Packaging Additives Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[206+ Pages Report] According to Facts & Factors, the global packaging additives market size was valued at USD 564 million in 2023 and is predicted to surpass USD 816.7 million by the end of 2032. The packaging additives industry is expected to grow by a CAGR of 4.20% between 2024 and 2032.

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Market Overview

Packaging additives refer to the materials used in packaged products to ensure the safety, quality, functionality, and appearance of the food products. There are different kinds of packaging additives available on the market, such as UV stabilizers, antifog additives, oxygen scavengers, antimicrobials, barrier enhancers, and others. The major function of packaging additives is to extend the shelf life of the goods and maintain their freshness and quality. Also, they help shield products from external factors like moisture, oxygen, and light.

Key Insights

• As per the analysis shared by our research analyst, the global packaging additives market size is estimated to grow annually at a CAGR of around 4.20% over the forecast period (2024-2032).
• In terms of revenue, the global packaging additives market size was valued at around USD 564 million in 2023 and is projected to reach USD 816.7 million by 2032.
• Growing demand for packaged goods is driving the growth of the global packaging additives market.
• Based on the packaging types, the flexible packaging segment is growing at a high rate and is projected to dominate the global market.
• Based on products, the antimicrobial segment is anticipated to grow with the highest CAGR in the global market.
• Based on substrate types, the plastics segment is projected to swipe the largest market share.
• Based on applications, the food application segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing demand for packaged goods is driving the growth of the global market.

Increasing urbanization is one of the major reasons for the high demand for packaged foods in the market. Moreover, the changing lifestyle of consumers is further driving the demand for ready-to-eat meals and convenience food in urban areas. Therefore, such emerging demand is boosting the requirement for food additives like oxygen scavengers to ensure food safety and freshness.

Moreover, the fast-growing pharmaceutical sector is also an emerging reason for the high growth rate of the global packaging additives market. There is a growing requirement for sterile and secure packaging solutions that offer anti-tampering and barrier-enhancing properties. The rising awareness regarding vaccination programs is also expected to positively impact the growth of the industry. The growth in usage of biologics is also driving the demand for specialized initiatives in the market.

For instance, Avient Corporation is said to come up with a new range of additive solutions in 2021. The company said its unique anti-fog additive can easily be used for transparent and thermoformed packaging solutions.

Restraints

• Strict regulatory framework is expected to hinder the growth of the global market.

Strict regulations and policies issued by government authorities like the FDA are likely to hamper the growth of the packaging additives industry. These policies involve regressive testing and compliance, which ultimately increase the cost and complexity for manufacturers.

However, the limited recycling infrastructure further causes difficulty in recycling and, therefore, slows down the adoption of such packaging solutions.

Opportunities

• Advancements in logistics and e-commerce are likely to foster growth opportunities in the global market.

The boom in online retail across the globe is significantly fueling the demand for tamper-resistant, durable, and aesthetically pleasing packaging solutions in the market.

Also, the rising focus of people on sustainability is further leading to the development of the global packaging additives market. Furthermore, the ban on single-use plastics is also expected to revolutionize the market by accentuating the demand for biodegradable packaging materials. Manufacturers are inclining more towards flexible packaging solutions for e-commerce because of the cost advantage and ease of handling.

For instance, Clariant came up with Addworks PKG158 additives in 2023 to throw new light on the safety and performance of polyolefin-based packaging.

Challenges

• Competition from alternative solutions is a big challenge in the global market.

The rise of biodegradable packaging solutions is a big challenge in the packaging additives industry as it lowers the demand for traditional additives. Also, advancements in material science help lower manufacturers' reliance on packaging additives, which is further expected to negatively impact the growth of the market.

Report Scope

Report Attribute	Details
Market Size in 2023	USD 564 Million
Projected Market Size in 2032	USD 816.7 Million
CAGR Growth Rate	4.20% CAGR
Base Year	2023
Forecast Years	2024-2032
Key Market Players	Sun Chemical Corporation, Songwon, PPG Industries, Lubrizol Corporation, Huber Group, Henkel, Flint Group, Clariant, BASF SE, Avient, Altana AG, Wacker Chemie AG, Sun Chemical Corporation, ColorMatrix Group, and Others.
Key Segment	By Packaging Types, By Products, By Substrate Types, By Applications, and By Region
Major Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
Purchase Options	Request customized purchase options to meet your research needs. Explore purchase options

Packaging Additives Market: Segmentation

The global packaging additives market can be segmented into packaging types, products, substrate types, applications, and regions.

On the basis of packaging types, the market can be segmented into rigid packaging and flexible packaging solutions. The flexible packaging solution segment is anticipated to register the highest CAGR growth during the forecast period. Flexible packaging is a highly preferred option for both consumers and manufacturers, particularly for lightweight packaging, as it offers lower transportation costs and environmental impact. These packaging solutions are suitable for e-commerce.

Also, these are versatile for a large range of applications in food, beverage, pharmaceuticals, and personal care sectors because of their easy adaptability to different sizes and shapes. Additives like UV stabilizers, oxygen scavengers, and antimicrobial agents further improve its barrier properties and make it ideal for packaging more diverse goods.

On the basis of products, the market can be segmented into clarifying agents, antistatic agents, antifog agents, antimicrobial agents, UV stabilizers, and others. The antimicrobial segment is likely to dominate the packaging additives industry during the forecast period. The increasing focus of people, companies, and governments on enhancing food safety is also expected to positively influence the growth of the segment. There is a surge in awareness among people regarding food-borne illnesses, and therefore, there is a strong demand for packaging additives that prevent microbial contamination. Antimicrobial agents prevent the growth of bacteria and other pathogens, thereby ensuring food security and safety.

Also, the COVID-19 pandemic has significantly led to the higher adoption of antimicrobial agents in packaging food products. These additives help manufacturers extend the shelf life of the products by inhibiting the growth of microbes that could degrade the food or healthcare items.

On the basis of substrate types, the market can be segmented into paper & paper board, metals, plastics, and others. Plastic is the fastest-growing segment in the global packaging additives market during the forecast period. A wide range of applications of plastics like polypropylene and polyethene globally is an important factor positively impacting the growth of the segment. Such materials are ideal for applications in different sectors like personal care, pharmaceuticals, food, beverage, and many others. There is a significant increase in the usage of flexible packaging like films, pouches, and wraps, which is also expected to strengthen the demand for plastic materials in the market.

Additionally, plastic is more cost-efficient than other alternatives in the market, such as metal, glass, or paper, which further appeals to end-users. However, sustainable innovations like bio-based plastics and recyclable plastic materials are also expected to revolutionize the market by addressing the floating environmental concerns.

On the basis of applications, the market can be segmented into food applications, dairy products, pharmaceutical & healthcare, cosmetic & personal care, and others. The food application segment accounts for the largest share of the packaging additives industry during the forecast period. The growing inclination of people towards packaged foods is emerging as a primary factor for the high growth rate of the segment. Increasing urbanization and changing lifestyles are also contributing to the increasing consumption of frozen and packaged foods.

Also, the rising focus of people on food safety and quality in order to prevent spoilage and maintain food freshness is likely to fuel the growth of the segment. Agents like oxygen scavengers, antimicrobials, and UV stabilizers are widely used in packaged foods to ensure food safety during the entire transportation and storage cycle.

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global packaging additives market during the forecast period. The US is the leading market in the region because of the strong demand for innovative packaging solutions in sectors like pharmaceutical, food, and beverage.

Also, the companies in the region are trying to come up with more sustainable solutions because of the changing regulatory landscape, which is also likely to positively impact the growth of the industry in the region. Mexico is also witnessing increasing investments in the food and beverage sector, particularly for functional packaging solutions, which is further anticipated to contribute immensely towards the growth of the regional market. The growing consumption of processed and convenience food in North America is also a major reason for the high growth rate of the regional market.

Asia Pacific is another major reason likely to see significant growth in the coming years. China is the largest market in APAC because of the presence of a strong manufacturing base. However, the changing government rules and regulations due to food safety and sustainability initiatives are also likely to contribute towards the growth of the market in APAC. India is expanding rapidly, particularly in the food, beverage, and pharmaceutical sectors, which is emerging as a crucial reason for the high growth rate of the regional market.

Also, the innovation of more cost-effective and sustainable packaging solutions in India is further driving the interest of end-users in the Indian market. Japan is also likely to positively impact the growth of the regional market because of the advancements and technological innovations in packaging additives and materials.

Additionally, many other Southeast Asian countries are witnessing a surge in e-commerce and food delivery services, which is expected to strengthen the demand for packaging additives in the market. Therefore, these factors are expected to contribute towards the growth of the regional market in the coming years.

Competitive Analysis

The key players in the global packaging additives market include:

• Sun Chemical Corporation
• Songwon
• PPG Industries
• Lubrizol Corporation
• Huber Group
• Henkel
• Flint Group
• Clariant
• BASF SE
• Avient
• Altana AG
• Wacker Chemie AG
• Sun Chemical Corporation
• ColorMatrix Group

For instance, BASF came up with a new range of additives named IrgaCycle to resolve the rising challenges in plastic manufacturing. These additives are expected to pay attention to improving the recyclable content in packaging applications under the company's goal to work on eco-friendly solutions.

The global packaging additives market is segmented as follows:

By Packaging Types Segment Analysis

• Rigid Packaging
• Flexible Packaging Solutions

By Products Segment Analysis

• Clarifying Agents
• Antistatic Agents
• Antifog Agents
• Antimicrobial Agents
• UV Stabilizers
• Others

By Substrate Types Segment Analysis

• Paper & Paper Board
• Metals
• Plastics
• Others

By Applications Segment Analysis

• Food Applications
• Dairy Products
• Pharmaceutical & Healthcare
• Cosmetic & Personal Care
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America