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Functional and Barrier Coating for Paper Market: Industry Outlook, Growth Prospects and Key Opportunities

Press Release   •   Jan 09, 2018 04:23 EST

Paper is used in a wide range of packaging applications as it is biodegradable and, thus, perfectly safe for the environment. Paper-based packaging are indispensable components of modern life and play an important role in the handling and transportation of food and consumer products. It is a flexible and cost-efficient method to transport and protect a wide array of items in paper-packaged containers. Paper packaging offers various advantages, such as it is lightweight and easy to customize as per requirements; however, the marketplace has a clear need for more functionalities in barrier technologies, which could make them sustainable and recyclable.

Barrier coatings are functional coatings, which reduce the flow of a fluid. Barrier coating is applied to a paper, paperboard, or corrugated board substrates in order to facilitate effective resistance to water, grease, moisture, and gases under a wide range of conditions and temperature. Barrier coating requires low coat weight as compared to other coatings and it is more effective when multiple layers of barrier coating are applied on the substrate. Barrier coating is the main element in the concerned efforts taken by the packagers to optimize protection, odor control, and prolongation of the product shelf life.

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Paper is generally coated with organic liquids such as Polyvinylidene Chloride (PVdC), Ethylene Vinyl Alcohol (EVOH), Acrylics, Polyvinyl Alcohol (PVOH), silicon oxide, aluminum oxide, polyethylene, polyolefin and inorganic sol-gel, and biodegradable polymers such as Polyethylene Glycol (PEG). It can be easily dispersed in water and offers self-crosslinking, edge wicking resistance, and resistance to external media. It can be customized as per requirement, as it helps control humidity control, sealing properties, airtightness, light protection, oxygen permeability, aroma barrier, heat resistance, peel-ability, grease-proofing, etc.

Evolving life style of consumers, increasing health and environmental awareness, and supportive environmental policies implemented by various governments across the globe for food contact paper, are the major factors responsible for the increasing global demand for functional and barrier coating for paper that ensures greater protection of the content and reduces the need for preservatives. This in turn has been leading to the continuous growth of the market for functional and barrier coating for paper.

Owing to its value added applications, such as protection of food, enhancement of paper gloss, and transparency, the market for functional and barrier coating for paper, is expected to create significant growth and investment opportunities for players operating in the market, especially in the developing countries. Besides, the market for functional and barrier coating for paper is expected to continue to grow steadily in developed nations, wherein the consumer demand for packaged food and medicine would always prevail. The main growth drivers for the market are local packaging firms, big brands, and retailers, who are more focused on delivering the products in the local market.

The global market for functional and barrier coating for paper is segmented based on material, product type, and end users. By material of manufacturing, the global market for functional and barrier coating for paper is segmented into conventional plastic coating, biodegradable coating, and others. By type, it is segmented into water resistance, gas resistance, heat resistance, and others. By end users, the global market for functional and barrier coatings for paper is segmented into food & beverage industries, pharmaceutical industries, and others.

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By geography, the global functional and barrier coating for paper market has been classified into seven key regions, namely North America, Latin America, Eastern Europe, Western Europe, Asia-Pacific excluding Japan, the Middle East & Africa, and Japan. The global market for functional and barrier coating for paper is anticipated to expand at a double digit CAGR over the forecast period.

Asia Pacific market is expected to be the most attractive market due to rise in end use applications of the packaging type in the region. Japan is continuously improving its packaging methods through diverse research, and thus is regarded as one of the largest market for functional and barrier coating for paper in the world. North America, followed by Western Europe, are the other prominent regions projected to hold a promising future growth potential in the functional and barrier coating for paper market by the end of 2026.

Some of the key players in the global market for functional and barrier coating for paper are The Dow Chemical Company (Dow Packaging), Akzo Nobel N.V., Cork Industries, Inc., Kuraray Co. Limited, Imerys Pigments, Paramelt B.V., Solvay S.A., ACTEGA Terra, Mondi Corporate, Synthetic Natural Polymers, Michelman Inc. etc. 

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