What are the extrusion coating driving sellers quality through SWOT and PESTEL consider?
Extrusion Coating Market by Material Type (Low-Density Polyethylene, Ethylene-Vinyl Acetate, Polypropylene), by Substrate (Paper & Paperboard, Polymer Film, Aluminum Foil), by Application (Liquid Packaging, Flexible Packaging, Commercial, Photographic), by Geography (U.S., Canada, Germany, France, U.K., Italy, Spain, China, Japan, India, Brazil, Mexico, Saudi Arabia, South Africa)
The factors responsible for driving the global extrusion coating market include the expanding food and beverages industry and rapid economic growth. In 2017, the market was valued at $3,703.8 million, and it is predicted to grow at a CAGR of 4.2% during the forecast period (2018–2023). Extrusion coating is the application of molten plastic on different surfaces, such as polymer films, paper and paperboard, and aluminum foil. It forms a protective barrier against water vapor, heat, moisture, grease, aroma, and oxygen.
In the extrusion coating market, the increasing usage of polypropylene (PP) in commercial packaging applications owing to its advantages is the key trend. PP is used as a fiber or plastic in end-use industries because of its flexibility and toughness. Medicines as well as food products, such as ketchup, yogurt, and beverages, are packaged using this material. Some added advantages of PP coating are relatively low cost, high moisture and chemical resistance, and great electrical insulation quality, which are urging food and beverages companies to use it for packaging.
The growing food and beverages industry has supplemented the growth of the extrusion coating market. The emerging trend of convenience food products, such as ready-to-drink, ready-to-cook, and ready-to-eat items, along with the demand for healthy food products, including sugar-free, lactose-free, low-calorie, and gluten-free products, is aiding the food and beverages industry growth. For packaging applications in the industry, extrusion coating materials are used as they offer protection from external environmental factors and also enhance their aesthetic appeal.
The expanding food and beverage industry is one of the major drivers of the extrusion coating market. The growth of this industry is due to the increase in population, government regulations, disposable income, and awareness among people regarding health. In addition to this, the trend for convenience food products, such as ready-to-cook, ready-to-drink, and ready-to-eat foods, is also growing. As extrusion coating materials play a considerable role in packaging applications in the beverage and food industry, their demand is increasing significantly.
The extrusion coating market is also being positively impacted by economy prosperity. The improvement in the global economy is being reflected in the progress of industries such as personal care, electronics, sporting goods, healthcare, food and beverages, and consumer goods. An estimation by the International Monetary Fund for 2018 revealed that emerging economies would experience an economic growth rate of 4.9%. The increasing disposable income is resulting in the rising spending power of consumers, and the above-mentioned industries rely on extrusion coating for their product packaging. Therefore, their progress is helping the market grow.
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