The global extrusion coating market size was significantly robust in 2020 and is expected to register a steady revenue CAGR over the forecast period. Key factors driving market revenue growth are the rising popularity of additive manufacturing processes, the introduction of environmentally friendly coating technologies, rising requirement for moisture free, grease resistance, and odor barrier packaging.
Extrusion coating and laminating lines are typically custom-built and can be used for a variety of uses including liquid packaging, aseptic drink containers, flexible packaging, toothpaste tubes, medical packaging, industrial wraps, insulation backed materials, and plastic coated tablecloths, as well as cement, cereal grain, and dry chemicals sacks. The extrusion coating market has shown significant growth and constant advancements in technologies in the field. Extrusion coating-based packaging used in end-use industries aids to safeguard end products against moisture, dust, rain, temperature changes, and cracks, among others.
Extrusion coating is expected to become an excellent substitute for aseptic flexible bricks, and thus, is gaining popularity around the world. Various applications of the product including multiple layer webs for personal care and food and beverage packaging are in high demand. Additionally, small pillow-like pouches for disposable and medical products, tubes for cosmetics and personal care products, and vacuum packing for pet food and coffee are major applications of extrusion coatings. Extrusion coating is widely used in commercial and industrial sectors due to its features such as stress crack resistance, efficient vapor barrier, and great adhesion property to various substrates.
Major Factors Driving Growth Of The Global Market:
Revenue growth of the global extrusion coating market is significantly driven by the rising need for extrusion coating in the packaging industry as well as the growing global popularity of additive manufacturing.
During the forecast period, the food and packaging sectors are expected to drive revenue growth in the extrusion coating market. Flexible packaging is widely used in food packaging, including bakery goods, dairy products, frozen meals, meat and poultry, confectionery, and cookies. A variety of benefits including consumer friendliness, long shelf life, and green packaging of the extrusion coating is a factor expected to enhance its implementation in the medical food & beverages, pharmaceutical, and other sectors during the forecast period. Moreover, extrusion coating reduces VOC emissions, improves quality, and boosts productivity.
Government measures to prevent food waste, as well as recent developments such as the development of environmentally friendly packaging are aiding end-use industries in fulfilling the need for recyclable products. As a result, the development of bio-based extrusion coatings is gaining robust popularity and traction.
Factors Restraining Growth Of The Market:
The global extrusion coating market revenue growth could be hampered by factors such as the high cost of extrusion coatings in comparison to other coatings, as well as possible environmental issues associated with these coatings. Fluctuating costs of raw materials such as crude oil and natural gas are resulting in the high cost of the product and could hamper revenue profit margins for major players.
Opportunities For Players Operating In The Global Market:
Increasing focus on developing enhanced extrusion coating at lower costs and growing investments to manufacture eco-friendly materials are factors expected to create lucrative opportunities in terms of revenue and business expansion for major players and new entrants in the global market.
Extrusion Coating Market Revenue Led By Substrate Type Segment:
Based on substrate type, the paper and paperboard segment is expected to account for the largest revenue share over the forecast period. Paperboard is used for packaging various food items such as snacks, veggies, and others, owing to its excellent characteristics such as lightweight, recyclability, low cost, and environmental friendliness. In addition, the segment is expected to register a significantly high revenue growth rate during the forecast period, as a result of increasing efforts by governments in various countries to reduce the use of plastic material for packaging.
Market Leading Application:
Based on application, the liquid packaging segment is expected to account for the largest revenue share in the global market during the forecast period. Major factors driving revenue growth of this segment are increasing usage of liquid packaging for products that require temperature and abrasion resistance, grease resistance, leakage proof, and other sealing features.