Product Code: 67383
The barrier film market was valued at USD 30312.51 million in 2019 and is expected to reach USD 43859.36 million by 2025, registering a CAGR of 6.4% during the period of 2020-2025. The growth of the barrier film market is augmented by the huge demand for high-performance films, owing to the rising barrier requirements in multiple end-user industries. Improvements, particularly in processing technologies, are expected to support the increasing use of barrier films for suitable applications and low-cost production.
- Packaging applications for food are expected to account for a major share of the barrier film market. This can be attributed to the rising trend of down-gauging, which has supported the shift from rigid to flexible packaging. Strong incentives from retailers, producers, and consumers to increase product shelf life and reduce wastage of packaging material, along with the rising preference for fresh foods, such as meat, fruits, vegetables, and seafood, have increased the demand for barrier films.
- Furthermore, Pharmaceutical and medical products make up one of the largest markets for high barrier films. This market is expected to grow at a strong pace, based on increased healthcare spending and new drug formulations that require higher barrier packaging.
- Among the materials, PET is expected to witness an increase in use, due to its ability to be metalized by vapor deposition of metals, which further improves the barrier against oxygen, water vapor, and aroma loss. LCP (liquid crystal PET) is an emerging PET film for high gas barrier applications.
- Moreover, developments in barrier films offer adequate measurements at the low levels of permeability required for organic photovoltaics and OLEDs.Barrier films are designed to safeguard electronic components, such as transistors, electronic circuits, and other electronic products, from degradation caused by moisture/oxygen. Flexible barrier films enclose flexible, organic, and printed electronics to save them from corrosion, without affecting their performance and functionality.
- However, recycling challenges with flexible packaging products and higher operational costs are hindering the growth of the market.
Scope of the Report
The barrier film market is the studies of different film materials used for protecting the products from extreme temperatures, gases, and moisture, and for their other properties, like extending the shelf life, and ultimately, maintaining the product quality and image. Film materials, including polyethylene and polypropylene, among others (both plastic and metalized), are used for packaging products, such as of food and beverage, medicines, pet food, personal care and homecare products, construction materials, etc. are analysed as part of the study.
Key Market Trends
Food Industry to Augment the Market Growth
- Protection, preservation, maintaining, and extending the shelf-life of food products are the primary challenges faced in the food industry.
- Food products are affected due to both intrinsic parameters, such as pH, preservatives, and water activity, as well as extrinsic parameters, like temperature, humidity, and gaseous environment. Barrier film packaging solution allows mitigating these challenges.
- Barrier film is extensively used for products, like bakery goods, biscuits, frozen foods, pet food, chips and snacks, meat and dairy products, and dry fruits in the food industry.
- Moreover, companies are manufacturing barrier film packaging solutions that provide high emphasis on developing 100% recyclable products to promote a circular economy in the packaging industry. For instance, Innovia Films recently launched its new series of transparent barrier film packaging solutions for cereal bars, biscuits, snacks, dried fruits, nuts, tea, and coffee. These products are designed with standalone mono film or to be used in laminated construction so that they can be recycled readily.
- Consumer, today, are focusing on convenience and purchase grab-and-go products rather than bulk buying; this is resulting in high demand for packaged food. The trend of grab-and-go food and snacks is driving the demand for barrier film packaging solutions in the food industry.
Asia-Pacific to be Fastest Growing Market
- Asia-Pacific is the third-largest pharmaceutical market after North America and Europe. The region has densely populated countries, such as India and China, that have significantly contributed to the production of pharmaceuticals in the region.
- India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The Department of Pharmaceuticals aims to make the country a hub for end-to-end drug discovery under its 'Pharma Vision 2020'.
- The country is home to 3,000 pharma companies, with a strong network of over 10,500 manufacturing facilities. According to the National Investment Promotion & Facilitation Agency, the domestic pharmaceuticals market turnover reached USD 18.12 billion in 2018, up 9.4% from 2017, growing as penetration of health insurance and pharmacies rise. The increasing pharmaceuticals production in the region is significantly driving the growth of the barrier film market in the region.
- According to the US Agriculture Department, China consumed around 74 million metric tons of pork, beef, and poultry in 2017, approximately twice as much as the United States. With a growing preference for Western-style packaged meats, such as various steak cuts, coupled with increasing meat imports to the country, the market for retort packaging for these meat products is expected to drive the market in the region.
- Moreover, the region is also witnessing an increase in demand for ready-to-eat food. Ready-to-eat meals (REM) or take-home food items represent an important area of growth, and sales from this sector are essential to increase the retail food and beverage industry revenue. According to the Japan Ready-Made Meal Association, total sales in 2017 were JPY 10.155 trillion (USD 89.78 billion), and in 2018, total sales were JPY 10.351 trillion (USD 92.12 billion), which was 1.9% higher than the previous year. Such factors are anticipated to boost the growth of barrier films in the food and beverage industry.
The barrier film industry is highly fragmented, with market incumbents, such as Amcor Limited, Sealed Air Corporation, Winpak Limited, and other companies. The market incumbents have been identified to adopt powerful competitive strategies, characterized by acquisitions, partnerships activities, a strong emphasis on R&D, and innovative activities. Some of the keys players in the market are Amcor PLC, Sealed Air Corporation, UFlex Limited, Mondi Group, Winpak Limited, among other.
- Jan 2019 - Mondi invested in its Styria, Austria, plant to further boost its ability to develop safe, clean, eco-friendly liners for Flexible Intermediate Bulk Containers by installing new equipment at Styria to make high-barrier, side-gusseted tubes for FIBCs. This also enables the company to make these films in a variety of structures, like from PE to PE/PA, and PE/EVOH to seven-layered PE/PA/EVOH structures, Investment in Europe indicates the company's confidence in the business opportunity in the region.
- April 2019 - Huhtamaki started flexible packaging manufacturing in Egypt. The investment marks the company's entry into manufacturing flexible packaging in Africa. Moreover, the product manufactured would be exported to other African countries and Europe.
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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 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Replacement of Rigid Packaging Formats
- 4.3.2 Increasing Biodegradable Barrier Films
- 4.4 Market Restraints
- 4.4.1 Environmental Legislations For Recycling
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Technology Snapshot
5 MARKET SEGMENTATION
- 5.1 By Packaging Product
- 5.1.1 Bags
- 5.1.2 Pouches
- 5.1.3 Tray Lidding Films
- 5.1.4 Blister Base Films
- 5.1.5 Wrapping Films and Forming Webs
- 5.2 By Material
- 5.2.1 Polyethylene (HDPE, LDPE, LLDPE)
- 5.2.2 Biaxially Oriented Polyethylene Terephthalate (BOPET)
- 5.2.3 Polypropylene (CPP and BOPP)
- 5.2.4 Polyvinyl Chloride (PVC)
- 5.2.5 Other Materials (EVOH, Polystyrene (PS), and Nylon,)
- 5.3 By End-user Industry
- 5.3.1 Food
- 5.3.2 Beverages
- 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
- 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 GmbH
- 6.1.9 Proampac LLC
- 6.1.10 Polyplex Corporation Limited
- 6.1.11 KM Packaging Services Limited
- 6.1.12 Glenroy Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS