Technology upgradation has major contribution towards increasing sales of micro perforated films packaging across the globe. Future Market Insights (FMI) in a new study has forecast the market to rise on expanding packaging industry, resilient ecommerce, and growing food delivery sector.
Advent of laser technology with advanced features such as laser power control, laser-pulse confirmation, and in-line video inspection results in enhancing precise gas and moisture transmission rates and hence shelf life of the inside product. Furthermore, the current packaging method encompasses CO2 laser technology for better sealing and maintaining freshness of the product. As per FMI analysis, laser perforation technology segment is holding maximum share in the global market compared to other segments. This technology offers high quality perforation and better consistency, venting and etching than mechanical venting and punch technique. Although, this technology holds nearly 3/5th value share in the global market, which is attributable to aforementioned benefits, it is estimated to gain by nearly 200bps of current market share in near future.
Additionally, the food packaging industry has been giving impetus to increasing sales of micro perforated films. Emerging e-commerce and online markets have fuelled up demand for micro perforated films. Investments in ready-to-eat food packaging and development of bakery and confectionary sector present a positive outlook for the growth of micro perforated films packaging market.
Key Takeaways of Micro Perforated Films Market Study
- Polypropylene has emerged as more preferred material for manufacturing micro perforated films and accounts for nearly half of the market share. Consistently increasing demand for high oxygen transmission rate carrying perforated films among end users bolstering polypropylene uptake
- Wraps/rolls are the most preferred type of packaging among consumers and their sales are estimated to increase further in the coming years. This segment is anticipated to remain lucrative in terms of incremental $ opportunity, during the forecast period
- Sales of micro perforated films in food packaging is expected to accelerate in next decade. Changing consumer food preferences such as ready-to-eat and on-the-go food has significant impact on the market growth for ensuring better shelf life of the product
- Micro perforated films packaging market in the United States alone is likely to increase at 5.2% during the forecast period. Micro perforated films sales in the US will be over 30% of total demand throughout the forecast period
“Many industries are taking on the green initiative, producing biodegradable micro perforated films that have benefits for both the environment and the society. Biodegradable micro perforated films are better for the environment because they can degrade easily under natural conditions. They are a great investment to have for any temperature-bound storage needs and can generally be sold fast. Therefore, these are first choice of the end users over the alternate solutions” says an FMI analyst.
Demand in Food Packaging will continue Surging
Demand for ready to eat and take-out food has increased owing to change in lifestyle, increase in disposable income of customers, and rapid urbanization in the emerging economies. Also, food consumption habits of consumers have changed rapidly owing to swiftly proliferating corporate work culture and industrialization. These developments are enabling sales in emerging economies where more number of food outlets and online food delivery services have opened.
Consumer focus on hygiene and food safety amid COVID-19 pandemic along with the rising demand for convenient packaging solution are increasing day-by-day. These requirements are inducing changes in packaging solutions. The demand for micro perforated films is increased potentially in the past year as consumers are preferring packaging solution that will keep product disinfected for longer duration. Besides this, government is also keeping eye on maintaining standards and quality of packaging approaches and material especially for direct consumable products. Reducing waste due to faster deterioration of food product, ease of contamination and fungal growth can be controlled to some extent using micro perforated films. Therefore, end users are gaining significant traction for such type of packaging films.
Impact of COVID-19 on Micro Perforated Films Market
The COVID-19 pandemic has impacted the micro perforated films market owing to the disruptions in the supply chain. Severity and duration of the crisis and weak corporate balance sheets of the companies that are the customers of the packaging industry could result in significant pressure on the micro perforated films manufacturers to reduce selling prices and costs. The recovery of the micro perforated films players depends on the degree of disruption and the demand by customers. Furthermore, sectors such as packaging for food and pharmaceutical packaging are anticipated to witness rapid rebound. However, for sector such as construction, the recovery is likely to be slower, as the customers are hesitant to incur expenditure on non-necessary goods.
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Who is Winning?
Amcor Limited, Uflex Ltd., Sealed Air Corporation, Bollore Group, Mondi Group, TCL Packaging Limited, KOROZO Ambalaj San,ve Tic A.S, Darnel Group, Coveris Holdings SA and NORDFOLIEN GmbH are some of the leading companies operating in the market. The micro perforated films market is fragmented and the Tier 3 players in the market hold 60-70% share in the global micro perforated films market.
In order to gain competitive advantage companies are focusing on product launches. For instance Uflex Limited has launched various projects like Project Plastic Fix, FlexFilms for more sustainable and recyclable plastic films in 2020.