Shrink Wrap Equipment Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 3.49 Billion |
| Market Size (2029) | USD 5.37 Billion |
| CAGR (2024 - 2029) | 9.01 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Shrink Wrap Equipment Market Analysis
The Shrink Wrap Equipment Market size is estimated at USD 3.49 billion in 2024, and is expected to reach USD 5.37 billion by 2029, at a CAGR of 9.01% during the forecast period (2024-2029).
- Shrink packaging for consumer goods offers several benefits, including extended shelf life, ease of handling during transit and storage, reduced environmental impact due to less material usage, and enhanced product protection.
- Two primary materials are used in shrink wrapping: polyvinyl chloride (PVC) and polyolefin. While PVC is less expensive, its use is limited due to health concerns associated with its production and disposal. Polyolefin (POF) is the more prevalent and preferred shrink film, known for its durability, clarity, and FDA approval for various food applications.
- Shrink-wrapping products in trays, on pads, or bundled in polyethene film provides a cost-effective and sustainable method for transporting palletised consumer goods through distribution networks. This approach significantly reduces material costs by minimizing or eliminating the need for more expensive corrugated board packaging.
- Due to its advantages, the demand for shrink-wrap equipment is increasing across various industries. Shrink wrapping equipment offers a faster return on investment and lower energy consumption compared to other packaging methods. It also reduces production output time and packaging material usage while ensuring product safety.
- Semiautomatic shrinkwrapping tunnels are expected to see significant demand, particularly from small and medium-sized enterprises (SMEs), e-commerce logistics, and food and beverage packaging sectors. However, automatic equipment remains in high demand from large industries utilising pallet wrapping solutions.
- Shrink wrap requires specific temperature control for effective sealing and product adaptation. Excessive heat can potentially damage products. While shrink wrap provides essential protection against moisture, dust, and debris, it is less secure than other packaging options like padded envelopes, cartons, or cases. Products requiring high impact, shock, or vibration protection are unsuitable for shrink wrapping.
Shrink Wrap Equipment Market Trends
Food Industry to Occupy the Largest Market Share
- Shrink wrap is a popular packing solution used in e-commerce to preserve products during transit and storage. Shrink wrap packaging is vital in prolonging the shelf life of food items. When food comes into contact with air, spoilage accelerates. Shrink wrap tightly enfolds the item, effectively blocking out air and moisture, the primary culprits of decay.
- Shrink wrap is a clear and transparent packaging option that enables customers to see the product without opening the box. This is one advantage of employing shrink wrap in e-commerce. Furthermore, it protects against environmental elements like moisture, dust, and others that could harm the product.
- According to Technopack Corporation in May 2024, shrink-wrap packaging is pivotal in the food industry, safeguarding quality and freshness. This technique locks in flavors and maintains the food's texture and shape. Food-grade shrink wrap adheres to stringent health protection standards, forming an invisible shield against contamination. As manufacturers seek to cut costs without sacrificing taste or presentation, they increasingly rely on solutions like shrink wrapping—demonstrating a blend of innovation and practicality in stores globally.
- Shrink wrap also benefits from being branded and personalized with additional information, such as product specifications, UPC numbers, and safety warnings, to give buyers crucial product information. Overall, shrink wrap is a flexible and effective packaging solution that may assist e-commerce enterprises in safeguarding their products and providing customers with a polished and appealing presentation.
- Higher sales volumes translate to greater demand for packaging solutions to preserve product quality, prevent contamination, and enhance shelf life. Shrink-wrap equipment offers an efficient way to package fresh and processed foods. According to US Census Bureau, in 2023, United States supermarket and other grocery store sales amounted to about USD 846.4 billion when compared with 2019 which was USD 661.84 billion.
Asia-Pacific is Expected to be the Fastest Growing Market
- The Asia Pacific region is expected to account for a significant share of the shrink-wrap packaging system market due to the rapidly expanding end-user industries like food. There has been rapid growth in the food processing industry across the region, with countries like India concentrating on moving up the agri-value chain to derive higher profits from exports.
- The market is driven by the rising demand for consumer goods, especially in the pharmaceutical and food and beverage sectors, which need efficient packaging solutions to preserve product integrity and freshness during storage and transportation. Moreover, the expansion of e-commerce and online shopping in the region has increased the need for packaging solutions that can effectively package and safeguard goods throughout transportation.
- The expansion of retail in the region, including brick-and-mortar and e-commerce, is expected to aid the growth of Shrink Wrapping. Recent investments point to the vibrant retail ecosystem in the region.
- The ability to shrink wraps to protect products from dirt, moisture, and other damages makes them ideal for e-commerce supply chains. Shrink wraps add shelf appeal to retail items like personal hygiene products, paper goods, toys and games, gift items, and many more.
- According to the India Brand Equity Foundation, the market value of the e-commerce industry in India was USD 123 billion in 2024 and is forecasted to reach USD 163 billion in 2026. As the e-commerce industry grows, the demand for secure and attractive packaging increases. Shrink-wrap equipment offers a reliable solution to ensure products are well-protected and tamper-proof during shipping and handling.
- Further, according to Dunamis Machines International Pvt Ltd, the future of heat shrink wrap machines is leaning towards adopting intelligent technologies, prominently featuring IoT connectivity and AI. Such innovations promise real-time monitoring, predictive maintenance, and operational efficiency. With the ever-evolving market demands, the capability to tailor machine settings for diverse products and film types is becoming paramount. Anticipating this trend, future machines are expected to provide enhanced versatility, catering to a broader spectrum of packaging requirements.
Shrink Wrap Equipment Industry Overview
The shrink wrap equipment market is highly competitive and has several major players. Players in the market adopt strategies like product innovations, partnerships, mergers, and acquisitions to increase their footprint globally. Some of the major companies in the shrink wrap equipment market include U.S. Packaging & Wrapping LLC, MSK Verpackungs-Systeme GmbH, Standard-Knapp, Inc., and among others.
Shrink Wrap Equipment Market Leaders
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Texwrap Packaging Systems LLC (Pro Mach Inc.)
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Standard-Knapp, Inc.
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U.S. Packaging & Wrapping LLC
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Conflex Incorporated
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Aetna Group S.P.A.
*Disclaimer: Major Players sorted in no particular order
Shrink Wrap Equipment Market News
- April 2024: PAC Machinery (PAC) introduces the Clamco 6800CS-HS Continuous Box Motion Side Sealer, an automatic side sealing system designed for high-speed shrink wrapping of products with varying lengths. This machine can package items up to 16 inches wide with no length limitations, operating at a significantly higher speed than PAC's standard side sealer. The 6800CS-HS incorporates new features that enhance its performance and value in the shrink wrapping market.
- December 2023: Paper bag manufacturer Sentrex has implemented Mondi's Advantage StretchWrap paper wrapping solution for its pallets. This adoption aims to streamline logistics, enhance efficiency in the wrapping process, and reduce plastic usage. Mondi characterizes Advantage StretchWrap as a durable, fully recyclable kraft paper produced from responsibly sourced materials.
Shrink Wrap Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
5. MARKET DYNAMICS
5.1 Market Driver
5.1.1 Increase in E-Commerce and Retail Business Trends to Drive the Market
5.1.2 Rise in Demand for Product Protection and Preservation
5.2 Market Restraint
5.2.1 High Initial Cost and Maintenance
6. MARKET SEGMENTATION
6.1 By End-User Industry
6.1.1 Food
6.1.2 Beverages
6.1.3 Pharmaceutical
6.1.4 Industrial
6.1.5 Logistics
6.1.6 Other End-User Industries
6.2 By Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Texwrap Packaging Systems LLC (Pro Mach Inc.)
7.1.2 Standard-Knapp, Inc.
7.1.3 Aetna Group S.P.A.
7.1.4 U.S. Packaging & Wrapping LLC
7.1.5 Conflex Incorporated
7.1.6 PAC Machinery Group
7.1.7 Douglas Machine Inc.
7.1.8 Lachenmeier ApS
7.1.9 PDC International Corp.
7.1.10 MSK Verpackungs-Systeme GmbH
- *List Not Exhaustive
8. FUTURE OUTLOOK OF THE MARKET
Shrink Wrap Equipment Industry Segmentation
Shrink wrapping equipment is a technology used to wrap things in film and then apply heat to the film, causing it to shrink tightly around the product. This technique creates a tight and protective seal, keeping the product clean, safe, and tamper-evident.
The Shrink Wrap Equipment Market is segmented by end-user industry (food, beverages, pharmaceutical, industrial, logistics, other end-user industries) and by geography (North America, Europe, Asia, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By End-User Industry | |
| Food | |
| Beverages | |
| Pharmaceutical | |
| Industrial | |
| Logistics | |
| Other End-User Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa |
Shrink Wrap Equipment Market Research FAQs
How big is the Shrink Wrap Equipment Market?
The Shrink Wrap Equipment Market size is expected to reach USD 3.49 billion in 2024 and grow at a CAGR of 9.01% to reach USD 5.37 billion by 2029.
What is the current Shrink Wrap Equipment Market size?
In 2024, the Shrink Wrap Equipment Market size is expected to reach USD 3.49 billion.
Who are the key players in Shrink Wrap Equipment Market?
Texwrap Packaging Systems LLC (Pro Mach Inc.), Standard-Knapp, Inc., U.S. Packaging & Wrapping LLC, Conflex Incorporated and Aetna Group S.P.A. are the major companies operating in the Shrink Wrap Equipment Market.
Which is the fastest growing region in Shrink Wrap Equipment Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Shrink Wrap Equipment Market?
In 2024, the North America accounts for the largest market share in Shrink Wrap Equipment Market.
What years does this Shrink Wrap Equipment Market cover, and what was the market size in 2023?
In 2023, the Shrink Wrap Equipment Market size was estimated at USD 3.18 billion. The report covers the Shrink Wrap Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Shrink Wrap Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Shrink Wrap Equipment Industry Report
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Shrink Wrap Equipment Market Report Snapshots
