Shrink Bags Market Report

The major factor due to which the market for global shrink bags is increasing is extensive growth in the retail sector, including supermarkets, online retail sales, and major hypermarkets. As predicted by the Global Wellness Economy, the supermarket sector is achieving new heights and will grow further. The major reasons behind this growth are providing a better customer shopping experience and efficiency. The shrink bag market has a lucrative opportunity in the ready-to-drink sector, as the sector is currently experiencing growth, and according to a survey carried out by the nearby two-thirds of respondents are regular or occasional consumers of ready-to-drink beverages.

As per the report, revenue from sales of premixed and cocktails rose by 42.3%, amounting to US$ 1.6 Billion in sales in 2021. In the survey, 55% of the total respondents preferred spirits-based beverages over other ready-to-drink products. RTDs are preferred by 92% of consumers for their convenience, and an additional 88 percent chose them because they taste like their preferred alcoholic beverage. 86% of people surveyed supported the resolution of selling spirit-based ready-to-drink products.

There are a number of challenges faced in the shrink bag industry, and most of them are related to the health of the consumer. The focus of consumers has now shifted towards consuming fresh and healthy food products after COVID-19 pandemic concerns regarding health were raised. Hence, looking at this scenario, awareness about the consumption of fresh food is rising. According to the survey carried out by Deloitte, it has been observed that 90% of the respondents sense happiness after consuming fresh food. The same number of people also believed that a wholesome diet should only include fresh food. 80% of respondents prefer fresh food over processed food and also look towards fresh food as a way to minimize the risk of chronic health and live a healthy life.

Some consumers also believe that due to the heating process, the toxic material present in plastic gets into or reflects in the product. Another challenge holding back the growth of shrink bags is their one-time use or non-reusability, which is directly impacting the environment. Various countries, such as the United States, France, India, and Australia, are now imposing a ban on single-use plastic, which can be a huge barrier as major shrink bags are used with the purpose of single use. This is an alarming situation, as both the top global meat-eating countries, the United States and Australia, have banned the use of single-use plastic.

Amcor, in July 2023, had built a new product line for PVdC-free shrink bags for its products, such as meat and cheese, at its Swansea site. The reason behind this was to offer customers an extra-sustainable alternative. Some major features of this product were its thinner and exceptional optical properties. This product line delivered various products for meat and the Dairy Seal packaging range for cheese, eco-tile, etc. Adapa Group, in May 2023, invented two new lines focusing on high-performance shrink bags at its St. Helens plant. The reason behind this was to increase the supply of China's agility and offer a wide capacity of shrink bags to its customers.

It was also said that this line had better printability features for the manufacturer and clean visibility for the customer, which helped the company in two major aspects, which were branding and presentation of the product. Mondi, in September 2022, introduced a new alternative, which was Hug&Hold. The company claimed that their product, Hug&Hold was a 100% recyclable option made from kraft corrugated clip and paper sleeves. It offered high tensile strength and could handle enough weight that one might carry during transportation.

Due to the high demand for products like meat, lamb, and other processed meat items that are consumed in regions such as the Middle East Africa, and Europe, the demand will grow. Hence, the focus should be purely on food items, especially processed meat items. Similar to this, the red meat market is experiencing growth globally. Also, according to the Foreign Agricultural Service Argentina's beef exports for the year 2024 are predicted to reach 920,000 tons of carcass weight which is equivalent to 20,000 tons which looks like a promising market for Shrink bags.

In the Asia-Pacific region, China will be a prominent player for various reasons, one of them is the exporting of toys to another country China in 2022, totalling US$ 104 Billion in toys. China’s per capita meat consumption is among the highest; hence, the meat market of China is expected to grow by about 17 kilograms per person, which makes China a lucrative market. Also, the e-commerce industry in China is experiencing a boost, which will again affect the shrink bag market, and it will further show growth. The United States can also be a potential market as it also holds a significant share of the meat and poultry industry. Also, the feature of making products clearly visible through packaging plays a significant role in attracting customers in the United States.