Printing enhancements and multi-layer film are helping development.

Enhancements in film structures and printing quality are helping the development of the market for collation shrink film, according to a new report by UK consultancy AMI. In 2006, demand for polyethylene in the European market reached nearly 800,000 tonnes, at a market value of €1.2bn.

The largest end-use sector for collation shrink films is the beverage market, which accounted for 46% of all polyethylene collation shrink demand in 2006. Food applications accounted for 27% of demand, followed by healthcare (13%), household goods (9%) and industrial applications (5%).

AMI says the development of metallocene and bimodal LDPE are adding to changes in the industry. Metallocene resins are still modest, accounting for less than 3% of the market in 2006, but are expected to continue growing at rates of nearly 20% per year to 2011. AMI forecasts the demand for printed films to grow from 12% of the collation shrink market in 2006 to 19% in 2011, representing a near doubling in tonnage terms.

The drive to enhance print quality has led to development of coextruded shrink films in order to use metallocene resins in the outer layers. The benefits include production of film with a high gloss printable surface and with improved transparency.

It also has the potential of downgauging the film by selection of appropriate resins for the core layer. This will become important from an environmental point of view as pressure grows to minimise raw material usage.