Rising Demand for Packaging Coating Additives in Upcoming Years !

The packaging coating additives market is estimated at USD 688.4 million in 2018 and is projected to reach USD 874.5 million by 2023, at a CAGR of 4.9% from 2018 to 2023. The growing demand for packaging coating additives in food packaging and consumer applications is fueling the growth of packaging coating additives market.
 

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Major players operating in the packaging coating additives include Croda International Plc (UK), BASF SE (Germany), Clariant AG (Switzerland), Lonza Group (Switzerland), 3M Company (US), Arkema Group (France), Evonik Industries AG (Germany), Solvay S.A. (Belgium), etc. The key growth strategies adopted by these companies include expansions, acquisitions, and new product developments.

BASF operates as a chemical company, globally, through six business segments, namely, chemicals, performance products, functional materials & solutions, agricultural solutions, oil & gas, and others. The company provides polymer additives through its performance products segment. This segment comprises polymer dispersions, pigments, resins, formulation additives, and high-performance additives, which find applications in the plastics processing, printing, packaging, electronics, and paper industries. BASF SE has a strong global presence with more than 350 production sites. The company is a key player in the polymer additives market and has a strong client base across various verticals ranging from packaging, building & construction, and medical devices, among others. The company is focused on European and North America markets, which contributed around 70% to the company’s overall revenue in 2017. Strategically, the company has adopted both organic and inorganic approaches to increase its share in the packaging coating additives market. For instance, In July 2018, BASF planned to expand the global production capacity for its antioxidant Irganox 1010 by 40%, owing to the increasing demand from customers in Asia and Europe, Middle East and Africa.

Clariant AG was formed in 1995 as a spin-off of the chemical company Sandoz (Germany). The company, along with its subsidiaries, develops, manufactures, distributes, and sells a variety of specialty chemicals worldwide. It is one of the leading producers of specialty chemicals in the world. Clariant is increasingly investing to carry out R&D activities and to address key concerns, such as energy efficiency, use of renewable raw materials, emission-free mobility, and conserving non-renewable resources. It has been regularly involved in acquisitions to increase its market share worldwide. The R&D department of the company focuses on innovative and advanced technologies, which have enabled the company to launch quality products. For Instance, in June 2018, Clariant inaugurated two new, fully-owned additives facilities at its site in Zhenjiang, China. Clariant produces Ceridust micronized waxes and AddWorks synergistic additive solutions from these facilities for plastics, coatings, and ink industries. This has helped the company expand in the global market. Owing to its high-quality products, the company maintains a strong brand image in the packaging coating additives market.

Packaging coating additives are compounds that are primarily used to improve the surface properties of plastic to enhance the shelf life of products, strengthen their packaging, and improve handling. The study covers various additives such as anti-fog, anti-block, antimicrobial, slip, and antistatic. The packaging coating additives market is estimated at USD 688.4 million in 2018 and is projected to reach USD 874.5 million by 2023, at a CAGR of 4.9% from 2018 to 2023. Rising demand for packaged foods across the globe is fueling the demand for packaging coating additives.
 

Based on function, the antimicrobial segment is estimated to grow at the highest CAGR during the forecast period. Antimicrobial additives are used to prevent the growth of infection and fever-causing microorganisms such as bacteria, fungi, algae, mildew, and other parasites. The demand for antimicrobial additives is primarily triggered by the growing consumer awareness about health-related infections and the rapid urbanization and growing population in the Asia Pacific region.

By formulation, the water-based segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing use of packaging coating additives in applications such as consumer packaging, industrial packaging, and food packaging.

By application, the food packaging segment is expected to grow at the highest CAGR during the forecast period. Packaging coating additives are used in food packaging as they enhance the properties of the packaging materials, prevent leakage & spoiling, and extend the shelf life of food products. Coating additives are mainly used in packaging of dairy products, meat, and fish as well as frozen, chilled, dried, and baked food.

By region, the Asia Pacific packaging coating additives market is projected to grow at the highest CAGR during the forecast period. China is estimated to be the largest packaging coating additives market in the Asia Pacific region. Countries such as Japan, China, and India are likely to lead the growth in this region. Established packaging coating additives manufacturers in Europe are further expanding their presence in the Asia Pacific region through joint ventures and strategic partnerships to tap the emerging opportunities in this region. The packaging coating additives market in China, India, Indonesia, and Brazil is expected to grow rapidly due to the growth in end-use industries. The growth opportunities in these countries are expected to support the growth of the Asia Pacific packaging coating additives market in the coming years. Major players such as Clariant AG (Switzerland) and BASF SE (Germany) have framed their strategies to lay more importance in penetrating and creating bases in these emerging markets.