Product Code: 60345
The barrier film market was valued at USD 30.2 billion in 2019 and is expected to reach USD 43.84 billion by 2025, registering a CAGR of 6.5% during the period of 2020-2025. The increasing demand for barrier films can be attributed to the increased demand from various end-user industries, such as pharmaceutical packaging, food & beverage packaging. Flexible packaging formats, such as retort pouches, bags, and trays with wraps, are helping consumers with busy lifestyles and single-households and meeting their need for convenient packaging.
- With the rapid growth of large retail chains, it greatly benefitted the barrier films market. These retail chains are enlarging the market for packaged food, as well as electronics and pharmaceutical items; also, companies are increasingly using barrier films owing to an increased focus on cost reduction and shelf-life extension.
- Supermarkets/hypermarkets are becoming more favored by consumers across the globe due to their wide range of product offerings and various choices of premium brands, unavailable at individual outlets. Thus, these supermarkets/hypermarkets are witnessing increased adoption in major cities and are also expanding their presence in developing markets, which will further expand barrier films demand in these countries.
- Further, the changing consumer preference has been a significant factor driving the growth of the barrier film market. The emergence of recyclable and sustainable alternative materials based on polymers in the packaging industry, in line with the existing demand for eco-friendly packaging, has majorly benefited the retail and food industries. Bio-degradable materials have benefited from consumer preference for sustainable materials; however, the recent advancements have led to the possibility of recycling plastic, which is expected to strengthen the hold of the content in the barrier film market.
- With the recent outbreak of COVID-19, the barrier film packaging manufacturer is facing supply chain disruption along with decreasing manufacturing at the site in many parts of the world. Moreover, polypropylene prices dropped in March, due to a tighter supply situation. Petrochemical buyers remain deeply concerned about low crude oil prices, given their strong correlation with feedstock ethylene and propylene values.
- However, the surge in demand of face shield, have garnered the growth of barrier film as most of the face shield is made up of plastic barrier films made from PE, PC, PET, among others. For instance, in March 2020, Ikonos has launched an anti-virus PET barrier film face shield to prevent the propagation of the coronavirus.
Key Market Trends
Polyethylene (HDPE, LDPE, and LLDPE) to Hold a Major Share in the Market
- The changing food habits which are associated with the busy lifestyle of people creates a demand for packaged food. Polyethylene is the cheapest packaging film that is used in the food industry.
- The polyethylene materials that are being used for barrier film include HDPE, LDPE, and LLDPE. Polyethylene is easy to process and is combined with gas/aroma barriers, such as PA and EVOH, for their use in various applications. Moreover, many packaging manufacturers are focusing on making their packaging recyclable or reusable.
- For instance, in October 2019, Zotefoam introduced ReZorce, a range of recyclable HDPE mono-materials that can rival the barrier properties of a composite packaging. This makes them ideal for use in the food industry. Additionally, the multi-layer structure of ReZorce facilitates the incorporation of recycled material within the core of the material.
- Additionally, LDPE plastics are to be increasingly used as a recycling material as they can be upcycled into new types of products. LDPE can be easily recycled along with any other plastics in most facilities.
- Further, new biodegradable inventions in the market could hinder the market growth of HDPE barrier films. For instance, in January 2020, The Indian Institute of Technology (IIT-B) announced the development of degradable plastic-like films. The researchers claim that their new film is a low-cost material and three times stronger compared with the HDPE films.
North America Hold the Largest Market Share
- North America region showed a significant change in the consumer lifestyle trends, who are demanding convenience and portability of products, especially in the food sector, which directly drives the barriers films market.
- The food industry accounts for more than 5% of US GDP and is still currently growing, due to the greater demand for packaged foods. The advantages such as ease of use at home and on-the-go flexibility have become necessary factors that drive the purchase of packaged foods.
- Further, the increasing production and demand for milk and other packaged beverages are also increasing the demand for barrier films. According to the United States Department of Agriculture (USDA), the United States accounted for 217,500 million pounds of milk production in 2018.
- The country is witnessing a shifting trend in milk packaging. Many of the companies have started preferring aseptic cartons and pouches for milk packaging as they provide extended shelf-life and are easy to transport. Moreover, the consumers in the region prefer products with extended shelf-life, which is significantly contributing to the growth of the market studied.
- Additionally, expanding the use of drug therapies, an aging regional population, and expanded access to healthcare have stimulated the demand for pharmaceuticals over a period of five years till 2019, thereby bolstering the demand for barrier films.
- The United States dominates the pharmaceutical market, both in consumption and development. In terms of pharmaceutical drugs, pricing generates a constant topic of debate in the country. According to STAT, prescription drug spending in the nation is considered to add up to USD 600 billion by 2023, up from an estimated USD 500 billion in 2019, which is further expected to drive the market for barrier films in the country.
The barrier film market is fragmented and competitive due to the presence of small and large vendors. The market is moderately concentrated, slowly moving towards the fragmented stage. Key strategies adopted by the major players are product innovation and partnership. Some of the key players in the market are Amcor Limited, Bemis Company, Berry Global, among others. Recent developments in the market are -
- June 2020 - German pet food maker Mera Tiernahrung GmbH has partnered with the global leader in packaging and paper, Mondi, to expand its product line to include a new type of dog food with semi-moist croquettes. Mera is using Mondi's FlexiBag Recyclable, which is a mono-material, polyethylene-based product with a barrier that is fully recyclable. Mondi's packaging solution helps Mera to find the most effective and sustainable way to protect their products.
- June 2020 - Innovia Films has launched Encore, a new range of recyclable BOPP barrier films, manufactured from renewable non-food based raw materials. The company claims that these products could help reduce the use of fossil-based virgin raw materials.
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TABLE OF CONTENTS
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
- 4.3 Industry Attractiveness - Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Technology Snapshot
- 4.4.1 Oxygen and Other Gas
- 4.4.2 Corrosion
- 4.4.3 Moisture
- 4.4.4 Other Types
- 4.5 Impact of the Covid-19 on the Market
- 4.6 Market Drivers
- 4.6.1 Replacement of Rigid Packaging Formats
- 4.6.2 Increasing Biodegradable Barrier Films
- 4.7 Market Restraints
- 4.7.1 Environmental Legislation For Recycling
5 MARKET SEGMENTATION
- 5.1 Material
- 5.1.1 Polyethylene (HDPE, LDPE, and LLDPE)
- 5.1.2 Biaxially Oriented Polyethylene Terephthalate (BOPET)
- 5.1.3 Polypropylene (CPP and BOPP)
- 5.1.4 Polyvinyl Chloride (PVC)
- 5.1.5 Other Materials (EVOH, Polystyrene (PS), and Nylon)
- 5.2 Packaging Product
- 5.2.1 Bags
- 5.2.2 Pouches
- 5.2.3 Tray Lidding Films
- 5.2.4 Blister Base Films
- 5.2.5 Wrapping Films and Forming Webs
- 5.3 End-user Industry
- 5.3.1 Food
- 5.3.2 Beverage
- 5.3.3 Pharmaceutical and Medical
- 5.3.4 Personal Care and Home Care
- 5.3.5 Other End-user Industries
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 18.104.22.168 Western Europe
- 22.214.171.124 Eastern Europe
- 5.4.3 Asia-Pacific
- 5.4.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Amcor PLC
- 6.1.2 Berry Global, Inc.
- 6.1.3 Sealed Air Corporation
- 6.1.4 UFlex Limited
- 6.1.5 Huhtamaki Group
- 6.1.6 Mondi Group
- 6.1.7 Winpak Limited
- 6.1.8 Constantia Flexibles Group
- 6.1.9 Proampac LLC
- 6.1.10 Polyplex Corporation Limited
- 6.1.11 KM Packaging Services Limited
- 6.1.12 Glenroy, Inc.
- 6.1.13 TOPPAN Printing Co. Ltd.
- 6.1.14 Clondalkin Group Holdings B.V.
- 6.1.15 Innovia Films Limited
7 INVESTMENT ANALYSIS
8 FUTURE OUTLOOK OF THE MARKET