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The extrusion coatings market size is forecast to increase by USD 1.29 billion at a CAGR of 4.5% between 2024 and 2028. There is a rising demand from the packaging industry, driven by increasing preferences for environment-friendly coating technologies. This trend is particularly evident in response to growing demands from the food and beverage sector for sustainable packaging solutions. Companies are increasingly adopting technologies that minimize environmental impact, such as biodegradable coatings and recyclable materials, to meet consumer expectations and regulatory standards. The emphasis on environment-friendly solutions underscores a shift towards more sustainable practices across industries, aiming to reduce carbon footprints and enhance recyclability in packaging processes. This evolution reflects a broader commitment to environmental stewardship and meets the rising expectations of eco-conscious consumers in the global market.
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In the packaging sector, materials like polyethylene, ethylene vinyl acetate, ethylene butyl acrylate, polypropylene, and polyethylene terephthalate play crucial roles in diverse applications ranging from liquid packaging to flexible packaging. These materials offer specific characteristics such as moisture barrier properties and excellent sealability properties, making them ideal for industries including automotive, building and construction, and medical and pharmaceutical sectors. Packaging solutions also utilize paperboard and cardboard, polymer films, and metal foils for their barrier capabilities and protective covering qualities. Technologies like extrusion coating enhance the weatherability, gloss, finish, and clarity of packaging materials, ensuring durability and aesthetic appeal. This comprehensive approach supports the functional and aesthetic needs of modern packaging, meeting stringent requirements for product protection, shelf life extension, and sustainability across various market segments.
Key Extrusion Coatings Market Driver
The increasing demand from the packaging industry is notably driving the extrusion coatings market growth. A significant application area in the global extrusion coating market is flexible packaging. Food products like bakery goods, dairy products, frozen foods, meat and poultry, confectionery, and cookies are commonly packaged in flexible packaging. Flexible packaging has many benefits, including lower costs, consumer friendliness, increased shelf life, environmental sustainability, and the capacity to maintain product freshness.
Moreover, the flexible design, printability, aesthetics, and sustainability are among the important attributes that liquid food packaging must have. Temperature resistance, abrasion resistance, grease resistance, a lower coefficient of resistance, and a slower rate of water vapor transfer are some benefits of using extrusion coatings for liquid packaging. It is also anticipated that the continued expansion of the cosmetics and personal care industry will increase the use of liquid packaging and hence, spur the need for extrusion coatings during the forecast period.
Significant Extrusion Coatings Market Trend
The rising demand from the automotive sector is the primary key trend driving the extrusion coatings market growth. Automotive manufacturers are focusing their efforts on increasing vehicle manufacturing globally. Passenger vehicles have become extremely popular with consumers over time due to features such as compact size, stylish designs, and economic value. Passenger cars are becoming an essential component of people's lifestyles. For instance, globally, 79.1 million motor vehicles were produced in 2021, a rise of 1.3% from that in 2020.
Moreover, the rapid infrastructural development in numerous developing nations and the expansion of the automobile sector will lead to the growth of the global extrusion coatings market during the forecast period. Extrusion coating lines have been developed for thermoformable automotive parts. One benefit of extrusion coating technology in the automotive industry is that it enables the creation of car parts (components) made entirely of polypropylene, ensuring that the finished product is completely recyclable. Such factors contribute to the growth of the global extrusion coatings market during the forecast period.
Major Extrusion Coatings Market Challenge
Fluctuating raw material costs is the major challenge impeding the extrusion coatings market growth. The prices of the raw materials used to manufacture extrusion coating materials are highly unpredictable. The prices of polyethylene packaging types, such as LDPE and HDPE, fluctuate frequently as they depend on global crude oil prices (as they are petroleum derivatives). Therefore, their prices fluctuate depending on the prevailing prices of natural gas and crude oil. Such strong fluctuations in global crude oil prices are caused by a systemic demand-supply imbalance in the global crude oil industry.
However, as the raw materials that are used extensively to manufacture extrusion coatings materials, such as HDPE and LDPE, are petroleum derivatives, any fluctuations in their prices can lead to unpredictability in the market, affect production costs adversely, and reduce the profit margins of vendors. Therefore, volatility in global crude oil prices is expected to hamper the growth of the global extrusion coatings market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Akzo Nobel NV: The company offers extrusion coatings that provides tear, abrasion, and environmental stress crack resistance.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The polyethylene segments is estimated to witness significant growth during the forecast period. The most prevalent type of plastic used by consumers by far is polyethylene, which is also found in various everyday items. It is a thermoplastic material, which means that it can be repeatedly heated to a liquid state and then cooled to a solid state. Low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), high density polyethylene (HDPE), and ultrahigh molecular weight polyethylene(UWMPE) are some of the different types of polyethylene materials that are utilized in extrusion coating. The durability of polyethylene is among its most alluring qualities. It also resists fading and chipping and is impermeable to a variety of chemicals, including acids and caustic solutions.
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The polyethylene segments accounted for USD 1.48 billion in 2018 and showed a gradual increase during the forecast period. Polyethylene is an effective electrical insulator. It can melt at high temperatures and even maintain its characteristics at extremely cold temperatures. Polyethylene is a type of plastic made from petroleum polymers. It is also inexpensive and highly resistant to chemicals. This indicates that it can withstand various unfavorable environmental factors. These qualities make polyethylene packaging superior to other types of packaging materials. Because polyethylene packaging does not permit the passage of water vapor, it can readily keep products away from harmful substances or contaminants. A variety of polyethylene packaging types can be wrapped securely around products to provide an airtight seal. Such factors will increase the market growth during the forecast period.
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APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC holds the largest market share in the global extrusion coatings market because of the rapid economic growth in countries like China and India. The rapid economic expansion and population growth in APAC, which is fueling the demand for extrusion coating materials from a variety of end-user industries, such as automotive, construction, packaging, and medical devices, are the other factors contributing to market growth in the region. The market in this region is expanding as a result of the rise in demand for LDPE packaging in the food and beverage industry. Extrusion coatings are increasingly being used in packaging applications in the food and beverage industry in many countries in this region, including China, India, Japan, South Korea, and Indonesia. China is the fastest-growing market for extrusion coatings in the region. The construction industry is a significant contributor to China's GDP. The Chinese construction industry is expanding quickly as a result of the government's focus on infrastructure investments in order to maintain economic growth, thereby increasing the demand for industrial packaging from the construction industry, which, in turn, will increase the demand for extrusion coatings in the country during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the realm of medical packaging and personal and cosmetic packaging, the use of advanced materials such as bio-based polymers and polymer resins ensures superior properties like design flexibility, reduced water vapor transfer rate, and lowered coefficient of resistance. These materials are crucial for maintaining the integrity and safety of products in industries including personal care and cosmetic, construction, and food and beverage packaging sectors. Packaging solutions also consider environmental impacts, aiming to reduce carbon footprint through innovations in non-dairy products and sustainable practices. Photographic film and wrapping materials, along with aluminum foils and corrugated fiberboards, provide protective barriers against liquids, gases, and vapors in diverse applications from medical or hygiene coating to transport-specific packaging. The integration of healthcare and industrial tools into packaging strategies underscores the versatility and resilience required in harsh environments, ensuring safety and efficiency across various sectors including electronics, consumer goods, and automotive and industrial assembly applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2024-2028 |
USD 1.29 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
China, US, India, France, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Arkema Group., Borealis AG, Chevron Phillips Chemical Co. LLC, Davis Standard LLC, Dow Chemical Co., DuPont de Nemours Inc., Eastman Chemical Co., Exxon Mobil Corp., Formosa Plastics Corp., Hanwha Corp., INEOS AG, Lucobit AG, LyondellBasell Industries N.V., NOVA Chemicals Corp., Qenos Pty Ltd., Reliance Industries Ltd., Repsol SA, Saudi Basic Industries Corp., and The Lubrizol Corp. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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