Shrink Packaging Market Size - By Material Type, By Product, By Packaging Type, By End Use Industry Analysis, Share, Growth Forecast, 2025 - 2034

Shrink Packaging Market Size

The global shrink packaging market was valued at USD 12.3 billion in 2024 and is estimated to grow at a CAGR of 7.8% from 2025 to 2034. A major growth driver for the market is the shift towards sustainability. The market demand for packaging solutions that use recycled materials and reduce carbon footprint is generating unprecedented attention from consumers and regulators. However, this demand for more sustainable materials tends to expand the market, as the performance of the bottom line is not compromised.
 

For instance, in February 2024, the Intertape Polymer Group (IPG) introduced ExlfilmPlus PC, a shrink film composed of 35% recycled content. It was found that this green film contained no less than 10% certified recycled post-consumer (PCR) and 25% recycled industrial (PIR). It has additional benefits of thin gauges that allow material consumption to be reduced by up to 9%, thus helping to increase maize for effective packaging options for performance.
 

Shrink Packaging Market Trends

The recycling materials used in the shrink packaging industry is one of the trends that is changing this market. Companies are now using recycled post-consumer content to produce eco-friendly shrink films. The idea is to reduce carbon emissions, use greener packaging materials, and to meet consumer and regulatory requirements and needs. For instance, in April 2024, Lyondell Basell and Zhengxin Packaging Co. Ltd. announced a joint venture for a project development, where LyondellBasell utilizes its CirculenRecover PE from post-consumer waste that offers up to 60% recycled content, increasing the sustainability and performance of the beverage packaging, responding to the growing demand for environmentally friendly packaging.
 

Shrink Packaging Market Analysis

The inability to establish good enough recycling facilities and infrastructure is the most significant threat for the market. Although a general trend exists towards replacement materials, many regions globally are still not equipped to effectively recover, classify, and reprocess post-industrial plastics. This creates a severe shortage of high-quality recycled polymers needed for the production of sustainable packaging. Without significant investment in the development of recycling technology and the expansion of facilities, it is still a major challenge to achieve mass consumption of environmentally friendly shrink films. This gap affects circular economy initiatives and hampers market growth in achieving sustainable objectives. Conversely, the growing use of cutting-edge technologies such as biodegradable and compostable shrinking films is very attractive to the market. Due to the growing demand for environmentally sustainable and compostable films by consumers and businesses, there is now a significant opportunity for the development of reusable and compostable shrink film at the end of their lifetime. This paradigm shift allows material science to introduce innovative optimizations that allow sustainable shrinkage films that examine performance indices while also meeting environmental objectives.
 

Based on material, the market is divided into polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and others. The polyethylene (PE) segment is expected to reach a value of over USD 10 billion by 2034.
 

• Due to its versatility, low cost, and application range, the PE segment is expected to bring significant value to the shrink packaging market. PE shrink film is cheap, easy to use, transparent, and thin, making it useful for packaging and protection of different types of products. This material has relevance in the packaging of consumer products such as beverages, food products and electronics. Its feature of strictly conforming to the shape of products to provide an uninterrupted, strong, and even visible tape has made it an ideal choice for manufacturers in several sectors. In addition, the existence of PE in various grades allows a specific adaptation of materials according to certain packaging needs, which further facilitates their extensive use.
   
• One of the reasons for PE segment development is that it is more environmentally friendly than other shrinking materials such as PVC, PP, and others. With sustainability becoming a hot topic among consumers and businesses, PE's lower environmental impact and lower costs make it viable. There is a transition from companies to green packaging solutions, and PE is one of the most readily recyclable plastics in the world, and such a transition can be easily achieved.

Based on packaging type, the market is divided into primary packaging, secondary packaging, and tertiary packaging. The tertiary packaging segment is the fastest growing segment with a CAGR of over 9% between 2025 and 2034.
 

• Due to the growth in the demand for efficient logistics and bulk transport globally, tertiary packaging verticals have become the most profitable in the shrink packaging market. In the intermodal transport of goods, pallet uniting and even placing protective outer wrapping around the product can be classified as tertiary packaging.
   
• The growth of e-commerce and cross-border trade has continued to emphasize the demand for robust packaging solutions to protect goods during long-distance shipping and transit. This segment of shrink packaging plays an integral role in supply chain management by ensuring that goods remain stable during transport and thus reduce the probability of damage and loss. Improvements in shrink film images also reduce the cost of shrink film packages and make them more environmentally friendly.

North America held a share of over 25% in 2024 in the global industry. Shrink packaging market is flourishing steadily in the United States, because there is an increasing need for cost-effective packaging in the food, beverage, pharmaceutical and electronic commerce industries. The advance of biodegradable shrink film, and the increasing use of sustainable materials also play an important role in promoting the growth of this market. Companies invest in research and development of pioneer packaging technologies to better protect the product and make it more attractive, as customers now prefer environmentally friendly options.
 

 The shrink packaging industry in China is growing rapidly along with industrialization, e-commerce, and retail. Its integration of strong domestic manufacturing with improved technology in packaging increases the market. Furthermore, growth in the food, beverage, and consumer goods sectors in search of efficient, cost-effective, and high-quality packaging solutions leads to market growth while also focusing on eco-friendly materials in the final product production.
 

The growth in consumer electronics, automotive, and food industries has resulted in growth in the shrink packaging market in South Korea. The change in product standards has resulted in the emphasis on product quality and safety, which has led to the adoption of shrink packaging because of its improved protection capabilities. Furthermore, the growing demand from environmental-related consumers for the use of recyclable waste and biodegradable shrink packaging devices supports the company’s innovation development.
 

Japan's strong and safe packaging technology, shrinkage packaging is increasing. This in combination with the factors of increased demand in the electronics and pharmaceutical industry leads to further growth alongside consumers' need for efficient, compact, and clean packaging. This, combined with the automatic and advanced Japanese packaging machines and the rapid maintenance, increases the efficiency of packaging, and leads to even faster growth in the market.
 

Shrink Packaging Market Share

The competition within the shrink packaging industry is dominated by price, product innovation, differentiation, and distribution networks. Companies are therefore looking to develop cost-effective solutions with high-quality packaging that meet the diverse requirements of industries, including food and beverage, healthcare, and consumer goods. It is based on product differentiation and innovation in material use and also in eco-friendly packaging to ensure that sustainability can be met. Other areas where distribution capabilities play a crucial role are the competitive influence through global reach expansion and efficient delivery. Additionally, this is a competitive edge of good customer service and flexibility to offer a solution that addresses the client's needs.
 

Shrink Packaging Market Companies

Major players operating in the shrink packaging industry are:

• AEP Industries
• Allen Plastic Industries
• Amcor
• Balcan Innovations
• Berry Global
• CCL Industries
• Coveris Holdings
• CP Flexible Packaging
• Dow Chemical
• Filmsource Packaging
• Intertape Polymer Group
• Klockner Pentaplast
• LyondellBasell Industries
• PremiumPack
• Sealed Air
• Sigma Plastics Group
• Smurfit Kappa
• Transcendia
• Winpak
   

Shrink Packaging Industry News

• In September 2024, Amcor introduced a new 40µ shrink bag known as the Clear-Tite which aims to provide eco-initial packaging for the fresh and processed meat. This new packaging reduces the weight by 19% in comparison to 50µ shrink bags and has a 16% lower carbon footprint than the older plastic versions while still ensuring the product is cold.
   
• In October, Clysar launched fully recyclable Clysar EV-HPG all-purpose shrink film which is well suited to varying materials. This new product includes up to 30% Clysar ReClaim an accredited pre-consumer resin which reduces the use of virgin plastic. 
       

This shrink packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2022 to 2034, for the following segments:

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Market, By Material Type

• Polyethylene (PE)
• Polypropylene (PP)
• Polyvinyl chloride (PVC)
• Others

Market, By Product

• Shrink bags
• Shrink film
• Shrink labels
• Shrink sleeves
• Shrink wrap

Market, By Packaging Type

• Primary packaging
• Secondary packaging
• Tertiary packaging

Market, By End Use Industry

• Consumer goods
• Electronics
• Food & beverage
• Pharmaceuticals & healthcare
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa