US demand for stretch and shrink film is to rise by 3.3% per year to USD 2.4 bn in 2015, a new study by researcher Freedonia (Cleveland, Ohio / USA; www.freedoniagroup.com) has found. Growth will be driven primarily by a rise in demand for product packaging, the need to bundle and protect goods during warehousing and distribution and the films’ advantages over alternative materials, Freedonia said, adding that resin and machinery improvements and new opportunities in stretch hoods, labels and sleeves would also give demand a boost.

In its study, entitled “Stretch & Shrink Film”, the researchers predict that US demand for stretch film will rise by 2.8% a year to a total market worth USD 1.4 bn in 2015, driven largely by stretch hoods thanks to their cost advantages, high throughput rates, load integrity and weather protection – not to mention advantages in energy and labour savings.

By comparison, US demand for shrink film is preducted to grow by 4.2% a year to USD 970m in 2015. In this case, demand growth will be driven by the material’s high clarity and excellent print capabilities, which make it particularly marketable, especially when used as labels. Compared to stretch film, shrink film also provides better seal and moisture barrier, Freedonia says, making it well-suited for covering heavy, non-uniform pallet loads thanks to its higher puncture resistance and ability to maintain load integrity.

As for demand for stretch and shrink film resins, Freedonia predicts it will rise by 2.5% per year to a total volume of 860,000 t (1.9 bn lbs) in 2015. Leading the pack is LDPE, due to its competitive cost, excellent elongation and puncture resistance. PVC demand for stretch and shrink film, by contrast, will remain flat through 2015 in volume terms, Freedonia says, although the material will see value gains as a result of price increases. Main applications include shrink labels for food and beverages.