The market for packaging coatings is expected to expand at a CAGR of more than 5% during the forecast period. The major factor driving the market studied is the growing coatings usage in developing markets. On the flipside, increasing regulations are expected to hinder the growth of the market studied.
- Swiftly shifting the market to eco-friendly coatings is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the world with the largest consumption from countries, such as China, India, and Japan.
Key Market Trends
Increasing Demand for Acrylics
- Acrylic resins are segmented into thermoplastic and thermosetting plastic substances. They are produced from acrylic acid, meth acrylic acid or other acryl-based acids.
- Acrylic resins possess characteristics like excellent transparency and durability and are used in coatings. Due to its features like durability and weatherability as coating materials, these resins are used extensively in packaging applications such as beverage cans, food cans, etc.
- Additionally, they are also resistant to stains, blistering, and cracking. These unique characteristics make acrylic resins a noble choice as a coating's material.
- The growing demand for coatings for high-speed packaging lines is enhancing the use of solid acrylics. Solid acrylic resins in packaging coating applications offer properties such as wet & dry adhesion, early water resistance, corrosion & chemical resistance, hardness, good inter-coat adhesion and excellent exterior durability. These properties make acrylic resin a perfect suitable coating for applications like beverage cans, solid cans, etc.
- The packaging industry plays a crucial role, adding value to various FMCG products such as beverage and food cans, caps & aerosols, etc. The prime reason for the growth of this market is increasing food & beverage industry. Acrylics in packaging coatings are used heavily for packaging FMCG products owing to its innovative & visual appeal for customer attraction and convenience. The growth in lifestyle and consumption patterns has increased the demand for the packaged products resulting in growing packaging industry.
- Acrylic resin coatings are now leading the market of paints and coatings industry. They are known for their properties of color retention and inertness to environmental conditions.
- Presently, the industries are shifting to the waterborne acrylic resins from solvent-based acrylic resins, owing to the growing environmental concerns and governmental regulations.
- Such positive growth for acrylics is likely to increase the demand for packaging coatings market during the forecast period.
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 in 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 has led to a huge increase in demand for the packaging industry, and consequently the packaging coatings industry. The food and beverage packaging is the fastest-growing sector among them.
- In China, the recent rise in awareness regarding environment and pollution has led to the formation of regulations regarding harmful chemicals (such as 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.
- The aforementioned factors are contributing to the increasing demand for packaging coatings consumption in the country, during the forecast period.
The packaging coatings market is consolidated. The major companies include Akzo Nobel NV, PPG Industries Inc., The Sherwin-Williams Company, Henkel AG & Co. KGaA, Jotun, etc.
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