STRETCH and shrink film demand in the US is projected to increase 5.3% annually to $4.1 billion in 2009, requiring 3.1 billion pounds of resin.
Price increases will be constrained by moderating raw material prices, which will recede from
2004 and 2005 levels when plastic and other raw material prices spiked sharply.
Film gains will be propelled by healthy expansion in the manufacturing sector and growing requirements for product packaging and the bundling and protection of goods during warehousing and distribution.
These and other trends are presented in Stretch & Shrink Film, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.
Shrink film demand is predicted to grow 5.6% yearly through 2009, stimulated by the continued popularity of bulk purchasing and shrink film’s rising use in the unitizing of multipacks for mass retailers.
Shrink film provides a better seal and moisture barrier than stretch film, and is frequently used in tandem with corrugated trays as a case overwrap.
Further shrink film advances will be constrained by the advantages offered by less energy- and equipment-intensive stretch films.
Demand for stretch film is projected to rise nearly five% per annum to $2.3 billion in 2009. Material improvements in terms of strength and stretch%ages will stimulate gains as greater stretchability lowers costs by enabling pallets and other products to be wrapped with less film.
Stretch hoods, which are elastic film tubes used to wrap stacked pallets, will exhibit the fastest growth of all products due to their significantly higher throughput compared to other pallet unitization methods.
Stretch hoods also have energy and machinery cost advantages over shrink hoods.
Low density polyethylene (LDPE) film demand will account for 77% of all stretch and shrink film used in 2009.
Linear low density polyethylene (LLDPE) will remain the dominant stretch film and exhibit the best overall opportunities due to the film’s greater impact strength, elongation properties, and downgauging potential.
Conventional LDPE remains dominant in shrink film due to its higher clarity, good drawdown characteristics and processing ease.
Demand for polyvinyl chloride (PVC) stretch and shrink film is expected to grow 3.3% per annum through 2009.
The best opportunities are anticipated for PVC shrink film in areas such as labels and sleeves for beverages and foods.
Other resins used in stretch and shrink films include polypropylene, high density polyethylene and polyethylene terephthalate.