Global Packaging Barrier Films Market - Key Findings
- Global sales of packaging barrier films market estimated to be valued at US$ 15,862 Mn in 2020
- Polyethylene (PE) is most preferred material type in the manufacturing of packaging barrier films which is growing at a CAGR of 5.2% during the forecast period
- Organic coating film segment estimated to hold around 39% market share by the end of 2020
- High barrier segment projected to dominant the packaging barrier films market by capturing around half the market share by the end of 2025
- Food & beverage to be the most prominent end use segment in the global packaging barrier films market as it exhibits a strong growth rate of 5.3% over the forecast period
- North America to be the dominating region in the global packaging barrier films market capturing around 29% of the market share by the end of forecast period
Food Packaging Industry to Remain Key Consumer
The food packaging industry has been growing at an exponential rate in the past few years. The demand for packaged food, especially frozen food, has seen a significant spike in recent years as lifestyles have changed completely. The convenience of heating a packet to make a meal has created a strong case for packaged food.
Food manufacturers are opting for high barrier films as they less oxygen transfer rate (OTR), a most sought after attribute. High barrier films have become a popular choice as the oxygen permeability ranges to 10cc or less, which makes them ideal for keeping the food fresh.
Furthermore, these films also play a critical role in ensuring the shelf life of the product is not compromised through its lifetime. Thus, the booming food packaging industry is projected to bode well for the packaging barrier films in the coming days. These products will also fuel the demand for flexible packaging solutions.
Shrink Films to Show Consistent Demand
Consumers, packers, and end-users are having more emphasis on the use of thin, strong, lightweight, and cost-effective secondary packaging solutions for their products. Collation shrink films ensure exceptional security for the packed bundles right from the packaging to consumers.
Collation shrink films are prominently used for food and beverage packaging applications to enhance the shelf life of the product. Processed food products are easily perishable and increase the chances of contamination. Therefore, food and beverage manufacturers are consistently seeking the packaging solutions which helps to preserve the quality of the product throughout the supply chain. Collation shrink films have superior barrier and impact resistance.
Furthermore, it gives more sturdiness to the bundles during transportation. Owing to these benefits, the collation shrink film is expected to replace the conventional packaging methods during the forecast period. Thus, shrink films are projected to be the leading the end users of packaging barrier films.
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Recyclability to Create Favorable Ground for Growth
Recyclability of plastic films is always a major concern for the key players. Degradation of plastic films is very difficult, which has slowed down their demand in many parts of the world. To reduce this negative impact on sales key players of barrier films for packaging are focusing on the use of some percentage of recyclable materials. Furthermore, building circular economies is expected to be an emerging trend amongst these manufacturers.
High barrier packaging films manufactured with the presence of 50% post-consumer recycled material with the content of pre-consumer material are easy to recycle and resulting in no harms for the environment.
For instance, Amcor is focused on developing a circular economy of flexible packaging with its new polyolefin barrier film. The company plans to make its packaging materials to be recyclable or at least reusable by 2025. Purely polyolefin will be recyclable through existing waste streams without compromising the barrier properties.
According to Future Market Insights, the overall competitiveness in the global packaging barrier films is high due to low entry to barrier. Influx of large number of local players is projected to intensify the competition in this market through the forecast period.
The consistency in demand for packaging barrier films will be seen across all regions except Latin America and the Middle East and Africa. Furthermore, the market will have overall attractiveness across all regions between 2020 and 2030.
FMI predicts these attributes will be due to ongoing demand for cosmetics across Europe and Asia Pacific, which are influenced by social media.
Low Density Polyethylene Based Collation Shrink Films Are Gaining Traction
PE packaging barrier films have more demand among the end users, as these films provide additional strength and durability for the heavier and larger items like multipacks of beverage cans and bottles.
Furthermore, these films give an excellent surface texture for printing and quality graphics. Therefore, polyethylene’s variant low-density polyethylene segment is expected to be extensively used in production of collation shrink films and other packaging solutions throughout the forecast year.
Following this, the linear low-density polyethylene segment is expected to gain by significantly in next decade. These antifog, oxygen barrier, and easy to open films will be used in packaging solutions for meat, fish, and poultry.
Impact of COVID-19
COVID-19 pandemic has created disruption in all sectors including packaging industries. It has a negative impact on the packaging barrier films market too as the supply chain is disrupted and production has taken a hit with less workforce is available.
Stay-at-home directives in many countries have resulted in no production and restrained demand for packaging as sale of consumer goods has dipped. The fluctuating economic conditions and exchange rates also are affecting the cost of raw material.
However, in the 2020 year-end, the demand for packaging barrier films is expected to gain momentum has the demand for frozen food and other food items that have a longer shelf life is expected to pick up. A significant chunk of sales of packaging barrier films in 2021 will be driven by growing demand for food safety.
Packaging Barrier Films: Regional Analysis
According to Future Market Insights, North America is projected to offer lucrative opportunities to the packaging barrier films market. A sharp rise in the number of e-retail businesses and supermarkets is expected to bode well for the regional market. The strengthening trend of consuming frozen food is expected to create a huge increase in the demand for packaging barrier films as staying indoors is anticipated to be a lasting trend.
On the other hand, expansion of food and beverage industries and pharmaceutical industries, the South and East Asia markets is projected to fuel demand for packaging barrier films to a record high level. Analyst project that India and China is expected to outbid North America market during the forecast period.
Across Europe demand for reseable and easy to carry high barrier packaging films will be a key trend. Growing focus on reusing packaging materials and reducing waste are expected to drive the market dynamics during the forecast period.
Packaging Barrier Films: Competitive Landscape
Players operating in the global packaging barrier films market are expected to focus on development of sturdier films as demand for food safety remains highest amongst end users. For this purpose, vacuum packaging, aseptic packaging, and modified atmospheric packaging will be in high demand.
Companies are also expected to look at launching new products to cater to the burgeoning demand of end user industries. For instance:
- In February 2017 Uflex ltd. Introduced high barrier packaging films product that uses polyester in Cold form Alu- Alu laminate for pharmaceutical industry
- In May 2016 Toray Plastics (America), Inc. joined hands with Packaging Products Corporation, LLC manufacture clear and PVDC-free high barrier packaging films
Some of the key players operating in the global packaging barrier films market are:
- Mondi Plc
- Huhtamaki Oyj
- Winpak Ltd.
- Atlantis Pak Co. Ltd.
- Glenroy, Inc.
- Uflex Ltd.
- Plastissimo Film Co., Ltd.
- Bischof & Klein GmbH.
- Ampac Holdings, LLC
- Schur Flexibles Holding GesmbH
- Linpac Packaging Limited
- Clondalkin Group Holdings B.V.
- Accredo Packaging, Inc.
- Sigma Plastics Group, Inc.
- Krehalon Industrie B.V.
- Supravis Group S.A.
- Sudpack Verpackungen GmbH & Co. KG
- Flexopack SA
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report
Global Packaging Barrier Films Market: Way Forward
The global packaging barrier films market has a bright future as the demand for these films remains persistent through varied applications. Its demand in pharmaceutical industry is expected to surge as hospital admissions increase amidst COVID-19.
Furthermore, companies are expected to focus on development of small-sized packs as consumer preference changes. The demand for packaging barrier films will also be determined by high sales of cosmetics that require pouches and tubes.
Research and development of cosmetic packaging solutions with improved shelf life is projected to ensure consistent revenue for the overall market between 2020 and 2030. The growing use of social media and rise of makeup influencers will generate a significant demand for face masks that require packaging barrier films to keep them safe from exposure and contamination prior to use.
However, in the coming decade environmental issues are expected to pose a great challenge to the overall market.