Market Trends of North America Plastic Packaging Film Industry
Polyethylene Film Is Expected to Witness Significant Growth
- Polyethylene is the primary material used in plastic film production. It is a lightweight, partially crystalline, thermoplastic resin characterized by high chemical resistance, low moisture absorption, and sound-insulating properties. The LDPE or LLDPE forms are preferred for film packaging and electrical insulation applications.
- 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.
- Manufacturers are incorporating recycled polyethylene resin in flexible packaging film production. In November 2023, Amcor Group entered an agreement with NOVA Chemicals Corporation, a sustainable polyethylene producer, to procure mechanically recycled polyethylene resin (rPE) for flexible packaging films. This initiative demonstrates Amcor's commitment to circular packaging practices.
- NOVA Chemicals plans to establish its first mechanical recycling facility in Connersville, Indiana, with operations expected to begin in 2025. This collaboration will allow Amcor to acquire SYNDIGO rPE resin manufactured at NOVA Chemicals' upcoming recycling facility.
- The OECD reports that plastic consumption in the United States was 84.8 million tonnes in 2022 and is projected to reach 96.6 million tonnes in 2030. As overall plastic consumption increases, the demand for plastic packaging materials, including plastic films, is expected to rise correspondingly.
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Food Segment to Show Significant Growth
- The plastic packaging film industry continues to innovate in material science, production processes, and packaging technologies. While current focus areas include high-performance barrier films, stronger and thinner materials, and improved printing capabilities, future developments may shift toward bioplastics. Due to its recyclability and biodegradability, bio-based PLA film is expected to become a significant component in food, confectionery, bakery, and snack packaging.
- 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 plastic film 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.
- Polyethylene (PE) dominates the market in terms of volume, owing to its lightweight properties and strong resistance to chemicals and moisture. Its versatility allows for wide application, from packaging fruits and vegetables to protecting meat and seafood.
- The United States is a major consumer of frozen food. A 2023 survey by Circana revealed that frozen chicken sales in the United States reached USD 730 million, while frozen pizza sales amounted to USD 1,564 million. This high frozen food consumption is expected to drive growth in North America's films and wraps segment.
- The growth in supermarket and grocery store sales typically correlates with increased demand for packaging materials, including plastic films used for various food and beverage products.
- According to the US Census Bureau, sales at United States supermarkets and other grocery stores rose from USD 600.95 billion in 2016 to approximately USD 846.38 billion in 2023.
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