BOPP films demand continues to grow well globally

Biaxially Oriented PP film consumption in 2001 reached almost 3.2 million tonnes, from a modest level of merely 500KT in 1985. It has continued to grow at an average rate of over 12% in the last 16 years. Infact it has outbeaten both cellophane and PET in the last two decades.

Cellophane has almost been made redundant. PET film, although having better rigidity and clarity, has not been able to keep pace with BOPP on account of cost benefits offered by BOPP. Several market research studies indicate that BOPP market could reach about 4 million tonnes by 2003-2004 and 6 million tonnes by 2010. BOPP therefore will continue to outperform growth of PP.

The demand of BOPP has been much higher in the Asian regions, over the last few years. Infact Asia accounts for almost 33% of the total consumption of 3.5 million tonnes in 2001. China has become a great force in BOPP and is expected to soon become a global leader on account of a more than 9% average growth rate that is expected in the coming decade. It is expected that China will account for more than 1 million tonne out of 6 million tonnes consumption of BOPP by 2010. North America and West Europe, with almost 42-43% share of global market in 2001 are not likely to grow beyond 5%.

The present world scale BOPP film plant has a reached a capacity of more than 25kt. Infact a few new lines have been designed to produce 32kt of BOPP films from a single line. Nan Ya Plastic, with more than 100kt BOPP capacity on 6 lines is expected to commission 2 new lines having individual capacity of 32kt by 2003. BOPP film capacities of stenter lines have grown dramatically in the nineties.

There are more than 160 producers of BOPP in the world. Market research companies like AMI for e.g., estimates about 200 producers. However the top 10 producers account for almost 40% of the total capacity. Infact there are about 6 producers that have capacity beyond 100kt. ExxonMobil, with about 260kt capacity is the largest BOPP film producer. Vitan from Italy has become the second largest BOPP film producer. Asian manufacturers are aggressively building up newer capacities and are expected to soon emerge as large producers of BOPP film. Infact Foshan Plastics group has become a significant player in China.

Co extruded films have the largest share of BOPP film market. The skin layers responsible for heat sealing at lower temperatures are becoming essential to meet the requirements of high speed packaging. The metallization to enhance barrier properties has reached a level beyond 10% of the total BOPP films. Synthetic paper and other applications are responsible for a significant role of opaque films. Infact these types of films are drivers of  BOPP market. No wonder the share of plain films is reducing to a level below 20%.

The continued growth of BOPP, despite a 20-25% reduction in thickness over the last decade, clearly indicates that BOPP film has become a leading player of flexible packaging.