Functional and Barrier Coatings for Paper - Global Market Outlook (2021-2028)

According to Stratistics MRC, the Global Functional and Barrier Coatings for Paper Market is accounted for $1.68 billion in 2021 and is expected to reach $3.02 billion by 2028 growing at a CAGR of 8.7% during the forecast period. Functional and barrier coatings are applied to paper with various barrier and functional materials to enhance the performance of the paper. It provides a barrier to oil, water vapours, grease, and enhance the printing capabilities of paper & paperboard products. These products are prominently used for foodservice disposables, printing, and packaging applications. Use of functional and barrier coatings for paper improves the performance and durability of paper for packaging and printing applications.

Market Dynamics:

Driver:

Growing Demand for Food Packaging's

It finds application in end-use industries such as food, pharmaceuticals, personal care, and beverages. Most food products are packaged in boxes, labels & tags, and folding cartons that are coated with functional and barrier coatings. This is essential as these packages often come in contact with vapor and moisture. Packaging converters use functional and barrier coatings for the paper to improve aesthetics and preserve product quality and integrity. Functional and barrier coatings for paper reduce the chances of transmission of air, moisture, as well as flavor in or from the package. These coatings can be applied to boxes, folding cartons, and other packaging & printing substrates to improve their performance.

Restraint:

High Cost

Functional and barrier coatings are costly, and their cost of manufacturing is also growing. Fluctuating crude oil prices and changing foreign currency fluctuations have resulted in higher raw material prices. Raw materials for functional and barrier coatings vary significantly in terms of prices. In addition to the raw material prices, manufacturers are also burdened with the additional cost incurred due to the increased taxes on energy, which results in higher operating costs and lower profit margins.

Opportunity:

Increase In Health and Environmental Awareness & Biomaterial Coatings to Hold the Flag High

Increasing economic activities in developing countries result in more energy and consumption demand, which generally lead to environmental degradation. There is a conventional belief that such environmental degradation would resolve as soon as these countries grow economically since that would enable them to afford environmentally friendly technology as well as pro-environmental regulations and policies. However, several studies indicated that many developing countries are already equipped with environmental policies, legal frameworks, and economic instruments, which are regarded as highly sophisticated by international standards and yet face worsening environmental conditions. Manufacturers of the barrier coated papers market are making relentless efforts to develop bio-based materials, to replace petroleum-based polymer coatings. These improved coating technologies such as slide covering and curtain processes are expected to create ample opportunities with regard to increasing efficiency and cost-viability in the coating process.

Threat:

Lack of Clarity Toward Regulations

The dearth of clarity and understanding of the guidelines might threaten the growth of the barrier-coated papers market. Lack of clarity and understanding of regulations pose a challenge for market players. For instance, India being one of the fastest-growing economies in the Asia Pacific faces threat when it comes to compliance with regulations. This phenomenon has stunted the pace of innovation in India's functional and barrier coatings for the paper market. To increase awareness about regulations in the Indian functional and barrier coatings for the paper market, manufacturers are leading by example and are increasing R&D to develop water-based barrier coatings to promote sustainability.

Poly Coating segment is expected to be the largest during the forecast period

Prominently used functional and barrier coatings for paper include poly coatings, attributable to their high barrier properties concerning shelf-life requirements. A poly coating is a polyurethane layer applied to the surface of a substrate to protect it. These coatings help protect substrates from various types of defects such as corrosion, weathering, abrasion, and other deteriorating processes.

The food segment is expected to have the highest CAGR during the forecast period

With the global customer base for retailed food increasing, food packaging must more and more conform to international food quality and safety standards. This also can mean longer shelf life is a necessity. Increased global consumer awareness, income, combined with busier lifestyles, is creating a growing demand for convenience foods. Consumers want protective economic food packaging that offers easy open and see-through features, combined with barrier protection from degrading oxygen, water vapour, and aromas. Thus, it is inevitable for manufacturers in the functional and barrier coatings for the paper market to gain increased expertise in sustainable raw materials that prevent food wastage.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, owing to the increase in end-user applications of the packaging type in the province. The functional and barrier coating for the paper market in India is attributable to the presence of a large pool of suppliers and manufacturers in the country. Furthermore, Japan is continuously improving its packaging methods through diverse research and thus is regarded as one of the largest markets for functional and barrier coating for paper in the world.

Region with highest CAGR:

Europe is projected to have the highest CAGR, owing to increasing manufacturing activities and expanding food industry are driving the growth of the market in this province. Furthermore, lucrative growth opportunities for key players have expected in France and the U.K Europe's functional and barrier coating for paper packaging market is highly competitive, owing to new start-ups and the entry of local players.

Key players in the market:

Some of the key players in Global Functional and Barrier Coatings for the Paper Market are Cortec Corporation, BASF S.E., Sonoco Products Company, Cattie Adhesive Solutions Llc, Paramelt B.V, Synthetic Natural Polymers, Michelman, Inc., Coatings & Adhesives Corp, Dow Chemical Company, Sierra Coating Technologies LLC, CH-Polymers Oy, Koninklijke DSM NV, Omnova Solutions Inc., ALTANA Group, Stora Enso Oyj, Akzo Nobel N.V., Kuraray Co. Limited, Cork Industries, Inc., Imerys Pigments, and Mondi Corporate.

Key developments:

In July 2020: Cortec Corporation has launched EcoShield Barrier Coating, a recyclable moisture barrier coating for the food packaging industry. EcoShield® Barrier Coating is a waterborne barrier coating that is recyclable and 100% repulpable, effectively eliminating the need to use traditional wax and polyethylene coatings.

In November 2019: Stora Enso colloborated with HS Manufacturing Group (HSMG), a producer of plant-based barrier coatings, to develop Stora Enso's formed fiber offering. The technology offers a biodegradable and recyclable additive that gives fiber-based packaging water-, grease- and oil-resistant properties.

In May 2019: Sonoco Products Company announced that it had invested US$ 16 Mn for the expansion of its existing Birmingham facility. This investment in world-class water based coating technology will provide coated paper and paperboard substrates using its new FlexShield™, FluteSHIELD® and SurfSHIELD™ coating technology.

Types Covered:

• Gas Resistance
• Heat Resistance
• Water Resistance

Materials of Manufacturing's Covered:

• Biodegradable Coating
• Conventional Plastic Coating

Coating Types Covered:

• Wax Coating
• Pigment Coating
• Ultra Violet (UV) Coating
• Poly Coating

Applications Covered:

• Food Service Disposables
• Printing
• Packaging

End Users Covered:

• Pharmaceuticals
• Personal Care & Cosmetics
• Food
• Beverages
• Banking & Financial Institutions
• Homecare & Toiletries

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances