Packaging Coatings Market Size, Share & Trends Analysis Report By Resin (Epoxies, Acrylics, Polyurethane, Polyolefins, Polyester), By Packaging Type, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Packaging Coatings Market Size & Trends

The global packaging coatings market size was estimated at USD 4.23 billion in 2023 and is projected to grow at a CAGR of 4.7% from 2024 to 2030. The major driving factor is the increasing demand for flexible packaging coatings. These products offer enhanced adhesion, durability, and resistance properties, making them ideal for various industries, including food and beverage packaging.

The rise of the e-commerce industry is another significant driving factor. With the growth of online shopping, there is a higher demand for protective coatings for packaging materials to ensure the safe delivery of products. In addition, the increased demand for sustainable packaging solutions has also played a role in driving the market growth. Companies are focusing on developing eco-friendly alternatives to meet regulatory requirements and consumer preferences.

Technological advancements and extensive research and development activities have contributed to the market growth as well. These efforts aim to develop more effective and sustainable coatings for various consumer goods products. Furthermore, global industrialization and urbanization have created a higher demand for packaged products, which in turn drives the market growth of the products.

Regulatory considerations also impact on the market for products. Increasing regulations related to harmful chemicals, such as volatile organic compounds (VOCs), can affect the market. However, companies have quickly adapted to various eco-friendly alternatives to comply with these regulations.

Market Concentration & Characteristics

The market exhibits characteristics of a consolidated market. Consolidation refers to a market structure where a few dominant players hold a significant market share and can influence market dynamics. In the case of packaging coatings, a handful of key companies dominate the market, leading to a concentrated competitive landscape. These companies have established strong brand recognition, extensive distribution networks, and advanced technological capabilities, which act as barriers to entry for new players.

The competitive landscape in the market is characterized by intense rivalry among the major players. These companies compete based on factors such as product quality, innovation, pricing strategies, and customer service. Competition drives continuous improvement and innovation in products, benefiting consumers with a wider range of options and improved product performance.

Regulatory factors also play a significant role in shaping the market. Governments and regulatory bodies impose various regulations and standards to ensure the safety and sustainability of packaging materials. Compliance with these regulations is crucial for companies operating in the market. In addition, environmental concerns and the growing demand for sustainable packaging solutions have led to the development of eco-friendly coatings that meet regulatory requirements and consumer preferences.

Other factors that influence the product market include technological advancements and research and development activities. Companies invest in research and development to enhance the performance and functionality of coatings, such as improving barrier properties, adhesion, and durability. Technological advancements also enable the development of innovative coatings that cater to specific packaging requirements, such as temperature-sensitive products or high-barrier applications.

Resins Insights

Based on resins, the epoxies segment dominated the market with the revenue share in 2023. This high share of this segment can be attributed to another type of resin that is gaining popularity in the market. They provide strong adhesion, chemical resistance, and durability. Epoxy resins have been used in food packaging to provide a protective layer that separates the food or drink from the metal used to make cans. This helps prevent corrosion and maintains the safety, freshness, and nutritional value of the contents. Epoxy resins also contribute to the longer shelf life of canned food, allowing consumers to store food for extended periods. In addition, epoxies are used in glass packaging to protect metal lids from corrosion.

Acrylic resins are widely used in products due to their excellent adhesion, corrosion resistance, and durability. They offer properties such as wet and dry adhesion, early water resistance, and good inter-coat adhesion, making them suitable for applications like beverage cans and solid cans. Acrylic resins also exhibit resistance to stains, blistering, and cracking, making them a preferred choice for coating materials. The growing demand for coatings for high-speed packaging lines is further driving the use of solid acrylics in the market.

Polyurethane resins are known for their excellent flexibility, chemical resistance, and moisture resistance. They are used in products to provide a protective and durable layer that can withstand various environmental conditions. Polyurethane coatings offer good adhesion, impact resistance, and weather ability, making them suitable for applications such as food packaging, beverage cans, and other packaging materials.

Packaging Type Insights

Based on packaging type, the flexible packaging type segment dominated the market with the revenue share in 2023. This high share of this segment can be attributed to the rigid packaging is often preferred for products that require strong protection and a higher perceived value. It is commonly used for high-end beverages, spirits, perfumes, and specific beauty and health products. Glass packaging, in particular, is associated with a premium image and is favored for certain products. Rigid packaging also offers excellent barrier properties, ensuring the preservation and freshness of the contents. The global rigid packaging market is predicted to reach a significant value by 2024, indicating its continued importance in the consumer-packaged goods (CPG) industry.

The flexible packaging segment is expected to grow at a significant CAGR during the forecast period. The flexible packaging segment has been gaining traction in the product market, due to its lower cost and environmental impact compared to rigid packaging. Flexible pouches, for example, have become increasingly popular for food packaging due to their resalable nature, low environmental impact, and cost-effectiveness. They are commonly used for packaging products like granola, energy drinks, coffee, soups, snacks, and various other food items. The demand for flexible packaging is driven by factors such as convenience, lightweight design, and the ability to extend the shelf life of products.

End-use Insights

Based on end-use, the food & beverage segment led the market with the largest revenue share of approximately 31.14% in 2023. This high share of this segment can be attributed to the Food & Beverages industry is one of the largest consumers of the global market. The demand for food packaging coatings is driven by factors such as food safety, preservation, and aesthetic appeal. Acrylics, epoxies, and polyurethane resins are commonly used in food packaging coatings due to their excellent adhesion, chemical resistance, and barrier properties. These resins help protect the food from external factors such as moisture, oxygen, and light, ensuring the quality and freshness of the packaged products. In addition, the growth of the food delivery and takeaway market has further increased the demand for products to ensure the safe transportation of food.

The cosmetics segment is anticipated to grow at the fastest CAGR during the forecast period. This segment also contributes to the market growth. Cosmetics products require attractive and durable packaging to enhance their visual appeal and protect the contents. Acrylics, epoxies, and polyurethane resins are used in cosmetic packaging coatings to provide a glossy finish, scratch resistance, and chemical resistance. These resins help create a protective barrier that prevents the degradation of cosmetic products due to exposure to air, light, and moisture. The growing demand for cosmetics, including skincare, haircare, and makeup products, drives the need for innovative and high-quality packaging coatings.

The Pharmaceuticals segment is another significant end-user of packaging coatings. Pharmaceuticals products require packaging that ensures product integrity, tamper resistance, and protection against external factors. Acrylics, epoxies, and polyurethane resins are used in pharmaceutical packaging coatings due to their compatibility with different drug formulations, chemical resistance, and barrier properties. These resins help maintain the stability and efficacy of pharmaceutical products by preventing moisture, oxygen, and light from degrading the active ingredients. The increasing demand for pharmaceutical products, including prescription drugs and over-the-counter medications, contributes to the market growth in the pharmaceutical industry.

Regional Insights

The packaging coatings market in North America was the second-largest regional market in 2023.The major factors driving the market include the increasing demand for flexible packaging coatings and rising food and beverage packaging. However, the market is also witnessing fast growth owing to the region's fast-paced economy, changing lifestyles, and consumer inclination toward packaged food and beverages. The North America paints and coatings market is moving towards consolidation, leading to pricing pressure among manufacturers and tightening profit margins. The construction industry in North America, including the US and Canada, has witnessed an increase in residential, commercial, and infrastructural construction, which has elevated sales of paints and coatings.

U.S. Packaging Coatings Market Trends

The packaging coatings market in U.S. is estimated to grow at a significant CAGR from 2024 to 2030. It is primarily driven by its use in the U.S. market include the increasing demand for flexible packaging coatings and the continuous growth in the food and beverage packaging sector. This trend is influenced by changing consumer preferences and the need for innovative packaging solutions to meet the evolving demands of the market.

The Canada packaging coatings market is expected to grow at a significant CAGR during the forecast period, due to applications in one of the prominent trends in the Canadian market is the increased demand for eco-friendly coatings and sustainable packaging solutions. This trend is driven by the growing awareness of environmental sustainability and the need for packaging materials that minimize the impact on the environment.

Asia Pacific Packaging Coatings Market Trends

Asia Pacific dominated the packaging coatings market with a revenue share of approximately 38.12% in 2023. This high share of this segment can be attributed to the demand for packaging coatings in the Asia Pacific region is robust, driven by several key factors that contribute to its dominance in the global market. The region's market dominance is evident through its largest consumption and demand for packaging coatings. This demand is primarily fueled by the increasing need for flexible packaging coatings, particularly in the food and beverage packaging sector. In addition, the surge in demand for packaged food & beverage and consumer goods has significantly contributed to the high adoption of the products in the region.

The packaging coatings market in China is currently experiencing several notable trends that are shaping its trajectory. The major factors driving the market include the increasing demand for flexible packaging coatings and the rising demand for food and beverage packaging. However, it is important to note that increasing regulations are expected to hinder the market's growth. Nevertheless, the swiftly shifting market towards eco-friendly coatings is likely to act as an opportunity in the future.

Europe Packaging Coatings Market Trends

The packaging coatings market in Europe is expected to grow at a significant CAGR from 2024 to 2030. Major drivers of the market for methanol in Europe include the environmental benefits of methanol, government initiatives, and the increasing consumption for the production of dimethyl ether. In addition, the increasing demand for derivatives of methanol, such as formaldehyde, MTBE, and acetic acid, is a primary reason for the market growth in Europe.

The Germany packaging coatings market held the largest share of the Europe market in 2023 and is mainly driven by the demand for methanol in Germany is experiencing growth, driven by various factors and applications across industries. The government's increasing focus on adopting methanol as an alternative due to its eco-friendly attributes and cost-effectiveness has contributed to this trend.

The packaging coatings market in the UK is expected to grow at a significant CAGR from 2024 to 2030. The rising number of government schemes for adopting methanol as a new generation fuel alternative, owing to its eco-friendly attributes and cost-efficiency, is a key driver of this growth. Methanol is increasingly being utilized in various applications in the UK, including new technological advances such as alternative fuels, fuel cells, and LPG.

Central & South America Packaging Coatings Market Trends

The packaging coatings market in Central & South America is anticipated to grow at a significant CAGR from 2024 to 2030. The demand for methanol in Central & South America is reflected in the market's growth trajectory, with projections indicating substantial market expansion. The market is segmented by country, feedstock, and derivative, underscoring the diverse applications and market dynamics within the region. In addition, the methanol industry in Central and South America is poised for significant growth, with key manufacturers and market players driving market development and revenue generation.

The Brazil packaging coatings market is estimated to grow at a significant CAGR over the forecast period. The demand for methanol in Brazil is intricately linked to the country economic and policy drivers, as well as its energy efficiency and land-use implications, making it a dynamic and evolving market with substantial growth potential.

Middle East & Africa Packaging Coatings Market Trends

The packaging coatings market in Middle East & Africa is anticipated to grow at the fastest CAGR during the forecast period. The demand for methanol is spread across various countries in the region, including Saudi Arabia, UAE, South Africa, and the rest of MEA. The market's growth is driven by the increasing demand for methanol in different applications, including traditional chemical uses such as formaldehyde and acetic acid, as well as energy-related applications like methanol-to-olefin (MTO), methyl tert-butyl ether (MTBE), gasoline blending, and biodiesel.

The Saudi Arabia packaging coatings market is experiencing growth across various industries, driven by its versatile applications and environmental advantages. Methanol's low evaporation rate and low radiant heat make it a preferred safer process fuel in industries such as chemical and petrochemicals, paints, coatings, automotive, and construction.

Key Packaging Coatings Company Insights

Some of the key players operating in the market include Akzo Nobel NV, BASF SE, Arkema Group, Berger Paints India Limited and Clariant and among others.

• Akzo Nobel NV is a global provider of paints and coatings, with a diverse product portfolio that includes functional chemicals, industrial chemicals, pulp and performance chemicals, surfactants, vehicle refinishes, powder coatings, industrial coatings, wood finishes and adhesives, and marine and protective coatings

• BASF SE is a prominent player in the packaging coatings segment, offering a diverse range of innovative and sustainable solutions for various applications. The company's Functional Packaging Coatings division provides barrier coatings for paper and board applications, including aqueous acrylic binders for the formulation of heat seal lacquers with low to high activation temperatures

Chemetall,Chugoku Marine Paints Ltd, HEMPEL A/S, Jotun, Kansai Paint Co. Ltd and among others, are some of the emerging market participants in the packaging coatings market.

• Chemetall, a traditional company founded in the 19th century as part of the German metal company (mg), was integrated into BASF's Coatings division in 2016 as the Surface Treatment global business unit.The company's portfolio includes solutions for ensuring corrosion protection, coating adhesion, forming and machining of substrates, and applications to prepare surfaces for painting processes

• Jotun is a renowned global manufacturer of paints, coatings, and powder coatings, catering to various sectors such as decorative, architectural, marine, and protective applications. The company operates in four primary business segments: Marine Coatings, Protective Coatings, Powder Coatings, and Decorative Paints. Jotun's diverse product portfolio includes a wide range of coatings, including synthetic resins, floor coverings, polyurethane foam, heavy-duty coatings, binders, unsaturated polyesters, and glass-fiber reinforced polyester, among others

Recent Developments

• In September 2023, Sun Chemical has launched two new stirs in pigment preparations for the coatings market eXpand Yellow ST 1018 and eXpand Black St 9005. These pigments offer unique properties for automotive coatings

• In November 2023, AkzoNobel company made an investment in coatings technology to support the beverage can industry. The company’s packaging coatings business has launched two products named AccelstyleTM range, which are designed for the exterior of conventional two-piece aluminum beverages cans

• In October 2023, DYRUP paint by PPG introduced new bag in box packaging for its Dyrup Wall Extra Covering paint, which is made from 75% recyclable and biodegradable materials

Packaging Coatings Market Report Scope

Global Packaging Coatings Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global packaging coatings market report based on resins, packaging type, end-use, and region:

• Resins Outlook (Volume, Kilotons, Revenue; USD Million; 2018 - 2030)

  • Epoxies

  • Acrylics

  • Polyurethane

  • Polyolefins

  • Polyester

  • Other Resins

• Packaging Type Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • Rigid Packaging

  • Flexible Packaging

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • Food & Beverages

  • Cosmetics

  • Pharmaceuticals

  • Consumer Electronics

  • Other End Use

• Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • South Africa

    • Saudi Arabia