Market Trends of Asia Pacific Plastic Packaging Film Industry
The Rising Demand for BOPP Films Aids Market Growth
- Biaxially oriented polypropylene (BOPP) is a thin plastic film that undergoes mechanical and manual stretching through a cross-direction process. Due to its versatile properties, BOPP films have surged in popularity across the region. Their applications are universal, including soft drink six-packs, bottle labels, and plastic bags. Noteworthy for their high tensile strength and enhanced stiffness, BOPP films are a staple in various everyday products.
- BOPP is a rapidly growing film material due to its exceptional versatility. As a polypropylene film, BOPP is a superior substitute for waxed paper and aluminum foil. It has a higher tensile strength, a stiffer modulus, lower elongation, superior gas barrier properties, and reduced haze compared to cast polypropylene (CPP). Moreover, BOPP films are readily accessible in various finishes, including matte, glossy, and silky matte.
- BOPP films find extensive applications in the pharmaceutical and cosmetic industries. They excel in their sealing properties and act as an effective oxygen barrier. With India and China's pharmaceutical and cosmetic industries witnessing robust growth, the demand for BOPP films is further bolstered. Notably, a primary concern in these sectors is oxidation, a challenge that BOPP films adeptly combat.
- According to the National Bureau of Statistics of China, the retail sales value of beauty and cosmetic products in China increased from USD 41 billion in 2019 to USD 56.94 billion in 2023. This increasing trend is expected to continue in the upcoming years, increasing the demand for BOPP films.
- Several firms have invested in expanding and growing their production on the market. The market for BOPP barrier films has increased due to the growing demand for packaged food goods for packaging, food safety, and transportation. Significant investments are being made in the industry.
- In June 2023, Toray Industries, in response to the surging demand from the electric vehicle (EV) sector, is set to boost its production capacity for Torayfan BOPP film at its Tsuchiura facility in Japan's Ibaraki prefecture. The expansion, slated for completion in 2025, is expected to increase capacity by a significant 40%.
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Demand is Expected to Increase in India
- The Indian frozen foods and snacks market is growing, propelled by evolving lifestyles and shifting consumer preferences. Frozen vegetables and snacks dominate, accounting for over 65% of the market share. Noteworthy brands such as Mother Dairy, Venky's, and McCain Foods lead the market. Frozen snacks, particularly, are experiencing robust double-digit growth, favored for their convenience, making them a go-to choice for impromptu home or office purchases.
- As Thomas Schneider, president of the World Packaging Organization (WPO), highlighted, the Indian packaging market is poised for substantial growth in the coming years. This can be attributed to the heightened emphasis on clean water, safe food, and pharmaceuticals, along with the swift adoption of cutting-edge digital technologies.
- The vast and increasing Indian middle-income group and the expansion in organized retail drive growth in the flexible packaging market. The growth of fishery and seafood exports also boosts the demand for converted plastic film packaging.
- According to the Reserve Bank of India, in fiscal year 2023, India's export value of fish and fishery products surpassed INR 649 billion, marking a substantial increase from the preceding year. With the gradual increase in fishery products and fish exports, the demand for high-barrier plastic packaging films would also increase.
- Market players are increasingly focusing on integrating innovative features such as enhanced tear resistance, improved barcode clarity, superior load retention, water resistance, and heightened impact strength. The surge in demand from the retail sector and an escalating emphasis on product packaging and ensuring goods' safety during distribution and warehousing are poised to be pivotal growth catalysts for the stretch films market.
- In April 2024, to address the easing demand for stretch films nationwide, Chemco Group, a key player based in Mumbai, Maharashtra, strengthened its market position with the launch of its cutting-edge stretch film line. This technology, boasting an annual production capacity exceeding 1,000 tons, empowers businesses to cater to the escalating demand without compromising film quality.
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