Packaging Coating Additives Market

Packaging Coating Additives Market Size-(2023-2028)

The Packaging Coating Additives Market size was close to USD 705.4 Million in 2022 and is estimated to grow at a CAGR of around 7.05% to reach USD 986.5 Million by 2028. 

Most of this growth is boosted by the Asia-Pacific market, where due to rapid urbanization there has been constant growth in industries like food & beverages, e-commerce, etc. leading to an increase in the packaging coating additive industry. 

Drivers in the Packaging Coating Additives Market

Awareness of health problems is increasing due to the rising incidents of nosocomial infections and recent epidemics of deadly diseases such as H5N1 avian flu and H1N1 flu (swine flu). There is a rising call for additives for antimicrobial packaging in several segments, like health and medicine. Antimicrobial packaging additives have features like more antimicrobial activity, firmness, durability, and transparency. They are employed in non-toxic plastic things. With the rise in nosocomial infections, antimicrobial additives are employed in air vents to avoid the passing of communicable diseases. Escalated customer awareness of health and hygiene is predicted to escalate calls for antimicrobial additives which in turn will escalate calls for additives for packaging coatings. The surge in demand in the food sector for packaging coating additives is projected to fuel development in the global business. Robust growth in the food industry is also foreseen to fuel the expansion in the global packaging coating additives business.

Restraints in the Packaging Coating Additives Market

The fluctuations in the raw material prices that are used in the making of additives for packaging coatings is among the main challenges for this industry. For example, volatility in oil and gas prices has resulted in higher prices for the raw materials used in the manufacture of antistatic agents. Likewise, the fluctuation in the prices of raw materials used in the production of antimicrobial additives is one of the main setbacks that affect the growth of the antimicrobial additive market. The significant raw materials employed in the making of antimicrobial additive goods are silver, copper, and zinc. The price of these raw materials is a lot more. The high price of silver-based antimicrobials hampers their employment in a range of goods, mainly in regions like Asia-Pacific and South America. The volatility of the price of these materials is holding back the growth of the market for packaging coating additives.

Opportunities in the Packaging Coating Additives Market

Growing industries for packaging coating additives like the nations of China, India, Indonesia, and Brazil, among others, show a great expansion opportunity for players in the packaging coating additives market. The market in China, India, Indonesia, and Brazil is expected to grow rapidly due to the growth of end-use industries. Growth opportunities in these countries should support the growth of the packaging liner additive market in the coming years. Main players such as Clariant AG (Switzerland) and BASF SE (Germany) have defined their strategies to give more importance to the penetration and creation of bases in these emerging markets.

Challenges in the Packaging Coating Additives Market

The packaging industry generates an immense quantity of waste that is not only challenging to dispose of but is also harmful to the atmosphere. The accumulation of plastic products on the earth's surface has a negative impact on human life and wildlife habitats. Because the decomposition procedure of plastic goods is very slow, plastic waste creates a health danger for living organisms in the land, air, and water. Due to the durability of low-cost plastics, they are widely used in the manufacture of various packaging materials used, inter alia, in food and beverage packaging films and agricultural films. It is hard for end-users to work the plastic waste started by these businesses. As a result, several countries impose bans on plastic products and apply regulatory standards regarding the use of plastic packaging products, affecting the growth of the packaging sector. Since the packaging industry is one of the dominating end-use businesses for the packaging coating additive industry, the falling call for plastic packaging goods is a key challenge for makers of packaging coating additives.

PACKAGING COATING ADDITIVES MARKET REPORT COVERAGE

Packaging Coating Additives Market segmentation as per the research report until 2028.

On the basis of Formulation:

• Water Based
• Solvent Based
• Powder Based.

The water-based formulation segment has the highest market share of around 28%, and it is expected to grow as it is also the fastest-growing formulation segment of the packaging coating additives market during the forecast period. Water-based formulations are widely used to manufacture flexible manufacturing coatings, slip additives, and anti-block additives; all of which have applications in food packaging, consumer packaging, and industrial packaging which is why water-based formulation is driving the growth of the packaging coating additives market.

On the basis of Function:

• Slip
• Anti-static
• Anti-fog
• Anti-block
• Antimicrobial

The anti-block segment has the largest share in the packaging additive market, and its stock is estimated to grow during the forecast period subsequently. They are primarily used to create little bumps on the polymer films’ surface which prevent polymer films from sticking to each other. Inorganic anti-block additive is widely used in various packaging due to their cost-effectiveness.

On the basis of the Application:

• Food packaging
• Consumer goods packaging
• Industrial packaging
• Healthcare packaging

In this segment, food packaging has the largest share, and its stock is expected to increase every subsequent year during the forecast period. Growing demand for packaged foods driven by online food delivery systems and general health awareness are the most critical factors in driving food packaging as the leader in the application segment.

On the basis of Region:

• North America
• Europe 
• Asia Pacific 
• Latin America 
• The Middle East and Africa 

Recent Developments

• Aseptic Processing, where the liquid products are sterilized outside of a container before sterilizing the container itself is gaining popularity as it drastically improves the shelf life of the liquid products and beverages, and demand for this processing is set to increase by 6.2% per year.

• Biopolymer film packaging, used in tetra packs, dry snacks, bakery goods, juice bottles, etc. is growing at around 6 % CAGR in North America, and the rest of the world is also catching up as it is environment-friendly and doesn’t alter the content of the food inside. Its market value is expected to surpass 6.7 billion USD by 2025 with India and China leading the growth.

Major companies plying their trade in the Packaging Coating Additives Market include

1. Croda International Plc (UK)

2. BASF SE (Germany)

3. Clariant AG (Switzerland)

4. Lonza Group (Switzerland)

5. 3M Company (US)

6. Arkema Group (France)

7. Evonik Industries AG (Germany)