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US demand for stretch and shrink film will rise 3.3 percent per year to $2.4 billion in 2015, driven by accelerating demand for product packaging and for the bundling and protection of goods during warehousing and distribution, as well as by competitive advantages over other packaging materials. Other stimulants will include resin and machinery improvements, and opportunities in areas such as stretch hoods and stretch labels and sleeves.

Stretch & Shrink Film Market

LDPE is leading stretch and shrink film resin
Stretch film demand will increase 2.8 percent annually through 2015, benefiting from advantages in energy and labor savings. The fastest growth is anticipated for stretch hoods due to their cost advantages, high throughput rates and excellent load integrity and weather protection. Demand for shrink film will grow 4.2 percent annually to $970 million in 2015. Advances will be promoted by shrink film’s high clarity and excellent print capabilities, greatly enhancing product marketability. In particular, growth will be aided by increased use in labels. Shrink film also provides a seal and moisture barrier and is frequently used in conjunction with corrugated trays as a case overwrap. Demand for stretch and shrink film resins is expected to rise 2.5 percent annually to 1.9 billion pounds in 2015. Low density polyethylene (LDPE) is the leading stretch and shrink film resin due to its competitive cost and excellent elongation, puncture-resistance and other properties. Demand for LDPE stretch and shrink film is forecast to see healthy growth through 2015. LDPE resins consist of linear low density polyethylene (LLDPE) as well as conventional LDPE. LLDPE’s high impact strength, elongation properties and downgauging potential; and conventional LDPE’s greater clarity and drawdown characteristics lead to their dominant usage. Polyvinyl chloride (PVC) stretch and shrink film demand will remain relatively flat through 2015 in volume terms, though gains will be seen in value terms. Shrink sleeve labels for foods and beverages will be the primary area of opportunity for PVC, with other areas declining as a result of PVC’s poor environmental image and competition from LDPE films.Other smaller stretch and shrink film resins include polypropylene, high density polyethylene, polyester (e.g., polyethylene terephthalate) and biodegradable resins.

Storage & distribution market to post above average gains
The storage and distribution market for stretch and shrink film will post aboveaverage increases through 2015, when these uses will account for over half of total demand. Advances will be stimulated by growing retail trade and industrial activity, as well as export markets. The primary growth driver will be pallet wrap, due to its competitive advantages over strapping, tape and other bulk unitization methods. Product packaging demand gains will be stimulated by growing retail trade and concomitant needs for product packaging for food, beverage, consumer and other items. Stretch and shrink film advantages include cost effectiveness and source reduction capabilities compared to corrugated boxes and other packaging.

Study coverage
This new Freedonia industry study, Stretch & Shrink Film, is available for $4800. It presents historical demand data (2000, 2005 and 2010) plus forecasts for 2015 and 2020 by type, market and resin. The study also considers market environment factors, assesses industry structure,evaluates company market share and profiles 33 competitors in the US industry.
This study can help you:
Determine your market & sales potential
Learn more about industry competitors
Assess new products & technologies
Identify firms to merge with or acquire
Complement your research & planning
Gather data for presentations
Confirm your own internal data
Make better business decisions
COMPANY PROFILES
Profiles 33 US industry players including AEP Industries, Bemis, Berry Plastics and Sigma Plastics
Additional Information
This study examines the stretch and shrink film industry in the US by type, resin, product, application and market. Historical data are provided for 2000, 2005 and 2010, with forecasts for 2015 and 2020. “Demand” is equal to US production plus imports minus exports. This is synonymous with terms such as “sales” and “apparent consumption.” Value data reflects demand at the manufacturers’ level. In addition, the key strategic and competitive variables affecting the US paper and plastic packaging industries are discussed, and market leaders are identified and profiled. The entire study is framed within the context of overall economic conditions, as well as demographic, regulatory and technological factors affecting stretch and shrink film and their users.

Throughout this study, demand is related to various indicators for comparative purposes and to facilitate further analysis. Tabular details may not add to totals due to independent rounding, and calculated ratios reflect unrounded numbers. Corporate information sources included annual reports, SEC Form 10-K filings, analyst reports, product catalogs and other company information. The macroeconomic indicators used in this study were obtained from The Freedonia Group Consensus Forecasts dated August 2011. Due to the Bureau of Economic Analysis’ use of chain-weighted price indices, inflationadjusted GDP components (2005 dollars) may not add to the total.

Information and data on the stretch and shrink film industry were obtained from a variety of primary and secondary sources. Consultations with film producers, resin producers, resin distributors, end users, consultants, industry specialists and trade association personnel were pursued. Secondary data were obtained from government, trade associations and other private sources, including the Plastics Division of the American Chemistry Council. Other sources included trade publications such as Chemical Week; ICIS Chemical Business; International Association of Plastics Distributors; Modern Plastics; Paper, Film & Foil Converter; Plastics Engineering; Plastics News; and Plastics Technology. Corporate information sources included annual reports, SEC Form10-K filings, product releases, prospectuses and conversations with responsible officers within the companies themselves.

Government and trade association publications, security analyst reports and numerous other publications were utilized, and online databases were also searched. Throughout this study, demand is related to various indicators for comparative purposes and to facilitate further analysis. Tabular details may not add to totals due to independent rounding, and calculated ratios reflect unrounded numbers.

Table Of Contents
INTRODUCTION ix
1. EXECUTIVE SUMMARY 1
2. MARKET ENVIRONMENT 4General 4Macroeconomic Outlook 5Demographic Trends 8Consumer Income & Spending 12Retail Sales Outlook 15Manufacturing Outlook 17Nondurable Goods Outlook 19Food & Beverage Industry Overview 21Fresh Produce Outlook 24Packaging Industry Overview 26Plastic Film Industry Overview 29Technological Developments 33Pricing Trends 35Regulatory & Environmental Considerations 38Recycling 39Foreign Trade 40International Activity 41
3. TYPES 42General 42Stretch Film 43Production Methods 44Resins 46Products 49Wrap 50Stretch Labels & Sleeves 52Hoods 53Applications 55Markets 57Storage & Distribution 58Product Packaging 62Producers 66Shrink Film 68Resins 69Products 74Wrap 76Labels 77Bags 79Hoods & Other 80Applications 81Markets 83Product Packaging 84Storage & Distribution 88Producers 89
4. MARKETS 92General 92Product Packaging 93Food 95Meat, Poultry & Seafood 97Dairy 101Fresh Produce 102Other Foods 103Beverages 104Paper & Textile Products 105Paper 107Textiles 108Consumer Products 108Types 110Uses 111Other Product Packaging 111Agriculture 112All Other 113Storage & Distribution 113Pallet Wrap 114Stretch 115Shrink 116Other Storage & Distribution 117
5. RESINS 119General 119Low Density Polyethylene 121Linear Low Density Polyethylene 123Conventional LDPE 124Producers 124Polyvinyl Chloride 125Other Resins 128
6. INDUSTRY STRUCTURE 133General 133Market Share 134Mergers & Acquisitions 136Marketing Strategies 140Channels & Distribution 141Research & Development 142Competitive Strategies 144Manufacturing & Development 145Cooperative Agreements 146Company Profiles 148AEP Industries Incorporated 149Alcan Packaging Food Americas, see BemisAlliance Plastics LLC 151Allied Plastics, see Sigma PlasticsAmerican Fuji Seal, see Fuji Seal InternationalAmTopp, see InteplastApplied Extrusion Technologies Incorporated 152Bemis Company Incorporated 153Berry Plastics Corporation 157Bollore 160Bonset America, see ITOCHUCenveo Incorporated 162CMS Gilbreth Packaging Systems, see CenveoCoastal Films of Florida, see Sigma PlasticsCryovac, see Sealed AirCurwood, see BemisDow Chemical Company 164DuPont (EI) de Nemours 166Dwyer (RB) Company Incorporated 167Exopack Holding Corporation 168Exxon Mobil Corporation 170FlexSol Packaging, see Sigma PlasticsFuji Seal International Incorporated 172Hood Companies Incorporated 173Ideal Sleeves International, see Dwyer (RB)Illinois Tool Works Incorporated 174Impaxx, see CenveoInteplast Group Limited 176Intertape Polymer Group Incorporated 178ISO Poly Films, see Sigma PlasticsITOCHU Corporation 180ITW-GaleWrap, see Illinois Tool WorksKlöckner Pentaplast Group 182LINPAC Group Limited 183LyondellBasell Industries NV 184McNeely Plastic Products, see Sigma PlasticsMercury Plastics, see Sigma PlasticsMRI Flexible Packaging 186Multi-Color Corporation 187Paragon Films Incorporated 188Performance Packaging, see Sigma PlasticsPinnacle Films, see InteplastPliant, see Berry PlasticsPoly-America LP 189Poly Plastic Products, see Sigma PlasticsPoly Plastic Products of North Carolina,see Sigma PlasticsPresto Products, see Reynolds GroupPrintpack Incorporated 191Reynolds Group Holdings Limited 192Santa Fe Packaging, see Sigma PlasticsSealed Air Corporation 195Sigma Plastics Group 197Signode Packaging Systems, see Illinois Tool WorksSKC Company Limited 200SleeveCo 201Strapex, see Illinois Tool WorksUp North Plastics, see Poly-AmericaVIBAC Group SpA 203Vifan USA, see VIBACWestern Plastics Limited 204

List Of Tables
SECTION I — EXECUTIVE SUMMARYSummary Table 3SECTION II — MARKET ENVIRONMENT1 Macroeconomic Indicators 82 Population & Households 123 Personal Consumption Expenditures 144 Retail Sales 175 Manufacturers’ Shipments 196 Nondurable Goods Shipments 217 Food & Beverage Shipments 248 Fresh Produce Production 269 Packaging Supply & Demand 2810 Plastic Film Demand by Resin 3211 Stretch & Shrink Film Pricing 38SECTION III — TYPES1 Stretch & Shrink Film Demand by Type 432 Stretch Film Demand by Production Method 453 Stretch Film Demand by Resin 484 Stretch Film Demand by Product 505 Stretch Film Demand by Application 566 Stretch Film Demand by Market 587 Stretch Film Demand in Storage & Distribution by Use 598 Stretch Film Demand in Product Packaging by Use 639 Shrink Film Demand by Resin 7310 Shrink Film Demand by Product 7511 Shrink Film Demand by Application 8212 Shrink Film Demand by Market 8413 Shrink Film Demand in Product Packaging by Use 8714 Shrink Film Demand in Storage & Distribution by Use 89SECTION IV — MARKETS1 Stretch & Shrink Film Demand by Type & Market 932 Product Packaging Market for Stretch & Shrink Film 943 Food Markets for Stretch & Shrink Film by Type & Use 964 Meat, Poultry & Seafood Markets for Stretch & Shrink Filmby Type 985 Dairy Markets for Stretch & Shrink Film by Type 1026 Fresh Produce Markets for Stretch & Shrink Film by Type 1037 Other Food Markets for Stretch & Shrink Film by Type 1048 Beverage Markets for Shrink Film 1059 Paper & Textile Markets for Stretch & Shrink Filmby Type & Use 10710 Consumer Markets for Stretch & Shrink Film by Type & Use 10911 Other Stretch & Shrink Film Demand by Type & Use 11212 Storage & Distribution Markets for Stretch & Shrink Film 114SECTION V — RESINS1 Stretch & Shrink Film Demand by Resin 1202 Low Density Polyethylene Demand in Stretch & Shrink Filmby Type & Resin 1223 Polyvinyl Chloride Demand in Stretch & Shrink Film by Type 1274 Other Resins Demand in Stretch & Shrink Filmby Resin & Type 132SECTION VI — INDUSTRY STRUCTURE1 Selected Acquisitions & Divestitures 1392 Selected Cooperative Agreements 147

List Of Charts
SECTION II — MARKET ENVIRONMENT1 Plastic Film Demand by Resin, 2010 33SECTION III — TYPES1 Stretch Film Demand by Resin, 2010 492 Stretch Film Demand by Application, 2010 573 Stretch Film Demand in Product Packaging by Use, 2010 644 Shrink Film Demand by Resin, 2010 735 Shrink Film Demand by Product, 2010 756 Shrink Film Demand by Application, 2010 837 Shrink Film Demand in Product Packaging by Use, 2010 88SECTION IV — MARKETS1 Product Packaging Market for Stretch & Shrink Film, 2010 952 Food Markets for Stretch & Shrink Film by Use, 2010 973 Consumer Markets for Stretch & Shrink Film by Use, 2010 110SECTION V — RESINS1 Stretch & Shrink Film Demand by Resin, 2010 1212 PVC Demand in Stretch & Shrink Film by Type, 2010 128SECTION VI — INDUSTRY STRUCTURE1 US Stretch & Shrink Film Market Share, 2010 134

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