Alexander Watson Associates shares a new market evaluation on vacuum coated and metallized products.
The lower basis weight, ease of recycling, and high yields of recovered base material have made vacuum coated papers and films valued alternatives to the functional barrier properties offered by alternative materials such as aluminum foil, coated films, and extrusion-coated papers. The newly-published AWA Vacuum Coated & Metallized Products Market Review 2017 provides an accurate in-depth global guide to this healthy and growing industry, for all involved or interested in the value chain at every level.
Healthy global growth
Featuring up-to-the-minute data on global and regional volumes; market structure; raw material trends; market characteristics by substrate; and projected future growth, the report forecasts growth in global production in the short- to medium-term at between 4 and 5%. Regional differences are, however, noted and documented.
The developing economies
The Asian region is today the key driver, as its countries – particularly China – continue to develop packaging sophistication to meet increased consumer buying power. There is now significant demand for flexible packaging, which is complementing continuing interest in labeled premium products. Growth in metallized papers and boards – essentially focused on transfer metallizing – also remains relatively strong, driven by cigarette packaging and by exports of materials such as holographic giftwrap and label papers. China and India are major producers and exporters of vacuum metallized materials, both for domestic regional use and for low-cost exports to North America and Europe.
In South America, the economic instability of recent years has led to major GDP growth declines, but GDP is now forecast to recover at a rate of 1.6% in 2017 to 2.6% in 2019, with healthy 2016 growth in vacuum-coated products fed by continuing investment in vacuum coating technologies and end-use markets.
Africa and the Middle East offer considerable potential for further development - currently frustrated by local economic and political considerations, except in the major, more developed label markets of Israel and South Africa.
North America and Europe
The markets in North America and Europe are certainly maturing. In 2016, they grew respectively by 3% and 2%. In both markets, metallized paper is experiencing serious competition from alternative materials and packaging styles. Metallized film growth is, however, healthy, with developments in higher-value-added coatings and coating combinations. Turkey is now a strong producer of metallized films – especially OPP -- and a key supplier to the wider European market and for exports to USA.
In North America, there is a particular trend towards the use of vacuum coated films in technical applications such as aerospace, window films, and security, as well as in flexible packaging. Metallized papers remain focused on labels, and both North America and Europe are experiencing a slowdown in the production of metallized paper for giftwrapping.
A growing technology choice
Overall, the AWA Vacuum Coated & Metallized Products Market Review 2017 documents the fact that vacuum coating and metallizing remains a growing technology choice around the world, with plenty of future opportunities for new applications.