Plastic Straps Market - Forecasts from 2021 to 2026
The plastic straps market is projected to grow at a CAGR of 15.38% to reach US$5.366 billion by 2026, from US$1.971 billion in 2019. Strapping is defined as using a flat material to bundle items together to hold them in place. Plastic straps are widely used in industries such as packaging, construction, lumber, printing, paper, steel, and bricks and tiles due to their elongation recovery.
The characteristics of plastic strapping such as affordability, durability, and variety of applications are the key factors that are driving the market demand in various industries. Also, these straps are cost-effect and lighter in weight than the straps made from other materials, which had made them popular amongst the end-user industries. The burgeoning e-commerce industry is boosting the demand for plastic straps in packaging and shipment. Plastic strips are used to transfer goods without any damage from the manufacturing facilities to end-users, which is surging their demand in the e-commerce industry.
In addition, the packaging industry is flourishing across the globe, due to the rapid urbanization and the increasing disposable income of the people which in turn will contribute to the market growth during the forecast period. Moreover, plastic straps are used in the food and beverage, and agriculture industry both of which are booming in the market due to the rapidly increasing population, especially in developing countries like India and China which in turn will strengthen the market growth.
Furthermore, the surge in demand for the electronics industry due to the increasing purchasing power of the population will further boost the demand for the transport of goods which will subsequently bolster the demand for plastic straps, globally.
The polypropylene straps segment accounted for a major share in the by type segment due to its widespread acceptability across end-user industries due to advantages such as high tensile strength, flexibility, and ease of handling among others. By end-use industries, the packaging industry will grow at a high CAGR owing to the increasing use of plastic straps in packaging the products to ensure they safely reach the end-user without any damage. Plastic straps are used in the packaging industry for several applications such as packing e-commerce goods, logistics, packers, and movers, etc. due to which it has a dominant market share. Geographically, Asia Pacific will be the fastest-growing region owing to the increasing number of industries and manufacturing facilities coming up in the region, especially in countries such as India and China. North America is also expected to hold a significant market share due to the flourishing e-commerce, food and beverage, and electronics industry in the region.
The major key driver of the plastic straps market is the increasing industrialization in several countries, especially in emerging economies, across the globe. The rapidly increasing population and rising disposable income of the people have surged the number of industries, across the globe as a means to meet the increasing consumer demand. The industries such as food and beverage, agriculture, packaging, e-commerce, electronics, etc. are flourishing, nationwide which is, in turn, driving the market growth of the plastic straps market.
The Covid-19 pandemic moderately impacted the plastic straps market, as due to the lockdown and travel and trade restrictions imposed by the governments, worldwide the business operations of many industries such as packaging, steel, printing, electronics, agriculture, etc. were put to a halt which in turn declined the demand for plastic straps in 2020 as the industries suffered huge losses. Also, due to the supply chain disruptions, the plastic straps were unable to reach a end-user industry which further hampered the market growth. However, with the ease of restrictions and normalcy being restored, the market is expected to rebound during the forecast period.
The market leaders for the plastic straps market consist of Contimeta B.V., Signode, The Sterling Group, The FROMM Group, Dynaric, Inc., R. C. Packaging Systems, LLC, M.J. Maillis Group, PAC Strapping Products, Inc., Auto Strap India, and Crown Holdings, Inc. The key players in the market implement growth strategies such as product launches, mergers, and acquisitions among others, to gain a competitive advantage over their competitors. For instance, in 2019, Polychem Corporation, a manufacturer of polyester and polypropylene packaging products and equipment, got acquired by The Sterling Group, an operationally-focused middle-market private equity firm based in Houston to expand their product portfolio.