The extrusion coatings market is expected to record a CAGR of over 5% during the forecast period. The major factors driving the market studied are the increasing demand from the food and beverage industry, and the steady growth of the packaging industry.
- High costs, compared to other coatings, and the contribution to the carbon footprint are expected to hinder the growth of the market studied.
- The development of bio-based polymers as raw material is likely to act as an opportunity in the future.
Key Market Trends
Liquid Packaging to be the Largest Application
- The liquid packaging application accounted for the largest share in the extrusion coatings market globally.
- Liquid packaging involves applications used for both short and long-shelf-life products (dairy as well as non-dairy).
- Packaging of liquid foods demands design flexibility, printability, looks, feel, and sustainability, among other features.
- Certain advantages, with the usage of extrusion coatings for liquid packaging, include temperature resistance, abrasion resistance, grease resistance, lowered coefficient of resistance, reduced water vapor transfer rate, etc.
- The ongoing growth in the personal care and cosmetic industry is also expected to increase the usage of liquid packaging, thus inducing the consumption of extrusion coatings.
Asia-Pacific to Dominate the Market
- Asia-Pacific represented the largest regional market for extrusion coatings market globally. The major countries, responsible for the consumption of extrusion coatings in the region, include China, India, and ASEAN countries.
- There is an ongoing growth in the economy and the disposable incomes among the population in the region, which is increasing the demand for extrusion coated material. Among all the countries in the region, China’s market is expected to witness the highest CAGR during the forecast period.
- In Asia-Pacific, China is the largest economy, in terms of GDP. The growth in the country remains high but it is gradually diminishing, as the population is ageing. The economy is rebalancing from investment to consumption, manufacturing to services, and external to internal demand.
- The construction sector is a major contributor to the GDP of China. After the government’s push for infrastructure investment, to sustain economic growth, the construction industry is growing rapidly in China. Thereby, increasing the demand for industrial packaging, which, therefore, increases the consumption of extrusion coatings market in the country, during the forecast period.
- In India, the industrial sector is witnessing rapid growth in recent times, with the focus of making the country the fifth-largest manufacturing country in the world, during the study period. With the help of Make in India drive, India is becoming the hub for manufacturing.
- Additionally, the food processing industry in India is rapidly increasing with upcoming investments and governmental support. With the increasing investments in the food processing industry, the demand and growth of the food and beverage packaging in the country may increase, thus, increasing the consumption of extrusion coatings market in the country, during the forecast period.
The extrusion coatings market is fragmented in nature. The major companies include LyondellBasell Industries Holdings BV, Celanese Corporation, DuPont de Nemours, Inc., THE SHERWIN-WILLIAMS COMPANY, and SABIC among others.
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