Film Industry Gets Good Reviews

Stretch and shrink film demand in the United Stats is forecast to grow 4.7 percent annually through 2011, according to a new study prepared called “Stretch & Shrink Film” prepared by The Freedonia Group Inc., a Cleveland-based market research firm.

The forecast calls for the plastic film industry to generate $4.7 billion in sales 2011, requiring 3.2 billion pounds of resin.

Product packaging will remain the leading market for stretch and shrink film, accounting for 56 percent of the total in 2011, according to the Freedonia forecast.

Advances will reflect continued requirements for product packaging, as well as the bundling and protection of goods during transportation and storage. Demand will also be supported by retail trends, such as the popularity of club stores and other mass market retailers that utilize shrink wrap for multi-pack items, and pallet wrap for product warehousing.

Stretch film demand is expected to reach $2.7 billion in 2011, stimulated by increased manufacturing activity, and resin and processing improvements that heighten cost competitiveness.

A weaker U.S. dollar is also stimulating export markets by making American-made goods more price-competitive in international markets.

Linear low density polyethylene (LLDPE) will remain dominant and present the best opportunities based on the film’s higher impact strength, elongation properties, and down-gauging potential.

Low density polyethylene (LDPE) stretch and shrink film demand is expected to grow 5.2 percent annually, accounting for 78 percent of all stretch and shrink film used. Conventional LDPE has advantages in shrink film due to its higher clarity, good drawdown characteristics and processing ease.

Demand for polyvinyl chloride stretch and shrink film will grow 2.4 percent yearly to $855 million in 2011, with the best opportunities expected in labels and sleeves for beverages and foods.