Metalized Barrier Films Market - Forecast(2023 - 2028)

Metalized Barrier Films Market Overview

The metalized barrier films market size is forecast to reach US$4.2 billion by 2027 after growing at a CAGR of 5.2% during 2022-2027. Metalized barrier films are high-performance films that act as a barrier against the transmission of water vapour, oxygen, and light. These barrier films are extensively used in the food and beverage industry for increasing the shelf life and retaining the taste of a wide range of food items. The food and beverage industry booming globally with increasing investments and production and this will contribute to the growth of the market in the forecast period. For instance, according to the report by Investment India, the food processing sector in India is expected to become over a half a trillion dollars market by 2025. Furthermore, metalized barrier films find their massive usage in the application of several pharmaceutical products such as tablets, capsules, powders, creams, ointments, etc. The pharmaceutical industry is expanding globally and this will drive the growth of the market in the forecast period. For instance, as per the 2020 data by the European Federation of Pharmaceutical Industries and Associations, the production of medicines in the European region touched US$ 317,942.75 million in 2019 which was US$ 300,434.09 in the previous year. Polypropylene is projected to witness the highest demand in the forecast period. Other materials such as polyethylene, polyethylene terephthalate, polyamides, and ethylene vinyl alcohol will witness significant demand in the forecast period. The fluctuations in the prices of these materials might hamper the market’s growth in the forecast period.

COVID-19 Impact

The metalized barrier films market was positively impacted due to the COVID-19 pandemic. Challenges such as supply chain disruption and raw material procurement surfaced during the pandemic, slowing down the business in the market. Despite these challenges, the market witnessed significant growth owing to the increased demand for packaging applications of ready-to-eat meals, packaged foods, fresh vegetables, and various pharmaceutical products. According to the August 2020 report by Uflex Ltd, the demand for packaging surged owing to the personal hygiene category. Going forward, the metalized barrier films market is projected to witness significant growth due to the massive demand for barrier films generated in end-use sectors like food and beverage, personal care and cosmetics, and pharmaceuticals.

Metalized Barrier Films Report Coverage

The report: “Metalized Barrier Films Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Metalized Barrier Films industry. 

By Type: High Moisture Barrier (HMB), High Speed Barrier (HSB), Ultra High Barrier (UHB), Others
By Material: Polyethylene, Polypropylene, Polyethylene Terephthalate (PET), Aluminum Oxide, Silicone Oxide, Poly Lactide Acid (PLA), Polyamides, Ethylene Vinyl Alcohol (EVOH), Polyvinyl Chloride, Others
By End Use Industry: Food and Beverages, Bakery Goods, Chips and Snacks, Frozen Foods, Dry Fruits, Dairy Whitener, Ketchup, Alcohol, Pharmaceutical, Personal Care and Cosmetics, Electronics, Aerospace, Industrial, Agriculture, Construction, Residential, Commercial, Office, Hotels and Restaurants, Concert Halls and Museums, Educational Institutes, Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways:

• Ultra-high barrier films are dominating the metalized barrier films market. This type of barrier film offers robust aroma, moisture, and gas barrier properties.
• The pharmaceutical sector will drive the growth of the market in the forecast period. As per the July 2020 data by the United States National Library of Medicine, in 2019, overall US pharmaceutical expenditures surged 5.4% compared to the previous year.
• The Asia-Pacific region will witness the highest demand for metalized barrier films owing to the expanding food and beverage industry in the region. According to the report by International Trade Association, the food and beverage industry in China accounted for $595 billion in 2019, a 7.8% jump compared to the previous year.

Figure: Asia Pacific Metalized Barrier Films Market Revenue, 2021-2027 (US$ Billion)

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Metalized Barrier Films Market - By Type

The ultra-high barrier film segment dominated the metalized barrier films market and is growing at a CAGR of 5.4% in the forecast period. This type of barrier film is used in demanding applications such as high moisture sensitivity. Ultra-high barrier films are a suitable alternative to aluminum foil and provide superior metal-to-film bond strength. Owing to such excellent properties, market players are focusing on the higher development of ultra-high barrier films. For instance, in September 2021, Flex Films, the global film manufacturing arm of UFlex, launched metallic polyester ultra-high barrier film F-UHB-M as a replacement for aluminum foil in flexible packaging applications. Such developments in the ultra-high barrier films segment will increase its demand in the metalized barrier films market during the forecast period.

Metalized Barrier Films Market - By Material

Polypropylene dominated the metalized barrier films market in 2021. Polypropylene-based metalized barrier films provide flexibility and robustness to packaging solutions in a cost-effective way. Polypropylene metalized barrier films block oxygen, moisture, and humidity, leading to the increased shelf life of the product. Metalized barrier films made of polypropylene are a one-stop solution in several industries owing to which market players are engaging in the higher development of polypropylene-based metalized barrier films. For instance, in April 2019, Cosmo Films, which deals with metalized barrier films, launched cast polypropylene (CPP) film for packaging applications requiring high oxygen and moisture barrier. Such developments in barrier films with the help of polypropylene will increase its demand in the forecast period. Polyethylene and polyethylene terephthalate will witness significant demand in the forecast period.

Metalized Barrier Films Market - By End Use Industry

The food and beverage industry dominated the metalized barrier films market in 2021 and is growing at a CAGR of 5.8% in the forecast period. Metalized barrier films are extensively used in the packaging application of a wide variety of food items and the expansion of the food and beverage sector globally will drive the market’s growth in the forecast period. For instance, according to the report by India Brand Equity Foundation, in April 2021, the Government of India approved a PLI scheme with an incentive outlay amounting to US$ 1,484 million for the food processing sector over six years starting from FY22. Similarly, according to the 2021 data by the United States of Agriculture (USDA), countries like the UK and the US have higher food spending in absolute terms. Such massive expansion in the food and beverage industry will increase the implementation of metalized barrier films which in turn will contribute to the growth of the market in the forecast period.

Metalized Barrier Films Market - By Geography

The Asia-Pacific region held the largest market share in the metalized barrier films market in 2021 with a market share of up to 34%. The high demand for metalized barrier films is attributed to the region’s expanding food and beverage industry. For instance, according to the 2021 data by Invest India, India recorded a 15% jump in the export of agricultural and processed food products between April-October. Similarly, according to the report by trade.gov, the food and beverage industry in China was approximately $595 billion in 2019, increasing 7.8% compared to the previous year. Such massive expansion in the region’s food and beverage industry will increase the demand for metalized barrier films in the forecast period. The European region is projected to witness significant demand for metalized barrier films owing to the region’s growing pharmaceutical sector.

Metalized Barrier Films Market Drivers

The booming pharmaceutical sector will drive the market’s growth

Metalized barrier films have deep roots in the pharmaceutical sector as they are used extensively in the packaging of multiple pharmaceutical products such as tablets, capsules, powders, creams, and ointments. The pharmaceutical sector is expanding globally and this will drive the growth of the market in the forecast period. For instance, as per the 2020 statistics by the European Federation of Pharmaceutical Industries and Associations, medicine imports in the European pharmaceutical segment amounted to US$ 387,325 in 2019 which was US$ 362,199 in the previous year. Similarly, as per the 2021 report by the India Brand Equity Foundation, generic drugs accounted for 20% of the global export in terms of volume, making India the largest provider of generic medicines globally. This high growth in the pharmaceutical sector will increase the higher uses of metalized barrier films in the packaging application and this will contribute to the growth of the market during the forecast period.

Expanding food and beverage industry will drive the growth of the market

The food and beverage industry ranks as the largest consumer of metalized barrier films due to the high implementation of these barrier films in the food and beverage packaging application. The food and beverage industry globally expanding with increasing production and investments and this will drive the growth of the market in the forecast period. For instance, as per the November 2020 data by FoodDrinkEurope, the food and drink industry in the European Union generates a turnover of US$ 1.3 trillion and US$ 300 billion in value-added, making it European Union’s largest manufacturing industry. Similarly, according to the data by Invest India, the export of poultry, dairy, and meat products from India increased from US$ 483.5 million during April-June 2020 to $1022.5 million in April-June 2021. Such massive growth in the food and beverage sector will increase the use of metalized barrier films in the packaging application for food and beverages and this will drive the market’s growth in the forecast period.

Metalized Barrier Films Market Challenges

Fluctuation in the prices of raw materials might hamper the market’s growth

The metalized barrier films involve raw materials such as polyethylene, polypropylene, and polyethylene terephthalate. These are petroleum-derived raw materials whose prices are fluctuating because of the volatility in petroleum prices and this might affect the growth of the metalized barrier films market in the forecast period. Petroleum prices dropped historically during the pandemic. According to the statistics by ourworldindata.org, the crude oil price in 2017 stood at US$ 54.19 per barrel which surged to US$ 64.21 per barrel in 2019. In 2020, the oil price again lowered to US$ 41.84 per barrel. Such fluctuations in oil prices created volatility in the price of petroleum, thereby fluctuating the prices of raw materials. This fluctuation in the raw material prices might hinder the growth of the metalized barrier films market in the forecast period.

Metalized Barrier Films Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the metalized barrier films market. Major players in the metalized barrier films market are:

1. Cosmo Films Ltd.
2. UFlex
3. Jindal Poly Films
4. Polinas
5. Toray Industries
6. Polyplex Corporation
7. DUNMORE Corporation
8. Amcor Ltd.
9. Others

Recent Developments

In September 2020, Cosmo Films Ltd. announced to set up a new line for biaxially-oriented polyethylene terephthalate films line by the second quarter of 2022-23. This new specialty polyester films line will help the company to expand its metalized barrier films portfolio in the forecast period.

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