Market Trends of Canada Plastic Packaging Films Industry
Polyethylene Segment is Expected to Witness Significant Growth
- LDPE is formed through the polymerization of polyethylene. During this process, monomers link together to create elongated hydrocarbon chains. These chains then branch out in various directions, with the branching pattern determining the material's strength and density. In essence, LDPE varies in terms of density, making it ideal for strength-focused applications, while LDPE proves more advantageous for applications requiring flexibility.
- Due to its lower percentage of crystallinity, LDPE has a lower density than HDPE. This gives LDPE a softer and more flexible quality while also slightly reducing its barrier capability. LDPE is widely used in packaging film applications due to its good chemical and oil resistance and low cost.
- Furthermore, LLDPE, a frequently employed packaging film in the industry, is characterized by its low density and the presence of comonomers that create branch-like structures on the main chain, reducing crystallinity. This results in a hazy appearance and a malleable texture. Compared to LDPE at the same density and thickness, LLDPE exhibits superior impact strength, tensile strength, puncture resistance, and elongation.
- E-commerce requires substantial packaging materials to ensure products are safely delivered to customers. As e-commerce sales grow, the demand for LLDPE packaging films also rises. These films are used for various purposes, including product wrapping, cushioning, and protecting goods during transit.
- According to StatCan, in April 2024, e-commerce sales amounted to approximately USD 2,962.72 million when compared it with April 2023 which was USD 2,696.57 million.
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Food to Show Significant Growth
- The demand for pet food in Canada, driven by the large number of households owning pets, particularly dogs and cats, creates a substantial market for packaging solutions. As per Hepper, a company specializing in pet blogs, a statement from an article released in February 2024 suggests that over half of Canadian households (60%) have at least one dog or cat as pets.
- The pet food industry utilizes various packaging solutions for different product types, including dry food, wet food, and treats. Plastic films offer customizable barrier properties, moisture resistance, and durability, effectively addressing the specific packaging needs of each pet food category.
- Increasing export volumes of fish and seafood necessitate more packaging solutions to maintain product safety and quality during transportation, potentially boosting demand for plastic packaging films. As fish and seafood are highly perishable, proper packaging is crucial to prevent spoilage, maintain freshness, and extend shelf life.
- Plastic films offer benefits such as moisture resistance, oxygen barrier properties, and durability, making them suitable for preserving these delicate products during long-distance shipping.
- According to Statistics Canada, in August 2023, exports of fish, crustaceans, shellfish, and other fishery products from Canada amounted to approximately CAD 274 million (USD 197.9 million); when compared with August 2020, the exports amounted to CAD 260 million (USD 187.8 million).
- Higher retail sales of baked goods, there will be a greater volume of products requiring packaging. Various baked goods require specific packaging solutions to preserve their quality. Plastic packaging films provide adaptable options with customizable barrier properties, transparency, and sealability. These characteristics make plastic films suitable for a wide range of baked products, including bread, cakes, pastries, and cookies.
- According to Agriculture and Agri-Food Canada, Retail sales of baked goods amounted to approximately USD 6.8 billion in 2022 and are forecasted to reach USD 7.78 billion by 2026.
