When do I use Stretch Film? Usually, a stretch film holds boxes and products together on a pallet for transportation. It is also used to hold other objects together and protect objects during transport and storage. Stretch film can come in a variety of specialty films. Stretch wrap or stretch film, sometimes known as pallet wrap, is a highly stretchable plastic film that is wrapped around items. The elastic recovery keeps the items tightly bound. In contrast, shrink wrap is applied loosely around an item and shrinks tightly with heat.