Stretch & Shrink Film Report

US demand to grow 4.7% annually through 2011.
Stretch and shrink film demand in the US is projected to increase 4.7 percent annually to $4.7 billion in 2011, requiring 3.2 billion pounds of resin. Film gains will be stimulated by healthy expansion in the manufacturing sector and growing requirements for product packaging and the bundling and protection of goods during warehousing and distribution. Other stimulants include the popularity of mass retailers, which offer an array of bulk-packaged products. Stretch film will remain dominant, accounting for 58 percent of the total in 2011, with slightly better growth anticipated for shrink film.

Stretch hoods to be fastest growing product segment.
Demand for stretch film is projected to rise 4.7 percent annually to $2.7 billion in 2011. Material improvements in terms of strength and stretch percentages will stimulate gains as greater stretchability lowers costs by enabling pallets and other products to be wrapped with less film. Stretch hoods will exhibit the fastest growth of all products due to their significantly higher throughput compared to other pallet unitization methods. Shrink film demand will be driven by the continued popularity of bulk purchasing and its rising use in 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 -- which provides increased product visibility as well as cost savings over corrugated boxes.

LLDPE to remain dominant.
Linear low density polyethylene (LLDPE) will account for 63 percent of all stretch and shrink film in 2011 due to its high impact strength, elongation properties and downgauging potential. Conventional low density polyethylene dominates shrink film uses due to its better clarity and drawdown capabilities. Best opportunities for polyvinyl chloride stretch and shrink film are expected in areas such as labels and sleeves for foods and beverages. Other stretch and shrink film resins include polypropylene, high density polyethylene and polyethylene terephthalate.

Study coverage
This study presents historical demand data for the years 1996, 2001 and 2006 and forecasts for 2011 and 2016. Data are provided in dollars and pounds by resin, product (e.g., food and beverages, paper and textiles); and application (storage and distribution, pallet wrap and bundling).
The market environment section discusses the outlook for food and beverages, packaging and other end-use industries, as well as pricing trends and international activity. The industry structure section presents company market share data, and discusses the impact of mergers and acquisitions, research and development and other factors on stretch and shrink film demand. Key companies are profiled such as AEP Industries, Atlantis Plastics, Berry Plastics, Pliant and Sigma Plastics.