Continuing capacity expansions indicate that there are growth opportunities in the global OPP films market, despite China generating excess supply. The non-food packaging category will generate the strongest growth of 5.7 percent per year through 2022, led by garment packaging. In developing economies with retail environments such as open air markets, transparent OPP film is used to be able to see the product while preventing it from becoming dirty. Lawn fertilizers, pet food and others will convert from multi-wall bags to laminations that utilize OPP film, also driving growth in this category.
The labels category will generate average growth, led by the continuing popularity of self-adhesive labels that provide the “no-look” label appearance on the glass packaging of beer and wine and on personal care containers.
The largest volume category, food packaging, will generate moderate but slow growth. Frozen foods will generate the strongest growth, followed by confectionery. Products such as frozen ice cream treats and a wide variety of confectionery will benefit from a growing middle class with increasing disposable income in China and other developing economies.
The non-packaging category will also generate moderate but slow growth. Capacitor film and other applications such as battery separator film generated strong growth through 2017, but that growth will slow through 2022.
In terms of absolute OPP film volume, China will continue to consume the most OPP film, followed by Europe, Central and Southeast Asia and North America. Middle East and Africa will generate strong growth through 2022, and its volume will surpass that of Japan and Korea. Other regions that will generate high growth rates through 2022 include Central and South America, Central and Southeast Asia and China.
In terms of OPP film volume per capita, Japan and Korea will continue to be the highest volume region, followed by China overtaking North America for the next highest volume. Non-packaging markets and urbanization drive Japan and Korea and China to consume higher OPP film volume per capita than other regions. Japan and Korea and China are heavily involved in industrial (non-packaging) applications for OPP film. Japan and Korea are very urbanized, which increases the per capita volume of OPP film used for packaging. China is not as urbanized but is becoming more so at a fast pace. Central and South America will generate the highest growth rate per capita for OPP film volume through 2022, followed by Central and Southeast Asia, China and Middle East and Africa.
OPP film volume per capita growth will exceed GDP per capita growth in Middle East and Africa, Central and South America and Central and Southeast Asia, indicating opportunities for OPP film that may otherwise be overlooked.
In addition to these insights, Allied Development Corp.’s Bi-oriented Polypropylene Films 2018 to 2022 study includes additional market insights and lists OPP film producers by region and their overall capacity changes from 2010 through 2017. The study provides further insight into global OPP film markets and the technology behind producing OPP film, and it profiles the 11 largest film producers and the largest equipment suppliers that are important to OPP film production, winding and slitting and coating.
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