India Collation Shrink Films Market Size, Share, Trends and Forecasts 2031

Key Findings

• The India Collation Shrink Films Market is expanding steadily due to rising demand from the food & beverage, personal care, and consumer goods packaging sectors.
• Increasing preference for multi-pack and bulk packaging formats across retail and e-commerce is a major factor driving market growth in India.
• Polyethylene (PE)-based collation shrink films continue to dominate the market due to their flexibility, durability, and excellent shrink properties.
• Technological advancements in multi-layer extrusion and downgauging have improved material efficiency while maintaining superior load stability.
• Sustainability initiatives are leading to a rapid shift toward recyclable, bio-based, and post-consumer recycled (PCR) shrink films.
• Growth in beverage multipack packaging, especially for bottled water, soft drinks, and alcoholic beverages, is significantly contributing to market expansion.
• Volatility in raw material prices and environmental regulations surrounding plastic waste management present notable challenges for manufacturers in India.
• Strategic collaborations between packaging material producers and brand owners are fostering the development of eco-friendly and lightweight shrink film solutions.

India Collation Shrink Films Market Size and Forecast

The India Collation Shrink Films Market is projected to grow from USD 3.8 billion in 2025 to USD 5.7 billion by 2031, registering a CAGR of 6.9% during the forecast period. Market expansion is primarily driven by the strong growth of packaged beverages, FMCG, and logistics industries. Collation shrink films are increasingly used to unitize and protect multiple product items, offering high tensile strength and clarity that enhances shelf appeal. In India, rapid industrialization, growth in organized retail, and an expanding e-commerce ecosystem are fueling demand for efficient secondary packaging materials. Ongoing R&D efforts to produce thinner yet stronger shrink films and circular recycling solutions are expected to further accelerate market growth.

Introduction

Collation shrink films are flexible polymer films used to bundle multiple product units, such as bottles, cans, cartons, or boxes, into a single transportable and display-ready package. They are primarily composed of polyethylene materials (LDPE, LLDPE, or HDPE) and processed through extrusion and shrink wrapping. In India, these films are gaining widespread adoption due to their excellent cost-efficiency, high optical clarity, and superior puncture resistance. They are extensively utilized in food & beverage, personal care, and industrial goods packaging to reduce product handling and improve transport efficiency. Moreover, increasing sustainability awareness and innovations in circular polymer technologies are redefining the product landscape toward eco-friendly shrink packaging.

Future Outlook

By 2031, the India Collation Shrink Films Market will evolve toward greater sustainability, recyclability, and performance optimization. The shift toward thinner gauges, improved recyclate integration, and the use of advanced metallocene catalysts will drive innovation in film design. Brand owners will increasingly adopt recyclable monomaterial shrink films that meet circular economy standards. Automation in wrapping and shrink tunnel equipment will further enhance operational efficiency and reduce packaging waste. As sustainability regulations tighten and consumer preferences shift toward low-carbon packaging, India is expected to become a significant hub for recyclable and bio-based shrink film production, fostering both local manufacturing and export potential.

India Collation Shrink Films Market Trends

• Shift Toward Sustainable and Recyclable Materials
  Sustainability is the defining trend shaping the collation shrink film market in India. Manufacturers are transitioning from conventional virgin plastics to recyclable and post-consumer recycled (PCR) polyethylene materials. Development of monomaterial PE films that are compatible with existing recycling streams is gaining strong traction. Bio-based alternatives derived from sugarcane or corn starch are also entering the market, offering reduced carbon footprints. These initiatives align with both corporate sustainability goals and national regulations aimed at reducing plastic waste. T

• Growing Adoption in Food and Beverage Packaging
  The beverage industry represents one of the largest consumers of collation shrink films, used extensively for bundling bottles and cans. In India, rapid urbanization and rising disposable incomes are driving demand for packaged soft drinks, juices, and bottled water. Collation shrink films offer superior strength and transparency, making them ideal for multipack presentation and protection. Food processors are also adopting shrink films for bakery, frozen, and dairy product packaging due to their hygienic barrier properties. 

• Technological Advancements in Multi-Layer and Downgauged Films
  Innovations in extrusion technologies are enabling the production of thinner, multi-layer collation shrink films with enhanced mechanical strength. In India, manufacturers are investing in advanced five- and seven-layer extrusion lines to improve film performance while minimizing material consumption. The use of metallocene PE resins enhances clarity, puncture resistance, and shrink uniformity. 

• Increased Demand from E-Commerce and Logistics Sectors
  With the expansion of e-commerce in India, demand for secondary and tertiary packaging solutions is growing rapidly. Collation shrink films are increasingly used for bundling and stabilizing bulk shipments during transport and warehousing. Their lightweight yet durable nature makes them ideal for protective packaging in the logistics sector. 

• Emergence of Smart and High-Performance Film Solutions
  The integration of functional additives and smart materials in shrink films is improving performance and sustainability. In India, new film formulations offer UV resistance, anti-fogging, and enhanced shrink force control for sensitive applications. Manufacturers are also exploring barrier coatings and inks compatible with food contact safety regulations. Advanced surface finishes enable better printability for branding and product differentiation. 

Market Growth Drivers

• Rising Packaged Beverage Consumption
  The rapid growth of the beverage industry in India driven by bottled water, carbonated drinks, and ready-to-drink products is a primary driver of collation shrink film demand. The films provide superior product visibility and tamper resistance while reducing secondary packaging costs. Beverage companies favor collation shrink films for their ability to withstand moisture and maintain load stability during transit.

• Expansion of Retail and FMCG Distribution Networks
  The growing penetration of modern retail, supermarkets, and convenience stores across India has created strong demand for attractive and durable multipack packaging. Collation shrink films are increasingly used for wrapping products in the personal care, detergent, and food sectors. Their cost-effectiveness and compatibility with high-speed wrapping machinery make them the preferred choice for bulk display packaging.

• Shift Toward Lightweight and Cost-Effective Packaging Solutions
  Rising transportation costs and sustainability pressures are driving packaging converters toward lightweight solutions. Downgauged collation shrink films with optimized mechanical strength are reducing overall material use without compromising performance. In India, this trend is helping companies achieve both cost savings and environmental compliance, positioning lightweight packaging as a strategic priority.

• Growth of Industrial and Logistics Applications
  Industrial packaging applications are expanding as manufacturing and distribution activities intensify in India. Collation shrink films are being used to bundle building materials, hardware components, and industrial goods for bulk handling. Their ability to stabilize and protect loads from dust, moisture, and mechanical damage during long-distance transport is supporting adoption across logistics networks.

• Technological and Material Innovation by Manufacturers
  Continuous investment in resin development and extrusion technologies is enabling superior film properties such as enhanced shrink control, optical clarity, and sealing efficiency. Manufacturers in India are adopting smart production systems and digital monitoring to ensure consistency and precision in film quality. The use of advanced catalyst systems like metallocene polymers has further improved puncture resistance and thermal shrink behavior, promoting widespread application versatility.

Challenges in the Market

• Environmental Concerns and Plastic Waste Regulations
  Increasing regulatory scrutiny on single-use plastics poses a significant challenge to the shrink film industry. In India, extended producer responsibility (EPR) schemes and recycling mandates require manufacturers to develop recyclable or compostable alternatives. Compliance with regional environmental standards may raise production costs and limit traditional film usage.

• Fluctuating Raw Material Prices
  Polyethylene resins, derived from petrochemical feedstocks, are subject to global price volatility. In India, fluctuations in crude oil and natural gas prices directly impact manufacturing costs and profit margins. Producers must balance between cost management and maintaining consistent product quality amid these fluctuations.

• Competition from Alternative Packaging Materials
  The rise of paperboard and stretch film alternatives in secondary packaging applications is intensifying market competition. Many beverage and consumer goods brands are experimenting with paper-based wrap packaging to enhance recyclability credentials. This shift challenges traditional collation shrink film producers to innovate and reposition their products as environmentally responsible solutions.

• Recycling Infrastructure Limitations
  Despite progress in sustainability, recycling systems in India remain underdeveloped in many areas. Limited collection and segregation facilities hinder the recyclability of multi-layer and contaminated shrink films. The lack of consistent waste management frameworks poses an obstacle to achieving circular economy targets for plastic packaging.

• Capital-Intensive Equipment and Technology Requirements
  Producing high-performance collation shrink films requires advanced extrusion and printing machinery with precise process control. Small- and medium-scale converters in India often face financial constraints in adopting such technologies. Additionally, the need for specialized formulations and testing facilities adds to operational complexity and investment costs.

India Collation Shrink Films Market Segmentation

By Material Type

• Low-Density Polyethylene (LDPE)

• Linear Low-Density Polyethylene (LLDPE)

• High-Density Polyethylene (HDPE)

• Polypropylene (PP)

• Others (Bio-Based and PCR Blends)

By Thickness

• Up to 25 Microns

• 25–50 Microns

• 50–100 Microns

• Above 100 Microns

By Application

• Food and Beverage Packaging

• Personal Care and Household Products

• Industrial Goods Packaging

• Pharmaceuticals and Healthcare

• Logistics and E-Commerce

• Others

By End-User Industry

• Food and Beverage

• Consumer Goods

• Retail and E-Commerce

• Industrial Manufacturing

• Pharmaceuticals

By Shrink Type

• Printed Collation Shrink Films

• Unprinted Collation Shrink Films

Leading Key Players

• Berry Global Inc.

• Amcor plc

• Sealed Air Corporation

• Coveris Holdings S.A.

• Schur Flexibles Group

• AEP Industries Inc.

• RKW Group

• Intertape Polymer Group Inc.

• Dow Inc.

• Polifilm Extrusion GmbH

Recent Developments

• Berry Global Inc. introduced a 100% recyclable collation shrink film range with post-consumer recycled (PCR) content in India to meet circular economy targets.

• Amcor plc partnered with beverage manufacturers in India to develop downgauged high-clarity shrink films with reduced plastic content.

• Sealed Air Corporation expanded its product line with advanced barrier shrink films offering enhanced puncture resistance for industrial applications.

• Coveris Holdings launched bio-based polyethylene shrink film formulations aimed at reducing carbon emissions in India.

• Dow Inc. collaborated with regional converters to produce recyclable monomaterial PE shrink films compatible with standard recycling streams.

This Market Report Will Answer the Following Questions

1. What is the projected market size and CAGR of the India Collation Shrink Films Market by 2031?

2. Which material types and applications are driving market growth in India?

3. How are sustainability initiatives influencing product innovation and packaging design?

4. What challenges do manufacturers face in complying with environmental and cost constraints?

5. Who are the key players leading product development and strategic collaborations in the India Collation Shrink Films Market?