Global BOPA film supply demand report_ 2020.pdf

November 2020
Global BOPA Film
Supply Demand Report

Global BOPA Film Supply Demand Report
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Table of Contents
1 Executive summary.................................................................................................................................................... 4
2 Introduction................................................................................................................................................................. 5
2.1 Wood Mackenzie Chemicals............................................................................................................................. 5
3 Coronavirus’ impact on BOPA film............................................................................................................................. 6
4 Global BOPA film capacity and production ................................................................................................................ 7
4.1 An introduction to the global BOPA film market................................................................................................ 7
4.2 Global capacity by region .................................................................................................................................. 8
4.3 Global capacity by leading producer ................................................................................................................. 9
5 Global BOPA film trade............................................................................................................................................ 11
6 Global BOPA film demand ....................................................................................................................................... 12
6.1 Demand by region ........................................................................................................................................... 12
6.2 Demand by film type........................................................................................................................................ 14
6.3 Demand by end use ........................................................................................................................................ 14
7 Global supply demand forecasts.............................................................................................................................. 18
7.1 Five-year regional BOPA film supply forecast................................................................................................. 19
7.2 Five-year regional BOPA film demand forecast .............................................................................................. 20
7.3 Five-year end use demand forecasts.............................................................................................................. 23
8 Technology............................................................................................................................................................... 25
9 Sustainability ............................................................................................................................................................ 27
10 Regional BOPA film markets............................................................................................................................... 28
10.1 China ............................................................................................................................................................... 28
10.2 Asia (excluding China) .................................................................................................................................... 30
10.3 Oceania ........................................................................................................................................................... 33
10.4 North America.................................................................................................................................................. 34
10.5 Latin America and the Caribbean.................................................................................................................... 36
10.6 Middle East...................................................................................................................................................... 38
10.7 Africa ............................................................................................................................................................... 40
10.8 Europe ............................................................................................................................................................. 42
10.9 Russia and the Caspian .................................................................................................................................. 45
11 Leading global BOPA film producers .................................................................................................................. 47
11.1 A.J. Plast Public Co. Ltd.................................................................................................................................. 47
11.2 Cangzhou Donghong Packing Material Co. Ltd .............................................................................................. 48
11.3 DOMO Film Solutions...................................................................................................................................... 49
11.4 Foshan Eastern Packing Material Co. Ltd....................................................................................................... 50
11.5 Gettel Group.................................................................................................................................................... 51
11.6 Hong Tian Yu................................................................................................................................................... 52
11.7 Hyosung Corporation ...................................................................................................................................... 53
11.8 JK Materials Co. Ltd ........................................................................................................................................ 54
11.9 Kohjin Film & Chemicals Co. Ltd..................................................................................................................... 55
11.10 Kolon Industries Inc..................................................................................................................................... 56
11.11 Kunshan Yuncheng Plastic Industry Co. Ltd............................................................................................... 57
11.12 MF Folien GmbH ......................................................................................................................................... 58

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11.13 Mitsubishi Plastics Inc. ................................................................................................................................ 59
11.14 Ningbo Ruicheng Plastic Material Co Ltd.................................................................................................... 60
11.15 OPP Films S.A............................................................................................................................................. 61
11.16 Sojitz Corporation........................................................................................................................................ 62
11.17 Thai Polyamide Co. Ltd ............................................................................................................................... 63
11.18 Toyobo Co. Ltd............................................................................................................................................ 64
11.19 Unitika Ltd.................................................................................................................................................... 65
11.20 Xiamen Changsu Industrial Co. Ltd............................................................................................................. 67
12 Appendix.............................................................................................................................................................. 69
12.1 Market definitions and research methodology ................................................................................................ 69
12.2 BOPA film types .............................................................................................................................................. 70
12.3 Regional markets............................................................................................................................................. 72
12.4 Methodology.................................................................................................................................................... 72
12.5 Forecasts and forward-looking statements ..................................................................................................... 73
12.6 The BOPA film manufacturing process ........................................................................................................... 73
Disclaimer .................................................................................................................................................................... 75

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1 Executive summary
• The global BOPA film market reached 315 kt in 2020, having grown by 3.9% p.a. over the last five years.
The global market is valued at approximately $1 billion, based on Wood Mackenzie Chemicals’ Q3 2020
price indices.
o Chinese demand accounts for 44% of global consumption in 2020 and has seen annual growth of
nearly 7%, a deceleration compared to 2019’s 8.6% growth due to the negative impact of the
coronavirus pandemic
o European demand has declined in 2019 and again in 2020 as packers’ have focused on mono-
material packaging solutions, currently favouring polyolefin-based films, as the market looks for
sustainable packaging solutions; demand declines were stronger in 2020 as the coronavirus
pandemic brought a deep recession to the European market.
Global BOPA film market size and annual growth rate – 2020
Source: Wood Mackenzie Chemicals
• In terms of supply, nameplate capacity installed in the global market reached 455 kt in 2020, with the industry
making significant investment over the last five years installing 132 ktpa of new capacity.
o Almost 90% of the installed global capacity is based in Asia, with China alone accounting for 53%
of global capacity
o Global production of 315 kt was sufficient to meet global demand in 2020, resulting in a global
average utilization rate of 69%. With significant capacity added in 2018 and 2019 (nearly 115 ktpa),
operating rates have been steadily decreasing since 2017. Only one line started up production in
2020, a 9 ktpa line in China.
• The leading five producers by installed capacity in 2020 were: Xiamen Changsu Industrial Co. Ltd (China),
Shanxi Yuncheng Group (China), Unitika Ltd (Japan, Indonesia), Hyosung Corporation (China, South
Korea), and A.J. Plast Public Co. Ltd (Thailand)
• Food packaging continues to dominate BOPA film consumption in all regional markets, accounting for 80%
of global demand in 2020. Non-food packaging accounts for 12% with industrial applications, such as novelty
balloons, accounts for the remainder.
• Wood Mackenzie Chemicals’ expects global demand to slow slightly to 3.8% p.a. over the next five years,
with China continuing to drive global consumption. Whilst there is a lack of announced new capacity coming
online over the next five years (+56 ktpa), the spate of recent investment means global production should
keep pace with our global demand forecast. Demand in Europe continues to decline steadily as sustainability
takes more and more of a central stage in the region, contributing to a slowdown in global growth rates.

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2 Introduction
2.1 Wood Mackenzie Chemicals
Wood Mackenzie Chemicals provides a broad range of services analysing upstream oil, gas, energy, metals
and chemicals markets as well as a range of services on downstream oriented films and flexible packaging
markets. The company has a multifunctional team of professionals able to supply market and business-related
consulting skills to anyone involved or interested in the production and use of all speciality and oriented plastic
films, aluminium foils and speciality papers.
Our comprehensive range of services to clients on a subscription and single payment basis includes:
• Quarterly Business Reports on the PET film, PP film and global flexible packaging markets
• Regional Supply/Demand Reports on the BOPET, BOPP and BOPA film industries and global flexible
packaging markets
• Confidential ad-hoc studies for individual clients with individual market research and business needs
• Independent reviews of business investment plans and due diligence exercises for lending institutions to
provide input into M&A projects
Our consultants, associates, and junior researchers are located throughout the world and have a high degree
of experience in studying our chosen markets.
To find out more about our company, please refer to our website at www.woodmac.com

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3 Coronavirus’ impact on BOPA film
The world was caught by surprise under a global pandemic in 2020, throwing off all forecasts made in 2019 for
all markets – and the BOPA film market is no exception.
The lockdown measures implemented as a response to the pandemic resulted in a boost in demand for food
and medical/pharma packaging at the early stages of lockdowns, particularly around March-April. Consumers
stocked up on goods before the first wave of lockdowns were implemented and continued to purchase goods
via retail channels throughout summer months, as stay-at-home measures forced millions to work from home.
Under these circumstances, confectionery and comfort food demand grew substantially. Conversely, industrial
demand decreased as the economic situation deteriorated globally and the world plunged into a deep recession.
The hospitality and food service sectors also suffered a deep cut in demand in 2020; in Europe, a second wave
of lockdowns was announced in late-October, when the food service activity was just coming back to normality.
Different regions had different responses to the pandemic in terms of BOPA film demand, but overall the
lockdowns had a negative impact on demand growth.
In Asia, China was the first country affected by the coronavirus; while the pandemic had no impact in film
production in the country, domestic demand decreased in the first quarter in 2020. While demand has since
recovered, and exports increased in Q2 and Q3 to meet demand increases elsewhere, there was a slight
slowdown in Chinese demand growth for this year. Even though Chinese export volumes increased year on
year, a great deal of stockpiling is thought to have happened in 2020.
Elsewhere in Asia, the pandemic not only affected demand growth, but also production. In Indonesia, a new
BOPA film line was planned to start-up in 2020 but has been delayed in face of coronavirus to start up in 2021.
Logistics constraints of Chinese shipments in Q1 2020 benefitted other Asian producers though, with South
Korea reporting an increase in exports during that period. Overall, Asian BOPA film demand still grew in 2020,
in some markets at healthy rates, but there was a clear slowdown in growth overall in the region. In 2019, the
Asian BOPA market grew 5.5%; in 2020 this growth slowed to 4.4%.
Meanwhile, in North America, demand increased during the lockdown in Q2 and going into Q3. The surge was
again due people spending more time at home and stocking up on foods; BOPA film demand benefited from
non-retort food products such as prepared meats, cheese and flow wrap for pizzas. However, demand from
institutional/ hospitality establishments was down, while sales to the industrial sector (which accounts for about
a fifth of total US BOPA film consumption) has been mixed during 2020. For example, while novelty party
balloons have seen good sales, other segments such as graphics and book covers have seen material falls.
The boost in demand in 2020 occurred only during an intense two-month period over mid-March to mid-May.
For a large proportion of the year, some users have focused on the shorter-term due to market uncertainties,
and several buyers started using the stocks built earlier in the year, causing demand to slow significantly in the
second half of the year. Overall, the US market volume should end 2020 at a similar level to that in 2019.
The European market, which had been decreasing in 2019 and was expected to continue to do so as
environmental concerns become more of a focus in the region, initially benefited from coronavirus but soon
resumed its declining demand trend. March and April were particularly busy months for BOPA film suppliers,
with lead times increasing substantially; buyers stocked up at that time though, however, orders slowed down
steeply as the year-end approached. Some European markets saw clear annual decreases in demand for 2020,
namely Germany, France, Italy, Austria and Spain. Overall, the regional demand decrease seen in 2019
accelerated in 2020 and should reach about -6.0% this year.
The coronavirus pandemic temporarily put environmental efforts on the backburner; however, the recent
announcement of a new €0.80/kg tax on non-recycled plastic waste in Europe from 1 January 2021 poses a
serious threat to Europe’s BOPA film demand in the short-term. We expect that demand will continue to trend
downwards in Europe over the forecast period. Because BOPA film is difficult to replace in some structures that
require special barrier properties, in our base-case scenario we expect that demand decreases will slow down
later in the forecast period. While other regions are not yet under such environmental scrutiny, we are starting
to see a trend towards sustainability elsewhere in the world. For instance, BOPA film used in multi-material
structures is starting to come under some environmental pressure in mature economies such as South Korea
and Japan. In the US, with a new government due in 2021, more focused in environmental protection, could
bring some additional concerns about flexible packaging waste in the country. For now, we still expect moderate
growth in North America, with growth rates shrinking through the forecast period, and little impact of sustainability
to demand growth in Asia.

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4 Global BOPA film capacity and production
4.1 An introduction to the global BOPA film market
Compared to its two major competitors, BOPET and BOPP film, BOPA film is very much a niche market in terms
of volume within the mainstream flexible packaging material sector. This is partly due to it being the most
expensive of the conventional oriented films used in flexible packaging, even when converted to a cost per
square metre basis (rather than a cost per tonne).
BOPA films have a combination of superior puncture resistance, higher tensile strength, better temperature
tolerance, and superior gas and odour barrier compared to BOPP and BOPET films. These give it an advantage
in some applications, however, it can be more difficult to work with on converting lines due to its extensibility. It
also does not seal to itself and has poor light transmission and gloss compared to BOPP and BOPET films.
Global BOPA film supply demand 2000-20
In 2020, the global BOPA film industry was valued at approximately $1.05 billion in sales (based on Q3 2020
regional prices) providing packaging solutions to a wide variety of end use industries. Global demand for all
BOPA films reached just over 315 kt in 2020, having grown by an average of 3.9% p.a. over the last five years.
Over the five-year period to 2020, there has been an additional 55 kt of BOPA film volume required by end users
in the global market, which has been more than matched by the increase in film extrusion capacity of 134 ktpa
over the same period. A significant proportion of this new capacity has been installed during 2018 and 2019,
resulting in a global oversupplied market. As a result, there have also been capacity curtailments over the last
five years, the most recent being DOMO’s Leuna plant (Germany) in 2020 and AdvanSix’s Pottsville plant (US)
in 2019.
Historical global BOPA film market 2015-20
2015
(kt)
2016
(kt)
2017
(kt)
2018
(kt)
2019
(kt)
2020
(kt)
Capacity 323.1 326.5 327.5 376.3 442.3 454.8
Production 260.0 271.2 282.2 294.4 306.5 315.1
Production Utilisation 80% 83% 86% 78% 69% 69%
Global Demand 260.0 271.2 282.2 294.4 306.5 315.1

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The BOPA film industry, in terms of capacity is now dominated by film producers in Asian countries and it is
also Asian markets that are the world’s largest in terms of demand e.g. China and Japan.
Demand for flexible packaging films has been the main driver of volume growth in all regions of the world.
4.2 Global capacity by region
In recent years, as in many other global oriented plastic film industries (e.g. BOPET and BOPP), the investment
in BOPA film extrusion capacity in China has outpaced domestic demand growth and even, in some years,
outpaced global demand growth. Since 2000, installed global BOPA film extrusion capacity has grown from a
little under 115 ktpa to around 455 ktpa in 2020, nearly a four-fold increase. Chinese producers have accounted
for 232 ktpa of this new capacity, which has helped make the Asia region the largest BOPA film producer in the
world. The region now accounts for almost 90% of the currently installed global film capacity, with China alone
accounting for about 53%.
Global BOPA film capacity – volume growth by region
Region 2020
(kt)
Volume growth (kt) Comments
2015-20 2020-25
China 238.8 105.2 18.0 Over 70% of global capacity has been installed in China over
the last five years, with significant investment in late 2018 and
2019. World’s first +7m wide lines due to be installed in China.
Other Asia 167.7 26.0 10.0 Despite first developing the industry, Central-East Asia has
seen a lack of investment; the last addition was in Taiwan in
2018. South East Asia, including Thailand, is a significant
regional producer with new capacity planned in 2021.
Oceania 0 0 0 No sizeable markets in the region with no plans for any
investment in the short-term.
North America 7.5 -8.0 11.0 The region has seen US close its only line in 2019. However,
after a lack of investment the region has a line coming online
in Canada to predominantly meet regional demand.
Latin America and the
Caribbean
13 6.0 7.0 Existing capacity is currently very under-utilised, with a
relatively small domestic market. 2020-25 change is due to
one Chilean line being moved to Peru during 2020.
Middle East 0 0 0 No sizeable markets in the region with no plans for any
Africa 0 0 0 No sizeable markets in the region with no plans for any
Europe 27.8 2.5 7.0 Largely a mature market with slow demand has meant little to
no appetite for investment and is unlikely to see further
investment in the short-term; one 9.5 ktpa line is planned in
2021 but another 5.5 ktpa was permanently closed in 2020.
Russia and the Caspian 0 0 0 No sizeable markets in the region with no plans for any
Global Capacity 454.8 131.7 53.0
Healthy market demand growth and relatively cheap loans and tax incentives in China have encouraged
investment in new BOPA film capacity, mainly by new entrants but also major expansions at some of the
producers with a history of supplying other types of oriented film. Poor financial results over the past five years
has meant much of this new capacity has not been fully utilized forcing some new capacity to close, e.g. Unitika's
Chinese plant in 2015, or film lines sold to other producers. An additional 18 ktpa are planned in the country in
2021.
Outside of China, other mature Asian markets, i.e. Japan, South Korea and Taiwan, experienced little
investment in new capacity despite producers in the region being the first to innovate in BOPA films in the early
1970s. Instead, these producers have decided that building production plants in South East Asian countries e.g.
Indonesia, was a better route to securing a global supply base. None-the-less, Taiwan has seen its first line
being installed in 2018. South East Asia has also become home to several independent privately-owned
producers which have made sizeable investments in BOPA film, as well as other oriented films. The most recent
capacity addition in South East Asia happened in Thailand in 2019; further capacity is planned in Indonesia in
2021.
The North American and European regional markets are significant in size but both are relatively mature and
have been experiencing slower growth in demand than the global average; Europe in particular is seeing
decreasing demand, opposite to the other regional markets. Europe’s last new line came onstream in 2018 with
Taghleef Industries converting a BOPP film line at its facility in San Giorgio, Italy, which closed in 2019. Since
then, another line closed in 2020, DOMO Leuna, in Germany. Eastern European markets have seen a healthier

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growth than Western European states; indeed, while Western Europe has seen deep demand decreases in
2019-2020, there will be new converter capacity being added in Poland which is driving the installation of a new
BOPA film line in Germany in 2021.
Meanwhile, the North American market has seen the sole US producer, AdvanSix, close its Pottsville BOPA film
plant during 2019 and enter into a strategic partnership with Oben Holdings (OPP Films); the BOPA film
produced at OPP Films’ Peru plant is using AdvanSix’s Aegis® resin, sold under the Capran® brand. Despite
this closure, the region is due to see some planned investment over the next couple of years, with Canadian
producer American Biaxis installing a significant new line geared to predominantly supply the regional market.
The Latin America and the Caribbean region is home to a small production base but as its markets is relatively
small anyway in terms of demand it has been difficult to justify more to be installed; even the currently installed
capacity has been extremely underutilized, with operating rates averaging 29% over the last five years. Given
OPP Films partnership with the US-based AdvanSix, operating rates at its new line in Lima, Peru could raise
above the recent years’ regional average as the new distribution network in the US matures.
The global BOPA film industry has grown over the last 10 years. In the forecast period, however, we expect
growth rates in mature regions such as North America and some Asian economies to slowdown in face of
environmental concerns. Europe, where demand has already decreased over the last two years, should continue
to see a contraction in market size, further incentivized by the new EU plastic tax to be active from 1 January
2021. In growing economies, such as Latin America and the Caribbean and most of Asia, including China, we
expect BOPA film demand growth to be immune to environmental protection measures over the next five years,
although we expect this trend will eventually impact these markets too. Whatever happens over the next five
years, there is one certainty - the traditional strength of the producers operating in Japan, North America and
Western Europe will be further sapped by the investment plans and marketing efforts of the emerging world
players in China and South East Asian countries as they continue to satisfy the predicted growth in demand in
their domestic as well as to penetrate export markets.
Global BOPA film capacity by region
4.3 Global capacity by leading producer
After significant investment in new production capacity during H2 2018 and into 2019, Xiamen Changsu
Industrial Co. Ltd continues to be the world’s largest BOPA film producer, currently accounting for 19% of global
capacity. Given its dominant position, and its plans to install the world’s first +7m wide BOPA film line (from
Brückner), the producer should remain the global leader for the foreseeable future.
In 2020, the top ten global BOPA film producers accounted for 72% of the global BOPA film capacity. Production
technology owned by the leading BOPA film producers was well guarded up to the mid-2000s, but new suppliers

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have been able to break into the market as film extrusion machine suppliers such as Brückner Maschinenbau
GmbH (Brückner) have developed their own technology and offered it for sale. Buyers, particularly Chinese
buyers, have rushed to order new machines and the global market has a much broader choice of machine
suppliers today.
However, many of these new entrants have found it difficult to compete in an over-supplied market and to
produce BOPA film of an acceptable quality. In China, there has been a degree of industry consolidation as
some of the more recent investors have gradually withdrawn from the market. Another interesting feature of this
market is the degree of vertical integration in this industry – over 30% of the BOPA film supplier base is owned
by producers of PA6 polymer.
2020 saw a change in the top five producers list, with Shanxi Yuncheng adding 18 ktpa of new capacity in China
in 2019-2020 through its subsidiary Kunshan Yuncheng Plastic Industry Co.; new capacity in Thailand also
removed Cangzhou Mingzhu Plastic Co. Ltd from the top five producers list, now replaced by A.J. Plast, who
entered the list for the first time. The top five players in 2020, in terms of installed nameplate capacity:
• Xiamen Changsu Industrial Co., Ltd (China)
• Shanxi Yuncheng Group (China)
• Unitika Ltd (Japan, Indonesia)
• Hyosung Corporation (South Korea, China)
• A.J. Plast Public Co. Ltd (Thailand)
Over the next five years, we expect the top 20 producers to continue to make investments in new film extrusion
capacity to service their own domestic markets and some are likely to acquire competitors to strengthen their
market positions. We also expect potential further capacity rationalization, namely where demand is decreasing
such as Europe.
Top 20 Global BOPA film producers by capacity
Producer 2015
(kt)
2020
(kt)
2025
(kt)
Plant location(s)
Xiamen Changsu Industrial Co. Ltd 50.6 85.8 103.8 China
Shanxi Yuncheng Group 16.0 41.5 41.5 China
Unitika Ltd 46.5 41.5 51.5 Japan, Indonesia
Hyosung Corporation 19.0 29.0 29.0 China, South Korea
A.J. Plast Public Co. Ltd 18.0 33.0 33.0 Thailand
Cangzhou Mingzhu Plastic Co. Ltd 27.5 30.0 30.0 China
Kolon Industries Inc 18.0 18.0 18.0 Indonesia, South Korea
Gettel Group 5.0 17.0 17.0 China
Toyobo Co. Ltd 15.0 15.0 15.0 Japan
Sojitz-Wipak Group 14.5 14.5 25.5 Finland, Canada
Oben Holding Group 7.0 13.0 20.0 Chile
Hong Tian Yu 0.0 12.0 12.0 China
DOMO Chemicals 8.8 11.3 8.8 Italy
Lealea Enterprises Co. 0.0 11.0 11.0 Taiwan
Ningbo Ruicheng Packing Material Co. Ltd 0.0 11.0 11.0 China
Mitsubishi Corporation 10.0 10.0 10.0 Japan
MF Folien GmbH 9.5 9.5 19.0 Germany
JK Materials Co. Ltd 9.0 9.0 9.0 South Korea
Mitsubishi Chemical Holdings Corporation 7.2 7.2 7.2 Japan
Thai Polyamide Co. Ltd 6.0 6.0 6.0 Thailand
Other 35.5 19.5 19.5
Global Capacity 323.1 454.8 507.8

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5 Global BOPA film trade
The global BOPA film industry operates on a more regional basis than other oriented film industries, largely
because transporting nylon, a highly hygroscopic polymer, can be challenging particularly across the tropics.
Some producers have built single large-scale plants to export to various target regional and domestic markets
(e.g. Chinese producers) while others have invested in a network of smaller plants, much closer to their
customers e.g. Unitika. However, most producers, because of the size of their domestic regional markets, need
to export volume from their region to fill their capacity.
The trade in BOPA between regions (i.e. inter-regional) reached 40 kt in 2020, representing 13% of global
production. Asia, excluding China, accounts for almost 40% of all BOPA film exported between regions; China
alone accounts for another 40%. In terms of inter-regional imports, the EU and North America account for a little
over half of all global imports.
International trade remains very important to global BOPA film producers, mainly because it helps to fill capacity.
However, inter-regional trade also helps support film buyers, who often have to source film supplies for more
than one converting plant - e.g. Amcor, who has flexible packaging operations in all regions but Africa. BOPA
film producers have developed ‘global’ deals with some customers and try to use a variety of plants strategically
located to service their requirements. In addition, the multi-plant BOPA film suppliers have built expertise in
certain regional plants and export this excellence through their sales and marketing teams to other regional
markets.
Global trade will remain an important factor and we expect the current trade matrix to broadly remain in place
over the next five years, with a couple of caveats: we expect exports from Latin America and the Caribbean to
North America to increase in the short-term as there is no new capacity due in North America until mid-2021
and as the Oben-AdvanSix partnership matures.
Global trade in BOPA films in 2020
Region China
Asia
(ex
China)
North
America
Latin
America
& Carib.
Middle
East Africa Europe
Russia &
Caspian
Total
Exports
China 11.6 1.0 0.5 0.3 1.9 0.6 15.9
Asia (ex China) 2.2 8.9 0.3 0.8 0.3 3.0 - 15.5
North America 0.1 0.1
Latin America &
Carib.
5.2 0.4 5.6
Middle East -
Africa -
Europe 0.2 1.0 1.4 0.1 0.1 0.1 2.9
Russia & Caspian -
Total imports 2.4 12.6 16.5 0.4 1.4 0.7 5.3 0.7 40.0

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6 Global BOPA film demand
6.1 Demand by region
Of the 315 kt of BOPA film consumed globally in 2020, 44% of this volume was used within China, with Asia as
a whole accounting for 80% of global demand. The traditional and mature markets of Europe and North America
are seeing mixed fortunes. European demand has fallen in 2019 and 2020 as the industry looks for mono-
material solutions at the expense of BOPA film; regional demand also took a hit due to the coronavirus
pandemic, particularly in the later months of the year as the economy continued to deteriorate and environmental
concerns surfaced again after a couple months in the backburner. North America has seen modest growth with
sustainability not such a key issue as in Europe, and we expect this to continue to be the case; however, after
the 2020 US election, there is an increased risk for BOPA film demand growth in North America as the new
government seems more focused on environmental protection. Both regions continue to see a declining share
of global demand.
Global demand by region
Region 2015
(kt)
2020
(kt)
CAGR
2015-20
Africa 0.5 0.7 8.6%
Asia 200.8 253.4 4.8%
Europe 36.5 36.1 -0.2%
Latin America and the Caribbean 2.0 2.3 2.9%
Middle East 1.0 1.4 6.9%
North America 17.8 19.7 2.1%
Oceania 0.8 0.8 0.8%
Russia and the Caspian 0.8 0.7 -2.0%
Global Demand 260.0 315.1 3.9%
Over the last five years historic demand growth rates have, not surprisingly, differed markedly due to the levels
of growth in flexible packaging applications and economic turbulence in the various regional markets.
• The Chinese BOPA film market accounts for 44% of all BOPA film used globally in 2020, up from 37% in
2015. This represents an average growth rate of 7.8% p.a. over the last five years. Industry feedback
indicates that while the pandemic had no impact in film production in the country, domestic demand
decreased in the first quarter in 2020. While demand has since recovered, and exports increased in Q2 and
Q3 to meet demand increases elsewhere when the pandemic hit a global scale, there was a slowdown in
Chinese demand growth for this year, from 8.7% in 2019 to 7.0% in 2020. Chinese demand still grew at a
strong pace though, as the issues around plastic packaging and sustainability are not currently much of a
topic here. Growth in retort and fresh produce packing both continue to be key end-use application driving
overall flexible packaging demand in China.
• Elsewhere in Asia, demand for BOPA film has been relatively subdued in recent years, having slowed to just
1.6%. Competition from other packaging films and imports of converted films has reduced opportunities.
Despite this slower growth, the region still accounts for 36% of global demand in 2020 up from its position
five years ago, where the region accounted for 33% of global demand in 2015. It is noteworthy though, that
most of this growth is in the South East Asian countries, namely Indonesia and Thailand, which have seen
capacity additions to meet growing demand in recent years. Growth in Bangladesh, India, Pakistan and
Vietnam being particularly strong. In 2019, trade was a particular issue as China looked to the local Asian
market for export opportunities rather than the US, due to the trade war. In 2020, however, logistics
constraints of Chinese shipments in Q1 benefitted other Asian producers, with South Korea reporting an
increase in exports during that period. Overall, Asian BOPA film demand still grew in 2020, in some countries
at healthy rates, but there was a clear slowdown in growth overall in the region.
• Oceania is a very small market, accounting for less than 1% of the global BOPA film demand. This is a
mature market, with demand growing at a slow pace over the last five years, of around 1%.
• EU demand has, on average, seen stable demand over the last five years at -0.2% p.a.; this accounts for
both moderate growth at the beginning of the historical period and steep demand decreases in 2019 and
2020. The growing importance of plastic recycling and sustainability has had a material impact on the market
over the last 2 years. Brands are hyper-aware of the public perception around plastic packaging and their

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influence is being fed back up the supply chain. Converters and film producers are now collaborating to
provide sustainable packaging solutions; which includes a drive towards mono-material (typically PE)
structures that can currently be recycled. This has been at the expense of multi-material laminates which
often contain BOPA film and as such demand for BOPA stagnant towards the end of 2018 and then declined
during H2 2019. For example, there has been a shift away from BOPA(15µ)/PE(40µ) structures to 70-90µ
PE with EVOH. The coronavirus pandemic temporarily put environmental efforts on the backburner; however,
recent announcements of a new tax on non-recycled plastics in Europe from 1 Jan 2021 poses a further
threat to Europe’s BOPA film demand in the short-term. We expect that demand will continue to trend
downwards in Europe in the forecast period, even though this region includes Turkey. Turkish converters
have been very active in exporting significant quantities of BOPA film laminates, sometimes in pouch form,
to European end users; while we expect Turkish domestic demand to continue to grow from 2021, it is likely
to take a hit on the exports side and growth should be more subdued as Europe increases its environmental
restrictions.
• Russia and the Caspian is a small regional BOPA film market; Russia has a small BOPA film market which
saw significant fall in demand as the country was badly hit by the oil price crash in 2014. The market stabilized
in 2016 and has started to show growth again but is still significantly below the levels in 2015.
• North American demand has grown by 2.1% p.a. over the five-year period from 2015. The region is
dominated by the US and the economic slowdown seen over the last few years has impacted regional growth.
While there are industry discussions around recycling and sustainability, it seems it is currently less of an
issue compared to Europe although this may change under the new administration from 2021. Food
processing units previously set up in Mexico for domestic sales and exports of converted BOPA films have
been a positive stimulus for demand growth in Mexico. In 2020, the North American region accounted for
just over 6% of global demand, down slightly from nearly 7% in 2015. In 2020, demand increased during the
lockdown as people spent more time at home and stocking up more on foods; demand benefited from non-
retort food products such as prepared meats, cheese and flow wrap for pizzas. However, demand from
institutional/ hospitality establishments was down, as was the industrial sector (which accounts for about 1/5
of total US BOPA film consumption). The boost in demand in 2020 occurred only during a specific period,
and the US market should end the year at a similar level to 2019.
• Growth in the Latin America and the Caribbean region has shown good resilience against a backdrop of
economic uncertainty, although Brazil and Argentina have seen demand fall over the last five years. Peru
accounts for over 80% of regional growth, followed by Chile at 32%; with production lines moving from Chile
to Peru we expect to see a slowdown in the rate of growth in Chile. Peru is a much smaller market (compared
to Chile) but we expect to see a boost to consumption. In 2020, the region accounted for less than 1% of
global demand, about the same proportion as in 2015.
• Demand in the Middle East has been growing over the last five years, at 7% p.a., albeit from a very small
base; the main driver for the high growth in the region has been the emergence of a solitary converter in
Israel that has become an important supplier of retort pouches for human food consumption which uses
BOPA films in their construction. Despite high incomes in the Middle East, food processing factories are only
now starting to pop up in the region, which we expect should drive demand growth over the next five years.
• African demand continues to grow strongly, at 8.6% p.a. since 2015, but from a low base. Much of the
infrastructure and level of income required to stimulate growth is still some way off. In 2020, the region
accounted for well under 1% of global demand, as it did in 2015.
In the last 20 years, there have been several factors that have stimulated historic growth in BOPA films
throughout the world:
• Packaged foods, some of them utilizing a BOPA film, are being bought by consumers in far greater quantities
than before, stimulated by the growing number of multiple food retail outlets. This trend is also helped by
consumers’ increasing personal disposable incomes in all regional markets. In most cases, packaged foods
mean greater convenience and it is the growth in convenience foods that has encouraged the use of BOPA
films in sectors such as fresh meat & poultry, retort foods, dried foods and pre-prepared rice and noodles.
• Investment in new converting and packaging equipment by purchasers of BOPA film has also meant that
BOPA film can be used in a larger number of end use applications. Again, this is particularly relevant in
emerging markets, where poorly maintained, ‘home-grown’ converting and packaging machinery previously
meant that the narrower processing window of BOPA film ruled it out in a lot of applications.
• More recently, environmental legislation has both hampered and encouraged demand growth for BOPA films
in many of the more mature markets. The general trend towards flexible packaging instead of traditional rigid
packaging to reduce packaging weight is one stimulant. However, government legislation, the higher cost of

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collection and recycling of plastic films and the issues around sustainability have seen an increasing number
of packers move towards mono-material (PE or PP) structures, particularly in Europe.
6.2 Demand by film type
Apart from the obvious variations in gauges (thicknesses) supplied, typically from 10-25 micron, there are
various other factors which expand the product range available for BOPA films.
• High temperature resistant grades for retort applications
• With or without enhanced oxygen and moisture barrier coatings e.g. EVOH coex or PVdC coatings
• Different printable coatings required for different printing processes, mostly via coatings or corona treatment
• Shrinkable films with balanced properties in orientation
• Matt films
BOPA film suppliers wishing to compete on the global stage don’t have to offer every single film type. But if film
producers want to differentiate themselves and improve margins, then offering bespoke products to individual
customers (or customer groups) is the best way to get protection from the competition. This inevitably forces
producers to spend more on R&D to expand the product range on offer.
Transparent BOPA films are the basic building blocks of flexible packaging offering a clear medium oxygen
barrier, improved puncture resistance and protection. Clear product visibility is a key driver of flexible packaging
growth in today's BOPA film market and consumers expect to see the food they wish to purchase, often to
assure themselves it is fresh.
Transparent BOPA films can also have a coextruded layer or be coated with:
• A transparent oxygen and/or moisture barrier coating to add extra protective features
• A printable coating for printers
They can be supplied with a printable base as the top web in a lamination where they carry the print, offer an
oxygen barrier and extra puncture resistance. Transparent films are also the base film, which is used in the
metallizing process to produce a metallized BOPA film.
The vast bulk of the volume of BOPA film in this sector are commodities, especially standard 15-20 micron, with
price being the most important factor driving supplier choice. However, speciality sectors do exist with high
temperature resistant films used in retort, PVdC coated and EVOH coex films for higher oxygen barrier and
thinner, <10-micron, film used in print lamination and balloons.
PVdC coated and EVOH coex BOPA films are niche sectors with yogurt and MAP lidding being two important
applications using PVdC coated BOPA films to protect against oxygen and humidity intrusion. However, there
are several cost-effective multi-layered laminate alternatives to these BOPA films and therefore potential growth
is limited. PVdC and SiOx/AlOx coated BOPET films are more likely to be used as an alternative to PVdC coated
BOPA along with PE/EVOH/PE coextruded films.
Metallized BOPA films are disappearing from the market as a high oxygen barrier material. If used at all, they
will be by converters with an integrated metallizing operation and then only in small quantities.
Matt BOPA films are also provided by a few suppliers, but the quantities are small and unlikely to grow
significantly as there are other and cheaper alternatives available for print lamination applications e.g. matt
BOPP film.
6.3 Demand by end use
Over 90% of the total volume of BOPA films used in 2020 was supplied to converters and end users that supplied
BOPA films for flexible packaging applications, both food and non-food, e.g. fresh & processed meat, cheese,
retort foods, rice & noodles, dried foods including coffee, frozen foods, other foods such as cooking oils and
bag-in-box wines, infusion bags & medical devices, cold forming and pharmaceutical, chemicals and other non-
food packaging.
Other specialized applications outside of flexible packaging in which BOPA films are used include the
manufacture of novelty balloons, print lamination, composite manufacturing and a variety of other industrial
uses.

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Global BOPA film demand by end use
End Use 2015
(kt)
2020
(kt)
CAGR
2015-20
Food Packaging 205.1 253.1 4.3%
Non-Food Packaging 33.1 38.2 2.9%
Total Flexible Packaging 238.2 291.4 4.1%
Other Industrial 21.8 23.7 1.7%
Total Demand 260.0 315.1 3.9%
Food packaging applications account for 80% of global demand for BOPA films in 2020. This sector of the
market has been, and will continue to be, the key driver of BOPA film demand in every regional market for some
years to come. BOPA films are ideal as a premium flexible food packaging film because of their superior
technical properties where puncture resistance, oxygen and odour barriers are required. Growth has been
particularly strong in fresh produce packing, fish and seafood and retort pouch applications where these
properties are in high demand. In Asia, BOPA films are used in laminates for packaging cooking oils, especially
in larger pack sizes where BOPA film’s excellent puncture resistance helps to ensure pack integrity during
transportation and distribution.
Non-food packaging applications, such as detergent and soap refill packs, infusion bags and pharmaceutical
packaging use BOPA films for added puncture resistance but more often as an oxygen and/or odour barrier.
Non-packaging applications include print lamination and novelty balloons. The use of metallized BOPA films in
balloons has experienced intense competition from metallized BOPET film substitutes, slowing volume growth.
Food packaging
The volume of BOPA film used in food packaging applications, which includes fresh & processed meat, retort
foods, dried foods and rice & noodles, accounts for 80% of all BOPA film consumed in 2020. Since 2015, food
packaging has seen average growth of 4.3% p.a. to reach a market of 253 ktpa but we expect this rate of growth
to slow to 4.0% p.a. over the next five years, much due to the continued contraction expected in Europe.
Global food packaging BOPA film demand by region
Region 2015
(kt)
2020
(kt)
2025
(kt)
CAGR
2015-20
CAGR
2020-25
Asia 155.8 201.4 258.4 5.3% 5.1%
Oceania 0.6 0.6 0.6 1.0% 0.0%
North America 12.8 14.8 16.6 2.9% 2.4%
Caribbean
1.8 2.1 2.5 3.2% 3.0%
Middle East 0.9 1.3 1.6 7.5% 3.7%
Africa 0.4 0.6 0.8 9.0% 4.6%
Europe 32.1 31.6 26.8 -0.3% -3.3%
Russia and the Caspian 0.7 0.6 0.8 -3.1% 6.7%
Global Demand 205.1 253.1 308.1 4.3% 4.0%
In China, food packaging has driven demand growth at 8.7% p.a. with increasing numbers of consumers now
with levels of disposable income to shop for packaged foods. It is within the retort pouch, rice & noodles and
dried foods markets that the strongest growth has been most evident. High growth is expected to continue but
at lower than historic levels, at around 7.6% through 2025.
In the remainder of Asia, in mature markets BOPA film demand in food packaging has shown, and will continue
to show, modest growth of less than 2% p.a. This is due, in part, to a high-level packaged food penetration and
strong competition from other competing film formats e.g. coex PA and cheaper BOPET films. Industry feedback
indicates a couple of growth areas; in Japan the rising number of smaller supermarkets offering convenience
products, and South Korea which has seen an increase in home meal replacement (HMR) kits which typically
use BOPA/Alufoil/BOPET laminate structure. Conversely, the packaging of branded cooking oils, and in
particular palm oil in Indonesia and Malaysia (typical structure BOPA/PE), has been a growth area of BOPA film
in South East Asia. Continued high growth of flexible packaging and laminates containing BOPA film, i.e. retort
pouches, are a key area of growth.

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The replacement of cans by retort pouches in North America has been a strong driver of demand for BOPA film
along with the development of centralized packing systems for meat. This extends the shelf life requirements of
meat packing and encourages higher oxygen barrier transparent packs, although competition from coex PA
films has restricted growth. Stand-up pouches have also been a good source of growth for BOPA film. Regional
demand for BOPA film in food packaging applications has been growing at around 2.9% p.a.
Economies in the Latin America and the Caribbean region have suffered in recent years and rates of demand
growth have slowed, especially in Brazil and Argentina where the domestic markets have seen a decline over
the last five years. None-the-less, demand for food packaging increased by 3.2% p.a. over the last five years;
meat and coffee packing are two of the key end use markets driving growth in the region.
As with all flexible packaging materials, the use of BOPA films in the Middle East is small but average growth
has been significant, albeit from a small base. The main driver for the high growth in the region has been the
emergence of a solitary converter in Israel that has become an important supplier of retort pouches for human
food consumption which uses BOPA films in their construction. They are exporting finished pouches to Europe
and North America.
The EU is another mature market for BOPA films and one in which coex PA films have been replacing some
areas of BOPA//PE laminates; environmental concerns have also pushed converters to move towards mono-
material structures over the last two years. As such, Europe BOPA film demand growth for food packaging
applications was at -0.3% p.a. the last five years. Fresh meat and coffee are key markets along with retort
pouches.
In Russia and the Caspian, the Ukrainian crisis has had an impact on demand from Ukraine and Russian
converters due to sanctions. Some pick-up in demand is likely as the situation eases and confidence in investing
in food production and flexible packaging returns to these markets, but demand has contracted -3.1% p.a. in
this region since 2015.
Non-food packaging
Non-food packaging applications, which includes infusion bags & medical devices, cold forming laminates for
pharmaceuticals and the packaging of personal care and household chemicals products, has seen demand
grow at a rate of 2.9% p.a. since 2015. The global market now uses just over 38 ktpa of BOPA film in various
laminates where it provides extra puncture resistance for big bags and liquids, medium oxygen and odour
barriers, and chemical barriers for products with strong odours.
Most of the volume is currently found in Asia but North America and the EU are still significant markets in terms
of volume, particularly for medical & pharmaceutical applications.
Global non-food packaging BOPA film demand by region
Region 2015
(kt)
2020
(kt)
2025
(kt)
CAGR
2015-20
CAGR
2020-25
Asia 27.0 31.8 38.6 3.3% 3.9%
Oceania 0.2 0.2 0.2 0.0% 0.0%
North America 1.9 2.0 2.2 1.1% 2.1%
Caribbean
0.1 0.1 0.1 -2.4% 1.4%
Africa 0.0 0.1 0.1 4.6% 1.4%
Europe 3.8 4.0 3.5 1.3% -2.6%
Global Demand 33.1 38.2 44.7 2.9% 3.2%
Note: Middle East and Russia and the Caspian not shown as non-food packaging demand is negligible in these regional markets
Non-packaging
Non-packaging applications include novelty balloons, print lamination and a wide variety of other industrial
applications e.g. the use of BOPA laminate bags for the production of composite panels. Volume in this sector
has been growing by 1.7% p.a. since 2015 but competition from cheaper alternative films has seen demand
growth slow. The manufacture of BOPA/PE laminates for novelty balloons is largely found in China and North
America where there are significant players in these fields. These regions are also major users of BOPA film for
print protection films in the print lamination sector where BOPA film is often used as an alternative to BOPP and
BOPET print lamination films.

Page 17 of 76
Global non-packaging BOPA film demand by region
Region 2015
(kt)
2020
(kt)
2025
(kt)
CAGR
2015-20
CAGR
2020-25
Asia 17.9 20.2 22.6 2.4% 2.3%
North America 3.1 2.9 3.0 -1.1% 0.5%
Europe 0.6 0.5 0.4 -4.2% -5.4%
Russia and the Caspian 0.0 0.1 0.1 7.6% 1.9%
Global Demand 21.8 23.7 26.1 1.7% 2.0%
Note: Latin America and the Caribbean, Oceania, Middle East and Africa not shown as regional non-packaging demand is negligible

Page 18 of 76
7 Global supply demand forecasts
Our 2020 update of the BOPA film market has seen some key themes emerge over the last year. The global
economic outlook is much gloomier when compared to a year ago. In 2020, the world was caught by surprise
under a global pandemic, throwing off the forecasts made in 2019 – and the BOPA film market is no exception.
Wood Mackenzie’s macro-economic analysts indicate a global recession of -4.8% in 2020 as a result of the
pandemic. Some regions suffered more economically this year than others though. Asia suffered a -1.9%
recession this year; while this was the smallest contraction, it also came after the highest growth in the previous
year, of 4.0% in 2019. Europe saw the biggest economic contraction, of -8.1% in 2020. Growth is expected to
resume in 2021, when a global 4.6% GDP growth is forecasted.
In terms of the BOPA film industry, the lockdown measures implemented as a response to the pandemic resulted
in a boost in demand for food and medical/pharma packaging at the early stages of lockdowns, particularly
around March-April. Consumers stocked up on goods before the first waves were implemented and continued
purchasing goods via retail channels throughout summer months as stay-at-home orders forced millions to work
from home; under these circumstances, confectionery and comfort food demand grew substantially. Conversely,
industrial demand decreased as the economic situation deteriorated globally and the world plunged into a deep
recession. The hospitality and food service sectors also suffered a deep cut in demand in 2020 as travelling and
hospitality in general was severely restricted for months. In Europe, a second wave of lockdowns was
announced in late-October, when the food service activity was just coming back to normality.
Different regions had different responses to the pandemic in terms of BOPA film demand, but overall the
lockdowns had a negative impact on demand growth. Global BOPA film demand still grew overall, by 2.8%, but
at a much smaller rate then the growth of 4.3% in 2018 and 4.1% in 2019. Growth is expected to pick up in 2021
as the global economy recovers but should remain at a lower pace than the last four years pre-pandemic as
sustainability concerns gain momentum in key markets such as Europe and potentially in North America.
BOPA film demand has been driven by flexible packaging which continues to be the key end use application.
However, the issues surrounding plastic packaging waste and its negative impact on the environment is now
widely reported in the mainstream media and has raised serious questions for the packaging industry. Consumer
and brand sentiment are looking towards sustainable packaging solutions and, in Europe, packers are driving
towards mono-material packaging solutions, which currently favours polyolefin-based film. This presents a
considerable risk to future growth of BOPA film in Europe, where we expect demand to continue to decline over
the forecast period. Other regions are not currently as affected by sustainability discussions and we expect the
impact of sustainable packaging solutions to have less of a downward effect on BOPA film growth over the same
forecast period.
• Global BOPA film demand growth, while still healthy, is now mainly led by Asia and the question is will all
regional suppliers continue to survive in markets with increasing competitive activity?
o The role of flexible packaging in driving growth is vitally important to BOPA film suppliers, it accounts for
over 90% of all BOPA films demand. Will packaged foods demand continue to grow at current levels?
o Substitution threats and opportunities from other films and formats with better environmental credentials
are emerging as sustainability becomes more of a focus; BOPA films are currently not easily recycled.
o Downgauging trends to thinner BOPA films also reduces the potential for growth in volume terms.
• Will Chinese independent producers continue to dominate global BOPA film production and will they become
more active globally?
• The environmental protection drive and substitution trends are particularly strong in Europe, a market which
already experienced demand decreases in 2019 and 2020. Adding this to increasing imports competition
resulting from overcapacity elsewhere, namely in Asia, will we see further capacity curtailments in Europe?
• Will we continue to see global demand growth past the five-year forecast period or will demand decrease
globally, mirroring Europe, and then stagnate as we reach the threshold of the feasible replacement of BOPA
film in packaging?
• Will demand growth still be attractive enough in the future to back up further capacity additions and
investment?
We have considered all of the industry-specific points above in our projections of demand and supply.

Page 19 of 76
7.1 Five-year regional BOPA film supply forecast
Over the next five years the global BOPA film market looks set to be well covered in terms of supply given the
significant volumes that came online during 2018-19 (~115 ktpa). The global utilization rate in 2019 fell to 69%
from 78% in 2018; 2020 saw a couple capacity closures and one line being moved in Latin America, but also
some capacity installed in 2019 ramping up. Capacity utilization remained stable at 69% in 2020, well below the
78% average over the last five years and the 2017 peak of 86%. The additional +53 ktpa due to be installed in
the global market over the next two years and the already existing overcapacity is, theoretically, enough to
satisfy the expected increase in global demand (+64 kt) over the next five years. However, as with all our analysis
of global oriented film markets, we ask "is this capacity in the right location to take advantage of the expected
regional demand growth"? Capacity utilization is currently particularly low in Latin America and the Caribbean,
with the highest operating rates seen in Asia. Most of the capacity planned to come on stream through 2025 will
be in Asia (+28 ktpa) where the bulk of the demand growth is expected to be. But there is also new capacity
planned in North America (+11 ktpa) and Europe (+9.5 ktpa); Europe, in particular, is expected to see a further
decrease in capacity utilization not only due to the additional capacity planned but also due to the continued
demand decreases expected in the forecast period.
BOPA film is internationally traded but where margins are very thin much of the advantage of producing on fast
efficient lines in Asia is lost in transportation, storage and distribution costs to target markets. Another factor is
that the quality of product from regional producers is often unacceptable to buyers in other regions.
The BOPA film market remains a global and highly competitive environment and in recent times returns on
investment have been weak for most film suppliers and things are not set to change. Using our forecasts of
demand growth through to 2025, with demand decreasing in Europe and growth slowing in North America, our
analysis shows that global capacity utilization levels during the forecast period should remain in the high-60%s
to mid-70%s. After 2025, in theory the global market should tighten further, improving operating rates, but we
believe the current capacity is sufficient to meet demand through the next five years; plus, it is likely that some
further capacity will be announced in the meantime, possibly in Asia where demand is still growing healthily.
As with all forecasts, there is a major proviso that any one of our key assumptions has a chance of being
incorrect; there could be a number of fairly dramatic scenarios which could derail even our modest predictions
of demand growth – the likes of the unpredictable coronavirus pandemic – which could have a significant impact
on global economic growth and apply downward pressure on global BOPA film demand during the forecast
period.
Investors should also remember that continued price competition from BOPET, BOPP and coex PA multi-layer
films will continue to have an impact on both volume and margins on BOPA films.
The following scenario over the next five years is our best model for global supply-demand balances, which
shows annual increases in capacity being substantially ahead of the forecast annual increases in demand until
2022, and while no capacity has been announced past that period we believe capacity should still be sufficient
to meet further demand increases through 2025.
The graph below illustrates the following changes in capacity:
• 2020 – Kunshan Yuncheng Plastic new 9 ktpa line (China), DOMO closure of 5.5 ktpa plant (Germany). OPP
Films closed Chilean line in order to move it to Peru. Any remaining change in capacity is due to lines installed
the previous year running at full annual capacity.
• 2021 – 12 ktpa line at PT Emblem Asia (Indonesia) delayed from 2020 due to pandemic, 11 ktpa line at
American Biaxis (Canada), a 9.5 ktpa line at MF Folien (Germany), two lines with a combined capacity of 18
ktpa at Xiamen Changsu (China), and the restart of OPP Films’ (Oben Group) 7.0 ktpa line moved from Chile
to Peru in 2020
• 2022 – no new capacity but any change in capacity is due to lines installed the previous year running at full
annual capacity
• 2023 – no new capacity announced

Page 20 of 76
Global BOPA film annual increases in capacity and demand 2001–25
The global BOPA film market has historically grown at a healthy rate in volume terms which made it attractive
to investors. Over 90% of demand is now in growing applications such as flexible packaging, which is again
attractive to many as demand from this sector has shown a degree of resilience even during recessionary times;
the main risk to this market is sustainability, which is not much of an issue in Asia, the largest market.
Wood Mackenzie Chemicals’ have identified few real regional supply gaps over the next five years in the main
commodity film sector. Speciality film growth is healthy in all regions and specialist lines and downstream
integration strategies should be considered where opportunities are identified. However, it is obvious that if a
producer is not involved in the flexible packaging market then it won’t be a significant player. Overall the industry
can expect to continue to operate in a competitive market place that continues to move towards Asia.
Global BOPA film market five-year forecast
2015
(kt)
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 323.1 454.8 474.3 507.8 507.8 507.8 507.8
Production 260.0 315.1 326.5 338.6 351.4 364.8 378.9
Production Utilisation 80% 69% 69% 67% 69% 72% 75%
Global Demand 260.0 315.1 326.5 338.6 351.4 364.8 378.9
Supply-Demand Gap - - - - - - -
7.2 Five-year regional BOPA film demand forecast
BOPA films are a niche product in flexible packaging applications. Some end use markets are using more volume
because the laminate specifications they use contain a BOPA film and the format is growing in use e.g. retort
pouches. However, at the same time packers are trying to drive down their packaging costs and are reducing
the number of layers used. As a result, BOPA films, where they are used as an additional barrier layer or where
they only help with additional puncture resistance, are often being taken out of specifications to save cost, with
the resultant impact being a reduction in BOPA film volume. Despite these negative trends we do believe BOPA
film demand will continue to grow. Between 2020 and 2025 we expect BOPA film demand to increase by an
average of 3.8% p.a. to reach 379 kt by 2025.

Page 21 of 76
Global BOPA film demand five year forecast by region
Region 2020
(kt)
2025
(kt)
CAGR
2020-25
Africa 0.7 0.8 4.4%
Asia 253.4 319.6 4.7%
Europe 36.1 30.7 -3.2%
Oceania 0.8 0.8 0.0%
Russia and the Caspian 0.7 0.9 6.2%
Asian BOPA film markets are highly competitive and price conscious, but they account for 80% of global
demand. These regions will continue to be well protected from import penetration because of their low-cost
production base and low prices driven by the large number of producers within the market. It has become the
major market and home to the largest number of BOPA film producers. It is therefore the market to keep track
of to maintain competitiveness, even if a supplier only operates in its own domestic regional market.
China alone accounts for 55% of the total demand in Asia. Outside of China, the other Asia market is dominated
by the Japan, a mature market which due to high levels of packaging penetration has seen low levels of growth
for a number of years now. South Korea and Taiwan offer a slightly higher growth rate, but the market size of
both countries is significantly less than Japan. South East Asia countries are growing at a faster pace. Healthy
growth is expected in the major regional markets of Indonesia, Thailand, and Vietnam, and India’s high growth
rate is forecast to continue as food retail extends into rural areas and second-tier cities. Overall, we expect a
healthy growth rate of 4.7% p.a. in Asia as a whole over the next five years.
Chinese BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 238.8 421.8 256.8 256.8 256.8 256.8
Production 153.6 163.7 170.7 180.4 190.5 201.2
Regional Demand 140.2 150.3 161.1 172.6 184.6 197.6
Supply-Demand Gap 13.4 13.4 9.6 7.8 5.8 3.6
Asia (ex-China) BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 167.7 170.7 177.7 177.7 177.7 177.7
Production 124.7 125.7 130.2 131.9 133.6 134.4
Regional Demand 113.2 115.3 117.2 118.9 120.6 122.0
Oceania is a very small market of mature countries. Very little growth was recorded over the last five years and
this should remain as such in the foreseeable future thus no investment in new capacity is expected either.
Oceania BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 0 0 0 0 0 0
Production 0 0 0 0 0 0
Regional Demand 0.8 0.8 0.8 0.8 0.8 0.8
Supply-Demand Gap -0.8 -0.8 -0.8 -0.8 -0.8 -0.8

Page 22 of 76
The North American BOPA film market is dominated by the US and is highly competitive. Due to low levels of
profitability we have seen US producer AdvanSix cease its BOPA film operations in 2019 and enter into a
strategic partnership with the South American producer Oben Holdings (OPP Films). Thus, in 2020, American
Biaxis became the only producer in the region. The company is known to have upgraded its site, allowing
production to surpass the installed capacity since 2016. There is no new regional capacity due until mid-2021,
therefore imports will be critical in meeting demand growth in the short-term. North American producers have
historically done everything they can to protect their market and we expect this not to change for the remaining
regional producer.
North America BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 7.5 13.5 18.5 18.5 18.5 18.5
Production 8.0 8.5 9.0 10.5 12.0 14.4
Production Utilisation 107%* 63% 49% 57% 65% 78%
Regional Demand 19.7 20.2 20.6 21.1 21.5 21.8
*Sole regional producer modified its production site in Canada, allowing production to surpass installed capacity from 2016
The Latin America and the Caribbean market is small and unlikely to exhibit any higher growth in demand
than that experienced in recent years. The Brazilian BOPA film market is still struggling to recover from years
of recession, which was further delayed by the 2020 pandemic, but we expect some growth to return over the
forecast period. While regional demand growth is unlikely to fill the new capacity recently installed, the export
market will continue to be critical in filling capacity. This is particularly true of the US market and the strategic
agreement between Oben Group and AdvanSix.
Latin America and the Caribbean BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 13.0 20.0 20.0 20.0 20.0 20.0
Production 6.0 7.0 7.5 8.0 8.5 9.0
Regional Demand 2.3 2.3 2.4 2.4 2.5 2.6
The Middle East market is quite small but is expected to see reasonable growth over the next five years within
the food packaging end use sector as the region continues to invest in food processing units. Middle East has
large integrated petrochemical companies that have the option to move into the BOPA film market.
Middle East BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Regional Demand 1.4 1.5 1.5 1.6 1.6 1.7
Africa’s demand continues to grow strongly, but from a low base. Much of the infrastructure and level of income
required to stimulate growth is still some way off. In 2020, the region accounted for well under 1% of global
demand; we expect regional demand growth to increase by 4.4% p.a. over the next five years.

Page 23 of 76
Africa BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Regional Demand 0.7 0.7 0.7 0.8 0.8 0.8
The European BOPA film market is highly competitive and at times not very profitable for film suppliers, but it
remains a sizeable market in terms of volume, albeit declining. Given the current drive for mono-material
packaging solutions, the EU market is an incredibly tough market for BOPA film producers. European producers
have and will continue to do everything they can to protect it. There has been one new line onstream in 2018
from Taghleef Industries in Italy (a converted BOPP film line), which ended up closing soon after in 2019. In
2020, DOMO announced the closure of its German plant, with a 5.5. ktpa capacity. Despite the recent capacity
rationalizations, one new 9.5 ktpa line was recently announced by MF Folien to start-up in mid-2021, in
Germany. No further new capacity has been announced in the region for the next five years; even so, we expect
demand will continue to decline, as will capacity utilization even if no further capacity is added past 2021.
Europe BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Capacity 27.8 28.3 34.8 34.8 34.8 34.8
Production 22.8 21.6 21.1 20.7 20.2 20.0
Regional Demand 36.1 34.7 33.5 32.4 31.4 30.7
The Russia and the Caspian is a small BOPA film market; Russia has a small market which saw significant
fall in demand as the country was badly hit by the oil price crash in 2014. The market stabilized in 2016 and has
started to show growth again but is still significantly below the levels in 2015. We expect the region will see
some significant demand growth in the forecast period of 6.3% p.a., albeit from a small base, as it looks to
become more self-sufficient in multiple downstream markets.
Russia and the Caspian BOPA film market five-year forecast
2020
(kt)
2021
(kt)
2022
(kt)
2023
(kt)
2024
(kt)
2025
(kt)
Regional Demand 0.7 0.7 0.8 0.8 0.9 0.9
7.3 Five-year end use demand forecasts
We expect to see further gains in volume in all applications and end uses for BOPA film over the next five years:
• Food packaging accounts for 80% of all BOPA film demand and this dominance is likely to continue for the
foreseeable future as there are still plenty of opportunities in emerging markets for extra volume of packaged
food. Our modelling predicts continued growth in flexible packaging for food at an average of 4.0% p.a. In
mature markets we believe packaging levels will continue to be scrutinized environmentally and demand
growth is likely to slow because of it; the most extreme case would be Europe, where we actually expect
demand to decline for all end-uses, including food packaging demand (-3.3% p.a.).
• Non-food packaging applications are likely to see long term growth in volumes but at slightly slower rates.
Overall the sector will see CAGR of 3.2% p.a. over the next five years. Once more, we expect a decline in
Europe, of -2.6% p.a. through 2025.

Page 24 of 76
• Non-packaging applications will see slower growth of around 2.0% p.a. as demand from balloon
manufacturers slows and print lamination fashions change.
Global BOPA film supply demand forecast by end use
2020
(kt)
2025
(kt)
CAGR
2020-25
Food Packaging
Asia 201.4 258.4 5.1%
Oceania 0.6 0.6 0.0%
Africa 0.6 0.8 4.6%
Europe 31.6 26.8 -3.3%
Non-Food Packaging
Asia 31.8 38.6 3.9%
Oceania 0.2 0.2 0.0%
Middle East 0.0 0.0 -0.8%
Africa 0.1 0.1 1.4%
Europe 4.0 3.5 -2.6%
Non-Packaging
Asia 20.2 22.6 2.3%
Oceania 0.0 0.0 0.0%
Latin America and the Caribbean 0.0 0.0 -0.6%
Africa 0.0 0.0 0.0%
Europe 0.5 0.4 -5.4%

Page 25 of 76
8 Technology
The production of BOPA film consists of four consecutive steps: 1) extrusion of a rapidly quenched, amorphous
primary film; 2) reheating of the primary film; 3) stretching; and 4) thermofixation/annealing.
Biaxially oriented PA film (BOPA) may be produced by both blown film process ("double bubble") and cast film
("tenter frame") process with simultaneous or sequential orientation, similar to those used for BOPET and BOPP.
For cast films, standard equipment as used for PE or PP is used for multilayer film with polyamide layers.
Standard blown film equipment is used for producing multilayer films with PA layers. Blown film lines can be
single, double, and triple bubble lines, which can either cool the film with air or water; these lines can blow the
film upwards or downwards.
Polyamide film industry started in late 1960s-70 with Japanese film producers, with most BOPA film production
processes having been commercially used for many decades, as per the timeline below. For more information
on different BOPA film production technologies, please see Appendix 10.6.
Timeline of BOPA film production processes
The chemical characteristics of PA mean that when the film is stretched it becomes crystallised and very hard,
making it difficult to heat and stretch again. If the film is stretched sequentially, the edges of the film are likely to
be less well stretched than the centre of the film resulting in higher waste levels. One of the key advantages of
simultaneous stretched tenter films is therefore the higher yield of A-grade quality film from these lines. This is
why simultaneous biaxial orientation lines are trending in the market.
In 2015, over 60% of all BOPA film produced globally was via 2-stage sequential orientation. However, the more
recent development of off-the-shelf simultaneous biaxial orientation lines, led by Andritz, ESOPP and Brückner,
is changing the face of the industry. In 2020, 38% of all production capacity installed was simultaneous
orientation machines, which provide lower-cost, more balanced stretch ratio BOPA films for key growth markets
such as retort and cold-form pharmaceutical packaging. We expect this share to increase to 40% by 2025, well
over the 27% share five years ago.
Global capacity split per production process 2015-2025
Process
2015 2020 2025
Volume (ktpa) Share (%) Volume (ktpa) Share (%) Volume (ktpa) Share (%)
Double-bubble 34 11% 37 8% 34 7%
Triple-bubble 3 1% 3 1% 3 1%
Sequential 196 61% 238 52% 272 54%
Simultaneous 87 27% 175 38% 196 39%
Unknown 3 1% 3 1% 3 1%
Total 323 455 508

Page 26 of 76
Since 2010, 40 new lines have either been installed or announced to come onstream over the next five years.
While the bulk of these lines were sequential, in 2018-2020 we have seen a growing number of simultaneous
lines being announced/starting-up:
• Li Ling Film Co. - started-up one 11 ktpa Brückner LISIM simultaneous cast BOPA film line in Taiwan
in 2018
• Hong Tian Yu – started-up one 12 ktpa ESOPP FLEXSIM simultaneous BOPA film line in Henan,
China in 2018
• Hyosung Film Co. – added one 10 ktpa JSW sequential cast BOPA film line in Zhejiang, China in 2018
• Kunshan Yuncheng Plastic Industry Co. Ltd – started simultaneous BOPA film production in in 2019,
adding two 9ktpa lines in China, one in Heshan, Guandong, and another in Qilong, Jiangsu, in 2019
and 2020, respectively.
• Xiamen Changsu Industrial Co. Ltd – added two 10.4 ktpa Brückner LISIM simultaneous BOPA film
lines in Fujian, China in 2018 and one 5ktpa Brückner sequential BOPA film line in 2019; the company
is adding a further two Brückner sequential BOPA film lines in Fujian in late-2021, with a total capacity
of 18 ktpa
• Ningbo Ruicheng Packing Material Co. Ltd – added one 11 ktpa sequential BOPA film line in 2019 in
Zhejian, China
• Anqing Gettel Nylon Material Technology Co. – added one ESOPP FLEXSIM simultaneous BOPA film
line in Anhui, China in 2019, with a capacity of 12 ktpa
• OPP Films - added one Brückner sequential BOPA film line in Lima, Peru in Q4 2019, with a capacity
of 13 ktpa
• A.J. Plast Public Company Limited – added one 15 ktpa Brückner LISIM simultaneous BOPA film line
in Chonburi, Thailand in mid-2019.
• American Biaxis Inc. – is planning one 11 ktpa Andritz MESIM simultaneous BOPA film line in
Manitoba, Canada to start-up in mid-2021
• P.T. Emblem Asia – planning one 10 ktpa Brückner LISIM simultaneous BOPA film line in West Java,
Indonesia expected to be online by end-2021, delayed due to the pandemic
• MF Folien – planning a 9.5 ktpa Dornier sequential BOPA film line in Kempten, Germany to start-up in
2021

Page 27 of 76
9 Sustainability
Coming into 2020, sustainability and recycling credentials for plastic packaging were considered some of the
most pressing factors for the future of plastic film production growth. As the coronavirus pandemic became a
larger presence over the first half of the year, there was a temporary shift in sustainability pressures as
consumers were reliant upon safe and secure packaging to meet new demand trends. As the industry prepares
to resume more normal trading practices, Wood Mackenzie Chemicals expects a resumption of previous trends
towards more recyclable packaging with feedstock sourced from recyclate where possible.
For BOPA film, the sustainability issue poses a threat in both recyclability and recyclate feedstock availability.
Unlike other bi-oriented plastic films such as BOPP and BOPE (which are easier to recycle in existing mechanical
recycling waste streams), as well as BOPET (which has a greater potential to work with rPET resin feedstock
sourced from recycled PET bottles), BOPA films are both difficult to recycle and have very limited volumes of
recyclate PA available.
It is worth noting that BOPA film will still have a place in packaging as long as it maintains its unique barrier
properties, notably in odour transmission. Looking at the below chart, the oxygen transmission rate (OTR) of a
typical BOPA film structure shows much more robust performance than its main competitors; additionally, the
water vapour transmission rate (WVTR) of a multi-layer structure which also includes an EVOH layer will boast
very competitive performance.
And with BOPA film’s more niche application usage, the packaging industry can expect a core selection of high-
odour products (such as meats, cheeses, and fish) as well as high-value pharmaceuticals to continue sourcing
it without much threat of competition. This trend is even more secure in non-food packaging, including
medical/hospital disposables, where the consumer pressures for recyclability and sustainability are not as
present as in food/supermarket products.
Comparison of polymer film properties
Property Measure 15µ BOPA 12µ BOPET 20µ BOPP
Density g/cm3
1.15 1.38 0.91
Yield m2
/kg 58.0 60.2 54.9
Tensile strength N/mm2
250 220 130/270
Elongation at break % 125 110 180/60
Oxygen transmission rate cc/m2
/24 hr 25-30 110 >3000
Water vapour transmission rate gm/m2
/24 hr 330 20-30 7-10
Haze % 5.0 3.0 2.4
One of the key drivers of packaging sustainability is the drive for mono-material packaging structures which can
be recycled into base components with more ease than a multi-material structure that is difficult to separate. As
mentioned earlier, where PP and PE films are well-suited to mono-material structures that do not require layer
separation, BOPA is virtually non-existent in mono-material packaging structures. Additionally, PET film (which
also rarely exists as a mono-material structure) has the advantage of sourcing recyclate feedstock volumes that
encourages closed loop production.
Wood Mackenzie Chemicals estimates that nearly all BOPA film-based packaging structures are multi-material
in both food and non-food packaging applications. This compares to about three-quarters of BOPP film-based
packaging applications1 as mono-material and 10-15% for BOPET film-based applications. PE film, aluminium
foil, and paper packaging applications all boast higher mono-material usages and therefore higher recyclability
credentials.
As the BOPA film market continues to show signs of struggle in Europe and other Western markets, we expect
sustainability to continue to add stress. In more developing economies there is still room for growth in spite of
the film’s lack of recyclability, but over the much longer term even these regions BOPA has the potential to lose
out to BOPP, BOPET, and PE film which offer a range of advantages.

Page 28 of 76
10 Regional BOPA film markets
10.1 China
Key regional statistics and trends
2015
(kt)
2020
(kt)
2025
(kt)
Volume growth (kt) CAGR %
2015-20 2020-25 2015-20 2020-25
Capacity 133.6 238.8 256.8 105.2 18.0 12.3% 1.5%
Production 105.3 153.6 201.2 48.3 47.5 7.8% 5.5%
Production Utilisation 79% 64% 78% -14% 14% -4.0% 4.0%
Demand 96.1 140.2 197.6 44.1 57.4 7.8% 7.1%
Net Trade 9.2 13.4 3.6 4.2 -9.8 7.8% -23.1%
Demand by End Use
Food Packaging 73.8 111.9 161.3 38.1 49.4 8.7% 7.6%
Non-Food Packaging 12.1 15.9 21.4 3.8 5.6 5.6% 6.2%
Industrial 10.2 12.5 14.9 2.2 2.4 4.0% 3.6%
Supply demand forecast
Key BOPA film producer capacities
Producer 2015
(kt)
2020
(kt)
2025
(kt)
Xiamen Changsu 50.6 85.8 103.8
Shanxi Yuncheng 16 41.5 41.5
Cangzhou Mingzhu 27.5 30 30
Hyosung Corporation 8 28 28
Gettel Group 5 17 17
Other 26.5 36.5 36.5
Total 133.6 238.8 256.8
Key end use markets
Operating capacity by machine technology

Page 29 of 76
Trends in capacity & production
Total regional installed capacity in China in 2020 was near 240 kt, installed at 10 BOPA film producers. The top
three leading producers of BOPA film in terms of installed capacity in the China market account for 66% of the
available capacity in the country:
• Xiamen Changsu Industrial Co. Ltd currently operates 11 BOPA film production lines with 86 ktpa of film
extrusion capacity. This includes the latest addition in mid- to late-2018 of two LISIM simultaneous 6.6m
Brückner line with a combined nameplate capacity of nearly 21 ktpa. The company also has links (cross-
shareholding possibly) back into a PA polymer producer in China. Xiamen Changsu has been investing in
the latest LISIM simultaneous technology from Brückner but also has a mixture of simultaneous and
sequential lines running. The company also purchased a second-hand 5 ktpa Brückner line from Kunshan
Yuncheng in late-2018.
• Shanxi Yuncheng Group subsidiary, Kunshan Yuncheng Plastic Industry Co. Ltd, is another of China's
longest serving film producers with five BOPA film production lines with a combined nameplate capacity of
41.5 ktpa. The producer commenced simultaneous BOPA film production in two new lines recently: one in
2019 and another in 2020, with a combined nameplate capacity of 18 ktpa. The company sold a 4.2m
sequential line to Xiamen Changsu in late 2018.
• Cangzhou Mingzhu Plastic Co. Ltd subsidiary, Cangzhou Donghong Packing Material Co. Ltd, operates
six BOPA film lines with combined capacity of 30 ktpa. At present it has no known plans to expand.
New investments in capacity
There has been significant new capacity come online in late-2018 and during 2019 and as such there is currently
only a relatively small volume capacity planned in China over the next five years. Recent and planned capacity
additions include:
• Kunshan Yuncheng Plastic Industry Co. Ltd – two 9 ktpa lines: one in Heshan, Guandong, and
another in Qilong, Jiangsu, in 2019 and 2020, respectively
• Xiamen Changsu Industrial Co. Ltd – one 5 ktpa Brückner sequential BOPA film line in Fujian in 2019
plus two +7m wide sequential Brückner lines, with a combined capacity of 18 ktpa, due online late 2021.
• Ningbo Ruicheng Packing Material Co. Ltd – one 11 ktpa sequential BOPA film line in 2019 in Zhejian
• Anqing Gettel Nylon Material Technology Co. – one 12 ktpa ESOPP FLEXSIM line in Anhui in 2019
Trends in inter-regional trade
China exports significant quantities of BOPA film to South East Asian countries but also imports significant
quantities of speciality, low grade film and stock lots from other regional producers. Some speciality films are
imported into the region from Europe and Japan.
Significant new supply came onto the domestic market in 2018-2019 and, combined with US import tariffs on
Chinese goods, producers targeted the local Asian market; countries such as South Korea reported a flood of
Chinese BOPA film coming into the country. As a result, net exports were around 13 ktpa in 2020 but we expect
the net export position to ease back through 2025 to meet the expected growth rate in Chinese consumption.
Trends in demand
Total demand in China is estimated to have been around 140 kt in 2020. Demand has been growing by 7.8%
p.a. over the last five years, at levels slightly higher than GDP. Flexible packaging for food has been the main
end use in which growth has been very positive. However, as the Chinese economy slowed in recent years we
have noticed a similar slowdown in volume growth in BOPA film; 2020 was a particularly difficult year as the
economy was severely hit by the coronavirus pandemic. BOPA film demand, as well as GDP, saw the smallest
growth rate of the past 20 years. BOPA film demand, however, held stronger than the economy, having still
grown at about 7% year on year, as food packaging demand saw a boost due to higher retail sales. Our forecasts
of slightly lower CAGR growth of 7.1% p.a. up to 2025 reflects this apparent slow-down in the rate of economic
growth and consumption of packaged foods.
As with many of the emerging markets we see consumption growth driven by greater demand for packaging
and development of the packed food retailing sector in China, and per capita incomes rising as rural workers
continue to move to the cities for work and increasing the number of consumers able to buy packaged foods
particularly as their income levels rise.

Page 30 of 76
10.2 Asia (excluding China)
Key regional statistics and trends
2015
(kt)
2020
(kt)
2025
(kt)
Volume growth (kt) CAGR %
2015-20 2020-25 2015-20 2020-25
Capacity 141.7 167.7 177.7 26.0 10.0 3.4% 1.2%
Production 116.4 124.7 134.4 8.3 9.7 1.4% 1.5%
Production Utilisation 82% 74% 76% -8% 1% -2.0% 0.3%
Demand 104.6 113.2 122.0 8.5 8.8 1.6% 1.5%
Net Trade 11.8 11.5 12.4 -0.3 0.9 -0.4% 1.5%
Demand by End Use
Food Packaging 82.0 89.5 97.1 7.5 7.6 1.8% 1.6%
Non-Food Packaging 14.9 16.0 17.2 1.1 1.2 1.4% 1.4%
Industrial 7.7 7.7 7.8 0.0 0.1 0.0% 0.2%
Supply demand forecast
Key BOPA film producer capacities
Producer 2015
(kt)
2020
(kt)
2025
(kt)
Plant
location
Unitika 41.5 41.5 51.5 Japan
A.J. Plast 18 33 33 Thailand
Kolon 18 18 18 South Korea
Toyobo 15 15 15 Japan
Hyosung Corp. 11 11 11 South Korea
Other 38.2 49.2 49.2
Total 141.7 167.7 177.7
Key end use markets
Operating capacity by machine technology

Page 31 of 76
Trends in capacity & production
Total regional installed capacity in Asia, excluding China, was 168 ktpa, installed at 12 BOPA film producers.
• Unitika Ltd is one of the original companies that developed the technology to produce BOPA film. It has
plants in Japan and Indonesia (its plant in China is now believed to be closed). In Japan, it has six
simultaneous extrusion lines with 25 ktpa of nameplate capacity. In Indonesia, under its subsidiary P.T.
Emblem Asia, it has another three simultaneous lines totalling 16.5 ktpa and has announced a further 10ktpa
to be added in the country in 2021.
• A.J. Plast Public Company Limited which has 33 ktpa of capacity installed in Thailand. The company
installed its latest line; a new Brückner 4.2m wide 15 ktpa simultaneous LISM line in 2019.
• Kolon Industries Inc. is another of the South Korean producers with two Kohjin double-bubble lines with 8
ktpa of capacity. They also own a 10 ktpa plant in Indonesia, under its subsidiary P.T. Kolon INA
• Toyobo Co. Ltd is another of the Japanese producers which developed its own technology. It uses
sequential stretching on its four production lines with 15 ktpa of capacity.
• Hyosung Corporation is the largest of the three South Korean producers with 11 ktpa of capacity. It has a
JSW sequential line as well as a Yamaguchi triple-bubble technology production line.
• New entrant Lealea Enterprises Co. subsidiary, Li Ling Film Co., installed a 6.6m Bruckner simultaneous
LISIM line in mid-2018, with a nameplate capacity of 11 ktpa.
• Mitsubishi Corporation subsidiary, Kohjin Film & Chemicals Co. Ltd, is another that developed its own
technology. It focused on the double-bubble process and has 10 ktpa on three production lines in Japan.
• JK Materials Co. Ltd is a South Korean company that bought two MHI sequential lines previously owned
by Honeywell (originally installed by Kohap) with a combined 9 ktpa capacity. It has taken time to get these
lines fully operational, but they are now thought to be running well.
• Mitsubishi Chemical Holdings subsidiary, Mitsubishi Plastics Inc., has two MHI sequential lines with a
combined capacity of 7.2 ktpa.
• Thai Polyamide Co. Ltd is a private company in Thailand with one sequential line and 6 ktpa of capacity
Much of the capacity in Japan and South Korea is old and not as competitive as the new lines in China; unable
to compete in the commodity sector, these countries import significant quantities of film from China.
New investments in capacity
• P.T. Emblem Asia – planning one 10 ktpa Brückner LISIM simultaneous BOPA film line in West Java,
Indonesia expected to be online by end-2021; this has been delayed due to the coronavirus pandemic
Trends in inter-regional trade
Asian countries largely trade BOPA films with each other or China. Some speciality films are imported into the
region from Europe and North America; China is a source of commodity films at very low prices.
Countries in the South East Asian region have had to become major exporters of BOPA film in order to fill
capacity as most of their domestic markets tend to be over-supplied and Chinese producers have gained a
significant share of some of their local regional market volume.
South East Asian countries are a source of low-price commodity films. On average about 30% of the region's
production was exported in 2020. However, if Japan is excluded then the value jumps to near 60% of
production is exported. Europe, North America, the Middle East, and Africa are key volume markets.
Trends in demand
Total regional demand was around 113 kt in 2020:
• Japan - 55 kt in 2020, market growth has been very weak and is unlikely to show any higher levels of growth
over the next few years. Much of the Japanese BOPA film laminate market is supplied by converted film
imports from China
• South Korea - 21 kt in 2020, weak growth of 2.0% p.a. since 2015; growth rates are expected to remain
below 2.0% p.a. over the next five years. The country is home to some significant producers of extrusion
coated print lamination films which they export world-wide

Global BOPA film supply demand report_ 2020.pdf

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