Market Trends of Plastic Film Industry
The Polypropylene Segment is Expected to Grow Significantly
- Low-density plastic films utilized for packaging are referred to as polypropylene packaging films. These adaptable films are increasingly being embraced by a variety of industries, attributed to their high gloss finish and superior tensile strength. Typically, polypropylene packaging films do not contain acids, plasticizers, or heavy metals, rendering them more environmentally sustainable and suitable alternatives to other plastic films. The rising demand for cast polypropylene (CPP) and biaxially oriented polypropylene (BOPP) films across multiple sectors is expected to propel the growth of this segment.
- CPP has become increasingly popular in various traditional flexible packaging applications, largely due to its exceptional clarity, gloss, heat resistance, and lay-flat properties, which allow it to effectively replace polyethylene. In addition, CPP offers superior tear and impact resistance, enhanced performance in cold conditions, and improved heat-sealing abilities. These packaging solutions contribute to extending the shelf life of food products. Furthermore, the rising demand for convenience foods, driven by evolving lifestyles and busy schedules, has significantly accelerated the market's growth.
- For instance, it is expected that the packaged food industry is likely to thrive, considering the growth of the sector in various regions. The Organic Trade Association projects that the market value of organic packaged food in the United States is expected to rise from USD 23.21 billion in 2023 to USD 25.06 billion by 2025. Consequently, numerous companies are focusing on innovative technologies within the packaging industry, which correlates directly with the rising demand for these packaging solutions.
- BOPP film is known for its robustness, clarity, and longevity, making it suitable for a variety of applications, including food packaging and product labeling. This article examines the complexities of BOPP film, highlighting its key attributes and the production methods involved. Due to its resistance to moisture, optical transparency, and exceptional tensile strength, BOPP film is extensively used in sectors such as medical packaging and food and beverage packaging.
- The swift expansion of e-commerce has led to a heightened demand for packaging that is both tamper-evident and puncture-resistant. BOPP films effectively fulfill these criteria, rendering them suitable for packaging products sold online and aiding in the growth of the market. Countries such as the United States, Germany, India, and China are experiencing notable increases in e-commerce revenues. These critical factors are anticipated to substantially propel the market for BOPP films.
- According to the US Census Bureau, in 2023, it is estimated that retail e-commerce sales in the United States reached USD 275 million, an increase from USD 253 million in 2022. The remarkable rise in e-commerce can be attributed to the increasing incorporation of technology into everyday life. Forecasts suggest a substantial growth in the number of e-commerce users in the United States, projected to rise from 254 million in 2023 to over 316 million by 2028. Furthermore, the presence of major industry players and their investments is anticipated to further propel the growth of the e-commerce sector in the region.
- Moreover, in January 2024, Forop officially launched and is now operating a cutting-edge, multi-layer BOPP line that measures 8.7 meters in width and boasts a line speed of 600 meters per minute, supplied by Brückner Maschinenbau. This advanced line enhances productivity while simultaneously lowering energy consumption. The substantial investments made by suppliers to enhance BOPP production capabilities are anticipated to stimulate demand significantly.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific is Expected to Witness the Fastest Growth
- Asia-Pacific is projected to experience the most rapid growth, primarily due to the significant populations of China and India. Data from the World Bank indicates that China's GDP growth reached 5.2% in 2023, driven by a resurgence in consumer demand. In both nations, the rise in disposable income is expected to bolster the expansion of various industries, including food and beverages, pharmaceuticals, pet food, and cosmetics, thereby contributing to the prosperity of the plastic film market.
- The increasing demand for packaged food, coupled with the rise in plastic production, has led many consumers to choose convenient packaging options, thereby driving the expansion of the plastic film packaging market. Significantly, the Indian packaged food sector is projected to double by 2025. As the second-largest food producer globally, India possesses substantial potential to enhance its capabilities and ultimately become the leading food producer in the world.
- The expansion of the plastic film industry in Asia-Pacific is primarily propelled by the food and pharmaceutical packaging sectors. The burgeoning middle class in India, coupled with the rise of organized retailing, is significantly contributing to the growth of the plastic packaging market. Additionally, the swift increase in exports necessitates higher packaging standards to meet international requirements, further stimulating the packaging industry. Consequently, these factors are anticipated to enhance market growth in Asia-Pacific.
- The pharmaceutical sector in Asia-Pacific is experiencing significant growth, largely fueled by an increase in healthcare awareness among the population and the availability of advanced treatment options without geographical limitations. This expanding pharmaceutical market is anticipated to bolster the plastic film industry. As reported by the India Brand Equity Foundation, the Indian pharmaceutical market was valued at USD 49.78 billion in 2023 and is expected to reach USD 130.0 billion by 2030. Furthermore, approximately 25% of the medicine requirements in the United Kingdom are met by the Indian pharmaceutical industry, which also supplies around 40% of the generic medication needs in the United States.
- The region has experienced significant activity in venture capital, mergers and acquisitions, and various expansion strategies, particularly since the post-pandemic era. This trend is a highly encouraging indicator for the growth and development of plastic films in Asia, which are well-positioned to capitalize on ongoing expansion opportunities. For example, in March 2023, Covestro announced its plans to enhance its global production capacity for specialty polycarbonate (PC) films in response to the rising demand in Asia-Pacific and worldwide.
- Moreover, the demand for BOPP films across various countries like India is also expected to witness significant growth. For instance, the rapid expansion of the Indian economy is contributing to significant growth in the BOPP market, driven by the robust development of sectors such as pharmaceuticals, retail, cosmetics, and food and beverages. Additionally, the e-commerce sector represents one of the most substantial applications for BOPP self-adhesive tapes in the nation, owing to their excellent mechanical and optical properties.
- In March 2024, Toppan, in collaboration with Toppan Speciality Films (TSF) based in India, introduced GL-SP, a barrier film utilizing biaxially oriented polypropylene (BOPP) as its substrate, with production and sales commencing in April 2024. This innovative GL-SP film, crafted from BOPP, addresses the increasing demand for sustainable packaging solutions. Its exceptional barrier properties against oxygen and water vapor render it ideal for packaging dry products, while its transparency and reduced thickness contribute to minimizing plastic consumption, effectively catering to a variety of markets. Such notable vendor initiatives in the region are expected to propel the market's growth.
Get Analysis on Important Geographic Markets
Download PDF
