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DESCRIPTION
PE Films Market Global Size:
The key sectors like retail, food and beverage, packaging, farming, home & cosmetic products, therapeutic, etc. have greatly assisted in driving the growth of 57 MMT global demand for the point-of-sale material market in 2023 since these industries massively demand packaging solutions for their goods. Therefore, as per ELINT Market Research, this number is increasing constantly at 3.5% to 4% CAGR and is expected to achieve new heights by 2027.
Market Definition:
Polyethylene is a versatile material that assists in producing plastic films, which help in various packaging purposes. These sheets contain handy features like flexibility, temperature resistance, durability, etc. Hence, worldwide sectors particularly medicine, food, and beverage, employ PE sheets to pack and transport their products without any damage and environmental impacts.
PE Films Market Drivers:
- Rising Packaging Demands –
PE films work as a key component in the packaging of multiple products like bottled water, beers, fruit juices, pharmaceuticals, food, alcoholic beverages, hygiene care goods, etc., which is a prominent growth driver for the PE films sector.
- Development in Customized Packing Methods –
Global PE film procurement market intelligence companies are focusing on providing customized PE packaging options to customers according to their budget and shelf life needs.
PE Films Market Challenges:
- Geopolitical Tensions –
Geopolitical disputes and tensions cause challenges for businesses operating in the PE films market since these conflicts disrupt global supply chains of PE goods and raw materials.
- Evolving Technologies –
Constantly developing technologies like automation demand advanced PE films. Thus, manufacturers face difficulty in investing in innovative PE film production operations.
PE Films Market Opportunities:
- PE Goods Requirements of Foods and Beverage Sector –
Market players encounter notable opportunities due to the continuously growing need for PE film products in the food and beverage industry to fulfill their food packaging requirements.
- Sustainable Packaging Solutions –
Day by day increasing awareness for environmental safety drove businesses to manufacture sustainable and eco-friendly PE solutions.
PE Films Procurement Market Segmentation:
- Applications of PE Films –
Organizations functioning in the international PE film sector can segment this market depending on diverse applications of polyethylene sheets like packaging, farming, construction, medicinal, etc.
- Different Regional PE Supply Markets –
Another key segmentation factor for the polyethylene films industry is multiple regions that exhibit varying levels of supply and market shares for PE films. In this context, North America held 20%, Europe held 24% and Asia owned 38% of market stakes for PE goods in 2023.
Major Supply Markets in the PE Films Market:
The major supply markets and their substantial share of the PE films market include North America at 20%, Europe at 24 %, and Asia at 38%. Thus, these countries collectively contribute to the overall polyethylene sheet industry growth, since they have advanced and sustainable PE manufacturing capabilities.
Supplier and Buyer Powers in the PE Films Market:
North America holds a medium supplier power and lower buyer power, which means that this region’s suppliers have a moderate level of impact on price negotiating strength. Further, due to low purchasing stability, this country’s buyers are dominated by large-scale PE film vendors and producers. Similarly, the European Union also possesses medium supplier power and lower buyer dominion. Hence, both distributors and purchasers struggle in this domain to bargain their favorable conditions.
Moreover, the APAC regions hold lower supplier strength and high buyer strength. The reason behind this decreased supplier power is fierce competition among distributors. Further, buyers operate large-scale procurement exercises in this territory, which gives them the privilege to influence pricing structure.
Impactful Cost Components in the PE Films Market:
The cost structure of the PE films procurement market intelligence depends on three key factors including raw materials at 70-80%, indirect costs at 12-14%, and labor costs at 6%. These percentages exhibit significant shares of the total production price layouts. Hence, keeping track of these factors is essential for businesses to maintain PE film goods manufacturing operations.
Price Outlook in the PE Films Market:
In the comparison of the second quarter of 2023 with the prior quarter, the global PE films sector shows a varied price outlook. In this sense, North America experienced an average decrease of 2-2.5% in the expenses. Contrarily, both EU and APAC regions encountered a 0.5-1% increase in prices, which represents the growing demand for polyethylene films to fulfill packaging requirements.
Pricing Models in the PE Films Market:
One of the notable pricing models of the PE film industry includes fixed margin, which allows manufacturers to link predetermined profit margins to actual production price to decide final selling expenditure for films. With this, buyers and sellers both can stay consistent for a predictable period. Moreover, another significant cost method is index-based, which gives flexibility in making changes in expenditure depending on the market fluctuations.
Contract Structure in the PE Films Market:
PE films’ market procurement intelligence and insights demonstrate two common contract structures that help streamline financials between various industry stakeholders. The quarterly or monthly contracts assist resin suppliers and converters in collaborating for shorter durations, and they can even flexibly make changes in terms depending on market dynamics. Contrariwise, a 2-3 years long agreement allows converters to link with end-users and make predictable and stable conditions for an extended duration.
Leading Procurement Intelligence Companies in the PE Films Market:
Some of the top providers of procurement intelligence in the PE film industry comprise Sigma Plastics, Traco Packaging, Interplas, Clysar, Balcan Plastics, Barbier Group, Bischof+Klein, Korozo, Euro Films, Guerin Plastics, Videplast, Qualyplast, Converplast, Camagro, Valpri, Scientex, Ultimate Flexipack, Thong Guan, Baoding Enshi Pack, Niso.
