About the Report
In 2020, the overall sales for packaging additives witnessed a massive decline due to the Covid-19 crisis as lockdown was implemented and all the factorial units were closed which led the manufacturing companies to face immense losses. Now in 2021, the global manufacturers are giving entire focus on improving their sales and profitability through product innovations and upgrades.
Leading corporations including BASF SE, AkzoNobel N.V., ALTANA Group, ColorMatrix Group, Arkema Inc, Henkel, Huber Group, PPG Industries Inc, Lubrizol Corporation, Flint Group Sun Chemical Corporation, Valspar Corporation, Evonik, and Wacker Chemie AG are making high investments in the establishment of research institutes in different regions to come up with improvements in their offerings. They are adopting business strategies such as sales contracts, strategic alliances, acquiring technical expertise, product approvals, patents and events, joint ventures, partnership agreements, collaborations, digital marketing, mergers and acquisitions, capacity utilisations, technological advancements etc to lead the global market for packaging additives with largest market share.
For instance, from April 1 2021, BSH Hausgeräte GmbH will use BASF’s Styropor® made from chemically recycled plastic waste to create packaging solutions for the large appliances of its brand, Gaggenau. The main objective behind this merger is to encourage the use of such recycled packaging across the world.
North America is predicted to rule the global market for packaging additives through 2030 owing to increasing demands of effective packaging solutions from the manufacturing industries like food and beverages, agriculture, pharmaceuticals and so on. Presence of leading manufacturing companies that produce and distribute superior class packaging additives globally contributes to make Asia Pacific a leading region with the fastest growing CAGR rate. In India, the Government is encouraging the growth using proper guidelines and eventually creating immense opportunities for the key players to extend their presence throughout the world
Food & Beverage Remains a Lucrative Channel
The global market for packaging additives was valued at US$ 442.8 Mn in 2017 and is projected to expand at a CAGR of 4.3% during the forecast period (2018-2026).
Packaging additives are added in plastic resins to strengthen their physical, mechanical, & barrier properties. Packaging additives can modify the polymers & enable the packaging industry to cater the demand of the food, beverage, pharmaceuticals, personal care, & cosmetics industry. The global packaging additives market is expected to be largely influenced by the growing demand from food & beverage and personal care industries.
The food segment is expected to drive the global packaging additives market, in terms of revenue, during the forecast period. As per volumetric analysis, the plastic sub segment in the substrate segment is projected to dominate the packaging additives market. Metal and paper & paperboard are the two sub segments that have high potential in contributing towards the growth of packaging additives market. Initiatives of global companies will further encourage consumers to use products made from packaging additives.
Key Drivers & Restraints
The expansion of the processed food industry has led to an increase in the use of packaging additives by various manufacturers. An increasing use of personal care products such as shampoos, liquid sanitizers, and other related products are driving the demand for packaging additives in the market.
Stringent government regulations toward plastic usage below 50 micron can hamper the packaging additives market. However, with the changing lifestyle & food consumption habits, demand for packaging products is increasing, which in turn increases the demand for packaging additives in the near future.
Taxonomy
The global market for packaging additives is segmented by substrate, product type, packaging type, and application.
On the basis of substrate, the global packaging additives market is segmented into four categories - plastic, metal, paper & paperboard, and others (glass). The plastic segment has the highest share in the market.
The various product types considered in the packaging additives market study include antimicrobial agents, antifog agents, anti-static agents, clarifying agents, oxygen scavengers, and UV stabilizers. Of these, antifog agents sub-segment accounts for the lion’s share in the packaging additives.
On the basis of packaging type, the global packaging additives market is segmented into two parts - flexible and rigid packaging. Out of these two, the flexible packaging category accounts for a higher percentage of market share.
On the basis of application, the global packaging additives market is segmented into five categories that are food, beverages, pharmaceuticals & healthcare, cosmetics & personal care, and others. In these segments, food & beverage accounts for more than 70% of the application in the packaging additives market.
Competitive Landscape
Among the key regional markets, North America is projected to exhibit relatively higher growth in the global packaging additives market and will grow with a CAGR of over 4.3% during the forecast period. Revenue from the packaging additives markets in Western Europe and Asia Pacific Excluding Japan (APEJ) is expected to collectively account for more than 45% of the global packaging additives market revenue during the forecast period.
Key players operating in the global market for packaging additives include BASF SE, AkzoNobel N.V., ALTANA Group, ColorMatrix Group, Arkema Inc, Henkel, Huber Group, PPG Industries Inc, Lubrizol Corporation, Flint Group Sun Chemical Corporation, Valspar Corporation, Evonik, and Wacker Chemie AG. Many local and unrecognized players are expected to contribute to the global packaging additives market during 2018 to 2026.
Key Developments
Key players are looking forward to expansion through organic & inorganic methods such as acquisitions & mergers, product launches, etc. For instance,
- In March 2017, BASF invested in a new packaging additives plant in Shanghai, China. BASF invested more than €200 million globally to increase its production network for packaging additives. In 2018, BASF increased the price of packaging additives in two product classes which include antioxidants and light stabilizers, flame retardants, and other plastic additives.
- In 2011, The Sustainability Additives Group of Arkema Inc. introduced high-efficiency impact modifier to its Durastrength® brand of high-performance additives in the packaging additives sector. The company’s motive is to develop packaging additives that will lead to more efficient uses of energy & resources by contributing in less waste and help to grow business for new polymers made from renewable sources of materials.
- In 2015, PolyOne's acquired the ColorMatrix Group, Inc., a highly specialized company with a premier suite of additive technologies and the leading market position in packaging additives and liquid colorants.
Key Segments
By substrate, the global packaging additives market is segmented into:
- Plastics
- Metals
- Paper & Paperboards
- Others (Glass)
By product, the global packaging additives market is segmented into:
- Antimicrobial Agents
- Antifog Agents
- Antistatic Agents
- Clarifying Agents
- Oxygen Scavengers
- UV Stabilizers
By packaging, the global packaging additives market is segmented into:
- Flexible Packaging
- Rigid Packaging
Key Regions
- North America
- U.S.
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Europe
- APEJ
- China
- India
- Australia & New Zealand
- ASEAN
- Rest of APAC
- Japan
- MEA
- GCC Countries
- Turkey
- South Africa
- North Africa
- Rest of MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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