Shrink Wrap Equipment Market Size (2024 - 2029)

The Shrink Wrap Equipment Market is experiencing significant growth due to its cost-effectiveness and sustainability benefits, which are driving increased demand across various industries. The market's expansion is fueled by the advantages of shrink packaging, such as extended shelf life, ease of handling, and reduced material costs compared to traditional packaging methods. Polyolefin is the preferred material due to its durability and recyclability, contributing to the market's growth. The demand for semiautomatic and automatic shrink wrapping equipment is rising, particularly from SMEs, e-commerce, and large industries requiring pallet wrapping solutions. The COVID-19 pandemic further accelerated the demand for shrink wrap packaging, highlighting its practicality in maintaining product safety and hygiene.

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Market Size of Shrink Wrap Equipment Industry

Shrink wrap equipment market size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 9.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Shrink wrap equipment market major players

*Disclaimer: Major Players sorted in no particular order

Shrink Wrap Equipment Market Analysis

The Shrink Wrap Equipment Market is expected to grow at a CAGR of 9% over the forecast period 2021-2026. Shrink packaging for various consumer goods offers multiple advantages, such as increased shelf life, easy-to-handle packages during transit and storage, eco-friendly as less packaging is required, safekeeping of the product, and numerous other benefits.

  • There are two main types of materials used for shrink wrapping: polyvinyl chloride (PVC) and polyolefin. PVC is less expensive, but it is not widely used, owing to the health dangers it poses during creation and disposal. Polyolefin (POF) is by far the more commonly used and preferred shrink film. POF is extremely durable, clear, and is FDA-approved for various food material. POF shrink wrap is available in thicknesses that range from 35 to 100 gauge, and it is made from 100% recyclable materials and is more resistant to temperature changes.
  • Shrinkwrapped products in trays, on pads, or bundled in polyethylene film are a cost-effective and sustainable way to transport palletized consumer products through the distribution network. Shrinkwrapping offers significantly lower material costs by reducing or eliminating the need for a higher-priced corrugated board.
  • Owing to such reasons, the demand for shrink wrap equipment is significantly gaining traction in various industries. Besides this, shrink wrapping equipment offers a faster return on investments and consumes less energy than other packaging methods. According to MSK Covertech Group, shrink packaging equipment provides 40% energy savings depending on the film's thickness.
  • Shrinkwrapping helps reduce production output time, faster payback period, and reduces cost by safely packaging equipment in less packaging material. Thus, this is driving the demand for shrink packaging equipment. For instance, Ply Gem, a leading manufacturer of exterior building products, adopted shrink wrapping packaging solutions from Texwrap, increasing production output by 150% with a payback period of under a year.
  • The demand for semiautomatic shrinkwrapping tunnels is expected to command significant demand in the market. This is due to the growing demand from various SMEs adopting packaging solutions, e-commerce logistics, and food and beverage packaging solutions. However, automatic equipment demand is significantly high from the massive industries that use pallet wrapping solutions.
  • Shrinkwrapping helps save packaging time in palletizing and reduces cost and waste compared to corrugated boxes. For instance, a client of Murphy Packaging Inc. was able to eliminate packaging waste and reduce labor hours spent on packaging the pallets. Thus, the new shrinkwrapping process saved 20- 24 hours per week.
  • With the outbreak of COVID-19, the demand for shrink wrap packaging saw a surge in demand. Moreover, it offers easy cleaning and disinfecting options for packaged goods, without water leaking into the product offering.

Shrink Wrap Equipment Industry Segmentation

Shrink wrapping process involves the application of temperature-sensitive films. When heat is applied to the film, it shrinks tightly to whatever it is covering. There is a variety of wrapping equipment, including L-sealers, automatic side seal shrink wrappers, shrink tunnels, and shrink bundling.

By End-User Industry
Food
Beverages
Pharmaceutical
Industrial
Logistics
Others ( Personal care, construction)
Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
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Shrink Wrap Equipment Market Size Summary

The Shrink Wrap Equipment Market is poised for significant growth, driven by the increasing demand for efficient and sustainable packaging solutions across various industries. Shrink wrapping offers numerous advantages, including extended shelf life, ease of handling during transit and storage, and eco-friendliness due to reduced material usage. The market is primarily supported by the use of polyolefin (POF) materials, which are preferred for their durability, clarity, and FDA approval for food applications. The demand for shrink wrap equipment is further bolstered by its cost-effectiveness and energy efficiency, making it an attractive option for industries such as food and beverage, e-commerce, and pharmaceuticals. The COVID-19 pandemic has also contributed to the surge in demand, as shrink wrapping provides easy cleaning and disinfecting options for packaged goods.

Regionally, the Asia Pacific is expected to hold a significant share of the market, driven by the rapid expansion of the food processing industry and the growth of e-commerce and retail sectors. Countries like China and India are focusing on enhancing their pharmaceutical and agri-value chains, respectively, which is anticipated to propel the growth of shrink wrapping solutions. The competitive landscape of the market is moderately fragmented, with key players engaging in strategic partnerships, mergers, and acquisitions to expand their global presence. Recent developments, such as Standard-Knapp's partnership with EoL Packaging Experts and Aetnagroup's acquisition of OCME, highlight the industry's focus on optimizing technical and commercial synergies to meet emerging challenges.

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Shrink Wrap Equipment Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Intensity of Competitive Rivalry

      5. 1.3.5 Threat of Substitute Products

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End-User Industry

      1. 2.1.1 Food

      2. 2.1.2 Beverages

      3. 2.1.3 Pharmaceutical

      4. 2.1.4 Industrial

      5. 2.1.5 Logistics

      6. 2.1.6 Others ( Personal care, construction)

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia Pacific

      4. 2.2.4 Latin America

      5. 2.2.5 Middle East and Africa

Shrink Wrap Equipment Market Size FAQs

The Shrink Wrap Equipment Market is projected to register a CAGR of 9% during the forecast period (2024-2029)

U.S. Packaging & Wrapping LLC, Texwrap Packaging Systems LLC (Pro Mach Inc.), MSK Verpackungs-Systeme GmbH, ARPAC LLC (Duravant LLC) and Standard-Knapp, Inc. are the major companies operating in the Shrink Wrap Equipment Market.

Shrink Wrap Equipment Market Report Snapshots

Shrink Wrap Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)