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It’s a Wrap: Plastic Film Procurement Category Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld Inc.

Sep 01, 2014, 05:00 ET

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The price of plastic film has risen slightly in conjunction with rising plastic materials and resin prices

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Los Angeles, CA (PRWEB) September 01, 2014 -- Plastic film has a buyer power score of 3.1 out of 5, representing moderate negotiation power for buyers. “Buyers benefit from low market share concentration, which gives them a large pool of suppliers to choose from,” says IBISWorld research analyst Kevin Young. “The availability of inexpensive imports helps to keep prices low by forcing domestic manufacturers to lower prices to compete.” Despite volatile input prices, plastic film price changes have been less volatile over the past three years due to price competition in a fragmented market. Stable prices allow buyers to incorporate plastic purchases into budgets with confidence.

Other aspects of the market work against buyer power. Rising plastic prices have decreased buyer negotiation power during the past three years. This trend is expected to continue in the three years to 2017 as rising investor confidence and demand for manufactured goods further boost input costs for suppliers. Plastic film is generally sold in rolls and is made from various thermoplastic polymers, including polyethylene and polyvinyl chloride (PVC). Says Young, “The supply chain of plastics heavily relies on the price of crude oil, itself a volatile measure that is occasionally subject to international conflicts and supply issues.” Furthermore, rising acquisition activity among some major players also threatens to increase market share concentration, potentially diminishing the number of vendor options for buyers. This is in addition to the few substitute options, which also hurts buyer power. Current major vendors include Bemis Company, Berry Plastics Corp., PolyOne Corp., Sealed Air Corp. and WW Grainger Inc.

Switching costs for plastic film are generally low, meaning buyers can move between suppliers with ease. Furthermore, plastic film has low ownership costs and does not generally require maintenance, giving suppliers the freedom to price shop without incurring additional costs. If possible, buyers are advised to bundle purchases of plastic film with other goods to save on logistical costs. Buyers may also seek a long-term contract with a steady pricing structure to insulate against price increases. For more information, visit IBISWorld’s Plastic Film procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of plastic film. Plastic film is a thin petroleum-based membrane used as packaging, barriers, printable surfaces and more. This report does not cover photographic film or film stock, but only plastic film used for industrial or manufacturing purposes.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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