The global extrusion coating market was valued at $3,703.8 million in 2017 and is projected to reach $4,759.3 million by 2023, progressing at a CAGR of 4.2% during the forecast period (2018–2023). The low-density polyethylene (LDPE) category under material type held the largest share in the market during the historical period (2013–2017).
THE polypropylene (PP) category is expected to exhibit the fastest growth during the forecast period. The market growth in this category is mainly driven by the increasing use of PP in food and beverage packaging, owing to its tough and flexible property.
Increasing use of Polypropylene in Food and Beverage Packaging Is a Major Trend
Growing use of PP in food industry is witnessed as a growing trend in the market. PP is tough and flexible and can be used as a plastic or fiber in various plastic end-use markets. Some of the benefits associated with PP are its relatively low cost, high flexural strength, great electrical insulation quality, and high moisture. In addition, the recyclability of PP is another factor that encourages food and beverage companies to adopt this material for product packaging. Thus, the increasing use of PP in food and beverage packaging is identified as major trend in extrusion coating market.
Growing Food and Beverage Industry Drives the Market
In recent times, the food and beverage industry has witnessed substantial growth, primarily on account of growth in population, rise in disposable income, and rise in awareness among people regarding health. Growing health concerns among people are stimulating the demand for low-calorie, sugar-free, gluten-free, and lactose-free food products. Extrusion coating materials play a significant role in packaging applications in the food and beverage industry, as they help protect products from external environmental factors and lend an aesthetic appeal to them, which, in turn, is expected to drive their market growth in the coming years.
Segmentation Analysis of Extrusion Coating Market
LDPE material type was the largest category in 2017 in the extrusion coating market. This material can easily withstand temperatures up to 80 degree Celsius for an indefinite time period, owing to which it is used in liquid packaging and snack food lamination, folding carton/cup stocks, and sealant layers.
The polymer film category in terms of substrate is expected to exhibit the fastest revenue growth during the forecast period. This can be ascribed to the growing demand for flexible packaging solutions in food and beverage, personal care, and healthcare industries.
The liquid packaging category for application held the largest share in 2017 in the extrusion coating market. This is due to the growing use of extrusion coating materials in liquid packaging to increase the saleability of different types of liquid and semi-solid food items, such as milk, juice, and sauce.
Geographical Analysis of Extrusion Coating Market
Asia-Pacific (APAC) and Europe are expected to account for over 75% share in the global extrusion coating market by 2023. This can be mainly attributed to increasing use of liquid cartons and paper-based containers in the food and beverage industry. Also rising disposable income and price deflation in the region have raised the demand for packaged food products, which, in turn, drives the growth of the market.
North America, Latin America (LATAM), and Middle East & Africa (MEA) also hold considerable shares in the extrusion coating market, on account of increase in ready-to-consume meals and ready-to-drink beverages, and growth of the healthcare industries, which, in turn, is increasing the demand for packaging materials in these regions.
The U.S. is expected to lead the North American market, generating revenue of over $474.6 million in 2023. This can be mainly attributed to the presence of the major market players in the country and their increasing investments in R&D of extrusion coating.
Brazil is the fastest-growing market in the LATAM region. Increasing industrial and infrastructure development activities and rising investments by key players in the country are the major factors contributing to the growth of the market in Brazil.
Due to the increased funding from government in industrial development, which is leading to advancements in the packaging and extrusion coating market, Saudi Arabia is expected to hold a considerable share in the MEA region in the forecast period.
Competitive Landscape of Extrusion Coating Market
Some of the key players in the extrusion coating market are DowDuPont Inc., SABIC, and Chevron Phillips Chemical Company LP, INEOS Group Holdings S.A., Qenos Pty. Ltd., and Westlake Chemical Corporation.
To remain competitive in the extrusion coating market, several players are getting involved in product launches, mergers and other business activities. For example, in September 2017, DowDuPont Inc. announced commencement of operations of its new integrated ethylene production facility and ELITE enhanced polyethylene production facility in Freeport, Texas, to utilize the increasing supply of shale gas in the U.S. to deliver downstream solutions to the company’s core market verticals.