Metalized Films Market

Market Overview

Metalized films, also referred to as flexible packaging films, offer a robust solution for the packaging of different food and other FMCG items. Metalized films are covered with a thin layer of metal, for the most part, aluminum. It can likewise be covered with copper, chromium, or nickel metal. The covering offers a few characteristics, including reflexive appearance, high obstruction properties, low porousness, higher firmness, and great sealing ability. With low oxygen and air transmission rates, the metalized film is used to preserve the perishable items for a longer period.

The need for effective packaging solutions for perishable products in the food and beverage and pharmaceutical sectors drives the market growth. Metalized films possess high barrier properties from the surrounding environment that resists water and oxygen transmission, which fulfill the required criteria to preserve foods and medicines. Metalized films possess similar properties to other foil laminates at a lower-cost, which expanded its applications in the FMCG sector.

The increasing demand for film capacitors is projected to boost the demand for metalized films, and many companies are investing in the manufacturing of film capacitors. For instance, in July, New Yorker Electronics announced a new metalized polypropylene film capacitor for UPS, AC power supplies, and general AC filtering applications. The increasing use of metalized films as an insulator in shipping containers and aircraft is propelling the market growth. Additionally, the adoption of metalized films for decoration purposes is increasing, owing to their reflective metallic appearance, which further fuels the demand for metalized films.

The global metalized films market is expected to grow at a CAGR of 4.9% during the forecast period, 2023–2031.

Market Dynamics

Growing Health-Conscious Population to Stimulate Demand for Metalized Films for Packaging

A positive and healthy lifestyle has always been associated with food choices. Convenience channels have had to evolve far beyond consumer-packaged-goods (CPG) as more consumers are leaning towards health and wellness. Forefront packaging innovations, such as metalized films, extend product shelf life as well as ensure food safety. Metalized film packaging is emerged as more user-friendly and convenient, supplementing the grab-and-go category growth.

Consumers are closely consulting packaging information (Figure 2) and nutritional facts panel (NFL) to make healthy choices, which further shed light on the importance of packaging. Additionally, metalized films provide more affordable solutions to store food as it doesn't tend to react and keep food fresh for a longer duration, generating higher demand for such products. The convenience service industry is worth USD 25 billion and serving millions of customers each day, with more than 5 million vending machines, as per the National Automatic Merchandising Association (NAMA). The U.S represented 20% of the world's retails sales for sauces, dressings, and condiments in 2016.  From 2012 to 2016, over 9,617 sauces, dressing, and condiment products were produced in the U.S.

Segmental Analysis

Cost-Effectiveness of Aluminum to Drive the Segment Growth

The aluminum segment is expected to lead the metalized films market during the forecast period, owing to its lightweight, cost-effectiveness, appearance, and properties, including corrosion-resistant and highly effective barrier against air, temperature, moisture, and chemicals. Moreover, a rising number of SMEs providing aluminum metalized films, especially in the Asia-Pacific, fuels market growth. The immensely growing online food delivery market is ultimately propelling the demand for aluminum metalized films and is likely to continue the same trend during the forecast period, 2020–2029.

Food and Beverage and Pharmaceutical Sectors: Largest Consumers of Metalized Films

The packaging is expected to be the largest application segment in the metalized films market during the forecast period. Packaging has emerged as the largest consumer of metalized films, owing to the rising demand for metalized films from the food and beverage, and pharmaceutical sectors. The need for flavor and aroma retention, along with long shelf life, is a prime driver for metalized films in the food and beverage and pharmaceutical sectors.

Regional Analysis

The U.S.: Largest Contributor to North America's Market Growth

North America is expected to witness notable growth in the metalized films market during the forecast period, owing to the increasing consumption of packaged foods and the rising adoption of metalized films in the packaging industry. Increasing demand for nylon and polyethylene metalized films in the meat export market is further driving the regional market growth. North America's metalized market is sub-segmented into the U.S., Canada, and Mexico. The U.S. is expected to be the largest contributor to the development of the regional market, followed by Canada and Mexico.

India and China to Be the Frontrunners in Asia-Pacific's Market Growth

Asia-Pacific is expected to be the fastest-growing market for metalized films during the forecast period, owing to the rising consumption of processed food products and increasing demand for household products. The rapidly growing population, rising disposable income and consumption expenditure, changing lifestyle, and surging awareness regarding health and nutritional food products drive the regional market growth. Asia-Pacific is sub-segmented into Japan, China, India, South Korea, Australia, and the Rest of Asia-Pacific. China is expected to lead the regional market, whereas India is expected to witness significant growth in the metalized films market. In the recent past, India has emerged as a food processing hub and witnessed an immense increase in packed food consumption. The country benefits from the large agricultural sector's cost competitiveness and developing food processing infrastructure.

Recent Developments

• In January 2020, AR Metallizing announced the acquisition of Eurofoil-Paper Coating GmbH, a producer of metalized, laminated, and coated paper products
• In July 2018, DUNMORE announced the expansion of its portfolio of UL listed backsheets for photovoltaic applications with the launch of DUN-SOLAR sheets
• In 2017, Jindal Poly Films Limited was in the talk to acquire the European operations of DuPont Teijin Films (DTF), a producer of metalized and coated films, to achieve a market-leading position
• In December 2016, Jindal Poly Films Limited introduced polyolefin sealant technology, a unique packaging film targeted to replace sealant layers in lamination or single layers in mono-web applications
• In May 2016, Jindal Poly Films Limited announced the production of polyester films in LaGrange, Georgia facility which expected to start by early 2019

Metalized Films Market Segmentation

By Material

• Polypropylene (PP)
• Polyethylene Terephthalate (PET)

By Metal

• Aluminum
• Copper

By End-Use

• Packaging
• Decoration
• Electronics

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany
• France
• The U.K.
• Italy
• Spain
• The Netherlands
• Russia
• The Rest of Europe

Asia-Pacific

• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Malaysia
• Singapore
• Vietnam
• The Rest of Europe

Central and South America and the Caribbean

• Brazil
• Argentina
• Colombia
• The Rest of Central and South America and the Caribbean

The Middle East

• Saudi Arabia
• The UAE
• Oman
• Bahrain
• The Rest of the Middle East

Africa

• Nigeria
• South Africa
• Ghana
• Tanzania
• The Rest of Africa