markets | Palletisation film SUPPLY Africa 4%
Central & South America 5%
Middle East 7%
Europe 41%
Africa 5%
Central & South America 6%
Middle East 5%
Europe 41%
DEMAND
North America 22%
Asia &
Australasia 21%
North America 23%
Asia &
Australasia 20%
Global palletisation films supply and demand by region (2011) Source: Applied Market Information Ltd., 2017
SUPPLY Africa 4%
Central & South America 6%
Middle East 9%
Europe 33%
Africa 6%
Central & South America 6%
Middle East 6%
Europe 34%
DEMAND
North America 22%
Asia &
Australasia 26%
North America 21%
films is forecast to increase to nearly 7 million tonnes by 2021. Last year, pallet stretch wrap represented 80% of all palletisation film production, followed by shrink hoods with just under 14% and the remaining 6% held by stretch hoods. The market for pallet stretch wrap is expected to advance at a moderate 5% per year over the next five years, while demand for shrink hoods is likely to decline at around 1%. Meanwhile, stretch hoods – the main cause of the erosion of the shrink hood market – are forecast to enjoy global annual growth of around 10% to the year 2021. Demand for all three film types is led by Europe (including Russia), where well over a third of global production is used, followed by the regions of Asia & Australasia and North America (including Mexico), where respectively a quarter and just over a fifth of palletisation films were consumed in 2016. The othe regions of Central and South America, the Middle East and Africa together consumed just over 17% of global production. The trends suggest similar ranking in demand for 2021, with Asia and Australasia increasing their share slightly. Global shares in the supply of palletisation films in
Asia &
Australasia 27%
Global palletisation films supply and demand by region (2021) Source: Applied Market Information Ltd., 2017
The longest established method of stabilising goods
in transit is the pallet shrink hood. Although it has been in decline in recent years, it remains an excellent method of pallet unitisation in particular circumstanc- es: for very heavy loads;where goods are stored outside; and in the glass and plastic bottles industries, where empty bottles need protecting from the elements. Stretch hoods, though, have been increasingly taking over these critical applications in recent years. The biggest gains from using pallet hoods, particularly stretch hoods, are lower amounts of film wastage and the possibility of high quality print with commercial appeal – which is particularly attractive for goods stored, where they can be a ‘living advertisement’ for the producer.
Global market The global market for palletisation films was some 4.3 million tonnes in 2011, which grew to almost 5.5 million tonnes in 2016 – an average annual growth rate of almost 5%. Consumption of these
50 FILM & SHEET EXTRUSION | May 2017
2016 looked very close to the demand ratios, with the Middle East slightly ahead of Central and South America – and this lead will further increase by 2021. Also similar to the pattern occurring in consumption, the share of supply coming from Asia and Australasia is to further grow, reducing the impact of European production on the global scale. The markets in Western Europe and North America (especially the USA) have now matured, resulting in lower growth rates in those territories. Higher growth in general is projected for the markets of Asia & Australasia, the Middle East and Africa, with each forecast to increase by 7-8% a year to 2021.
Top 10 palletisation film producers
Berry Global Hipac
Inteplast Manuli Stretch Plastotecnica
Polifilm Extrusion Scientex Sigma
Signode Industrial Thong Guan Industries
Export markets Europe, the Middle East and North America are net exporters of palletisation films. The Middle East exports the largest amounts – which is not surprising, as many producers there were established in order to produce pallet stretch wrap for the European market. As a result of ongoing investments in polymer production capacities, North America will also continue to encourage its film exports. It makes greater commercial sense to add value – by converting locally available resin into the final product and then exporting it – rather than simply trade raw materials. On the other hand, film producers in Africa, Asia & Australa- sia and Central & South America cannot
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