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The global shrink packaging market was valued at USD 12.3 billion in 2024 and is estimated to grow at a CAGR of 7.8% from 2025 to 2034. A major growth driver for the market is the shift towards sustainability.
The demand for packaging solutions with high recycled content and reduced CO2 emissions reflects increasing consumer and regulatory pressures for environmentally friendly options. This push for sustainable materials drives market expansion as companies seek to meet eco-friendly standards without sacrificing performance.
In February 2024, Intertape Polymer Group (IPG) launched ExlfilmPlus PCR, a polyolefin shrink film containing 35% recycled content. This sustainable film features at least 10% certified post-consumer recycled (PCR) and 25% post-industrial recycled (PIR) content. Its thinner gauges reduce material usage by up to 9%, catering to the growing demand for eco-friendly packaging solutions without compromising performance.
Report Attribute | Details |
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Base Year: | 2024 |
Shrink Packaging Market Size in 2024: | USD 12.3 Billion |
Forecast Period: | 2025 to 2034 |
Forecast Period 2025 to 2034 CAGR: | 7.8% |
2034 Value Projection: | USD 26.2 Billion |
Historical Data for: | 2021 – 2024 |
No. of Pages: | 440 |
Tables, Charts & Figures: | 676 |
Segments covered: | Material Type, Product, Packaging Type, End-use Industry |
Growth Drivers: |
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Pitfalls & Challenges: |
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A key trend in the shrink packaging industry is the shift towards sustainability through the use of recycled materials. Companies are increasingly incorporating post-consumer recycled content to develop eco-friendly shrink films. This approach aims to reduce carbon footprints while maintaining high performance, aligning with consumer demand and regulatory pressures for greener packaging solutions.
For instance, in April 2024, LyondellBasell and Zhengxin Packaging Co. Ltd announced a collaboration to enhance heat shrink film technology for beverage and tetra pack packaging. Utilizing LyondellBasell's CirculenRecover PE from post-consumer waste, the partnership offers up to 60% recycled content, combining sustainability with high performance to meet growing eco-friendly packaging demands.
Limited recycling infrastructure and facilities pose a significant challenge for the shrink packaging industry. Although there is a push toward using recycled materials, many regions lack the necessary infrastructure to effectively collect, sort, and process post-consumer plastic waste. This results in lower availability of high-quality recycled polymers needed for sustainable packaging production. Without substantial investments in recycling technology and expansion of facilities, achieving widespread use of eco-friendly shrink films remains difficult. This gap hinders the circular economy efforts and slows down the market’s progress toward sustainability targets.
The increasing adoption of advanced technologies, such as biodegradable and compostable shrink films, presents a significant opportunity in the market. With rising consumer and corporate demand for eco-friendly alternatives to traditional plastic, there is a growing need for packaging solutions that reduce environmental impact while offering end-of-life options like composting. This trend opens up possibilities for innovation in material science, enabling companies to create sustainable shrink films that meet both environmental goals and performance requirements.
Based on material, the market is divided into polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and others. The polyethylene (PE) segment is expected to reach a value of over USD 10 billion by 2034.
Based on packaging type, the market is divided into primary packaging, secondary packaging, and tertiary packaging. The tertiary packaging segment is the fastest growing segment with a CAGR of over 9% between 2025 and 2034.
North America held the share of over 25% in 2024 in the global shrink packaging market The shrink packaging market in the U.S. is experiencing steady growth, driven by increasing demand for efficient packaging solutions across the food and beverage, pharmaceutical, and e-commerce sectors. The shift towards sustainable materials and advancements in biodegradable shrink films contribute to the market's expansion. Companies are focusing on innovative packaging technologies to enhance product protection and shelf appeal, aligning with consumer preferences for environmentally friendly options.
In China, the shrink packaging industry is witnessing significant growth due to rapid industrialization and the booming e-commerce and retail sectors. The country's strong manufacturing base and advancements in packaging technology support market development. Additionally, the demand for cost-effective and high-quality packaging solutions in the food, beverage, and consumer goods industries propels the market, with an increasing focus on sustainability and eco-friendly materials.
The shrink packaging market in South Korea is expanding as a result of robust growth in the consumer electronics, automotive, and food industries. High standards for product quality and safety have led to an increased preference for shrink packaging due to its superior protective properties. Additionally, the rise of environmentally conscious consumers is pushing companies to innovate with recyclable and biodegradable shrink packaging solutions.
In Japan, the market is driven by advancements in technology and a strong emphasis on precision and quality in packaging. The market benefits from the country’s leading-edge automation and packaging machinery, which enhances efficiency. Growth in the pharmaceutical and electronics sectors, combined with consumers’ preference for neat, compact, and sustainable packaging, contributes to the steady expansion of this market.
The competition in the shrink packaging industry is primarily driven by factors such as price, product innovation, differentiation, and distribution networks. Companies are focused on offering cost-effective solutions while maintaining high-quality packaging that meets the diverse needs of industries like food, beverage, healthcare, and consumer goods. Product differentiation plays a crucial role, with key players investing in innovative materials and eco-friendly packaging to meet the growing demand for sustainability. Distribution capabilities also influence competition, as companies strive to expand their reach globally and improve delivery efficiency. Additionally, strong customer service and the ability to customize solutions based on client needs are key competitive advantages in this dynamic market.
Major players operating in the shrink packaging industry are:
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Market, By Material Type
Market, By Product
Market, By Packaging Type
Market, By End-use Industry
The above information is provided for the following regions and countries: