Shrink Films Procurement Intelligence Develop at a CAGR of 6% Till 2030

Shrink Films Procurement Intelligence

The shrink films category is anticipated to grow at a CAGR of 6% from 2023 to 2030. 

Three primary types of films are used in shrink wrapping or packaging: polyvinyl chloride (PVC), polyolefin (POF), and polyethylene (PE).  Shrink films can be converted into bags, flattened roll stock, overwrap, tubing, and banding. Shrink films can also be segregated into centerfold and single-wound films. These are mainly made from POFs and PE. PVC shrink films are extensively used for non-food goods such as CD and DVD packaging, game and software boxes, and other packaging. This is because PVC is banned in many countries due to its chemical composition and the hazardous byproducts that are generated during its synthesis and decay. Hence, companies such as Walmart take extra precautions and ensure the highest standards for use and disposal when certain manufacturers use this chemical in their packaging.

Order your copy of the Shrink Films category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis 

Shrink Films Procurement Intelligence Report Scope

The Shrink Films category is expected to have pricing growth outlook of 10% - 15% (Annually) from 2023 to 2030, with below pricing models. 

Volume-basedcontract-based pricing model

Supplier Selection Scope of Report

Cost and pricingpast engagementsproductivitygeographical presence

Supplier selection criteria of Report

Material type (PVC, PE, or POF)application (food, bottles, sensitive products)features (tamper resistant, moisture and oxygen barrier)certificationsoperational and functional capabilitiestechnology usedothers

Shrink Films Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

Market Intelligence along with emerging technology and regulatory landscapeMarket estimates and forecasts from 2022 to 2030Growth opportunities, trends, and driver analysisSupply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developmentsPorter’s 5 forcesPricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysisEngagement and operating models, KPI, and SLA elementsLCC/BCC analysis and negotiation strategiesPeer benchmarking and product analysisMarket report in PDF, Excel, and PPT and online dashboard versions 

Shrink Films Procurement Cost and Supplier Intelligence

Some of the key cost components associated with the category include raw materials, energy and equipment, labor, facilities and storage, transportation, and others. Other costs can include marketing, repairs, utilities and administrative expenses, tax, etc. The key raw materials for films include POF, PE, or PVC. POFs fall under the thermoplastics family and hence can utilize multiple raw materials such as ethylene, and propylene. These are again obtained from oil and natural gas. As a result, fluctuations in the prices of the raw material can have a significant impact on the cost of shrink film. For instance, price increases in the resin markets at the end of 2021 caused shrink wraps and film prices to increase by 8 - 12%. In the European region, the majority of polymers followed the increases in monomer prices, and polyolefin prices continued to grow in October 2023. Propylene C3 increased by EUR 60/ MT, while ethylene C2 increased by EUR 65 / MT.

The total cost is also impacted by certain variables such as the width and thickness of the film, package height, type of material used, etc. In addition to the unique formulations of the films, there is an increased cost when companies want printed designs. Printed shrink wraps/films are considered a premium option with branding, typography, logo, and graphic dynamics. It is more expensive than transparent or clear films. For instance, clear centerfold shrink films can cost on average between USD 100 - 250. Prices can vary based on roll orders. The cost of a printed pallet wrap order can easily range between USD 5,500 - 6,000, assuming the minimum order is 40 rolls (for machine pallet wrap).

List of Key Suppliers

Amcor PlcBerry Global Inc.Bolloré GroupSealed Air Corporation (SEE)The Dow Chemical CompanyBonset America CorporationAllen Plastic Industries Co., LtdBarbier GroupMitsubishi Chemical CorporationAmerican Eagle Packaging

Add-on Services provided by Grand View Research Pipeline: 

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process 

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier 

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house. 

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc. 

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Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trendsPrice and Cost Intelligence – pricing models adopted for the category, total cost of ownershipsSupplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializingSourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions