Market Trends of United States Plastic Packaging Films Industry
Polyethylene Film Is Expected to Witness Significant Growth
- Polyethylene is primarily used for plastic films. It is a lightweight, partially crystalline, thermoplastic resin with high resistance to chemicals, low moisture absorption, and sound-insulating properties. The LDPE or LLDPE form is preferred for film packaging and electrical insulation.
- Manufacturers are sourcing recycled polyethylene resin for the production of flexible packaging films. For instance, in November 2023, Amcor Group signed an agreement with NOVA Chemicals Corporation, a producer of sustainable polyethylene. This agreement entails the procurement of mechanically recycled polyethylene resin (rPE) for the production of flexible packaging films. By increasing the utilization of rPE in flexible packaging applications, Amcor is demonstrating its commitment to promoting circular packaging practices.
- NOVA Chemicals is set to establish its first mechanical recycling facility in Connersville, Indiana, which is expected to commence operations by 2025. Through this collaboration, Amcor will have the opportunity to acquire SYNDIGO rPE resin, which will be manufactured at NOVA Chemicals' upcoming recycling facility.
- According to the OECD, plastic consumption in the United States was 80.8 million tonnes in 2020, and it is expected to reach 91.3 million tonnes in 2026. As plastic consumption rises, so does the demand for plastic packaging materials. Since plastic films are a major category within plastic products, an increase in overall plastic consumption translates into higher demand for plastic packaging films.
Understand The Key Trends Shaping This Market
Download PDF
Food Segment to Show Significant Growth
- Many food products nowadays come in packaging that is difficult to recycle. Meat cuts, frozen meals, and cheese are a few examples of product categories that are mostly packaged in foam, lined paper trays, or non-recyclable films. The design choices, material selection, and the tendency for food residue to coat the packaging make recycling through standard curbside or shop drop-off programs challenging.
- In the plastic packaging film industry, there are continuous innovations in material science, production processes, and packaging technologies. However, these are confined to creating high-performance barrier film, more robust, thinner materials, and improved printing capabilities. However, companies may look forward to bioplastics as key raw material components, with bio-based PLA film becoming an essential commodity in food, confectionery, bakery, and snack packaging in the coming years due to its easy recycling capabilities and biodegradability properties.
- The polyethylene (PE) segment dominates in terms of volume, owing to its lightweight nature and robust resistance to chemicals and moisture. Its versatility is evident in its ability to cater to diverse needs, from packaging fruits and vegetables to safeguarding meat and seafood.
- The United States is one of the largest consumers of frozen food. According to a survey by Circana, a media company, in 2023, the total sales of chicken in the frozen food segment in the United States was USD 730 million. This was nowhere close to the total sales of pizza, which was close to USD 1,564 million. The massive frozen food consumption will be a driving factor for North America's films and wraps segment.
- The growth in supermarket and grocery store sales typically translates to a higher volume of goods being sold, including a wide range of packaged products. This increase in product sales directly boosts the demand for packaging materials, including plastic films used for various food and beverage products.
- According to the US Census Bureau, in 2023, sales at US supermarkets and other grocery stores amounted to about USD 846.38 billion, compared to USD 600.95 billion in 2016.
