In its latest study, Smithers projects the total value of the functional barrier coatings for paper and board will reach $8.56 billion in 2023, with almost 3.37 million tonnes of coating material to be consumed globally.
Functional coatings, ideally those that do not compromise recyclability, are central to the continued evolution of more sustainable fibre-based packaging, and several major paper companies have already invested to fit high-throughput coating to paper mills, anticipating a continued increase in demand for new lines of value-added products across multiple sectors.
The Future of Functional and Barrier Coatings for Paper and Board to 2028 report said that with demand strengthening in many segments, pack coatings are also benefiting from increased R&D spending, as new corporate and regulatory targets are set to enter into force, with the earliest set for 2025.
Smithers forecasting tracks coating demand to increase to $10.79 billion in 2028, equivalent to a compound annual growth rate (CAGR) of 4.7 per cent for the five-year period. Across the same time, volume demand will increase at a marginally faster CAGR of +4.8 per cent to reach 4.25 million tonnes in that year.
In what it says is a timely report, Smithers’ authoritative quantification of the market tracks the prospects for coated corrugated, flexible papers, cartonboard, liquid paperboard, and moulded fibre packaging across 13 distinct packaging segments.
“It shows that the greatest potential lies in the food sector, which represents 77 per cent of contemporary coatings demand. Here, there is a direct demand for functional barrier coatings that can protect paperboard – from grease, oil and moisture,” Smithers said.
“Single-use plastics legislation makes paper cups and food trays an immediate priority, as is developing barrier solutions for paper grades made with non-virgin, recycled fibre stocks.
“Evolution of coating technology will allow for greater diversification of fibre packaging into other formats, with several big-name brand owners actively investigating paper-based bottles.”
Beyond food and beverages, the report says that suppliers are looking to capitalise on demand for superior functional paperboard coatings for use in chill chains, e-commerce, personal care, and medical packaging. It says a parallel trend is the development of more aqueous, water-based application systems.
Of the six major coating technologies it profiles, Smithers research shows the fastest growth will be thermoplastic polymers, closely followed by aluminium barriers, and silicones.
Despite overall expansion, the use of wax coatings is set to decline over the Smithers forecast period, while fluorochemical coatings are increasingly being pushed from the market, backed by tightening restrictions on per- and fluoroalkyl substances (PFAS).
The Future of Functional and Barrier Coatings for Paper and Board to 2028 is now available here.
