Global Barrier Resins Market - 2024-2031

Overview

Global Barrier Resins Market reached US$ 12.89 billion in 2023 and is expected to reach US$ 19.48 billion by 2031, growing with a CAGR of 5.30% during the forecast period 2024-2031.

Barrier resins are crucial elements in packaging, providing a protective shield against gases, vapors, and liquids. They can be derived from natural substances, such as flora, or synthetic, and are extensively utilized in products like fragrances, adhesives, and food packaging. Resins such as Polyvinylidene Chloride (PVDC), Ethylene Vinyl Alcohol (EVOH), and Polyethylene Naphthalate (PEN) address unique requirements across several industries, including food & beverage, medicines, cosmetics, and agriculture.

The rising demand for premium packaging in the pharmaceutical and cosmetic sectors, aimed at protecting and prolonging shelf life, is driving the increased utilization of barrier resins. The increasing utilization of barrier resins in industrial and agricultural sectors for certain requirements, such as chemical resistance and confinement, will further propel the market.

The evolving lifestyle habits of customers, along with increasing disposable income and a burgeoning e-commerce sector in developing nations like India and China, are driving the demand for more durable and well-packaged items. Additionally, increased consumer awareness of health consciousness is driving the market for barrier resins, especially in the food and beverage sector, where fresh and well packed items are favored.

Dynamics

Transforming Food and Pharmaceutical Packaging with Enhanced Shelf Life and Sustainability

The barrier resins have substantially contributed to the growth of this market by serving as substitutes for glass and cans in the food and beverage industries. Barrier resins can be molded to conform to any size and are easily shapeable. Barrier resins enhance the shelf life of certain food items, including canned goods, meat, dairy products, and carbonated beverages.

Moreover, the proliferation of enhanced production methods, bolstered by technological advancements and increased industry consolidation, has led to the development of numerous treatments, hence immediately escalating the demand for pharmaceutical packaging. This has expedited the proliferation of barrier resins worldwide.

Pharmaceutical products such as pouches, labels for bottled drugs, and push-through packs are generally safeguarded using barrier resins like PVDC and EVOH against light, moisture, oxygen, biological contamination, mechanical damage, and counterfeiting. In October 2023, Ashland Global Holdings Inc. launched a new low-density polyethylene (LDPE) resin featuring improved barrier qualities for flexible food packaging, which extends shelf life and minimizes material use.

Enhancing Chemical Integrity and Sustainability with Innovative Solutions

Barrier resins are predominantly utilized in packaging solutions to provide user-friendly packaging for diverse end-user industries. Agrochemicals and agricultural goods must be contained in non-reactive materials that preserve their chemical integrity. Barrier resins enable packaging materials to preserve their chemical integrity and texture while offering enough protection against external environmental influences.

Manufacturers of barrier resins have experienced a rise in market share as agrochemical and agricultural industry players opt to export their products in these containers, owing to the advantageous properties of these materials. This feature is expected to further enhance the future growth of the barrier resin market.

In January 2024, Dow Chemical unveiled a mass-balance plan to provide sustainable polyurethane solutions utilizing circular feedstock derived from a waste product of the transportation industry.

Regulatory Hurdles and Raw Material Price Fluctuations

The primary components, such as naphtha, natural gas, monoethylene glycol, and crude oil, are utilized in the production of plastic resins. The majority of global polyethylene resin is derived from crude oil, while natural gas is the primary source in the United States. The principal raw material for polyethylene terephthalate resins is monoethylene glycol (MEG).

The US Energy Information Administration (EIA) projects that the average spot price for natural gas was US$ 2.22 per million Btu in 2020, representing a significant decline from US$ 2.82 per million Btu in 2019. Consequently, the will impede the growth rate of the barrier resin market.

Furthermore, the rigorous restrictions imposed by numerous governments and the increasing demand for bio-based and sustainable barrier resins are anticipated to hinder the growth of the worldwide barrier resin market.

Segment Analysis

The global barrier resins market is segmented based on type, packaging, application, and region.

Ethylene Vinyl Alcohol (EVOH) Growth Driven By High Demand In Multilayer Packaging

Ethylene Vinyl Alcohol (EVOH) is projected to dominate a significant share of the Barrier Resins Market over the forecast period. The gas barrier qualities of EVOH, particularly against oxygen, are improving its use as a component in multilayer packaging films to extend the shelf life of food and beverages. The significant demand for this component in packaging applications to enhance product quality and freshness is primarily driving the expansion of the Barrier Resins Market.

The incorporation of EVOH alongside other barrier resins, such as polyethylene (PE) or polyethylene terephthalate (PET), in multilayer structures produces a synergistic effect, enhancing barrier performance in packaging materials. Although EVOH remains predominant, PEN is witnessing the most rapid increase owing to its sustainability advantages and broadening uses.

Geographical Penetration

Growth Of Barrier Resin Sales In Asia-Pacific Driven By Consumer Demand And Economic Expansion

The sales of barrier resins in the Asia-Pacific are anticipated to surge, resulting in an increased market share in this area. This forecast stems from reasons including evolving consumer preferences, continuous infrastructural development, and persistent economic growth noted throughout the region. Shifting customer preferences drive the rising need for items packaged with barrier resins to preserve freshness and quality, thus broadening the market.

Moreover, investments in infrastructure development projects, such as transportation and logistics networks, are improving supply chain efficiencies and enabling the distribution of barrier resin goods across the region.

Furthermore, the consistent economic expansion in the Asia-Pacific is enhancing market opportunities for barrier resins. Due to strong economic performance and increasing disposable incomes, customers are more likely to buy packaged items, hence enhancing the demand for barrier resin-based packaging solutions. The substantial population in countries such as China and India offers considerable market prospects for producers and providers of barrier resins.

Competitive Landscape

The major global players in the market include Solvay, Dow Chemical, INEOS, Kuraray, Teijin DuPont Films, Asahi Kasei, Ashland Global Holdings Inc., Invista, Kureha Corporation, Lg Chem, Mitsubishi Gas Chemical, The Nippon Synthetic Chemical Industry

Russia-Ukraine War Impact Analysis

The war between Russia and Ukraine has profoundly affected the barrier resin market by intensifying pre-existing issues, including escalating crude oil costs and supply chain interruptions. The US prohibition on Russian oil imports, together with sanctions on Russian exports, resulted in crude oil prices above $100 per barrel, thus driving up resin prices, including polyethylene (PE) and polypropylene (PP). .

The conflict has also impacted the global supply chain, especially with Ukraine's involvement in wooden pallet manufacturing. The deficit of pallets has exacerbated the shipment and storage of resins, amplifying logistical challenges. The persistent shipping difficulties and China's lockdown due to the Omicron variant have resulted in supply limits and cost pressures, hindering the revival of the barrier resin market.

By Type

• Polyethylene Naphthalate (PEN)
• Polyvinylidene Chloride (PVDC)
• Ethylene Vinyl Alcohol Copolymer (EVOH)
  • Cyclic Olefin Copolymer (COC)
  • Polyethylene Terephthalate
  • Polypropylene
  • Nylon
  • Others
• Biobased Barrier Resins
• Others

By Packaging

• Flexible packaging
• Rigid packaging

By Application

• Food & Beverage
• Cosmetics
• Pharmaceutical
• Agriculture
• Industrial
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In November 2023, INEOS Styrolution Group finalized the acquisition of BASF's global styrene business, establishing itself as a significant contender in the polystyrene (PS) industry, which is employed in barrier resin blends.

Why Purchase the Report?

• To visualize the global barrier resins market segmentation based on type, packaging type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of barrier resins market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global barrier resins market report would provide approximately 68 tables, 58 figures, and 224 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies