Increasing demand for effective packaging solutions from end user industries along with the introduction of food safety regulations is driving the demand for the nano-enabled packaging market.
The Nano-enabled Packaging Market size is projected to grow at a CAGR of 13.2% from USD36.71 billion in 2019 to USD99.68 billion by 2027. Increasing requirement for effective packaging solutions for food and beverages, pharmaceutical sectors is a chief factor augmenting the industry’s steady growth. Apart from this, food safety regulations introduced by governments around the world is further fuelling the market’s growth.
Increasing investments for developing efficient packaging solutions is likely to provide major boost to the industry. Growing awareness about the benefits of packaging solutions especially for food items and pharmaceuticals is having a major positive impact on the industry. Apart from this favourable regulations introduced by organizations like FDA regarding manufacturing of packaging materials is expected to further augment the market’s growth. These packaging solutions are extremely beneficial for pharmaceuticals, personal care and cosmetics products, beverages, meat products, vegetables and ready-to-go meals amongst others. The industry would witness significant growth in the Asia Pacific sector due to the well established food processing, pharmaceutical and personal care sector in countries like China, Japan and India.
The major factor restraining the industry’s growth is the high cost of the materials used in nano-enabled packaging which ultimately makes the products using such packaging costly. Thus these products become unaffordable to a major section of the population. Major players of the market are trying to formulate strategies in order to negate this factor.
The COVID-19 impact:
The COVID-19 pandemic is likely to have a major positive impact on the growth of the market. The demand from every sector would increase significantly. Usage of such packaging materials would become necessary since awareness amongst people would increase. People would become more conscious about the spread of micro organisms and would increasingly adopt safety measures or equipments. This would create a demand-supply gap in the industry and the major companies in the market need to respond to the situation quickly. They need to scale up their production levels and show their social responsibilities. The major players need to strategise their operations in order to address the growing requirement for the market products.
Further key findings from the report suggest:
- The intelligent and smart packaging technology segment is growing in popularity due to its utility in preserving bakery products, meat products, beverages, fruits and vegetables.
- Offline sales channel is popular among small suppliers and producers who are trying to cater to the domestic markets of their respective regions.
- The pharmaceutical application is predicted to have significant growth due to increasing awareness amongst people regarding quality of drugs.
- The European countries are forecasted to retain a steady growth rate due to high demand from food and beverages as well as personal care and cosmetics industry. Introduction of food safety regulations is expected to drive the market’s growth
- In May 2020, Danaflex Nano LLC launched packaging material for COVID test strip, antiseptics and other personal medical equipment.
- In June 2020, BASF SE extended its packaging coatings production to South China to cater to the growing domestic demand and reduce lead times.
- Key players in the market include BASF SE, Danaflex Nano LLC, Amcor Limited, Chevron Philips Chemical Co. LLC, Sonoco Products Co., Honeywell International Inc., Bemis Company Inc., Avery Dennison, Tetra Pak International S.A. and DuPont Teijin Films.
- There have been a number of M&A in the industry like Amcor Limited acquiring Bemis Company Inc in 2019, BASF SE acquiring polyamide business from Solvay in 2020 and Tetra Pak International S.A acquiring South African company Gaussian in 2020.
- Key players in the market BASF SE, Danaflex Nano LLC, Amcor Limited, Chevron Philips Chemical Co. LLC, Sonoco Products Co., Honeywell International Inc., Bemis Company Inc., Avery Dennison, Tetra Pak International S.A. and DuPont Teijin Films.
Source: Reports and Data