Packaging Additives Market Overview

In 2023, the packaging additives market value was at USD 550 million, and it is forecasted to grow to around USD 790 million by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 4.2%. Packaging additives are chemical substances that are added to packaging materials to improve their performance and functionality. The demand for packaging additives is increasing due to the growing demand for packaging from the food & beverages, pharmaceuticals, and cosmetics industries.

In terms of packaging additives demand by additive type, the antifog additives segment accounts for the largest share of the packaging additives market. Anti-fog additives are non-ionic surfactants used to minimize fog formation on plastic sheets or plastic films. Fog formation takes place due to the condensation of vapors on the surface because of the difference between temperature, humidity, or surface tension.

Based on packaging type, the market is segmented into flexible and rigid packaging. Flexible packaging dominates the market because of the high demand for lightweight bags, pouches, shrink films, tubes, etc. They are manufactured at low costs but provide minimal protection as compared to rigid packaging which is more expensive and offer better protection.

In terms of packaging additives demand by end-use industries, the food & beverages industry dominates the market owing to the growing online food delivery sector. Packaged and processed foods consumption is boosting globally due to the increasing disposable income and hectic lifestyle of consumers which will help in increasing the packaging additives demand in the forecast period.

The development of new technologies, such as nanotechnology and smart packaging, has aided the production of packaging additives with improved properties, including enhanced barrier properties and antimicrobial properties.

Packaging Additives Manufacturers:

• Arkema
• Avient Corporation
• AkzoNobel
• BASF
• PPG Industries Inc.
• ColorMatrix Group
• Lubrizol Corporation

In 2021, Aveint Corp announced a new line of antifog additives for food packaging applications called Cesa Nofog Plus additive. This additive will help in reducing moisture and increase the shelf life of packaged foods.

Increasing demand for antimicrobial additives

Due to the COVID-19 pandemic, many companies have developed antimicrobial additives that can be added to packaging materials to help prevent the spread of disease. These additives are designed to kill or restrain the growth of bacteria and viruses on the surface of the packaging material.

Growing demand for sustainable packaging

There is a growing demand for sustainable packaging that is environmentally friendly and can be recycled or reused. Packaging additives, such as biodegradable additives and recyclable coatings, can help to improve the sustainability of packaging materials. There has been a significant shift towards sustainable packaging in recent years, with an increasing number of consumers and companies prioritizing eco-friendly packaging solutions. This has led to the development of new packaging additives that can improve the sustainability of packaging materials.

Increasing demand for shelf life and changing consumer preferences

Packaging additives can help to improve the safety and shelf life of food products by providing barrier properties that protect against moisture, oxygen, and other contaminants. Consumers are increasingly looking for packaging that is convenient, easy to use, and aesthetically pleasing. Packaging additives, such as colorants, fragrances, and texture enhancers, can help to meet these consumer preferences.

Stringent regulations and High costs

Packaging additives are subject to stringent regulations, particularly in the food and pharmaceutical industries, which may limit their adoption. Some packaging additives, such as bisphenol A (BPA) and phthalates, have been associated with health and safety concerns, such as endocrine disruption and developmental toxicity. These concerns may limit the use of these additives in certain applications. Packaging additives can be expensive, which may limit their adoption in some industries, particularly those with low-profit margins.

Packaging additives can be expensive, and the cost of incorporating them into packaging materials can be a significant barrier for some companies. This can limit the adoption of new, innovative additives.