United States & Canada Collation Shrink Films Market Poised for Strong Growth, Reaching USD 1.86 Trillion by 2035

The United States & Canada collation shrink films market is on a robust growth trajectory, projected to rise from USD 1,123.1 billion in 2025 to USD 1,864.5 billion by 2035, registering a CAGR of 5.2%. This expansion is driven by surging demand from the food, beverage, pharmaceutical, and consumer goods industries, combined with increasing sustainability initiatives and technological innovations in packaging. Both established industry leaders and emerging manufacturers are seizing this opportunity to expand their footprint, develop new technologies, and enhance product performance across North America.

Why Collation Shrink Films Are Gaining Momentum

Collation shrink films have emerged as a preferred solution for secondary packaging due to their ability to tightly wrap products, providing stability, protection, and tamper resistance. These films are versatile, heat-shrinkable plastics that conform snugly to packaged goods, making them ideal for bottles, cans, cartons, and other consumer products. They not only protect products during transport but also offer excellent visibility for branding and promotional purposes.

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With logistics and e-commerce experiencing exponential growth, collation shrink films have become indispensable. Their lightweight nature, durability, and cost efficiency make them ideal for large-scale shipping operations. Moreover, ongoing innovations in material science and extrusion technology are enabling manufacturers to produce stronger, clearer, and more sustainable shrink films, enhancing both performance and environmental compliance.

Segmental Insights: Material, Thickness, and Applications

Among the various materials used, low-density polyethylene (LDPE) dominates the market, capturing 41.7% of total revenue in 2025. LDPE's flexibility, strength-to-weight ratio, and recyclability make it ideal for automated packaging lines in high-volume industries such as beverages and consumer goods. Its compatibility with downgauged structures supports sustainability initiatives while maintaining cost-effectiveness.

Thinner films, particularly those less than 25 microns thick, are also gaining traction, projected to account for 36.5% of market revenue by 2025. Downgauging allows manufacturers to reduce material usage and environmental impact without compromising performance. Technological advancements in extrusion ensure these thinner films maintain strength and reliability, supporting high-speed packaging operations.

The bottles segment remains the most profitable application, expected to contribute 44.2% of overall market revenue in 2025. Growth in bottled water, carbonated beverages, and alcoholic drinks has fueled demand for shrink films that provide tamper resistance, product stability, and brand visibility. As beverage consumption continues to rise, collation shrink films for bottles remain a key driver of market expansion in North America.

Historical Growth and Future Outlook

Between 2020 and 2025, the market experienced a CAGR of 2.7%, with total valuation reaching USD 984.1 billion by the end of 2025. Looking forward, the projection period from 2025 to 2035 is expected to see accelerated growth at 5.2% CAGR. The increasing preference for flexible packaging solutions across food, beverage, pharmaceuticals, and cosmetics sectors underscores the growing adoption of collation shrink films.

These films are ideal for secondary packaging as they form a clear, lightweight, and durable barrier around products. Heat application around 150°C allows them to shrink and tightly conform to various shapes, ensuring secure handling and storage. Their transparency supports product visibility, while printing capabilities enable branding and marketing on the packaging itself.

Key Growth Drivers: Logistics, E-Commerce, and Shelf Life

The expanding logistics and e-commerce sectors in the United States and Canada are significant growth drivers for collation shrink films. As delivery chains grow and packaging systems become more sophisticated, manufacturers are turning to flexible shrink films to prevent product damage during transport. Their economical, lightweight, and tamper-proof characteristics make them particularly suitable for transportation and distribution.

In addition, collation shrink films help extend the shelf life of processed food products. By providing exceptional barrier performance, these films protect food from biological, atmospheric, and chemical degradation, ensuring quality and freshness. Innovations in material composition and chemical properties continue to enhance these protective capabilities, further driving market demand.

Country-Wise Insights: United States vs. Canada

The United States dominates the North American market, holding 69.4% of the market share in 2025 and maintaining a strong presence across food, beverage, and pharmaceutical sectors. The pharmaceutical industry, which accounts for roughly 45% of the global market, increasingly relies on collation shrink films to protect syrups, tablets, and other medications. Simultaneously, the growing food and beverage sector boosts demand for protective, lightweight packaging.

In Canada, the market holds a 30.6% share in 2025, with steady growth driven by the thriving food and beverage processing industry. As one of the leading exporters of processed foods, Canada relies on shrink films to ensure safe transport to global markets, particularly the United States. Collation shrink films protect products from damage, leakage, and spoilage, while optimizing storage and shipping efficiency.

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Competitive Landscape and Innovation

The North American collation shrink films market is characterized by a dynamic mix of established and emerging players, all focusing on product innovation, capacity expansion, and sustainable solutions. Key players include ITP - Industria Termoplastica Pavese, Armando Alvarez Group, Macchi North America Plastic Machinery Inc., Accredo Packaging, Transcontinental Packaging, Dow Inc., Berry Global Inc., Sealed Air Corporation, NOVA Chemicals, and others.

Recent innovations illustrate the market's forward momentum. For instance, in October 2025, NOVA Chemicals Corporation introduced a 100% post-consumer recycled (PCR) polyethylene resin suitable for shrink films and other packaging solutions, promoting sustainability without compromising performance. Similarly, in August 2025, Amcor expanded its flexible packaging capabilities with a new plant in the Czech Republic, reinforcing its global presence and commitment to advanced packaging technologies.

Manufacturers are continuously investing in multilayer extrusion technologies, downgauged films, and recyclable options to meet evolving regulatory requirements and brand sustainability goals. By leveraging these innovations, both established and new players can cater to a wide range of applications, from beverages and pharmaceuticals to e-commerce shipments, while reducing environmental impact.

Conclusion

The United States & Canada collation shrink films market is poised for strong, sustained growth over the next decade. With increasing demand from food, beverage, pharmaceutical, and e-commerce sectors, coupled with innovations in materials, design, and sustainability, this market offers abundant opportunities for both established manufacturers and new entrants. By adopting advanced shrink film technologies and focusing on eco-friendly solutions, companies can enhance product protection, optimize supply chains, and strengthen their market position, all while meeting the rising consumer and regulatory expectations for sustainable packaging.

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