Scope & Limitations

Consumer preference for Quality, Healthy and Premium Products is increasing

By 2025, food production in India will be undermined by rapid population growth creating a sizeable demand-supply mismatch

This coupled with rapid urbanization, increasing prosperity, and a sizeable middle class indicate a shift to convenience and packaged foods

This increasing demand for convenience foods will drive consumption of plastic packaging materials, thereby driving consumption of shrink films

Labels are mostly classified on the basis of the techniques used for fixing the label on the substrate/container

Shrink labels reduce in size upon application of heat, and conform tightly to the shape of the container or product

Food and Beverages industry, followed by personal care, are the largest users of high shrink films

Global shrink film market was ~$2.8 billion in 2016. PVC dominates the market with 46% revenue share

Direct sales account for >85% of the sales in the industry; Traders and distributors only supply ~15% to label makers

Demand for reducing label unit costs and use of thinner label stock to be the two major factors influencing the choice of films

Medium shrink applications dominate the global PET shrink film market; F&B is the key end-use segment

PET high shrink films market grew at 6% in last 4 years … aided by the adoption of sustainable packaging in NA & EU

Demand for shrink films increases during the summer owing to an increase in F&B consumption

Klöckner Pentaplast and Bonset are the largest players in this industry

Demand for PET shrink film is limited in India owing to the price conscious nature of labeling and end-use industry

Demand from major end-use MNCs like HUL, Coca-Cola etc. for PET shrink labels drives demand for PET shrink films in India

PVC is increasingly being replaced by PETG in NA and EU due to stringent regulations against the use of non-recyclable materials

This sector has witnessed several product and technological advancements in the past few years…

Sustainability, innovation and globalization will be the key focus areas driving industry growth in the near future

Critical Success Factors

Decision maker’s spotlight—Growth Options for an entrant into the Indian market…

Maximize opportunities from existing products and markets; systematically explore new products and markets including inorganic Opportunites

Growth Consulting—Service Offerings

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