Shrink Packaging Market - By Material Type, By Product, By Packaging Type, By End Use Industry and 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 demand for packaging solutions with high recycled content and reduced CO2 emissions reflects increasing consumer and regulatory pressures for environmentally friendly options. This push for sustainable materials drives market expansion as companies seek to meet eco-friendly standards without sacrificing performance.
 

In February 2024, Intertape Polymer Group (IPG) launched ExlfilmPlus PCR, a polyolefin shrink film containing 35% recycled content. This sustainable film features at least 10% certified post-consumer recycled (PCR) and 25% post-industrial recycled (PIR) content. Its thinner gauges reduce material usage by up to 9%, catering to the growing demand for eco-friendly packaging solutions without compromising performance.
 

Shrink Packaging Market Trends

A key trend in the shrink packaging industry is the shift towards sustainability through the use of recycled materials. Companies are increasingly incorporating post-consumer recycled content to develop eco-friendly shrink films. This approach aims to reduce carbon footprints while maintaining high performance, aligning with consumer demand and regulatory pressures for greener packaging solutions.
 

For instance, in April 2024, LyondellBasell and Zhengxin Packaging Co. Ltd announced a collaboration to enhance heat shrink film technology for beverage and tetra pack packaging. Utilizing LyondellBasell's CirculenRecover PE from post-consumer waste, the partnership offers up to 60% recycled content, combining sustainability with high performance to meet growing eco-friendly packaging demands.
 

Shrink Packaging Market Analysis

Limited recycling infrastructure and facilities pose a significant challenge for the shrink packaging industry. Although there is a push toward using recycled materials, many regions lack the necessary infrastructure to effectively collect, sort, and process post-consumer plastic waste. This results in lower availability of high-quality recycled polymers needed for sustainable packaging production. Without substantial investments in recycling technology and expansion of facilities, achieving widespread use of eco-friendly shrink films remains difficult. This gap hinders the circular economy efforts and slows down the market’s progress toward sustainability targets.
 

The increasing adoption of advanced technologies, such as biodegradable and compostable shrink films, presents a significant opportunity in the market. With rising consumer and corporate demand for eco-friendly alternatives to traditional plastic, there is a growing need for packaging solutions that reduce environmental impact while offering end-of-life options like composting. This trend opens up possibilities for innovation in material science, enabling companies to create sustainable shrink films that meet both environmental goals and performance requirements.
 

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.
 

• The polyethylene (PE) segment in the shrink packaging market is expected to reach significant value due to its versatility, cost-effectiveness, and wide range of applications. PE shrink films are lightweight, transparent, and highly flexible, making them ideal for wrapping and protecting a variety of products. This material is commonly used in consumer goods packaging, such as beverages, food products, and electronics. Its ability to tightly conform to the shape of products, offering a secure and tamper-evident seal, has made it a preferred choice for manufacturers across multiple industries. Additionally, PE is available in different grades, allowing for customization based on specific packaging requirements, which further drives its widespread adoption.
   
• Another key factor contributing to the growth of the PE segment is its recyclability and environmental friendliness compared to other shrink materials like PVC. As sustainability becomes an increasing priority for both consumers and businesses, PE's ability to be recycled and its lower environmental impact make it a more attractive option. Many companies are shifting toward more eco-friendly packaging solutions, and PE, being one of the most widely recyclable plastics, is well-positioned to meet these demands. This shift towards sustainable packaging, coupled with its affordability and performance benefits, is expected to further boost the growth of the polyethylene segment in the market.

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.
 

• The tertiary packaging segment is the fastest-growing in the shrink packaging market due to the rising global demand for efficient logistics and bulk transportation. Tertiary packaging, which includes protective outer wraps and pallet unitization, plays a crucial role in ensuring products are securely transported and stored. The increase in e-commerce and international trade has intensified the need for robust packaging solutions that can withstand long-distance shipping and handling. Shrink packaging in this segment helps keep products stable during transit, minimizing damage and loss, which is essential for maintaining supply chain efficiency.
   
• Additionally, advancements in shrink film technology have made tertiary packaging more cost-effective and eco-friendly. High-performance shrink films are now designed to be thinner but more durable, reducing material use while maintaining protective qualities. This aligns with sustainability goals and cost-cutting measures for businesses, further driving the growth of the tertiary packaging segment. The ability to provide reliable, space-saving, and secure packaging for large quantities of goods supports the rapid expansion of this market segment.

North America held the share of over 25% in the global market. The shrink packaging market in the U.S. is experiencing steady growth, driven by increasing demand for efficient packaging solutions across the food and beverage, pharmaceutical, and e-commerce sectors. The shift towards sustainable materials and advancements in biodegradable shrink films contribute to the market's expansion. Companies are focusing on innovative packaging technologies to enhance product protection and shelf appeal, aligning with consumer preferences for environmentally friendly options.
 

 In China, the shrink packaging industry is witnessing significant growth due to rapid industrialization and the booming e-commerce and retail sectors. The country's strong manufacturing base and advancements in packaging technology support market development. Additionally, the demand for cost-effective and high-quality packaging solutions in the food, beverage, and consumer goods industries propels the market, with an increasing focus on sustainability and eco-friendly materials.
 

The shrink packaging market in South Korea is expanding as a result of robust growth in the consumer electronics, automotive, and food industries. High standards for product quality and safety have led to an increased preference for shrink packaging due to its superior protective properties. Additionally, the rise of environmentally conscious consumers is pushing companies to innovate with recyclable and biodegradable shrink packaging solutions.
 

In Japan, the market is driven by advancements in technology and a strong emphasis on precision and quality in packaging. The market benefits from the country’s leading-edge automation and packaging machinery, which enhances efficiency. Growth in the pharmaceutical and electronics sectors, combined with consumers’ preference for neat, compact, and sustainable packaging, contributes to the steady expansion of this market.
 

Shrink Packaging Market Share

The competition in the shrink packaging industry is primarily driven by factors such as price, product innovation, differentiation, and distribution networks. Companies are focused on offering cost-effective solutions while maintaining high-quality packaging that meets the diverse needs of industries like food, beverage, healthcare, and consumer goods. Product differentiation plays a crucial role, with key players investing in innovative materials and eco-friendly packaging to meet the growing demand for sustainability. Distribution capabilities also influence competition, as companies strive to expand their reach globally and improve delivery efficiency. Additionally, strong customer service and the ability to customize solutions based on client needs are key competitive advantages in this dynamic market.
 

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 launched the Clear-Tite 40 shrink bag, offering an eco-friendly solution for the fresh and processed meat industry. This packaging achieves a 19% weight reduction compared to 50µ shrink bags and reduces the carbon footprint by 16%, maintaining product freshness while using less plastic.
   
• In October 2024, Clysar launched recyclable Clysar EV-HPG, all-purpose shrink film. This product reduces virgin plastic usage by incorporating up to 30% Clysar ReClaim, a certified pre-consumer recycled (PCR) content resin.       
   

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