Packaging Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• COVID-19 impacted the global packaging coatings industry's growth. However, the increased demand for packaged food and online food deliveries during the pandemic and post-pandemic propelled the consumption of packaging coatings.
• The major factors driving the market studied are increasing demand for flexible packaging coatings and rising food and beverage packaging. On the flip side, increasing regulations are expected to hinder the market's growth.
• Swiftly shifting the market to eco-friendly coatings is likely to act as an opportunity in the future. Asia-Pacific dominates the global market, with the largest consumption from countries such as China, India, and Japan.

Packaging Coatings Market Trends

Increasing Demand for Acrylics

• Acrylic resins are segmented into thermoplastic and thermosetting plastic substances. They are produced from acrylic acid, methacrylic acid, or other acryl-based acids. Acrylic resins possess characteristics like excellent transparency and durability and are used in coatings.
• Due to their 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 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 and dry adhesion, early water resistance, corrosion and chemical resistance, hardness, good inter-coat adhesion, and excellent exterior durability. These properties make acrylic resin a suitable coating for applications like beverage cans, solid cans, etc.
• Packaging plays a crucial role in adding value to various FMCG products such as beverage and food cans, caps and aerosols, etc. The prime reason for this market's growth is its increasing use in the food and beverage industry.
• Acrylics in packaging coatings are used heavily for packaging FMCG products owing to their innovative and visual appeal for customer attraction and convenience. The growth in lifestyle and consumption patterns has increased the demand for packaged products resulting in a growing packaging industry.
• Acrylic resin coatings are now leading the market of the paints and coatings industry. They are known for their properties of color retention and inertness to environmental conditions. Due to growing environmental concerns and governmental regulations, industries are shifting to waterborne acrylic resins from solvent-based acrylic resins.
• The market value of China's paint manufacturing sector increased annually between 2011 and 2021, reaching a peak of USD 89.25 billion. The total trade between China and India in 2021 stood at USD 125.66 billion, up 43.3% from 2020.
• Furthermore, the trade value of India's paint industry was over INR 46 billion (USD 620 million) in 2021. The value of exported paint and allied products in the country amounted to approximately INR 17.4 billion (USD 234 million) compared to over INR 29 billion (USD 391 million) import value.
• India's largest paint and coating producer, Asian Paints, plans to invest INR 9.60 billion (USD 128 million) to expand the installed capacity at its facility at Ankleshwar in Gujarat. Such positive growth for acrylics will likely increase the demand for the 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 of 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 United States agricultural exports to China increased significantly in 2021, with a growth of 25% to a record high of USD 32.9 billion. China is the 5th largest market for the export of United States processed foods. Exports in 2021 were valued at USD 2.1 billion, an increase of 27% from the prior year.
• In 2021, China contributed to more than half of the world's e-commerce retail sales, with the sales value surpassing the combined total of Europe and the United States.
• The growth in the e-commerce market led to a huge increase in demand for the packaging industry and, consequently, the packaging coatings industry. Food and beverage packaging is the fastest-growing sector among them.
• In June, the total retail sales of social consumer goods reached CNY 3,874.2 billion (USD 572 billion), an increase of 3.1 percent year-on-year. Among them, the retail sales of consumer goods other than automobiles reached CNY 3,419.2 billion (USD 505 billion), an increase of 1.8 percent. In China, the awareness concerning the environment and pollution led to the formation of regulations related to harmful chemicals (such as volatile organic compounds (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 contribute to the increasing demand for packaging coatings consumption in the country during the forecast period.

Packaging Coatings Industry Overview

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