Shrink Wrapping Machines Market

Shrink Wrapping Machines Market Size

The global shrink wrapping machines market was valued at USD 1.9 Bn in 2023 and is estimated to grow at a CAGR of over 4.5% from 2024 to 2032.

Shrink wrapping has become a necessity in food and beverage packaging as it aids in protecting the exterior of the product while providing clear visibility and tamper-evident seals. The demand for convenience foods and ready-to-eat meals is rapidly increasing, which is expansive for the market. Furthermore, the growth of e-commerce food delivery services requires substantial transit packaging to ensure the product makes it to the consumer in one piece, and shrink wrapping is the answer. The pharmaceutical industry is an industry where packaging has to meet strict regulatory standards to ensure it is clean and intact. In this regard, shrink wrapping can be used, as it has both tamper evident as well as contamination protection, perfectly serving the purpose.

Shrink wrapping is also used in the industries of electronics, toys, and small appliances for packaging as it is both safe as well as aesthetically pleasing. In this current age, there is a greater need for streamlined operation, and for that, businesses are investing in automated shrink-wrapping machines, as they tackle the high production requirements and also save on labor. These machines provide the added benefit of standardizing packaging quality, which minimizes human error and increases productivity. In addition to that, they also promote long-term operational cost efficiency as they lessen the consumption of energy and waste from the packaging materials.

The rise in e-commerce has further increased the demand for appealing packaging in order to avoid any damage while the product is being shipped. Shrink wrapping has gained much popularity as it is cost-effective, durable, and lightweight. Moreover, seasonal spikes such as holiday sales and promotional campaigns have amplified the need for additional capacity for shrink wrapping machines due to the high demand for such machines.

Shrink Wrapping Machines Market Trends

• With real-time monitoring embedded into the latest tech, shrink wrapping has become a great investment as it also predicts maintenance and optimizes energy and more, making them appealing to a broad range of industries.
  
• Because of a certain apparatus, their capability to adapt for certain film kinds, form, and size of packaging enables the use of machines for a number of applications. Modern machines are less energy-hungry while fulfilling their tasks, which satisfies the precepts of more efficiency with minimum costs of varied customization. Supermarkets, hypermarkets, and chain retail outlets are rapidly growing in the developing countries, which compounds the usage of shrink wrapping in secondary and tertiary packaging. China, India, and other Southeast Asian countries are undergoing a process of industrialization, which boosts the demand for cost-effective packaging methods.
  

Shrink Wrapping Machines Market Analysis

• With the automation and trend of high-speed shrink wrapping machines, the engaged capital is huge, which is restrictive for small and medium enterprises, particularly in developing countries. Feature devices such as IoT, AI, or integrated robotics are much more expensive and not targeted to cost-sensitive clients. Tools with high-tech capability are usually of intricate structures; therefore, operational costs entail complex maintenance procedures.
  
• Shrink films are plastics-based materials including polyethylene (PE), polyvinyl chloride (PVC), and polyolefin (POF). These polymers are directly related to crude oil prices; thus, volatility adds to manufacturing uncertainty. Raw material price fluctuations can impact net income in today’s highly competitive environment in which manufacturers are not able to transfer such costs to the final consumers.

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• Based on product type, the shrink wrapping machines market is segmented as L-Bar sealers, I-Bar sealers, and Side sealers. The L-Bar sealers held the larger share of the industry in terms of value with USD 890 million in 2023 with a CAGR of 5.2% in the forecast period.
  
• The L-bar sealers can accommodate a variety of products in regard to size and shape, thus providing high flexibility, which is a necessity for the food, consumer goods, and electronics and other industries where the size of a product is not fixed. Their simplicity of use, as opposed to the modern complex automated systems, makes them suitable for companies with no deep technical knowledge. In small manufacturing operations or companies located in towns with high property prices where space is limited, L-bar sealers are a perfect fit because their dimensions are small and compact.
  
• L-bar sealers are also inexpensive to buy and maintain compared to large, automated shrink-wrapping systems, persuading more cost-sensitive consumers. Given the rapid pace of urbanization, busy working lifestyles, and rising disposable incomes, there is an ever-increasing global market for packaged and ready-to-eat meals, demonstrating the cost-effectiveness and efficiency of L-bar sealers in the packaging industry.

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• Based on end-use, the shrink wrapping machines market is segmented as food & beverage, pharmaceutical, industrial goods, chemicals and others. In the year 2023, food and beverages accounted for the highest sales in the market with a 37% share.
  
• The expansion of e-commerce, higher urbanization rates, and growing packaged food consumption in the food and beverages sector fuel the growth of the shrink wrap machines market. There is a considerable push towards shrink wrapping by manufacturers due to lower costs of production alongside maintaining the integrity of the product. Further, the facilitation of lowering the reliance on packaging due to technological innovations and increasing focus on aesthetics and sustainable lifestyles all boost the ongoing trend. With growing urbanization, lifestyles are shifting to becoming more fast-paced, and the consumption of ready-to-eat foods is on the rise.
  
• This issue can be solved by shrink wrapping since it reduces packaging waste while guaranteeing the product will be undamaged during shipping. Food and beverages are more sensitive and can be greatly affected by moisture, dirt, and temperature variations; hence during shipping and storage, shrink wrapping protects them from these factors. Also, shrink-wrapped products offer tamper-proof seals that keep foods and beverages safe as well as assist people to feel more secure about using the goods and meeting particular regulatory standards.
  
• Also, the spread of supermarkets, hypermarkets, and convenience stores leads to more demand for packaged products that are easier to handle and reasonably attractive in their final form. Shrink wrapping comes closer to meeting these requirements by offering a clear, robust, and aesthetically pleasing package that adds value to the shelf.

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• In terms of the country, Americans have the upper hand since the North America shrink wrapping machines market was valued at USD 350 million in the year 2023 with an estimation of growing with a CAGR of over 4.8% between 2024 till 2032. As of now, the US packaged food and beverage market has been recorded as one of the largest worldwide, and the reason can be credited thanks to the busy lifestyles of the people as well as the increased appeal for food that doesn’t require much preparation like meals, snacks, and even beverages. To ensure food safety, increase the shelf life of any product, and improve visibility, shrink wrapping is pivotal. For the time being, soft drinks, bottled water, and alcoholic beverages still have a strong need for bundled beverage packaging. Shrink wrapping, which is both affordable and strong, is employed.
  
• The US’s growing consumer base and the addition of refrigerated and frozen products have created a need for the shrink-wrapping machines that encapsulate perishable items to make them transfer safe for a longer duration. The expansion of e-commerce, specifically in groceries and meal kits, necessitates adequate protection of the product during transportation, and shrink wrapping seems to ameliorate that notion. Shrink wrapping is robust and reduces damage to the product while in transit.
  

North America: In 2023, the market share for shrink wrapping machines in North America estimated the US with roughly around 73% market share.

The enhancement of efficiency and the effect of lowering the labor costs have led to the U.S. manufacturers utilizing the automated and IoT-enabled shrink-wrapping machines. Initial features such as real-time monitoring and predictive maintenance have started gaining popularity. Over recent years, there has been a growing concern towards sustainability. As a result, shrink wrapping machines are now being built for use with biodegradable and recyclable films in order to satisfy eco-friendly consumers.

Such sectors comprise pharmaceuticals, electronics, motor vehicle components, and goods consumption among several others, all of which are present in America, and as such, shrink wrapping machines are necessary for offering protective secure packaging for all such industries. With regard to industries that are aiming to cut down on transportation and storage costs, shrink wrapping makes sense, especially as it cuts down on packaging bulk. Packaging for American businesses is moving in the direction of sustainable practices as a requirement of corporate social responsibility compliance and targets. The trend of utilizing thinner recyclable films for shrink wrapping complements these strategies.

Also, the Canada shrink wrapping machines market will experience a CAGR growth rate of 3.8% during the period of the forecast. The urbanization of the Canadian population alongside the fact that there are many dual-income families has driven up the demand for shrink wrapping alongside packaged foods. Along with the already mentioned items, the use of shrink wrapping can also be applied to baked goods to improve freshness and shelf life.

The multiple retail beer and wine markets of Canada are increasingly relying on shrink wrapping as a means of bundling bottles and cans, particularly for multi-packs of wines, ready for retail sales. 

More than a quarter of Canadian food products are exported, and shrink-wrap packaging is the solution to prevent quality loss and damage while in transit. The rise in the number of Canadians ordering groceries online during the pandemic also called for shrink wrapping to secure food and beverages for delivery. Due to significant cross-border e-commerce between Canada and the United States, shrink wrapping machines enable compliant packaging to international shipping standards.

Shrink Wrapping Machines Market Share

Around 40-45% of the market share in 2023 was accounted for by combined major companies such as Aetna Group, Duravant, Lantech, Maillis, Clamco, etc. In efforts to expand their product portfolio, these companies focus on merging, acquiring, expanding their facilities, and working alongside other companies.

As companies strive to gain an edge over the competition, gargantuan amounts of resources are being poured in to create newer, more advanced shrink-wrapping machines that can align with the changing industry. In most cases, companies use differentiation as a competitive strategy where manufacturers add new features to their products and expand their geographic presence to cover more target markets or countries. The ability to innovate in tandem with market trends will allow a company to grow and change exponentially.

Shrink Wrapping Machines Market Companies

Major players operating in the shrink-wrapping machines industry are:

• Aetna Group
• Axon
• Clamco
• Conflex Incorporates
• Duravant
• Lantech
• Maillis
• Massman Automation Designs
• ProMach
• Standard-Knapp
• Texwrap Packaging Systems
• Tripack
  

Shrink Wrapping Machines Industry News

• Smipack has revised contact Adpak for their FP and HS shrink wrappers, which were made available to manufacturers in the UK and Ireland and are said to be available in 2023. Among these, one of the mentioned upgrades was the rotating control panel, which is said to ease machine operators.
  

This shrink wrapping machine market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Million Units) from 2021 to 2032, for the following segments:

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Market, By Product Type

• L-Bar sealers
• I-Bar sealers
• Side sealers

Market, By Operation Mode

• Manual
• Automatic

Market, By End-use

• Food & beverage
• Pharmaceutical
• Industrial goods
• Chemicals
• Others (personal care, consumer goods, etc.)

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