According to FMI, the market for cold seal films is expected to accelerate with a value CAGR of 5.5% to 6.0% during the forecast period. The demand for cold seal films is expected to improve rapidly due to increasing application in the food packaging market. The overall market for cold seal films is projected to be optimistic and opportunistic for business.
Cold seal films are metal or plastic films that are layered with adhesive on one side. Cold sealing is used as a substitute for conventional hydrothermal sealing with lesser treatment time, reduced cost of operation and energy conservation.
Cold seal films are widely utilized in the food industry to seal products to keep them protected from moisture, heat and dust. It also has ease like simpler opening features and attractive printing capacities. Due to varied applications in the food industry, cold seal films are projected to accelerate with a value CAGR of 5.5% to 6.0% in the global market.
Technological advancements have enabled improved quality of sealing, better return on investment and faster sealing from cold seal film machines. Dynamic improvements in the types of equipment, digitization and continuous control on quality and process have not only made the process swifter but also improved the demand for cold seal films in the market.
In January 2020, ISRA VISION AG, a German-based manufacturer in machine technology and automation solution introduced cold seal film coatings with 100% inline inspection solutions to improve the printing and coating processes, giving a colossal boost to the cold seal films market.
Cold seal films use pressure instead of heat to seal the packaging which not only makes it ideal for frozen food and dairy packaging but also most of the product packaging in the food industry. Cold seal films applications include packaging for confectionery, chocolate, bakery products, dairy products, pet food, and ready to eat food among many others in the food industry.
The unique selling proposition for cold seal films is that they can easily seal to themselves. When cold seal film comes in contact with another cold seal film, a bind is created using digital pressure that helps the product to be sealed.
The cold seal films market holds opportunities and varied benefits but the primary restrain for the market could be a lack of chemical resistance and sensitivity to air contact. Cold seal films require a suitable release surface for adhesion and government approvals for usage in the food industry. Also, its multilayer packaging structure makes it difficult for further recycling after use which can act as restraint to a considerable extent.
Global key players in the cold seal films market are
Some of the Asian players in the cold seal films market are
Manufacturers of cold seal films are adapting to technological improvements and sustainability factors to gain market share in the cold seal films. Reduction in VOC emission, usage of better solvent-based coatings and production of more ecological cold seal films remains the primary focus of key players in the market.
Kendall Packaging Corporation, a USA based manufacturer offers matte varnish, solventless laminations, anti-blocking and patterned sold cold seal films in the market.
With better quality of material and superior adhesion, cold seal films are rapidly used in the candy and confectionery market. According to National Confectioners Association in the year 2018, the US Confectionery Industry contributed over US$ 36 billion in retail sales and generated US$ 1.8 billion through exports.
With increasing applications in the confectioneries industry, the cold seal market holds enormous opportunities for new players and investors.
The cold seal films market is highly fragmented in terms of end-use and sealing properties but holds scope for high growth in the European market. Europe holds a large number of key manufacturers of cold seal films.
Germany is one of the largest market for thermoplastics in Europe. According to Plastics Europe in 2019, European plastic manufacturing industry reached a positive trade balance of more than US$ 14.6 billion and demand for German plastic convertors soured by 24.2% in Europe.
German manufacturers who develop more technologically advanced cold seal films products tend to spend about 5-6% of their revenue on research and development.
COVID-19 not only led to delay in transportation of raw materials but also resulted in factory shutdowns, unavailable of labour and increase in production costs which acted fatal for the cold seal market. However, elevated consumption in the food industry helped to keep the cold seal films market afloat. Also with growing recovery rate and reopening of manufacturing plants, the market is projected to witness traction in later part of 2021.
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Cold Seal Films Market
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