Stretch Packaging and Stretch Film Market Study

Increasingly, manufacturers are leaning toward automation and minimizing labor. According to a new study by Future Market Insights (FMI), this will fuel the growth of the stretch film market, which will exceed $736 million by 2021.

Stretch hood films are becoming increasingly popular among end users because, when used in combination with stretch hood wrappers, they do not require a separate heating unit as shrink films do. As a result, they save consumables and energy that are essential in a heat shrink system. As a result, stretch films are expected to capture a major share of the global packaging market in the near future.

In addition to this, stretch hood film offers improved packaging quality for pallet wrppers. It provides perfect presentation of packaged products and eliminates creases and folds that are common in shrink packaging. Most consumers are increasingly switching from traditional packaging and wrapping methods to stretch hood films because these films offer enhanced aesthetic appearance, transparency and gloss to showcase the contents of the load. Stretch hood packaging offers great efficiency in securing palletized unit loads. Products packaged with stretch hood films allow for maximum coverage as the package covers horizontally and laterally depending on the packaging application.

Key Takeaways from Research

After a setback in 2020, sales of stretch hood films are expected to surge, enabling the market to achieve a year-on-year growth of 2.8% in 2021. The U.S. will account for more than 88% of North American sales as manufacturing continues to grow, coupled with the demand for advanced packaging solutions.

"Closed film hoods offer better protection against theft than stretch wraps. Stretch hood films further prevent dust and moisture from damaging the product during loading and transportation." FMI analysts say.

Applications in different industries

Stretch hood machines are one of the newest palletizing technologies and offer advantages over other palletizing methods. In recent years, stretch hood film manufacturers have not only improved packaging technology and quality, but have also emphasized the quality of the raw materials used to improve performance. Stretch hood film manufacturers are continually working to produce stretch hood films that are more flexible and thinner.

The use of stretch hood film can reduce plastic consumption by 20-30% compared to shrink hood or stretch film. It encourages manufacturers to seize this opportunity to innovate products that are less harmful to the environment. These films are easily recycled, thus significantly reducing recycling costs. The growing opportunities created by innovative products are expected to prompt established companies to invest in R&D activities to further improve the performance of stretch hood films. The increased load stability and elasticity of stretch hood films create lucrative opportunities for stretch hood film manufacturers to meet the needs of multiple end-use industries such as food and beverage, textile, shipping and construction.

The Impact of COVID-19

E-commerce and cargo transportation have been transporting a large number of products. Stretch hood films from SMARTWASP ensure load stability for transportation while providing full visibility of the contents of the pallet. In recent years, the logistics industry has been gaining attention as technology continues to advance. However, the outbreak of the COVID-19 pandemic has altered the normal operations of the logistics sector.

The sudden drop in consumer demand has had a direct impact on the level of activity in shipping and port operations, and has changed company strategies. Blockades in several areas have led to port congestion and reduced demand for stretch hood films in the logistics industry. Trends in industries such as food and beverage and medical products confirm the resilience of demand for basic commodities, which have a continuing need for commodity packaging.

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