Plastic Films Market (2021 - 2026)
Plastic films market size is forecast to reach $152,178.2 million by 2026, after growing at a CAGR of 5.4% during 2021-2026. Plastic films are thin continuous polymeric material which is often thinner than plastic sheets. These Plastic Films are high in demand owing to safety norms over conventional materials for packaging of food and beverages. These are very less vulnerable to pilferage as well as contamination that results into shelf life of food & beverage products to become longer. Furthermore, Plastic Films market is driven by the factors including growing demand for plastic based products by the end use industries owing to low cost, durability, lightweight and corrosion resistance properties. Additionally, the films have superior barrier properties and can be recycled as well as reused, which further contributes to the growth of the market.
Despite the short-term impact of COVID -19, the outlook for plastic films market is projected to remain positive. Plastic film products are getting a lot of attention, as awareness of the need for packaging safety increases. The trends outlined in the market study seem to be moderate over the forecast period, despite these short-term disruptions. The global market for plastic films is projected to experience several opportunities and challenges caused by a pandemic in the short term. More than three-fifths of plastic films are consumed for the storage, bundling and transport of goods, including hygiene products, drugs and medical devices, which are rapidly increasing in demand. Plastic films are increasing the pace of usage for e-commerce orders packaging due to global lockdown efforts and experiencing significant demand. Food products, dairy products, meats, frozen meals, and vegetables are also included for packaging application. The decrease in construction activity, however, will limit the consumption of specialized plastic films used in construction activities.
The report: "Plastic Films Market - Forecast (2021-2026)", by IndustryARC, covers an in-depth analysis of the following segments of the plastic films Industry.
The polyethylene segment held the largest share in the plastic films market in 2020 and is growing at a revenue CAGR of 4.8% during 2021-2026. Polyethylene is a lightweight thermoplastic with a variable crystalline structure, is one of the foremost widely produced plastics and is employed in applications ranging from films, tubes, plastic parts, and laminates among others. Polyethylene is highly versatile and is available in various forms including printed, non-printed, single, multi-layered, and together with other materials. An excellent combination of properties makes polyethylene the perfect material in diverse applications across industries. It is often engineered consistent with the end-user requirements. Polyethylene such as HDPE provides the top product inexpensive impact strength, owing to which there is an increasing demand for polyethylene in plastic films market. In addition, the introduction and development of bio-based and bio-degradable polyethylene are likely to open new opportunities for market growth over the forecast period. All these factors are driving the market growth.
The packaging application segment held the largest share in the plastic films market in 2020 and is growing at a revenue CAGR of 5.8% during 2021-2026. In the packaging industry, plastics films play a vital role in improving efficiency, safety and competitive standing which is driving the plastics film usage particularly in the upgrade and maintenance of packaging industry. Plastic Films score high in terms of safety for food and beverage packaging. The material is less susceptible to contamination as well as pilferage which increase the shelf life of beverages. It also prevents penetration of carbon dioxide, oxygen, and water thereby maintains the nutritive value. Moreover it is ideal for preventing transfer of odor as well as flavor. Plastic films are lightweight and gives the food items attractive look for branding purpose too. Also, it is easy to print information on it. Additionally, the films have superior barrier properties and can be recycled as well as reused. All these are the major factors driving its demand for packaging applications during the forecast period.
Asia-Pacific held the largest share in the plastic films market in 2020 up to 43.5% by revenue. Plastic films market demand is increasing in Asia-Pacific owing to the preference of people for more sustainable and convenient packaging. The increase in demand for frozen, ready-to- cook meals is driving the demand for plastic films in packaging. The trend towards busier, and more mobile lifestyles in both the regions, especially owing to increase in urbanization has led to increase in demand for food products that are feasible to carry, simple to open, and those that require little preparation time. As per statistics for the year 2019, under processed plastics production; films and sheets have the leading share in Japan. A total of approximately 2.26 million metric tons of plastic films and sheets were produced in Japan in 2019, of which around 1.5 million metric tons were from the production of soft plastic goods. As per the Malaysia Reserve, annual per capita plastic packaging consumption is very high in Malaysia in comparison with other regions of South East Asia at 16.78 kg/per person. The total household consumption in Malaysia is expected to be 523,000 tons by end of 2020 owing to its usage in private household, schools, hospitals and government buildings. Thus, the demand for plastic packaging is continuously increasing in the Asia-Pacific countries, which will propel the Asia-Pacific plastic films market during the forecast period.
Increasing advanced technologies for decorative laminates and increasing demand of PET, PVC, and PP decorative laminates are some factors driving the growth of this market. In July 2017, The Dow Chemical Company launches tenter frame biaxially oriented polyethylene which is innovative addition to the INNATE Precision Packaging Resin family. There are various types of technology in plastic film such as blown film technology, cast film technology, double & multi-bubble technology, barrier film, and others. Among these, blown film technology is mostly used owing to its multi-layer films for high barrier applications such as food packaging. In 2015, SABIC launched a phthalate-type of PP plastic, which ensures hygienic packaging and increased shelf life of food products leading to the growth of the market. Various scientists are working on different technologies which help to improve shelf-life of the packaged food. In September 2019, Washington State University scientists developed a metal oxide which when coated to a layer of the plastic film, helps to increase the shelf life of the food. Scientists are also working with the U.S. Army in order to improve their ready to eat meals to stay tasty and healthy which increases the growth of this market.
Rising application of plastic film and increasing usage of plastic films & sheets in agriculture are the major factors driving the growth of this market. Plastic film helps to transform traditional agriculture into modern agriculture. Plastic film is used to cover the surface of the soil in order to increase the temperature, to retain moisture, and to promote the germination of seeds. In July 2017, Ginegar Plastics developed advanced multi-layer mulch films that help to improve farmers crops as these films have variety of advantages such as moisture protection and water conservation, weed control, root development and many more which increases the growth of this market. There is a rise in demand of eco-friendly and bioplastics owing to rising concern over environmental pollution. BioBag Company is now using BioAgri Mulch film, which is produced of Mater-Bi, a bioplastics that provide various advantages and reduced the work of farmers.
Polyethylene and polypropylene are the two major raw materials used for manufacturing plastic films which are very less available and are increasing the cost that are restraining the growth of this market. Plastics are mainly produced from petroleum products and therefore the price of crude is one of the key factors that affect plastic costs. Polyethylene and polypropylene are also formed through the processing of petroleum products so the prices of raw material are linked with crude oil price variations. Manufacturing of biodegradable film requires additives which increases the cost of raw materials which are negatively impact the growth of this market. In 2019, the price of plastics changed from $1122.34 to $1716.53, which reduced the demand of plastics and restrained the growth of this market.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the plastic films market. Major players in the plastic films market are Amcor plc, Sinopec Shanghai Petrochemical Company Limited (SPC), UFLEX Ltd., Coveris (TC Transcontinental), Berry Global Inc., Sigma Plastics Group, Polyplex Corp Ltd., Novolex, Klockner Pentaplast, Inteplast Group, The RKW Group, Toray Industries, Inc, Sigma Plastics Group, Toyobo Co., Ltd., and Saudi Basic Industries Corporation among others.
In October 2020, Polyplex announced to expand its existing operations in USA by adding other thin PET Film line 50 KTPA capacity.
In September 2020, Berry Global Group, Inc. collaborated with Bhoomi to launch a 100% cane-based bottle of its cold-pressed cane water elixir. This 12-ounce HDPE bottle is manufactured in Winchester, Virginia by Berry and replaces Bhoomi's regular PET bottle