Box and Carton Overwrap Films Market | 2031

Report Description

Box and Carton Overwrap Films Market Outlook 2031

The global box and carton overwrap films market size was valued at USD 11.81 Billion in 2022 and is likely to reach USD 15.69 Billion by 2031, expanding at a CAGR of 3.2 % during 2023 – 2031. The market growth is attributed to the rising demand for processed food and the increasing adoption of overwrap films in the cosmetic industry.

Increasing adoption of overwrap films in the cosmetic industry is expected to boost the global box and carton overwrap films market during the forecast period. Box and carton overwrap films are heavily utilized in the cosmetic industry to make the product look appealing and maintain the quality of the product.Overwrap films have the ability to lock in scents, preventing cross-contamination of scents from other products, which enhances their demand for cosmetic packaging.

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The demand for box and carton overwrap films is rapidly rising in cosmetics, healthcare, packaging, and food & beverages industries, as these deliver product protection as well as advance the shelf life of the products. These overwrap films offer product shelf appeal, cost reduction,tamper evidence,pack promotion, multi-packing convenience, and easy opening, which enhances their adoption in several applications.

Increasing demand for processed food is projected to drive the market in the coming years. Biaxially oriented polypropylene (BOPP) is a type of overwrap film that is commonly used for food packaging, due to its superior properties and low cost. These films improve product presentation, preserve freshness, and enhancethe shelf life of the food products, which increases their adoption in packaging processed food.

The COVID-19 pandemic propelled global box and carton overwrap films market. Government across the globe imposed restrictions on the movement of people, due to abrupt rise in COVID-19 infection, which increased the adoption of online shopping among people. This created a demand for overwrap films across the globe, as these films are utilized in online shopping to pack products, boxes, and cartons to prevent spills, resist breakage, and hold products together. For instance,

• According to a report published by the International Trade Association, a 19% sales growth was registered in the global e-commerce sector in 2020.

Impact of Artificial Intelligence (AI) onBox and Carton Overwrap Films

The growing adoption of robotics and the introduction of artificial intelligence in the packaging industry creates an immense opportunity in the market. AI helps the manufacturers of overwrap films in sorting plastic waste and improving the recycling process. AI uses predictive analytics algorithms in packaging cartons and boxes that learn from real-world customer complaint data to reduce damage to products. Artificial intelligence streamlines the design and production of overwrap films by predicting the size and type of material that is well suited for overwrap films.

Box and Carton Overwrap Films Market Dynamics

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Major drivers

Growing e-commerce industry is expected to boost the demand for global box and carton overwrap films during the forecast period. Online shopping has led to the increased demand for packaging materials, including box and carton overwrap films. Box and carton overwrap films help protect the packaged product from external environmental factors as well as enhance the product appeal, which increases their adoption in the online shopping and e-commerce industry. For instance,

• According to a report published, global retail e-commerce sales exceeded USD 5.7 trillion in 2022 and are expected to reach new heights in the coming years.

Rising preference of manufacturers and consumers for sustainable packaging solutions is projected to drive the market in the coming years. Overwrap films are lightweight and flexible, which reduces the overall plastic material required in packaging the product, increasing sustainability in packaging.

Existing Restraints

High cost associated with overwrap machines is expected to restrict the market during the forecast period. Expensive overwrap machines are required for packaging cartons and boxes with overwrap films, which decreased their use among consumers. Additionally, shrink overwrap films are hard to recycle and not appropriate for ultra-heat-sensitive products, which is projected to hamper the demand for the overwrap films in the coming years.

Emerging Opportunities

Increasing adoption of overwrap films in the pharmaceutical industry creates an immense opportunity in the market. Overwrap films are widely used in pharmaceuticals for primary packaging of sensitive and non-sensitive injectable solutions, as these films ensure the protection of the product throughout its life cycle, from product release to its use in the hospital. Therefore, the growing pharmaceutical industry is creating a lucrative opportunity in the market. For instance,

• According to a report published, the pharma revenue across the globe crossed USD 1.48 trillion in 2022 and is growing at a CAGR of 6.18%.

Scope of the Box and Carton Overwrap Films Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Material Type Segment Analysis

Based on material type, the box and carton overwrap films market is categorized into PVC, PE, PP, PET, and others. The PP segment held a large share of the market in 2022, due to its light density,highly flexible properties, and ability to adapt to a range of fabrication techniques. PP is highly chemical resistant and absorbs low moisture, which increases its adoption in carton and box packaging. It has lower density as compared to other plastics, which enhances its adoption among manufacturers.

The PET segment is projected to expand at a robust pace in the coming years, owing to the rising demand for biodegradable and recycled plastic. PET is shatter proof and non-reactive when in contact with food or water. It offers a high strength-to-weight ratio, which enhances its adoption in overwrap films. PET is light, durable, safe, and offers a smaller carbon footprint than other materials, increasing its demand for overwrapping films.

Film Type Segment Analysis

In terms of film type, the global market is bifurcated into shrink film and stretch film. The stretch film dominated the market in 2022 and is projected to continue its dominance throughout the projection period, owing to the increasing demand for efficient and cost-effective packaging solutions. Stretch film has excellent load retention and offers consistent thickness, which enhances its adoption in box and carton overwrap films. Additionally, stretch films are easy to clean, retain pristine shine, and are user-friendly, contributing to their adoption among several end-use industries.

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Film Thickness Segment Analysis

Based on film thickness, the box and carton overwrap film market is segregated into up to 20 microns, 20-40 microns, and above 40 microns. The above 40 microns segment accounted for a major share of the market in 2022, due to its ability to carry heavy items during multiple uses. Above 40 microns plastic films are widely used, as these are tough and are utilized multiple times. Additionally, 50-micron-thick plastic is viewed as increasingly ecologically accommodating,causingless wastage and is recycled easily. This increases the demand for above 40 microns films in overwrap films.

Coating Type Segment Analysis

In terms of coating type, the global market is bifurcated into coated film and uncoated film. The coated film segment is projected to expand at rapid a pace in the coming years, owing to the rising adoption of cosmetics among consumers, changing consumer lifestyles, and growing demand for paint protection film. Coated overwrap films are durable and are able to withstand the rigorous packaging process and distribution. Additionally, coated films are able to be sealed with heat, making these suitable for use in a variety of packaging applications.

Sales Channel Analysis

Based on sales channel, the box and carton overwrap films market is divided into brand owner sales and converter sales. The brand owner sales segment registered a significant growth in 2022, due to the rising demand from consumers to validate and check products before purchasing as well as the growth of D2C distribution channels. Manufacturers of overwrap films prefer brand owner sales, as it gives a business the ability to build and manage its relationships with its customers. Brand owner sales channel expands brand reach and offersa broad product assortment, which enhances their demand among consumers, boosting the brand owner sales segment.

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End-user Segment Analysis

In terms of end-users, the global market is categorized into food & beverage, personal care & cosmetics, automotive, healthcare, industrial packaging, shipping & logistics, electrical & electronics, and others. The personal care & cosmetics segment held a large share of the market in 2022, due to the growing focus among individuals on personal hygiene and skin health. Overwrap films are widely adopted in personal care & cosmetics to enhance the look of products while maintaining quality. These overwrap films increase the duration of conservation of the cosmetic products, which enhances their adoption in personal care & cosmetics.

The food & beverage segment is anticipated to grow at a robust pace during the forecast period, owing to the rising preference for convenience and ready-to-eat products among consumers. The overwrap films are now being used in the food & beverage industry to advance the shelf life of food such as poultry, smoked & processed meats, and prepared foods. Additionally, these films give the food items attractive looks and are leveraged for branding purposes. This increases the demand for box and carton overwrap film in the food & beverage industry.

Regional Outlook

Based on region, the box and carton overwrap films market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market in 2022 and is projected to continue its dominance throughout the assessment period, due to the growing food, beverage, and healthcare industries in the region.

Rising trend of online shopping in countries such as India, China, and South Korea is estimated to enhance the market. Moreover, increasing packaging sector in the region is propelling the demand for overwrap films, as these films are utilized in packaging to advance the shelf life of the products. For instance,

• According to the Packaging Industry Association of India (PIAI), the packaging sector in India is growing at 22% to 25% per year and is currently the 5^th largest economic sector of India.

The market in North America is expected to expandat a high CAGR in the coming years, owing to the rising demand for packaged food, growing e-commerce, and the presence of established market players such as CCL Industries, Berry Global Inc., and Transcendia in the region. Moreover, increasing sales of new vehicles in the region is projected to boost the market in the coming years, as overwrap films are used as a paint protection filmin vehicles to enhance the look as well as prevent the vehicles from wear and tear. For instance,

• According to a report published by the National Automobile Dealers Association (NADA) on January 11, 2023, the new vehicle sales in the US is estimated to reach 14.6 million in 2023, an increase of 6.6% from 2022.

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