Plastic wrap is a plastic coating in food packaging. Due to the increasing demand for innovative packaging solutions in the food and beverage industry, plastic wrap is transforming packaging in the food and beverage market on a global scale. Plastic wrap is a soft plastic wrap made of polyvinylidene chloride (PVC). Plastic wrap coating is preferred as it mainly contributes to the health and hygiene of the food and also prevents it from contamination and preserves it. In addition, plastic wrap is considered a cost-effective way to present food. The global cling film market is expected to witness a healthy growth rate during the forecast period.
The PVC cling film market can be segmented by application: dairy products, meat, fruits and vegetables, bread and confectionery, poultry, and others, with meat accounting for the largest market share. In 2019, meat accounted for 32.47% of the market share, followed by fruits and vegetables.
PVC cling film can usually be divided into cast cling film and blown plastic wrap. In the production of cast films, the resin is extruded through a linear die and exuded onto a large-diameter cooling roller. Depending on the original thickness of the extrusion, sometimes the film obtained by winding is faster than the extrusion rate, and the film thins to the target specification. The production cost of cast cling film is much lower than that of blown film, and the productivity per working hour is also higher than that of blown film. Cast plastic wrap adheres naturally on both sides and allows the tray to stick together. These films are very transparent and easy to stretch, even when applied to pallets, which can cause movement.
The superior advantages of cast cling film are excellent load retention, high film puncture and tear resistance. They have significant performance and cost savings, which makes them suitable for various applications, such as food packaging, healthcare packaging, and consumer packaging, thereby increasing the demand for convective cast cling films during the forecast period. Blow plastic wrap is manufactured using the Blow Process. It is tougher and more resilient than cast plastic wrap. It can withstand a higher load compared to cast plastic wrap. However, blown plastic wrap has poor transparency and is more expensive than cast cling film.
PVC cling film market analysis
According to our research, the total revenue of the PVC cling film market was USD 755.5 million in 2015 and increased to USD 864.6 million in 2019. We performed a series of functional calculations and derived the data of the past 5 years based on scientific models. Finally, we predict that the market value of PVC cling film could reach $977.9 million by 2025. The concentration of PVC cling film industry is low. The top three companies are Berry Global Inc., Anchor Packaging Inc., Klöckner Pentaplast Group Group, with revenues of 205.1, 77.6, 69.9 million USD in 2019.
North America is the largest revenue market, with a market share of 27.07% in 2015 and 26.07% in 2019, a decrease of 1%. In 2019, Europe ranked second with a market share of 25.13%. The development of the economy, the increase in downstream demand, and the technological innovation and progress in these aspects will promote the development of the PVC cling film market.
The Asia-Pacific region is likely to see the highest growth in demand for plastic wrap due to their increasing use in the food packaging sector in emerging economies, including China, India, and Indonesia. In terms of plastic wrap demand, China is likely to lead the Asia-Pacific region. With the growing trend of packaged food, the demand for plastic wrap in the country has increased significantly. They are mainly used in the packaging of fruits, vegetables, sandwiches, and raw meat, as the film helps preserve food and prevent contaminants. The demand for plastic wrap is also witnessing rapid growth in the healthcare industry. With the increasing investment in healthcare, the country's plastic wrap market is likely to benefit in the coming years. Thus, considering the above-mentioned factors, Asia-Pacific is likely to witness the highest growth rate during the forecast period.
The growth of the PVC cling film market is driven by the downstream demand market. With the development of the European economy, the growing market demand has played a positive role in the expansion of the PVC cling film market. Higher product quality and more affordable products will be one of the future growth opportunities in this market. At the same time, competition in new regions is likely to become more intense. This is likely to be a factor hindering the growth of the market.
The impact of the COVID-19 epidemic on the development of the PVC cling film industry
During the pandemic, many governments issued orders to "stay out". People can't travel freely. As a result, they need to stock up on a lot of food at home. The demand for ready-to-eat food is on the rise, and there is a higher demand for how long the food can be shelved. As a result, the demand for PVC cling film is also on the rise. Due to the pandemic, many countries have imposed controls on domestic transport and the movement of people, as well as restrictions on imported goods. This has led to varying degrees of logistical disruptions, cargo backlogs, and transportation delays. At present, the logistics industry in various countries is gradually resuming operations according to different national policies. It is expected that after the epidemic is further controlled, it will basically return to normal. The pandemic will have an impact on the cash flow of SMEs in the industry, which in turn will affect operating conditions. As a result, the share of small and medium-sized enterprises in the market will shrink, while the share of leading enterprises will increase.
The pandemic will boost the industry's automated production, allowing manufacturers to hire more high-tech talent and multi-skilled workers, reducing their reliance on labor. dependence on labor and better cope with fluctuations in labor. At the same time, more and more people will pay attention to the intelligence of logistics and the improvement of the supply chain's ability to resist risks.