The polypropylene packaging films market was valued at USD 2.73 billion in 2020, and it is expected to reach USD 4.33 billion by 2026, registering a CAGR of 6.78% during the forecast period (2021-2026). The market witnessed a massive turnaround from reusable to disposable packaging globally. Most grocery stores worldwide started banning reusable bags due to high chances of virus transmission, and in contrast, their disposable products were flying off the shelves. The demand and trend are expected to continue in 2021 as the approaching winter will likely bring an upward flu spike and more waves of COVID-19.
- The packaging sector is continuously evolving to cater to changing consumer needs. Growing disposable incomes and the increasing middle-class population are among the prominent factors driving the demand for polypropylene packaging films across industries, such as food and beverage, consumer products, industrial goods, and others.
- The Growing demand for the film to increase the shelf life of the product is propelling the market growth of the polypropylene packaging film market. Also, the easy availability of sustainable packaging solutions helps increase the applications for polypropylene packaging film, boosting the growth of the market.
- Coronavirus outbreak is expected to have a positive impact on the packaging industry over the coming year. The demand for polypropylene packaging, mainly BOPP, which limits the risk of contamination by reducing the exposure, is expected to be favored. Also, the packaged products can be easily cleaned with the packaging on in case of any surface contact.
- However, the industry is currently facing a considerable impact on its supply chain system and production facilities due to the lockdown. Stringent isolation rules worldwide have resulted in a short supply of raw materials and workforce.
Key Market Trends
BOPP is One of the Factor Driving the Market
- When BOPP films are colored and combined with ordinary plastic bags, they appear beautiful and have a waterproof, moisture-resistant function. These bags have an excellent appearance and are used for packaging costlier products like seeds, pesticides, wheat flour, high-end chemicals, etc.
- Moreover, the BOPP bags are crystal clear polyethylene bags. Their bi-axial orientation gives them a transparent appearance, and this makes them suitable for branding via printing on their surfaces. BOPP bags are largely used for retail packaging. The biaxial orientation increases their strength, and hence they are preferable to carry greater loads. The BOPP bags are waterproof. The products inside them can be safeguarded against moisture for a much longer span of time.
- Due to stringent food packaging requirements, BOPP films have many suitable and advantageous properties for packing food materials. The package helps to protect the nutritional properties of the food until final consumption with the help of this film. These packs should have good optical properties and have excellent clarity, transparency, and gloss.
- Additionally, the application of barrier heat-resistant BOPP films is one of the primary trends observed in the food packaging market, where the moisture and oxygen barrier is of utmost importance. This film allows both printing and barrier functionalities, which enable its construction with even two-ply laminates.
- In July 2021, Cosmo Films, a global vendor in specialty films for flexible packaging, labeling, and lamination applications as well as synthetic paper, re-launches BOPP based Direct Thermal Printable (DTP) Top Coated Film, with a proprietary coating that enables the formation of an image or impression on the film upon contact with the heated print head of a thermal printer. A film specially designed for niche applications like information labeling (airport baggage tags), inventory tracking, frozen food labeling, and parking ticket applications can grow in many new applications.
Asia Pacific Holds the Largest Market Share
- China continues to be one of the significant markets for plastic packaging, and the legislative bans are expected to pose a challenge for the growth of the market. Similarly for India, according to the Ministry of the Economy and Finance, the plastic packaging market grossed USD 72.6 billion in fiscal 2020.
- The World Bank outlines that the COVID-19 pandemic has increased single-use disposable plastic adoption in the region due to hygiene concerns and low prices of virgin plastics. The pandemic has reversed age-old policies of tackling plastic pollution.
- Globally, South Asia has been identified as the least integrated region with restrictions on the movement of people, goods, services, and capital. However, various countries such as Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, have led the region in the control of marine plastic pollution.
- In July 2021, Defense Research and Development Organization (DRDO), in collaboration with Acharya Nagarjuna University and Ecolastic Private Limited, introduced environmentally-friendly packaging products made from natural and plant-based food-grade materials intended to eliminate single-use plastic. These bags are sustainable, cost-effective, and ocean-safe alternatives to single-use plastics, unlike traditional polyethylene bags created from petrochemicals, which are hazardous to the environment and take years to degrade.
- Following the introduction of regulation banning plastics waste imports in China, several players are strategizing to reduce plastic waste generation. Yum China Holdings Inc. announced in January 2021 that, in accordance with Chinese legislation, it had initiated a series of plastic reduction and ecologically friendly packaging activities across its brands. This involves using paper straws, paper bags, and biodegradable plastic bags to replace existing plastic packaging. Yum China anticipates a reduction of around 8,000 tons of non-degradable plastics yearly due to these activities beginning in 2021.
The polypropylene packaging films market is competitive because of the presence of many players running their business in national and international boundaries. The market is moderately fragmented Key players in the polypropylene packaging films market are putting their efforts on new product innovations and agile business models to deal with the potential disruptions and sustain long-term growth. Some of the key developments in the market are:
- September 2021 - Cosmo Films Limited has accepted a proposal to build a new BOPP film production line in Aurangabad with a capacity of 67Kl metric tonne per year. This line would require an Rs350 crore investment, which will be funded through internal accruals and borrowing. By 2024-2025, the line is expected to be operational.
- January 2021 - For some years, DIC Corporation has been considering forming a partnership with Jindal Poly Films Limited, one of the world's leading producers of biaxially oriented polypropylene (BOPP) film, to foster a market for functional cast polypropylene (CPP) film in India. DIC announced today that the two companies have agreed to work together in this area.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Market Drivers
4.4.1 Rising Demand of Cost-effective Packaging Formats
4.4.2 Environmental Regulation Paving Way for Flexible Packaging Requirements
4.4.3 Growth in Packaged Food Markets
4.5 Market Restraints
4.5.1 Fluctuation in Raw Material Prices
6.2 By Application
6.2.3 Pharmaceutical and Healthcare
6.2.5 Other Applications
6.3 By Geography
6.3.1 North America
188.8.131.52 United States
184.108.40.206 United Kindom
220.127.116.11 Rest of Europe
6.3.3 Asia Pacific
18.104.22.168 Rest of Asia Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7.1.1 Amcor PLC
7.1.2 AEP Industries Inc.
7.1.3 Novolex Holding LLC
7.1.4 RKW Group
7.1.5 Dupont Teijin Films
7.1.6 Jindal Poly Films Ltd
7.1.7 CCL Industries ( Innovia Films)
7.1.8 ProAmpac LLC
7.1.9 Cosmo Films Ltd
7.1.10 SRF Limited
7.1.11 UFlex Limited
7.1.12 Copol International Ltd
7.1.13 Mitsui Chemicals Inc.
7.1.14 Taghleef Industries LLC
7.1.15 Berry Global Inc.
7.1.16 Polyplex Corporation Limited
A selection of companies mentioned in this report includes:
- Amcor PLC
- AEP Industries Inc.
- Novolex Holding LLC
- RKW Group
- Dupont Teijin Films
- Jindal Poly Films Ltd
- CCL Industries ( Innovia Films)
- ProAmpac LLC
- Cosmo Films Ltd
- SRF Limited
- UFlex Limited
- Copol International Ltd
- Mitsui Chemicals Inc.
- Taghleef Industries LLC
- Berry Global Inc.
- Polyplex Corporation Limited