilities and enhances its offering of integrated packaging solutions.

Key Companies in the Collation Shrink Films market include

• Scientex


• MURAPLAST d.o.o.


• ITP - Industria Termoplastica Pavese 


• SABIC


• Coveris Holdings SA


• Tilak Polypack Pvt. Ltd


• Polystar Plastics Ltd


• Polipaks Ltd.


• Plastotecnica SpA


• Silvalac SA

Collation Shrink Films Industry Developments

November 2023: Dow, a chemical and materials science company, partnered with Südpack, a German manufacturer of flexible packaging films, to develop and launch a new generation of collation shrink films made with Dow's INNAT TF technology. This partnership combines Dow's innovative materials with Südpack's expertise in film manufacturing to offer more sustainable and high-performance shrink film solutions.

October 2023: Braskem, a Brazilian petrochemical company, and Erema, an Austrian manufacturer of plastic recycling machinery, partnered to develop and commercialize the technology for recycling post-consumer collation shrink films. This partnership aims to increase the circularity of collation shrink films and reduce their environmental impact.

January 2023: Clondalkin Group, an Irish packaging solutions provider, acquired the Flexible Packaging Division of Huhtamaki, a Finnish company with a strong presence in the food and beverage packaging market. This acquisition strengthens Clondalkin's position in the food and beverage sector and expands its production capacity for collation shrink films.

In November 2020, TC Transcontinental Packaging launched a new collation shrink film made from post-consumer recycled (PCR) materials. The film, called Integritite, consists of 30% post-consumer plastic resin that has been transformed into a recyclable material. The AHA Sparkling Water printed case wrap has utilized the Integritite PC collation shrink film. AHA Sparkling Water is a product line owned by The Coca-Cola Company. Beginning in autumn, the printed case wrap will be accessible at specific Sam's and BJ's Club locations situated in Ohio, Virginia, Maryland, Tennessee, Kentucky, Mississippi, Indiana, South Carolina, North Carolina, Arkansas, and Delaware. Alex Hayden, the senior vice-president of R&D and sustainability at TC Transcontinental Packaging, stated that their research and development team has created a collation shrink film that is recyclable at store drop off locations and contains post-consumer recycled (PCR) materials, all while maintaining its performance, strength, and durability.

Collation Shrink Films Market Segmentation

Collation Shrink Films Material Outlook

• LCPE


• LLDPE


• MDPE


• HDPE


• PP


• Others

Collation Shrink Films Application Outlook

• Bottles


• Cans


• Books & Magazines


• Cartons


• Others

Collation Shrink Films End-Use Outlook

• Food & Beverages


• Cosmetics


• Personal Care & Home Care


• Transport & Logistics


• Pharmaceuticals


• Printing & Publications


• Others

Collation Shrink Films Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America