Market Trends of Packaging Coatings Industry
Food and Beverage Packaging to Dominate the Market
- In the food and beverage industry, packaging coatings enhance the barrier properties, shelf-life, and overall aesthetics of the packaging, while also protecting against moisture, light, and other external factors that can potentially impact the quality of the packaged products.
- Epoxies resin-based packaging coatings, due to their features, such as fast-drying properties, toughness, adhesion properties, resistance to water, and good curing, are suitable for protecting metal surfaces. These unique characteristics make acrylic resins a noble choice as a coating material.
- Different blends of epoxy-based coatings are available, which include epoxy-phenolic, epoxy-anhydride, and epoxy-amino coatings, among which epoxy-phenolic is mainly used.
- In January 2023, the European Bank for Reconstruction and Development (EBRD) announced to provide a EUR 15 million loan to Akkim Kimya Sanayi ve Ticaret A.S. (Akkim) in Turkey to finance the establishment of the first local epoxy resin manufacturing plant at its premises in Yalova. The loan will enable Akkim to produce liquid epoxy resin (LER), solid epoxy resin (SER), and epichlorohydrin (ECH), with an annual production capacity of 68,000 tonnes.
- The demand for canned food and beverages has been increasing over time. The growing preference for canned fruit juice and beer among people in recent times has been boosting the demand for cans and other metal caps, which may further drive the applications of epoxy-based packaging coatings in the coming years.
- According to the data reported by PAC Global, the United States packaging market is expected to reach about USD 31 billion by 2025, owing to the increasing demand for packaging from the manufacturing and FMCG sectors.
- According to the Beverage Marketing Corporation, in the United States, the sales volume of liquid refreshment beverages reached 36,300 million gallons in 2022 and registered growth when compared to 36,040 million gallons in 2021.
- According to the government, the packaging industry in Canada is expected to reach about USD 31.2 billion by 2025, owing to the increasing demand for flexible packaging from the country's manufacturing and FMCG sectors.
- Hence, with the increasing demand from the food and beverage packaging industry, the demand for packaging coatings is projected to increase worldwide, during the forecast period.
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China to Dominate the Asia-Pacific Region
- China has the biggest manufacturing sector in the world and the largest consumer base. Being the most populated country, China makes it the largest consumer of various goods. Owing to various reasons, the packaging coatings market is one of the fastest-growing markets in the Chinese economy.
- The applications of coatings on various products have grown significantly in recent times. The increasing need for decorative and attractive packaging has led to an increase in the demand for coatings for packaging.
- China has the largest share of the e-commerce market. Sales in China account for more than 30% of the total e-commerce sales. China is one of the fastest-growing e-commerce markets in the world, and it is home to the e-commerce giant Alibaba.
- The growth in the e-commerce market led to a huge increase in demand for the packaging industry and, consequently, the packaging coatings industry. Food and beverage packaging is the fastest-growing sector among them.
- In China, the awareness concerning the environment and pollution led to the formation of regulations related to harmful chemicals (such as volatile organic compounds (VOCs)). Such factors can adversely affect the market for packaging coatings. These factors have also been a blessing in disguise, as companies have quickly adapted to various eco-friendly alternatives.
- Moreover, companies such as Foshan Ikeda Air Freshener Co., Ltd. are focusing on specializing in the production of canned car fresheners. The company has 4 factories in China with a total area of more than 100,000 square meters, with over 30 different production lines. The company’s vision is to increase the output value will reach 1 billion by 2026. Such developments are expected to affect the studied market.
- The factors above contribute to the increasing demand for packaging coatings consumption in the country during the forecast period.
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