Americas Polypropylene (PP) Films Market - Growth, Trends, and Forecasts (2020 - 2025)
The America PP film market was valued at USD 6.28 billion in 2019, and it is expected to reach USD 9.45 billion by 2025, registering a CAGR of 7.2 % during the forecast period (20202025). The PP films typically find their usage across primary and secondary packaging across food, pharma, and industrial, amongst others.
The regional market is witnessing strategic collaborations to boost their regional as well as domestic market presence. For instance, in November 2019, GELPAC, a Canadian provider of highperformance packaging solutions, strategically acquired WBC Extrusion Products, Inc., an American specialty manufacturer of singleuse blown polymer films for the food, industrial, automotive, medical and commercial packaging industries.
The demand for biaxiallyoriented polypropylene (BOPP) film is expected to grow over the forecasted period, despite pressure on plastics and few domestic recycling options for PP film. Hence, this is expected to provide further opportunities for the market players to gain maximum market traction.
In September 2019, Toppan USA, Inc. showcased films which are ideal for monomaterial packaging, and provide outstanding recyclability. Toppan’s original coating and deposition technologies which are expected to significantly transform the recyclability of flexible packaging.
Furthermore, Mexico continues to invest in environmental technology, especially in the areas of air and water pollution, and to a lesser extent in waste management.
In February 2019, Taghleef reported that its customers, including converters and endusers, are demanding excessively for its PLA biodegradable and compostable plantbased NATIVIA film range, as well as for their 100% recyclable BOPP films for use in straw wraps and flexible packaging for bakeries and other food producers.
Moreover, the coronavirus pandemic caused a drastic effect on the entire plastics manufacturing chain, with high resin inventories, dropping demand, and recordlow global prices of materials and feedstocks. As a result, Polypropylene prices fell in March, due to a tighter supply situation.
Further, regulatory bodies such as FDA and ASTM have released guidelines associated with the production and use of polypropylene. These regulations also cover applications in the food packaging sector concerning the raw material and additives used in the production processes. These trends will remain key market influencers through and after the coronavirus pandemic.
Key Market Trends
The Food Industry is Expected to Exhibit Maximum Adoption
The food industry is expected to hold the maximum share, majorly the organic packaged food and beverage segment, which comprises 47.4% to 52.6% of the USD 93.2 million value of the total in Brazil, according to Organic trade association.
Food processing and packaging industries spend approximately 15% of the total variable costs on packaging materials. Industrial processing of food reduced consumption of animal protein, importation of raw materials and ingredients to be converted in the American countries, and scarcity of time to select/prepare food from fresh ingredients have enhanced innovation in food packaging.
The food packaging industry in American countries, demands polymer films possessing a defined barrier against permeation of gases, moisture, and flavor. The films based on metalized BOPP function with excellent barrier properties and can be used to overwrap food products.
CPP films are majorly used in packaging of food wraps, Candy, Confectionery, and bakery product packaging in the food industry due to features such as excellent heat seal strength, high puncture, and tear resistance, high yield per unit area and low specific weight, excellent moisture barrier and high transparency.
In the food packaging industry, specific CPP films are developed for niche applications. For instance, sterilizable CPP films are used for confectionery, bakery, dry, and processed food products. Also, CPP films are designed to provide highspeed packaging that meets the faster throughput of the packaging line. Metallic and General CPP film types are currently used in the Food Packaging Industry.
The increasing consumption of Confectionary, bakery products, and the rising snacking trend in the American region drives the growth of the CPP film market. For instance, According To Yummex Confectionary and Snacks 2019 report, the consumer in the Latin American region has spent 7.6% on Confectionary and snacks of their total spending on food and beverage. Also, Confectionary has a 33.8% share; Savoury snacks have 27.1% share, Sweet biscuits, Snacks Bars, and Fruit Snacks have 25.1% share of the total spending on the Confectionary and snacks in Latin America.
United States Expected to Dominate the Market
The United States is expected to dominate the market, as several vendors of BOPP films in the United States are adjusting their product portfolios to address the increasing requirement for consumerfriendly packaging solutions in the region. BOPP films that provide transparency in product packaging help customers to quickly examine the product, which is fueling the growth of the market in the region.
Additionally, the rising demand for packaged food in the region is likely to drive the growth of the market, owing to the rising shelflife of food products and the need to maintain product quality and sustainability.
Retail outlets are the largest revenuegenerating medium for food products in the United States. Flexible packaging products, such as BOPP films, have emerged as the preferred form of packaging in the region, due to their versatility, custom qualities, efficiency in conserving resources, and sustainability. They also offer consumers convenient shopping experience, as they are lightweight, and thus, minimize the effort required for carrying the products.
The increasing penetration and growing convenience towards food, beverage, pharmaceutical, Industrial, amongst others, is driving the market for CPP films in the country as CPP films are a costeffective packaging option and facilitate an increase in the shelf life of products with their high moisture barrier property.
Moreover, the region has a prominent share in the flexible packaging industry, which is also fuelling the growth of CPP films. According to the Flexible Packaging Association report as of June 2019, The United States Flexible Packaging Industry has USD 31.8 billion in Sales in 2018. Also, Flexible Packaging is the second largest packaging segment in the United States, garnering about 19 percent of the USD 170 billion United States packaging market.
The competitive landscape of the Americas PP Films Market is expected to move towards moderate fragmentation, as the region houses multiple vendors across all formats. With the presence of Toray, Oben Holding, the market has been observing multiple investments for local as well as global players. Further, the market players are witnessing strategic collaborations and acquisitions, as Latin America is witnessing significant investments in BOPP manufacturing, as the enterprises’ propensity to produce locally is increasing. Also, significant developments such as new product launches is expected to boost the market presence of the market players.
June 2020 Innovia Films launched a new family of highly functional and recyclable BOPP films, which are being marketed under the brand name Encore.
July 2019 The AmTopp Division of Inteplast Group (Livingston, NJ) increased its stretch film manufacturing capacity by adding two cast film extrusion lines in its newly acquired facility in Remington, IN. This expansion will add 60 million pounds to Inteplast’s current 385millionpound capacity throughout its other locations in Lolita and Houston, TX; Charlotte, NC; and Phoenix, AZ; bringing its total name plate capacity to 445 million pounds.
January 2019 Taghleef Industries completed the acquisition of Biofilm, thereby, expanding its presence in the region. With this acquisition, the company aims to provide the industry’s best label films and products unique to Ti, such as DERPROSA and EXTENDO, among other Biofilm’s range of innovative products, including high barrier metalized films and high seal integrity films.
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