PLASTIC FILMS MARKET ANALYSIS

Global Plastic Films Market was valued at US$ 98.29 Bn in 2022, and is expected to exhibit a CAGR of 7.2%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 171.67 Bn by 2030. Rising restrictions on plastic recycling are expected to suppress future market growth. Substitutes available on the market can suppass market development. Numerous governmental and non-governmental organizations in the U.K. and the U.S. are working to support a ban on the use of plastic in the packaging and non-packaging industries. Several governmental and non-governmental organizations in the U.S. are also working to reduce the use of plastic sheets and films in the packaging of organic produce.

Global Plastic Films Market - Impact of Coronavirus (COVID-19) Pandemic

The manufacturing and industrial sectors have entered a new operating environment that is uncharted globally thanks to COVID-19. Government restrictions on the number of people who can congregate in one place have had a significant negative impact on the sectors. One industry that is severely impacted by the virus' effects is manufacturing. During the lockdown, the manufacturing and factory operations in the oil & gas, electronics, aerospace, metal processing, automotive, and lockdown industries were temporarily suspended. China provides majority of the raw materials needed by the industries. As a result, the output of the industrial sector has been significantly impacted by supply chain disruptions. Because of the pandemic, the global economy had shrunk. As long as the pandemic persists, COVID-19's effects on all industries will endure. The development of the industrial sector is being hampered by elements such as investment loss, a lack of liquidity, a labor shortage, supply chain restrictions, and general global economic uncertainty. Many nations, including the U.S., China, and India, have opened their economies in recent months. As a result, industrial activity has resumed, albeit with a reduced workforce and material supply. As the majority of economies have opened, the industrial output is anticipated to increase. The COVID-19 had an impact on sales volume that was both positive and negative for the producers of plastic films. Due to increased food consumption, businesses that rely heavily on packaging, particularly food packaging, saw an increase in revenues, whereas businesses that rely heavily on the industrial sector saw a decline in sales volume.

Figure 1. Global Plastic Films Market, By Application, in 2022

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Global Plastic Films Market: Growth Drivers

Increased demand for Bi-axially oriented films

Films that are Bi-axially oriented have special characteristics that allow them to stretch in two different directions. The film's properties can change depending on how it is oriented, including its high stiffness, low elongation, and lustrousness. Electrical and electronics, packaging, imaging, graphics, and industrial specialty applications all use BOPP films. As the demand for bi-axially oriented films increased, several plastic film producers decided to focus their manufacturing efforts on this type of film instead. The main use for these films is food packaging. Thus, the need for bi-axially oriented films has grown along with the development of the food packaging industry in developing nations. As it is non-toxic and serves as an aroma barrier, it is the material of choice for food packaging. Bi-axial films are stretched in both the machine and transverse directions to improve mechanical, optical, and barrier properties. For instance, in December 2021, Amcor has announced the opening of a cutting-edge healthcare packaging facility in Singapore. This dedicated healthcare packaging facility will assist the company in meeting the region's rapidly increasing healthcare packaging demand.

Increasing development utilization quantity

Changing food habits, such as a preference for processed foods, are likely to supplement demand for plastic films. Furthermore, market participants are involved in the production of various types of plastics based on user requirements and the perishability of food. Several countries have imposed strict regulations on the use of plastic films. The United Kingdom and the United States are home to a large number of governmental and non-governmental organizations that are working to support the ban on the use of plastic in the packaging and non-packaging industries. In the US, a number of governmental and non-governmental organizations are also working to cut back on the use of plastic films for packaging organic food.

Environmental agencies and various plastics associations are constantly developing and updating recycling standards, utilization quantity, application scope, and environmental policies for plastic films, to which manufacturers must adhere. Furthermore, many countries, including Bangladesh, Cambodia, Hong Kong, India, Indonesia, Malaysia, and Taiwan, have imposed additional taxes on the use of plastic films in packaging. The robust manufacturing base of global consumer goods manufacturers such as Unilever, Johnson & Johnson, and Procter & Gamble in the U.S. is expected to drive demand for plastic packaging in personal care product formulation. For instance, in October 2021, Berry Global has announced plans to expand its foodservice packaging manufacturing operations in North America. More than US$ 110 million will be invested in expanding its proprietary polypropylene thermoforming capabilities to manufacture packaging solutions for quick-service restaurants, coffee shops, and other foodservice markets. Berry Global, leaders in plastic packaging manufacturing, process & sustainable product innovation & design. Learn more about our capabilities.

Figure 2. Global Plastic Films Market, By Region, In 2022

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Global Plastic Films Market: Market Restraints

High cost of raw materials and availability of substitute

The high cost of raw materials as the manufacturing of biodegradable plastic films is relatively high as compared to conventional film is expected to restrict the market growth of the plastic film. Manufacturing of biodegradable film requires additives, which further adds to the cost of the manufacturing. Hence, the high cost of raw materials is expected to negatively impact market growth to some extent.

Availability of substitute such as paper packaging products that are eco-friendly and cheap is expected to limit the adoption of plastic film. Metals such as aluminum are also used as a packaging product, for example, aluminum can, which is widely used to store the carbonated drink and aluminum can also easily recycle is further expected to raise the adoption of such substitute product over plastic, and in turn expected to hinder the market growth during period (2023-2030).

Global Plastic Films Market: Market Segmentation

On the basis of application, in 2022, packaging segment has accounted the largest market share of 48.2% in terms of value, followed by industrial and decoration respectively. Plastic films are becoming increasingly popular in packaging applications across a wide range of industries. Demographic changes, active lifestyles, and rising sustainability trends are driving plastics development and innovation, creating marketing opportunities in key sectors such as food and beverages and consumer goods. A strong manufacturing base in the global industry, combined with rising demand in developing economies in Central and South America and Asia Pacific, is expected to drive industry growth over the forecast period. In 2022, the non-packaging segment also contributed significantly to revenue. Plastic film has non-packaging applications such as construction, agriculture, and healthcare. Plastic films are widely used in the construction industry due to their distinct advantages, such as durability, non-corrosiveness, and lower costs. These are commonly used in building applications such as exterior and interior covering, weatherboarding, ceilings, counter ceilings, roof covering, and insulation. Plastic films are used to make cephalometric tracing pads, which are used all over the world to manually plot cephalograms while protecting the underlying x-ray.

Plastic film has non-packaging applications such as construction, agriculture, and healthcare. Plastic films are widely used in the construction industry due to their distinct advantages, such as durability, non-corrosiveness, and lower costs. These are commonly used in building applications such as exterior and interior covering, weatherboarding, ceilings, counter ceilings, roof covering, and insulation. Plastic films are used to make cephalometric tracing pads, which are used all over the world to manually plot cephalograms while protecting the underlying x-ray.

Global Plastic Films Market: Regional Analysis

In 2022, Asia Pacific was the largest regional market, accounting for more than 40.00% of global revenue. The region is expected to expand at the fastest CAGR during the forecast period, retaining its leading position. This expansion can be attributed to developing economies such as India and China's rapidly expanding food and pharmaceutical industries. China, India, and Southeast Asia are expected to be the region's primary growth markets. Product demand in the construction, packaging, and electrical and electronics industries will be driven by the expanding manufacturing sector. Because of technology transfer from Western markets, China and India have seen an increase in automotive production in recent years. China, Taiwan, and South Korea have a well-established electrical and electronics manufacturing base, which will provide additional impetus for market growth. India, on the other hand, has a robust chemical industry, which has helped to boost its plastic production. Growing economies, rapid urbanization, a thriving manufacturing ecosphere, and increased infrastructure activities are all supporting regional market growth. Countries with rapid GDP growth, such as India, China, Vietnam, Indonesia, and the Philippines, present a lucrative opportunity for plastic marketers.

Europe was the second-largest region in 2022. In 2022, packaging was the most important application segment in the Europe regional sector. The declining growth of the pharmaceutical industry in Germany, France, and Italy as a result of shifting manufacturing bases to low-cost manufacturing areas is expected to have an impact on plastic sheets and films used in packaging applications. However, rising R&D spending in the pharmaceutical industry in Europe is expected to indirectly boost product demand in the coming years. Furthermore, the expanding personal care products industry in Germany, the U.K., France, and Italy is expected to have a positive impact over the forecast period.

Global Plastic Films Market: Recent Developments

• In April 2020, SABIC introduced a non-chlorinated and non-brominated opaque sheet under the LEXAN brand. The sheet aims to provide antibacterial, hygienic, and touchable wall cladding solutions for hospitals and public facilities. SABIC is a global diversified chemicals company, headquartered in Riyadh, Saudi Arabia.
• In October 2022, Sukano collaborated with chemicals manufacturer Emery Oleochemicals to create a transparent PET antifogging compound for food contact PET packaging, with the goal of eliminating the need for additional antifogging coatings. The material, which is intended for rigid and oriented Coex films, contains Sukano's co-polyester compound in one cap layer of a film extrusion line A/B structure and PET as a core layer.
• In June 2022, RayoWrap CMS transparent BOPP film from Innovia Films is available for shrink and wraparound label applications. CMS30, which is manufactured in the U.K., has a high shrinkage. CMS30's technical performance means it excels at every stage of the value chain, from ease of printing to high-speed roll-fed wraparound labeling to the critical end-of-life and recycling of packaging.

Global Plastic Films Market: Key Companies

Key players operating in global plastic films market are The Dow Chemical Company, DuPont, Eastman Chemical Company, Evonik Industries AG, Amcor Limited, Berry Plastics Corporation, Griffon Corporation Inc., Mitsubishi Chemical Holdings Corporation, Saudi Basic Industries Corporation (SABIC), and Honeywell International Inc.

Definition: Plastic film is a polymeric material produced from different resins with a unique combination of properties. They are widely used across packaging, decoration, plastic bags, labeling, electrical fabrication, building construction, industrial purposes, and others. Different types of plastic materials are Polyethylene terephthalate (PET), Polypropylene (PP), Polyvinyl chloride (PVC), Polystyrene (PS), polyamide (PA), etc. Among all these PVC is the most commonly used plastic for producing safety boots, construction material such as window frames and PP films are another major plastic used for manufacturing stationery products, plastic components and other applications such as packaging, labeling, decoration, industrial application, and electronic & electrical application.