Packaging Coating Additives - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Packaging Coating Additives Market size is estimated at USD 0.82 billion in 2024, and is expected to reach USD 1.01 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).

The COVID-19 pandemic disrupted the packaging coating additives market, causing declines in sales, production, and distribution due to global supply chain disruptions and government restrictions. However, the market is seemingly growing towards its pre-pandemic stages as many economies are returning to normalcy.

Increasing demand in industrial packaging and growing demand for anti-fog and anti-microbial additives in food and beverage packaging applications are expected to fuel the market growth.

On the flip side, strict government policies regarding the use of plastics and fluctuation in raw material prices are hindering the growth of the market.

Rising demand for flexible coating additives and growing trends for e-commerce in developing as well as developed countries are expected to offer ample opportunities for the growth of the market.

Asia-Pacific dominated the global market's most significant enormous consumption from countries such as China, India, and Japan.

Packaging Coating Additives Market Trends

Increasing Demand from Food and Beverages Packaging Segment.

• Packaging Materials are prone to problems such as friction and chemical stability. To improve the performance of packaging coating materials, additives are added, which increase the pH stability, make the surface frictionless, and induce anti-microbial properties to the packaged food items.
• Packaged and processed foods consumption is increasing globally owing to increasing disposable income and the hectic lifestyle of consumers, which will help stimulate the demand for packaging coatings, thus enhancing the market for packaging coating additives.
• Increasing sales of packaged and processed foods will help in increasing the demand for packaging coating additives as they help in preventing food spoiling & leakage and also help in increasing the serviceable life of packaged food items.
• Furthermore, the use of antifog packaging coating additive helps to increase the sales of packaged food items as antifog additives helps to maintain the clarity and transparency of packaged coatings, thus making food items visible to the customer.
• According to Invest India, India's burgeoning food processing sector, with an anticipated output of USD 535 billion by 2025-2026, is driving significant growth in the Indian food and beverage packaging industry, which is projected to reach USD 86 billion in 2029, fueled by an annual growth rate of 14.8%. This growth fuels the demand for packaging and coating adhesives, essential food packaging components.
• Due to the changing consumer habits, the beverage industry in the United States has noticed substantial growth. According to PMMI's Beverage Report, the North American beverage industry is expected to grow by 4.5% from 2018 to 2028. Sellers achieve the major portion of the beverage sales in North America in the United States.
• Owing to the aforementioned factors, the packaging coating additives market is expected to grow rapidly during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to dominate the market for packaging coating additives during the forecast period. In countries like China and India, due to the significant rise in the income of the middle-class population and the increasing demand for packaged foods, the need for packaging coating additives has been increasing in the region.
• Growth in e-commerce is expected to provide lucrative opportunities for the packaging coatings industry and, consequently, for the packaging coating additives market in the region. The food and beverage packaging segment is the fastest-growing among them.
• China holds the largest share in the e-commerce market, accounting for more than 30% of the total e-commerce sales.
• The growing emphasis on sustainability prompts folding carton manufacturers to introduce innovative packaging solutions, particularly in the dairy segment. In March 2022, SIG India launched an aluminum-free folding carton aseptic packaging to cater to the rising demand for carton-packaged milk products in India.
• In a significant step towards sustainable packaging, ITC Limited's Yippee! The brand introduced "Terra By YiPPee!" in February 2023, a waste upcycling initiative that transforms discarded YiPPee! Wrappers into eco-friendly lifestyle products, including laptop sleeves, totes, and stationery pouches.
• The above factors, coupled with government support, have fueled the growth of the packaging coating additives market.

Packaging Coating Additives Industry Overview

The packaging coating additives market is highly fragmented in nature. The major players (not in any particular order) include Croda International Plc, BASF SE, Arkema, 3M, and CLARIANT, among others.

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