THE EUROPEAN MARKET FOR STRETCH FILM, PALLET SHRINK FILM AND STRETCH HOODS
To be published: July 2009
TABLE OF CONTENTS
INTRODUCTION................................................................................................................................................. 3 OBJECTIVES OF THE STUDY............................................................................................................................ 5 SCALE OF THE INVESTIGATION ................................................................................................................... 6 STRUCTURE OF THE REPORT ......................................................................................................................... 8 METHODOLOGY AND WORK PROGRAMME .......................................................................................... 10 TERMS AND CONDITIONS ............................................................................................................................ 11 Cost .................................................................................................................................................................. 11 Payment terms ............................................................................................................................................... 11 Limitations of liability ................................................................................................................................... 11 Copyright........................................................................................................................................................ 11 QUALIFICATIONS AND EXPERIENCE........................................................................................................ 12 ACCEPTANCE ................................................................................................................................................... 14
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 2
INTRODUCTION The market for covering and protecting palletised loads has undergone significant change in the last ten to fifteen years. As the use of cardboard boxes has declined, plastic products have experienced strong growth. From strapping to shrink hoods and, more recently, stretch films and stretch hoods, polyethylene film solutions to the stabilisation and protection of goods in transit have become the norm. In future the market is expected to continue to grow with the existing packaging options finding increased competition from stretch hoods. Given the strong competition between film types and the significant investment required by both end user customers and film producers, all stages of the supply chain require a strong level of commitment to the business. Therefore investment strategies should be reviewed in the light of the best and most recent market information available. This new study builds on the previous editions (the most recent of which was published in 2006); but the geographical coverage will be broadened and the structure improved to provide more meaningful insight. To assist players active in the market in considering investment, AMI Consulting is launching this new study entitled:
The European Market for Stretch Film, Pallet Shrink Film and Stretch Hoods -Market trends and competitive dynamics in the unitization market The use of films in these applications accounts for over one and a half million tonnes per annum of polymer demand with the market continuing to grow significantly in terms of overall usage. The study will focus on demand for films in each European country and discuss the competitive dynamics between shrink film, stretch film and stretch hoods. The study will also provide details of the supply/demand for stretch film with particular focus on the strategies and capacities of each main producer of film, as well as discussing changes in formulations and trends in the use of specific resins in each product area, emphasising the use of higher alphaolefin copolymers and metallocene resins in particular. Among the specific questions to be answered in the study will be: •
What is the demand for each film type within each country and what are its growth prospects to 2013?
•
What are the major end-use segments and what are the prospects for growth and the growth drivers?
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 3
•
What impact can be expected from machinery developments?
•
What impact can be expected from resin developments?
•
What changes are likely to the distribution and structure of production?
•
What product or service developments are underway? How do film producers protect developments?
•
What are the major events unfolding at a distribution level?
•
How will end-user trends impact the offering that is required from machinery makers, service providers and film extruders?
•
Who controls the supply chain?
•
Where is value captured in the supply chain?
•
What structural changes are taking place and likely to take place?
This updated study, to be undertaken by AMI Consulting, will provide the tools and database with which to answer these questions. This will enable companies to formulate coherent plans for their future progress within the palletisation segment of the polyethylene film market, to prepare meaningful strategies and to fully exploit emerging business opportunities.
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 4
OBJECTIVES OF THE STUDY The study will provide companies with a detailed, independent assessment of the European market for products that stabilise and protect palletized goods during transit, looking at both past and present trends and developments and giving a studied medium term forecast, which will assist companies with their future investment and decision-making programme. The products covered are: •
Shrink film
•
Stretch film
•
Stretch hoods
For each of these products, the study will: •
Quantify current and future demand for film
•
Provide estimates of stretch film capacity, production and demand for each film type in each market
•
Provide estimates of shrink hood and stretch hood production and demand in each country
•
Examine material usage, highlighting the advantages/disadvantages that each product material may give the end-user
•
Discuss how ‘value’ is generated in the industry and who is best placed to ensure its capture
•
Provide a detailed analysis of the industry structure and the way in which suppliers are reorganizing
•
Idealised economics will be developed for stretch film production, assisting in an analysis of industry profitability and consolidation trends
•
Profile all the major stretch film producers, highlighting their market position, resin usage and strategies
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 5
SCALE OF THE INVESTIGATION The study will be based on the following terms and conventions:
Product coverage Individual analysis concentrates on the following film types: •
Pallet shrink film
•
Pallet stretch film:
•
o
Hand film
o
Machine film (to 150% stretch)
o
Machine film (150% to 250% stretch)
o
Machine film (over 250% stretch)
Stretch hoods
Reporting basis The study provides data on the following years: •
Past
2003
•
Present
2008 and 2009
•
Future
2013
Geographical coverage On an individual country or regional basis, the study will detail the market for each film type within the following European countries/areas: •
France
•
Germany
•
Italy
•
United Kingdom
•
Benelux (Belgium, Netherlands, Luxembourg)
•
Nordic area (Denmark, Finland, Sweden, Norway)
•
Spain
•
Other Western Europe (Austria, Greece, Ireland, Portugal, Switzerland)
•
Poland
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 6
•
Other Central & Eastern Europe (Estonia, Latvia, Lithuania, Czech Republic, Slovakia, Slovenia, Hungary, Romania, Bulgaria)
•
Russian Federation, Ukraine & Belarus
•
Turkey
Data All data are reported in tonnes or thousands of metric tonnes. Values will be reported in euros or thousands of euros.
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 7
STRUCTURE OF THE REPORT The study will be published as a single volume report structured as follows:
Explanatory notes Geographical coverage Units of measure Reporting basis Product coverage Product descriptions
Executive summary Unitisation market in Europe Pallet stretch wrap in Europe Shrink hoods in Europe Stretch hoods in Europe
Section 1: The European market and competitive dynamics The unitisation market in Europe Competitive analysis of stretch film, shrink film and stretch hoods Success factors: •
Pallet stretch film
•
Shrink hoods and stretch hoods
Dynamics and future industry shape Profitability and idealized economics The stretch film market in Europe Market size and structure Supply of stretch film Outline of leading producers Pre-stretched films The shrink hood market in Europe The stretch hood market in Europe
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 8
Section 2: Individual country/area markets France Germany Italy United Kingdom Benelux (Belgium, Netherlands, Luxembourg) Nordic area (Denmark, Finland, Sweden, Norway) Spain Other Western Europe (Austria, Greece, Ireland, Portugal, Switzerland) Poland Other Central & Eastern Europe (Estonia, Latvia, Lithuania, Czech Republic, Slovakia, Slovenia, Hungary, Romania, Bulgaria) Russian Federation, Ukraine & Belarus Turkey
Section 3: Resin demand among film producers Introduction Resin usage in the stretch film market Resin usage in the shrink hood market Resin usage in the stretch hood market
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 9
METHODOLOGY AND WORK PROGRAMME As a starting point for this study, AMI will use its in-house database containing a significant understanding of the market for all the varieties of film covered in the report. AMI Consulting’s approach will then be to focus on the development of data generated by interviewing knowledgeable companies and individuals to gather current, in depth information from primary sources. AMI will use its well developed approach to maximize the information gathered during each interview. Due to its extensive background and industry knowledge, AMI Consulting is routinely successful in engaging knowledgeable industry participants in detailed discussions. The minimum number of interviews anticipated is shown below: Type of contact
Number of interviews
Final customers for film
45
Film suppliers
45
Machinery producers
10
Service providers
10
Raw material suppliers
10
Others
15
Total
135
Timescale Fieldwork for the study will commence in January 2009 and will be completed in June 2009.
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 10
TERMS AND CONDITIONS
Cost The total schedule is indicated below: Study Charges Early subscribers – before 9th June 2009
Euros 12,000
Pre-publication subscribers – before 30th June 2009
Euros 14,000
Post publication subscribers – after 30th June 2009
Euros 16,000
All subscribers will receive: •
Two copies of the study
•
A review meeting to discuss the report's contents
•
Review meetings and discussions will be held at AMI's offices. Arrangements at other locations will incur travelling costs to be invoiced separately.
Payment terms AMI Consulting will invoice 50% of the fees on confirmation of order and the balance on dispatch of the study. Invoices to be paid within 30 days of invoice date.
Limitations of liability Unless otherwise agreed, all contracts will be subject to English law and disputes settled in England. AMI Consulting’s liabilities will be limited to the fees paid by the client.
Copyright The contents of this report are copyright and the copyright belongs to Applied Market Information Ltd and/or its subsidiaries. Unless otherwise agreed and confirmed by Applied Market Information Ltd in writing, the report is supplied on the basis of a single user licence. The subscriber agrees to treat the contents of this report as confidential, not to make copies of the report and that the circulation of the report will be restricted to the Subscriber Company and subsidiaries in which its holding is more than 50%.
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 11
QUALIFICATIONS AND EXPERIENCE Applied Market Information is an independent company providing consulting services to the petrochemical, plastics and rubber industries. Among specific service offered by AMI Consulting are: •
Strategic planning
•
Sales targeting
•
Image analysis
•
Market research
•
Market monitoring
•
Competitor evaluation
•
Acquisition studies
AMI have particular expertise and knowledge within the thermoplastic films and packaging markets. On a multi-client basis, our work has included: •
Pallet Unitization films (2006)
•
The North American Market for Polyethylene Film Products
•
The European Market for Industrial Sacks (2006)
•
Global markets for Polyethylene films
•
The World Market for BOPP Films (2007)
•
The global market for pallet stretch films (2007)
•
The NAFTA market for pallet stretch film (2008)
•
The North American PE film market (2008)
•
The global market for PE film products – Market development & the evolution of trade (2008)
Besides this body of work AMI has carried out numerous single client reviews with typical examples of the scope of this work in flexible packaging being: •
Review of Opportunities in Modified Atmosphere Packaging/Controlled Atmosphere Packaging
•
Analysis of Acquisition Prospects Concerning Food Packaging Suppliers
•
The structure of the Asian packaging industry
•
A Detailed Study of Major Producers and Profitability in the European Bag Market
•
Strategic Organization and Growth Potential in the North American Food Packaging Market
•
Profiles of Selected Polyethylene Film Producers in China and Indonesia
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 12
•
A Study of Multilayer Films in Sophisticated Packaging Applications
•
A Study of the market for produce packaging films in selected territories in Western Europe
•
An Appraisal of the West European Market for Blown Film Extrusion Equipment
AMI North America is the wholly owned subsidiary of Applied Market Information Ltd., with extensive experience in the packaging and flexible films industry, and in completing market research and business development projects in the plastics industry in general. AMI North America personnel have helped numerous multinational chemical and plastic industry suppliers make better business decisions through improved business information. Some projects recently completed by AMI North America personnel include: •
Competitive Assessment of Major PE Film Converters
•
North American Plant Capacity and Utilization - PE Film Producers
•
Process, Cost and Operational Assessment of a Consumer Food Bag Supplier
•
Acquisition Screening of Niche Packaging Machinery Suppliers
•
Expansion Strategy for Blown Film Concentrates
•
Comprehensive Screening of Packaging Industry for Privately Held Acquisition Candidates
•
Technology Benchmarking of Plastic Packaging Machinery Suppliers
•
Evaluation of Novel Printing Technology
•
Competitive Operational Audit of Rotary Screen Printing Suppliers
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 13
ACCEPTANCE If you accept this proposal, please sign this form and return a copy to AMI. This will serve as a binding agreement. I wish to subscribe to the study entitled:
“The European Market for Stretch Film, Pallet Shrink Film and Stretch Hoods” tick box that applies: Charter subscriber price: EUR 12,000
Before 9th June 2009
Pre-publication offer price: EUR 14,000
Before 30th June 2009
Post-publication price: EUR 16,000
After 30th June 2009
(I agree that the circulation of the report will be restricted to this company and subsidiaries in which its holding is more than 51 percent.)
NAME: POSITION: COMPANY NAME: ADDRESS:
TELEPHONE: FAX: E-MAIL: SIGNATURE: Fax to: +44 (0)117 989 2128
M124: The European market for stretch film, pallet shrink film and stretch hoods, 2009
Page 14
