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COLLATION SHRINK MARKETS DRIVEN BY DEMAND FOR THINNER, PRINTED FILMS

AMI, Bristol, 21st May 2006 – According to a new report from Applied Market Information Ltd., the collation shrink market is a EUR 1.2 billion business in Europe accounting for nearly 800,000 tonnes of polyethylene resin in 2006. In recent years there have been considerable developments in the types of polyethylene materials used which in turn has led to changes in film structure and thickness. The market is expected to continue to grow in terms of square metres of film used, but further downgauging will mean relatively little growth in terms of weight of film (and volume of material used).

 

The development of metallocene and bimodal LDPE resins has considerably changed the structure of collation shrink films in recent years. Metallocene resins were hardly used in 2000, but their use has been growing at rates of over 60% per year in this applications. Volumes are still modest (metallocenes accounted for less than 3% of the market in 2006) but are expected to continue growing at rates of nearly 20% per year to 2011.

 

In order to enhance print quality, there has been considerable development of coextruded shrink films in order to use metallocene resins in the outer layers: this has the triple benefit of providing a high gloss printable surface, producing a film with improved transparency combined with the potential to downgauge the film by selection of appropriate resins for the core layer. This last, non-cosmetic, benefit will become increasingly important as environmental initiatives gain momentum over the coming years with the aim of minimising raw material usage.

 

The largest end-use sector for collation shrink films is the beverage market, which accounted for 46% of all polyethylene collation shrink demand in 2006 and this sector is the one that will offer most growth potential driven by the increase in production of multi-packs of canned drinks. Other sectors will show only marginal or zero growth in tonnage terms, as any increase in the use of collation shrink film will be negated by further film downgauging.

 

 

The development of the collation shrink market will primarily be driven by the growing share of food and beverage purchases through supermarkets in southern and central Europe combined with the further concentration of sales through supermarkets in northern Europe. Supermarket shopping supports the sale of products in multi-packs, particularly in the beverage sector and this in turn is leading to growing demand for printed collation shrink films. Major producers with in-house printing facilities will have considerable advantage as the demand for printed films is forecast by AMI to grow from 12% of the market in 2006 to 19% in 2011 – nearly doubling in tonnage terms.


“The European market for polyethylene collation shrink film  -Application development and changing industry structure” is a detailed multiclient report. For further information please contact Andrew Reynolds at AMI Consulting on +44 117 924 9442 apr@amiplastics.com