The Global "Stretch Hood Films Market" is predicted to reach a high CAGR during the forecast period (2022-2029).
Stretch hood film is a tubular film with unique properties of flexibility, firmness, transparency and elasticity. The film is cut to the appropriate dimensions and length of the load in a stretch hood, resulting in much savings of consumables and energy (compared to other similar packaging systems). Moreover, the film is usually made of 1 or 2 layers of low-density polyethylene that offers elasticity and many additional layers that improve the film's resistance to tearing perforation and additives for anti-condensation, UV protection, etc. In addition, this packaging method provides many benefits such as high operating speed, reduced cost and convenience for transportation, warehousing and management of palletized loads.
Furthermore, labor is a critical element in the logistics and transportation industry and has always faced a tradeoff between service and costs. However, with automation, the companies can offer better services while saving money. Stretch hood systems allow the packaging of pallets and products that are loaded automatically. Moreover, consumers are looking for green, economical and fast supply chains, which are expected to boost the demand for stretch hood systems. In addition, LDPE & LLDPE primarily make stretch hood films. The use of these polymers makes the product cheaper and enhances its applicability over several pallet profiles. Industries like cosmetics, food, beverage, etc., are frequently using stretch hood films to package their products during transportation.
The increasing inclination of consumers towards high stiffness, tightness and strength of packaging is triggering the demand for stretch hood films in recent times. Growing investment creates a strong opportunity for the stretch hood films market growth.
Growing utilization and development of stretch hood films from various end-user is expected to boost the market growth
Stretch hood films are frequently getting popular due to rapid technological changes due to the shift in population from rural to urban areas has built the demand for new technologies. This has generated consumer expectations where the customers demand goods faster at no or low delivery costs. Manufacturing has become more customized and customer-oriented, which has drastically raised the volume of quantity demanded.
Moreover, the rapid development of industries such as automobile, construction, chemical, food & beverages is expected to drive the growth of the stretch hood films market due to its unique features such as high stiffness, tightness and strength to the package, which holds the package with different displacements and bumps during transport. Stretch hood films are a suitable solution that can be used in aggregate with technology and has the most important attributes required to keep the goods safe during transit. In addition, the growth of e-commerce is another factor driving the stretch hood films market. E-commerce boosts the demand for transportation companies which play an essential role in the supply chain. According to industry analysis, the revenue generated by the food & beverages division is expected to reach US$ 7,622.89 million in 2021 and is anticipated to grow at a CAGR of 10.34% during the forecast period.
Increasing innovation and development of stretch hood films is expected to boost the market growth
Manufacturers of stretch hood films come up with innovation where the film gets converted into biogas collected at most landfills and turned back into energy. In addition, they are offering plastomer material solutions for stretch hood packaging in replacement of traditional EVA-based structures. These stretch hood films offer improved holding force and puncture resistance. For instance, stretch hood manufacturer, Trioworld offers a stretch hood that container 30% recyclable material, which reduces the carbon footprint by 19% without hampering the performance of the stretch hood. The stretch hood is 100% recyclable. This provides stretch hood film manufacturers with an opportunity to develop films that constitute recycled plastic.
Increasing awareness of environmental impact is expected to hinder the market growth
Plastic being a non-environment friendly material, create harm to the environment if not disposed of properly. Many manufacturers have emphasized the launch of recyclable stretch hood films in which recyclable plastic is used to tackle this concern. The deficiency of plastic recycling technology and numerous government reforms will hinder the growth of the stretch hood films market, whereas conventional packaging solutions like film wraps, shrink wraps, and containers will challenge the growth of the stretch hood films market during the forecast period. In addition, one of the major concerns associated with stretch hood films is that their raw material is plastic.
By material type, the market is segmented into HDPE, LDPE, LLDPE, polyethylene (PE), plastomers, elastomers, ethylene vinyl acetate, others.
The most commonly favored material for manufacturing stretch hood films is polyethylene. Polyethylene stretch hood films have high puncture resistance and strength. Moreover, the attributes such as excellent endurance and cost-effectiveness of polyethylene have made the material most preferred among the manufacturers. In 2019, approx. 2.39 billion lb of PE was consumed in the production of stretch film, making this division one of the largest and fastest-growing markets within the PE film industry, with an AAGR of 3.9%, and is expected to consume approx. 2.68 billion by 2022. Additionally, of the 2019 total, machine wrap stretch film represented nearly 1.38 billion lb—57.8% of the market. The hand-held stretch film represented about 39.88% of the market, and stretch hood film represented about 2.89%. The stretch hood segment is expected to have the fastest growth of any stretch film product segment due to grown investment in hooding machinery that enables companies to package or wrap tiles & bricks, appliances, bulk warehouse packaging and roofing material.
Furthermore, multiple options such as printed or plain stretch hood films make it ideal for various applications. In addition, recycling systems have increased the growth of polyethylene as it has enabled to overcome the challenge polyethylene possessed as a material. Exceptional sealing and high potential stretch performance are additional attributes that drive the demand for polyethylene stretch hood films. Also, 50-100 microns stretch hood films are thicker and have more significant puncture resistance, making them ideal for covering heavier products with sharp edges. The thickness is preferable and versatile to handle a variety of applications. Each thickness is suitable for various capacities or loads.
Based on the geography, the stretch hood films market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa. The demand for stretch hood films in the North American market is expected to remain at the dominant position in sales and value generation due to the growing volume of trade and e-commerce in countries such as the U.S.
Asia-Pacific is expected to hold the largest market shares during the forecast period
Asia-Pacific held the largest market share in 2018 and is expected to dominate during the forecast period. This growth can be attributed to the growing pharmaceutical and food & beverage sectors, particularly in China and India. Moreover, rising disposable income and the busy lifestyles of consumers are boosting the increasing demand for packaged food, which is expected to drive the use of flexible packaging. This, in turn, is anticipated further to propel the region's market growth in the future. Across Asia, it was expected that Japan's pharmaceutical sales would reach approx. US$ 150.43 billion in value. Indonesia was expected to lead the sales ranking among the ASEAN markets with US$ 12.49 billion by 2022.
The North American market is estimated to account for the highest revenue share in the global stretch hood films market during the forecast period due to growing demand for stretch hood films in the countries in the region. In addition, North America has a well-established market and is expected to follow the Asia Pacific in terms of demand for the stretch hood film during the forecast period.
Europe is expected to contribute considerably toward the stretch hood films market due to the extensive use of polyethylene material in manufacturing stretch hood films. The polyethylene division is predicted to grow substantially, particularly in Western Europe. Moreover, the Middle East and Africa are expected to reflect a sluggish growth in the stretch hood film market due to the overall stagnant economy in the region and is expected to register significant CAGR.
The stretch hood films market is fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream application Dow Chemical, Lachenmeier, Trioworld, EYYonMobil, MSK Verpackungs-Systeme GmbH, Rosenflex Limited, Bischof + Klein France, ERA-PACK s.r.o., bpi packaging solutions, Specialty Polyfilms Pvt. Ltd. are the major player in the films market. The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the stretch hood films market globally.
Overview: Dow Chemical is an American multinational chemical organization headquartered in Michigan, Midland, United States, and a subsidiary of Dow Inc. The company is among the three biggest chemical producers in the world. Dow manufactures chemicals, agricultural, and plastics products.
The global stretch hood films market report would provide access to an approx. 69 market data table, 78 figures and 180 pages.