North America PVC Films Market Expected To Witness A Substantial Growth Of $2.7 Billion By 2027: Grand View Research Inc.

 

The North America PVC films market size is anticipated to reach USD 2.7 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 2.6% from 2020 to 2027. The adoption of Polyvinyl Chloride (PVC) films in the packaging of food and beverages is increasing as these films provide a cost-effective and flexible packaging solution to the consumers.

Food and beverage is the most prominent market for the packaging industry. Growth in the population (via immigrations), rise in the working women population, increase in disposable income, and hectic work-life schedules have macroeconomically boosted the demand for ready-to-eat food products, packaged meals, and outdoor dining.

North America is considered to be one of the major and technologically advanced regional markets for PVC films as compared to other regions, such as the Asia Pacific and Africa. The recent outbreak of COVID-19 has resulted in the slowdown or halt in manufacturing activities, restrictions on supply and transport, and the slowdown of infrastructure projects, which is expected to negatively impact the demand for PVC films in the fourth quarter of 2020.

Building materials are among the prominent end uses of PVC films in North America. The economic growth of the region has driven government spending on construction. Moreover, the rise in annual incomes and urbanization have driven the construction activities of residential buildings. According to the Census Bureau of the U.S., the total value of construction put into place in July 2020 was USD 1,366,042 million. It increased to a value of USD 1,436,727 million in March 2020. However, it declined to USD 1,364,565 million in July 2020 due to the unprecedented outbreak of COVID-19 in the country.

The most prominent challenge to the market is the growing concerns among end-users regarding sustainable production and the adoption of more environment-friendly packaging options. Packaging, the largest application segment of the market, is likely to be the worst hit on account of reduced demand, following the COVID-19 pandemic situation. Several end users are phasing out PVC films from their packaging options and opting for their alternatives.

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The COVID-19 pandemic has caused severe repercussions across North America, such as the economic decline, supply chain disruptions, manufacturing halts, and industrial shutdowns. Such disease outbreaks are likely to challenge the market at a macroeconomic level. The real GDP in North America in 2020 contracted by -32.9%, -38.7%, and -17.3% annualized rates in the U.S., Canada, and Mexico, respectively.

North America PVC Films Market Report Highlights

• The packaging segment was the largest end-use segment in 2020. PVC-based shrink wraps are used for preventing the products from getting spoiled in retail and shipping environments owing to their inexpensiveness, multi-purpose capabilities, and lightweight properties
• The rising need for sustainable and durable packaging products is anticipated to drive the demand for PVC films in the food packaging industry
• By product, monomeric flexible PVC films are expected to expand at a CAGR of 3.1% in terms of revenue from 2020 to 2027. These films are best suited for indoor flat applications and have an outdoor durability of 3-4 years for black and 2-3 years for colored products
• As of 2020, the U.S. accounted for more than 70.0% share of the regional revenue. Increasing demand for PVC films in the medical applications for manufacturing capsules, tablets, drainage bags, and other medical equipment is assisting the market growth in the country.

The majority of the players engaged in the manufacturing of PVC films compete on the basis of new application development and technologies used for manufacturing. Established players of other regions, such as Alfatherm SpA, are investing in expanding production capacity to increase and enhance their product offerings to gain a competitive edge over other players in the North American market. For instance, in September 2017, Alfatherm SpA, based in Venegono, Italy, which is one of Europe’s major producers of rigid, semi-rigid, and plasticized furniture PVC foils, announced the formation of Alfatherm North America Inc.

However, the outbreak of COVID-19, especially in the U.S. and Canada, has largely hampered the market growth owing to the lockdown imposed by various governments to contain the spread of the pandemic. Moreover, disruption across the value chain, cancellation of orders, shortage of workforce and raw materials, and rapidly waning demand from the application industries have altered the production capacity of the players in the market. Some of the prominent players in the North America PVC films market include:

·        Pactiv LLC

·        Tekra, LLC

·        Presco

·        Teknor Apex

·        Achilles USA, Inc.