Polyethylene Terephthalate (PET) Shrink Films Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• The primary factor driving the studied market's growth is increasing demand from the food & beverage industry.
• Substitutes' availability for PET shrink films will likely hinder the market's growth.
• Growing demand for eco-friendly packaging material will likely create opportunities for the market in the coming years.
• Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Polyethylene Terephthalate (PET) Shrink Films Market Trends

Increasing Demand from the Food and Beverage Industry

• PET is one of the most commonly used materials for shrink wrapping because it can be produced in various densities and modified with additives to perform many functions.
• PET shrink films are used for packaging food products such as muffins, cookies, candies, and other confectionery products. For bundling multiple products, these films can be used as primary packaging coming into direct contact with the food product.
• Additionally, these films are also used to bundle smaller units and lumber. Supermarket tray wraps are also manufactured using PET shrink films.
• According to the National Renewable Energy Laboratory, US Department of Energy, more than 82 million metric tons of polyethylene terephthalate (PET) is produced each year globally to make single-use beverage bottles, packaging, clothing, and carpets. The volume is expected to reach 600 million tons by 2050.
• PET shrink films form a tight seal around the product in the food and beverage industry. It protects the product from moisture, dust, and other contaminants. According to a 2022 report by Huhtamaki, a product packaging company, the recovery rate for packaging and food service plastics in the United States was about 14%. In Europe, the plastic packaging recycling rate reported was 40%.
• According to the Association for Packaging and Processing, PMMI, the North American beverage packaging industry is expected to increase by 4.5% by 2028, with the United States leading the beverage packaging sector.
• PET plastic is a sustainable packaging option and the leading type of plastic used for beverage bottles. It is due to its excellent chemical resistance to organic materials and water and high strength-to-weight ratio.
• According to Habits of Waste, an organization focused on people's habits by encouraging everyone to rethink wasteful behavior, about 481.61 billion PET bottles are used every year around the world. PET Resin Association (PETRA) reports that more than 1.5 billion pounds of PET plastic bottles and containers are recycled annually in the United States.
• Polyethylene terephthalate is the most common thermoplastic resin of the polyester family and is used majorly in the packaging industry. Many essential food and beverage players are incorporating PET material in their packaging to ensure sustainability. For instance, in May 2022, TekniPlex launched a new line of processor trays made of 100% polyethylene terephthalate (PET) material. PET packaging offers premium product display and also addresses common packaging challenges.
• Owing to all these factors, the market for polyethylene terephthalate shrink films will likely grow worldwide during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific dominated the global market with a share of more than 40%. With growing packaging and healthcare industries in countries like China, India, Japan, and South Korea, PET shrink film consumption is increasing in the region.
• China includes the second-largest packaging industry in the world. The country is expected to witness consistent growth during the forecast period, owing to the rise of customized packaging and increased demand for packaged goods.
• According to the National Bureau of Statistics, China produced 80.04 million metric tons of plastics, accounting for 32% of global plastic materials production in 2021. It makes China the world's largest plastic producer, followed by North America.
• Moreover, China recently witnessed rapid growth in the fast-moving consumer goods (FMCG) sector. The FMCG market growth was driven by the country's increased spending on premium and healthier products by middle-class consumers.
• Additionally, India includes the fifth-largest packaging industry worldwide, which is growing significantly. The country's packaging industry is driven by growing innovation in industries to make their products compact and portable.
• PET is the most used polymer worldwide in various industries, including packaging, automotive, electronics, and others. According to the National Bureau of Statistics of China, the total production volume of plastic products in China amounted to 80.04 million metric tons in 2021. In the first half of 2022, the total plastic products manufactured reached 38.21 million metric tons.
• Shrink wrap is often used to ship and store products. Vehicles such as boats, cars, and helicopters are often wrapped using shrink wrap to protect them from storage and shipping damages.
• According to OICA, in 2021, global vehicle production reached 80.1 million units, an increase of 4% from the previous year's 77.6 million units. According to India Brand Equity Foundation, the Indian car market is expected to reach USD 54.84 billion by 2027, registering a CAGR of over 9%. Indian automotive industry is targeting to increase the export of vehicles by five times by the year 2026. In 2022, total automobile exports from India stood at 5,617,246.
• Due to all such factors, the region's market for polyethylene terephthalate shrink films is expected to grow steadily during the forecast period.

Polyethylene Terephthalate (PET) Shrink Films Industry Overview

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