Barrier Coatings for Packaging Market Report

Barrier coating is applied to various substrates including use in pharmaceuticals especially, sensitive pharmaceuticals like tablets, and capsules which require barrier coatings to maintain their efficiency and prevent them from degrading due to humidity. Major demand for barrier coating for packaging from food and pharmaceutical industry present significant opportunity for market players to offer barrier coating with enhanced properties. Investments in research and development ensure constant enhancement and adaptation of products. Increasing global demand for corrosion solutions across various industries presents opportunities to expand market presence. Companies can leverage its extensive product portfolio and ISO-certified facilities to penetrate new markets worldwide.

Companies can focus on developing sustainable packaging solutions to cater eco-conscious consumer base and to reduce environmental impact. Entering new geographical markets and expanding product offering reflects strategic opportunities to diversify the consumer base and revenue streams. Introducing PFAS-free barrier technologies and other specialty papers to new regions helps in enhancing market reach. Digital transformation presents can enhance operational efficiency and strengthen customer engagement. Enhanced digital capabilities can enable to offer personalized customer experiences and innovate new product offerings. Hence barrier coatings have been essential to maintain the quality and safety of products across various industries, likely to increase their use and contribute to market growth.

Economic volatility poses a significant threat to the market, while fluctuations in raw material prices can lead to increased production costs and impact profit margins & pricing strategies. Evolving environmental regulations and new standards may increase operational complexities and hinder manufacturer's ability to introduce innovative products to market quickly. Addressing increasing consumer and regulatory expectations regarding environmental sustainability and reducing carbon footprint throughout the supply chain poses a significant challenge. This includes managing resource consumption and waste generation. Also, sustaining technological innovation requires significant investment in research and development (R&D) to develop new coatings. Development of new technologies or innovative solutions by competitors can be challenging for new entrants to maintain competitiveness mandating continuous investment in research and development.

Companies are investing in research and development to innovate and enhance the functioning of barriers to cater to specific needs with a focus on developing bio-based barrier coatings made from bio-based materials. Ongoing research on the enhancement of barrier coatings includes the integration of nanomaterials like nano clays and nano-cellulose are considered effective against gases, moisture, and oils. For instance, in August 2023, ACTEGA launched its new Ultra sheen PakSafe UV coatings. PakSafe UV coatings have undergone thorough regulatory analysis and are specially formulated to exclude all California Proposition 65 materials and “forever chemicals”. This new, more sustainable line of coatings not only meets a number of regulatory standards but retains the scuff resistance and required flexibility.

Another product offering was by Stora Enso Oyj, in November 2023, the company had published their lower product carbon footprints for many of their wood products as verified by transparent third parties in their EPDs. The updated EPDs for Stora Enso’s cross-laminated timber (CLT), laminated veneer lumber (LVL), and Sylva CLT and LVL Ribs all show a reduction in emissions making it easier than ever before to meet construction environmental goals. Also, many companies are focusing on improving the performance of water-based barrier coatings to match solvent-based counterparts. While multi-functional barriers are being developed to provide protection against multiple factors in a single layer.

The adoption of sustainable and biodegradable barrier coatings in the North American region is accelerating market growth. The United States and Canada have strict regulations regarding food safety and packaging materials; thus, government initiatives promote sustainability which have led to increased demand for eco-friendly packaging coatings. South Asia and Europe dominates the barrier coatings for packaging market. The constant usage of barrier coatings food and pharmaceutical sector is propelling market growth. Asia-Pacific regions is experiencing rapid growth driven by increasing urbanization, industrialization and market growth. The Latin America market is expected to grow over the forecast period owing to high consumption of packaged foods, particularly in Mexico and Brazil.

Addressing the growth of barrier coatings for packaging market; the East Asia region is expected to witness growth over the forecast period, following the South Asia market. In Asia-Pacific, China is considered as the prominent region in the market driven by the large population. The Middle East & Africa region is showing growth in the market due to the increasing food and beverage industries in this region. This region is an emerging market with growth driven by increasing consumer demand for packaged goods an expansion of various industries.