Strapping Materials Market - Forecast(2023 - 2028)

Strapping Materials Market Overview

The strapping materials market size is estimated to reach US$1.2 billion by 2027 after growing at a CAGR of around 6.7% from 2022 to 2027.  Strapping materials are widely used in logistics and warehousing as it is used in packaging, bundling of materials like tiles, metals, newspapers and others. For instance, polyester strapping materials are a good replacement for steel straps and are used in the transportation of heavy materials like metals, woods, bricks due to its excellent properties like high break strength, elongation as well as recovery properties. The growth of Renewable Polyesters, due to awareness towards usage of recyclable packaging solutions, will drive the growth of strapping materials industry. According to Textile Exchange Organization, there will be an increase in the production of recycled polyesters from 14% to 45% in the forecast period. Major companies like Mosca, are using recycled polyesters these days to produce strapping materials for corrugated boxes. Thus, this will further drive the growth of the strapping materials industry in the coming years.

COVID-19 Impact

The COVID-19 impact increased the growth of strapping materials market. This is due to the increase in demand of strapping materials in various applications like logistics and warehousing, pulp and paper and others. During covid, there was an increase in demand for logistics and warehousing due to the growth of e-commerce. According to United Nations Conference on Trade and Development, share of  e-commerce in global retail trade increased to 17% in 2020 from 14% in 2019. This will increase the need for strapping materials because strapping materials are needed in bundling items like newspaper, pipes and others. Strapping materials are also used in corrugated boxes. According to The Federation Of Corrugated Box Manufacturers, due to the emergence of e-commerce, there was an increase in the use of corrugated boxes. Strapping materials are used in reinforcing corrugated boxes like gaylords. Thus, there was a positive growth of  strapping materials industry in the 2020 pandemic period.

Report Coverage

The report: “Strapping Materials Market– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the Strapping Materials Industry.

By Material: Steel (High Tensile Steel, Stainless Steel, Galvanized (Zinc-Coated) Steel), Polypropylene, Polyester, Nylon 6.6 and Others.

By End-User: Food Packaging (Jersey Beverage cans and bottles, Bakery products, Dairy products, Frozen food packaging, Food packets), Industrial Logistics and Warehouses, Pulp and paper (Corrugated boxes, Crates, Wooden boxes, Pulp paper, Paper rolls), Building & Construction and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa)

Key Takeaways

• The rise in demand of polyesters has increased the use of Strapping Materials in various applications like logistics and warehousing, pulp and paper and others. This is because of their excellent properties like high elongation and elasticity.
• The growth of logistics and warehousing due to the growth of e-commerce will drive the market due to the use of strapping materials in palettizing and bundling of materials like newspapers, metals, in transportation and warehousing.
• Asia-Pacific will witness a significant growth in strapping materials market due to the rise in demand for logistics and warehousing activities.

Strapping Materials Market Segment Analysis – By Material

Polyester strapping material held the largest share in 2021 and is expected to grow at a CAGR of 6.1% in the forecast period. This is because polyester straps show properties like high tensile strength, UV resistant, reliability, recyclable and excellent stretch recovery properties. Polyester is the most use material for strapping purposes. Polyester held a market share of around 52% of total global fiber production, that is, around 62.8 million tons of polyester were produced in 2020. Thus, the growth of polyester will increase the use of polyester in strapping materials. Polyester straps show properties like high tensile strength, UV resistant, reliability, recyclable and excellent stretch recovery properties. Polyester straps have almost replaced steel straps as steel tends to corrode, which deteriorates the quality of logistic goods. The demand of polyester strapping materials have increased in logistics and shipment as they have very high elongation and offer high tension, which helps in absorbing shocks and impacts caused due to transportation and handling far better than steel straps. Polyester straps are extensively used in bundling, stabilizing heavy loads and others. Thus, there is an increased demand of polyester straps.

Strapping Materials Market Segment Analysis – By End-User

Strapping materials are widely used in industrial logistics and warehouses, as the logistics and warehousing applications are expected to grow at a CAGR of around 40%. Logistics and warehousing is the most growing segment due to the growth of e-commerce. According to International Air Transport Association(IATA), E-Commerce logistics was the fastest-growing segment within cargo in 2020. Thus due to the growth of logistics and warehousing , the demand for strapping materials are also increasing. Strapping materials as polyesters and propylene straps are used in logistics for carrying medium to heavy duty loads like construction materials. For instance, Mosca, a major player of strapping materials market produces PET strapping materials which can sustain loads ranging in between 396 lbs (0.18 tons) and 1322 lbs (0.60 tons) as they have high elongation and elastic properties. Strapping materials are used in logistics to secure cargos as their elasticity absorbs shocks during transportation.

Strapping Materials Market Segment Analysis – By Geography

Asia Pacific will be the largest and the fastest-growing region in the Strapping Materials market in the forecast period with a share of around 40%. This is because countries of Asia Pacific region like China, India, South Korea and others witness a signifificant growth in applications like industrial logistics, food & beverage, consumer electronics and others. According to the China Federation of Logistics and Purchasing (CFLP), China's logistics during 2021 increased by 12.% in 2020. Strapping materials are affordable, light weighted and are available in different width and thickness according to the loads and widely utilized in bundling and palletizing. Steel straps are often used for bundling metal loads such as metal bars, rods, and coils due to high break strength properties. Thus, the increase in logistic and Warehousing activities, will increase the demand for strapping materials in Asia-Pacific region.

Strapping Materials Market Drivers

Increasing awareness towards recycling plastics will drive the growth of the strapping materials market

Around 45% of plastic waste is found to be recycled annually in the UK due to the growing awareness of plastic pollution. This growing awareness among people for recycling plastics, will raise the demand for recyclable packaging and strapping amongst consumers. For instance, Signode, a leading player in the strapping materials market, has innovated a specific Closed Loop Recycling Program through which the company recycles the used polyester strappings for packaging waste reduction and to minimize the disposal costs. Signode also manufactures Tenax polyester strapping which is produced using recyclable materials and it also requires 20% less material for its production. Thus, this increase in the use of recycling plastics for strapping materials is the driver for the market.

Growing demand for Logistics and Warehousing

There is a growing demand for improved logistics operations and warehousing which will drive the growth of strapping materials. This is because of the growth of e-commerce sector which is growing 3 times faster than the entire U.S. retail industry. Due to the growth of e-commerce, there has been increase in the transportation and logistics segment and therefore increased the number of warehouse centers. Strapping materials are used in the safe transport of heavy industrial equipment and materials like wood, paper, metal, Brick and others in various locations.

Strapping Materials Market Challenges

Decrease in industrial production of plastic materials and resins are the biggest challenge to the Strapping Materials market

The biggest challenge to the strapping materials is the decrease in the production of plastic resins due to global supply chain disruptions. According to Plastics Industry Association, In February 2021, the industrial production of plastic materials and resins fell down by 28.1%. This will create a shortage in supply of plastics for strapping material production which will challenge the strapping materials market.

Strapping Materials Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies that are adopted by the dominant players in this market. Strapping Materials top 10 companies include:

1. Crawford Packaging
2. Technopack Corporation
3. Strapack Inc.,
4. Signode,
5. Signor Strapping Solutions
6. Titan Umreifungstechnik GmbH & Co.
7. Mosca GmbH
8. Martin Packaging
9. 3M
10. Cyklop International

Acquisitions/Technology Launches

• In November 2020, Crawford Packaging acquired Summit Paper & Packaging Ltd. This will strengthen Crawford’s industrial packaging solutions like strapping materials for corrugated cardboards & papers due to the excellent distribution and e-commerce networking solution of Summit Paper & Packaging Ltd.
• In May 2020, Mosca GmbH,  a major player of the strapping materials market, has introduced a new high-performance sealing unit specially for heavy products logisitics and transportation. This is because bulkier products require wider straps and this sealing unit produces strapping materials up to 0.75 inches wide and 0.05 inches thick.

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