The global packaging coating additives market is projected to grow at a CAGR of 5.06% to reach US$1,025.125 million by 2025 from US$762.347 million in 2019. The packaging coating additives are integral to packaged food, industrial products, health-care equipment, and many more FMCG-related applications whereby different properties of packaging are enhanced.
Moreover, various additives have their purposes that are widely used in the packaging industry. The growing population along with rising health awareness plus an emerging middle-income group and the associated buying capacity especially that of the APAC region are collectively being acknowledged as the prime factor that is poised to drive the packaging coating additives market growth during the forecast period. Moreover, the increase of consumer inclination to access the retail food and beverage sector around the world is the foremost factor that is expected to propel the market during the forecast period to great heights. For instance, Australian consumers are driven by the aspects of health and wellbeing as well as environmental consciousness which makes the packaging coating additives market players find the global market that is the 13th largest economy, with a nominal GDP estimated at US$1.5 trillion as of 2019 extremely lucrative.
Further, with regards to the Australian food and liquor retailing industry, it was reported, to the tune of US$115 billion wherein the majority of food retailing purchases that occupied a share of 69% comprised supermarket and grocery expenditures. Furthermore, the foodservice industry of Australia is reportedly valued at US$44 billion and consists of more than 71,000 outlets. Moreover, the increasing elderly population is estimated to propel a swifter growth in the institutional foodservice sector [Source: USDA]. This further emphasizes the importance of packaging coating additives. Additionally, in the same region, joining the ranks of the world’s lower-middle-income economies, Vietnam has emerged as one of the fastest-growing economies in Asia, with Gross Domestic Product (GDP) growth in 2018 reaching a 10-year-high of 7.1 %.
Moreover, in 2018, it was reported by Vietnam’sGeneral Statistics Office (GSO) that the total retail sales of goods and services were $191 billion, up by 11.7 % over 2017 [Source: USDA]. Therefore, it suggests how strong economic growth, increasing foreign investment, benefits from free trade agreements (FTAs), a growing middle class with higher disposable income, rapid urbanization, and enhanced concerns about hygiene and food safety can pave the way for a variety of applications that packaging coating additives are integrally a part of thereby partially contributing to the overall market growth in the region, hence the world.
The aforementioned briefly presents the inseparable role that food and beverage packaging applications are poised to play in the furtherance of the packaging coating additives market as exemplified by a partnership in June 2020. It is a distribution partnership for Lock 3 antimicrobial coating technology by Varcotec in the EMEA region, between one of the leading suppliers of printing inks for packaging applications and labels known as Siegwerk Druckfarben AG & Co. KGaA and Varcotec GmbH which is a specialist in technically sophisticated overprint varnishes intended for the printing industry
Healthcare applications are anticipated to be the prime driver. This has paved the way for a variety of innovative applications, for example, to ensure management of temperature and the consequent protection of shipments that are couriered through the mail, which are inclusive of temperature-sensitive natural and organic cosmetics, veterinary medicines, as well as pharmaceuticals, have led to the development of Nebraska, USA based MP Global Products’ insulated mailers and box liners that contains a time-sensitive, EPA-approved antimicrobial additive to prevent cross-contamination.
Further, the Plastics & Coatings Healthcare Polymer Solutions of Clariant (SIX: CLN) in March 2020, reportedly announced ABS (acrylonitrile-butadiene-styrene) polymer compounds that offer enhanced functionality to the makers of pharmaceutical packaging and medical devices. It is a part of the MEVOPUR range of additive and color concentrates and ‘ready-to-use polymer compounds. Most commonly used in the automotive and consumer industry ABS is now available to be used as “medical grade” resin. Specifically, concerning drug delivery devices Viz. inhaler spacer chambers, MEVOPUR permanent antistatic compounds aid in the reduction of surface resistivity and charge dissipation swiftly, resulting in satisfactory elimination of sticking if applications involved the use of powders. Besides, the importance of the healthcare segment has propelled various companies to expand their healthcare packaging operations that are expected to further drive the growth of the Packaging Coating Additives Market during the forecast period. For instance, in May 2020, Sharp, part of UDG Healthcare plc(LSE: UDG), which is a leading provider of contract packaging and clinical supply services had reportedly acquired a pharmaceutical packaging facility located in Macungie, Pennsylvania, USA from Quality Packaging Specialists International, LLC (QPSI).
This acquisition is expected to enhance a variety of primary and secondary pharmaceutical packaging solutions, inclusive of but not limited to, blistering, bottling, medical device kitting, and vial labeling as well as serialization services. As of June 2020, Sharp invested £1 million in a commercial expansion project at its new facility that became fully operational following a successful inspection by the Medicines and Healthcare Products Regulatory Agency (MHRA) of the United Kingdom. Earlier, in January, Sonoco (NYSE: SON) one of the globally renowned diversified and sustainable, global packaging companies had reportedly announced that it had acquired a global manufacturer of thermoformed packaging that caters to consumer, healthcare, and medical device markets called Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD, form ESCO Technologies, Inc. (NYSE: ESE) for the US $187 million.
|Market size value in 2019||US$762.347 million|
|Market size value in 2025||US$1,025.125 million|
|Growth Rate||CAGR of 5.06% from 2019 to 2025|
|Forecast Unit (Value)||USD Million|
|Segments covered||Function, Formulation, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Arkema, Ashland, BASF SE, Croda International Plc, DAIKIN INDUSTRIES, Ltd., DuPont, KURARAY CO., LTD., PCC Chemax Inc., Solvay, The Lubrizol Corporation|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Croda International Plc
DAIKIN INDUSTRIES, Ltd.
KURARAY CO., LTD.
PCC Chemax Inc.
The Lubrizol Corporation
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